OREANDA-NEWS. October 7, 2009. Salman Babaev, General Director of JSC Freight One, and Michael Aro, President of VR-Group, today signed a shareholder agreement defining the managerial principles of the jointly-founded enterprise Freight One Scandinavia Ltd.

The registered capital of the joint venture (JV) has been set at EUR 1 million. Freight One and VR-Group are obligated to finance the JV in equal measure by subscribing to shares in it. The JV will not require any additional investments to set up since it will make use of the rolling stock and production infrastructure of Freight One and VR-Group. Consequently, Freight One Scandinavia Ltd. will be financed by revenue generated by the enterprise itself. The company was provisionally estimated to be worth EUR 17.4 million as of the date it was founded.

The JV will be managed by the executive director, who shall be appointed and relieved of responsibility by decision of the Board of Directors of Freight One Scandinavia Ltd. The Board shall be made of two representatives from Freight One and two from VR-Group.

The purpose of the joint venture is to increase the export, import and transit volumes carried by Freight One and VR-Group between Russia and Finland. Freight One Scandinavia Ltd. will arrange transportation of goods for industrial and commercial enterprises in the following areas: raw materials and finished goods in the timber industry, including paper and pulp; raw materials and finished goods in the metal-working and chemical industries; oil and petrochemical products; construction materials; machines and equipment.

Freight One Scandinavia Ltd. is due to be registered by the end of 2009 in Helsinki (Finland).