Russia: The news of the deal was revealed by the Izvestiya newspaper, citing the minutes of the 3 April meeting of the Russian Government Commission on Monitoring Foreign Investment, and confirmed by the German manufacturer.
“As required by the current EU sanctions, Siemens Mobility has sold its minority stake in the Russian joint venture UL (Ural Locomotives, a subsidiary of the Sinara – Transport Machines. – Ed.) and is no longer associated with it”, the newspaper quotes the German groups’s response.
The stake was sold to Otavit, a corporation founded in the summer of 2024. It acquired 50% of the capital of Urals Locomotives Holding B.V., which owns a 100% of Ural Locomotives. As Izvestiya cites the Commission, the cost of the deal is almost RUB 2.16 ($25.7 mln). However, 35% of the payments, or RUB 755 mln ($8.99 mln), will be paid by Siemens to the Russian treasury as a divestiture fee. The transaction is under the control of the Russian Ministry of Trade.
Since 2010, Ural Locomotives has been operating as a joint venture between Siemens Mobility and Sinara Group, established for the production of electric locomotives and EMUs. In May 2022, Siemens announced its withdrawal from the Russian market, and from 1 June, 2022, the Sinara – Transport Machines obtains control over the plant. Now, the Russian party is independently developing the site, including preparations for the start of production of high-speed trains.
The Commission has set requirements that Ural Locomotives will have to meet from 2025 to 2027, which, according to Izvestiya, will be controlled by the Ministry of Trade. The production targets for EMUs are 95 in 2025, 106 in 2026 and 207 in 2027 and for electric locomotives are 219 in 2025, 192 in 2026 and 2027. The company is expected to generate proceeds of RUB 45.1 bln ($544.9 mln) in 2025, RUB 50.3 bln ($607.7 mln) in 2026, and RUB 101.2 bln ($1.2 bln) in 2027. The number of jobs will not be less than 4,000, Izvestiya reports.
Efforts to sell the stake are not the only interaction between Ural Locomotives and Siemens Mobility. The companies are involved in legal proceedings, with the Russian company seeking remedy and compensation for breached contracts on the supply of equipment. For example, the Commercial Court of the Sverdlovsk Region has ruled in favour of Ural Locomotives in a series of lawsuits against the German company for a total of RUB 748 mln ($9 mln). This week, the Moscow Commercial Court also ordered Siemens Mobility to deliver additional traction equipment sets for 11 Lastochka EMUs and to pay penalties of RUB 25.4 mln ($0.3 mln). Significant penalties have also been imposed for non-performance of contracts with Russian Railways.
