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Finland seizes trains from joint venture with Russia

Finland's state-owned railway company VR said on Thursday it had seized four trains that it co-owned through a joint venture with its Russian counterpart, Russian Railways (RZD), that used to travel between the two countries.
Reuters
Border traffic at Raja-Joosepi border station between Finland and Russia A fence at the Raja-Jooseppi border station in Lapland, northern Finland, 27 November 2023. Raja-Joosepi border station is the only station on the border between Finland and Russia that is open to traffic after Finland has closed crossing points on its border to Russia as more asylum seekers try to get to Finland. EPA-EFE/TOMI HANNINEN

The Russian government had neglected its financial obligations towards the Karelian Trains joint venture, VR said in a statement, adding its negotiations with Russian Railways had lasted over one and a half years without any result.

Passenger trains between Finland and Russia were suspended in March 2022, following Russia's full-scale invasion of Ukraine.

VR redeemed Karelian Trains' loans when the venture faced bankruptcy in June 2023, and obtained rights that allowed it to seize the trains, it said.

Russian Railways declined to comment.

The Allegro trains, tilting high-speed trains also known as Sm6, each consist of seven carriages, according to VR.

The trains are expected to be put into service in domestic long-distance travel in Finland from 2025.

(Reporting by Louise Breusch RasmussenAdditional reporting by Gleb StolyarovEditing by Mark Potter)

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