Russian Railways Becomes an Indirect Owner of Luhanskteplovoz

According to RBC news service, Russian Railways has acquired a blocking stake in the Netherlands-based company Breakers Investments B.V., which holds 100% in the Russian transport machine building industry leader Transmashholding, an owner of 75% stake in Luhanskteplovoz (LTPL: U/R). Inna Perepelytsya: Russian Railways became an indirect shareholder of Ukrainian locomotive producer Luhanskteplovoz (as we said in our July 31 report). The holder of 75% stake in Luhanskteplovoz is Bryansk Heavy Machinery, which in August this year integrated into Russian rolling stock holding Transmashholding. This news is positive for the company, as Russian Railways is the main customer for its locomotives. This will act as an additional reason not to reprivatize Luhanskteplovoz.