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Russian steel, coal producers agree use-or-pay deal with state railway

January 24, 2012 - 18:31 GMT Location: Moscow

KEYWORDS: Russia , steel , coal , freight , logistics , RZD , Vnesheconombank , Severstal

Russian steel and coal producers have signed an agreement with state-run Russian Railways (RZD) and Vnesheconombank on a use-or-pay approach for the use of newly built railroads, the rail monopoly said in a statement on Tuesday January 24.

The agreement stipulates that producers sign long-term agreements specifying the volumes, terms and destinations of cargoes they wish to be transported by RZD. The rail monopoly will use this information to determine where it needs to build railways...

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.

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