Russian Railways (RZD) has proposed to its main shareholder, the Russian state, to pull out of the tender process for Greek railway companies TRAINOSE, according to Russian News Agency RIA Novosti.
The two bidders so far are Russia’s RZD, Romania’s GFR and the U.S. firm Watco. RZD was supposed to buy TRAINOSE in cooperation with Greece’s GEK Terna conglomerate for 100 percent of the shares.
The Greek government and HRADF appeared to be taken aback by the sudden turn of the Russian company. According to the RIA Novosti report, the decision might have to do with the change in the company’s management with the departure of chairman Vladimir Yakunin.
According to a Kathimerini daily report, market professionals said on Thursday it was hard to say whether the decision was made on business or political grounds. However HRADF and the Greek state did not cater to all of RZD requirements and demands.
The cancellation of the deal may throw off the privatization program of the Greek government in relation to its bailout program requirements. However is not yet known whether Moscow will accept the RZD proposal to withdraw.