Finland's VR halting freight traffic to Russia by end of 2022
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Loading... - David Belmonte
- 04 May 2022
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VR Group on Tuesday announced it will terminate its contracts related to rail freight transport between Finland and Russia.
The Finnish state-owned railway company reminded that its board of directors decided last month to halt the operations in a controlled manner, adding that it has now devised a plan to that effect while consulting with clients and taking into account both the legislation and security-of-supply concerns.
The process of terminating the contracts began on Tuesday. Some of the traffic may continue until the end of the year in accordance with the contract terms, if requested by the other contract party, according to VR.
The company pointed out that it has to, in principle, terminate the contracts in accordance with the contract terms given that given the lack of sanctions targeted at rail transport between the EU and Russia. Should the EU recourse to such sanctions, the timetable for the suspension of traffic will be accelerated accordingly.
Topi Simola, the acting managing director of VR Group, revealed that the traffic volume is expected to drop to roughly one-third of the original levels by the end of the summer.
“Some customers want to continue traffic until the end of the notice period, but we are still continuing negotiations on stopping traffic faster than this. In any case, all Russian freight traffic operated by VR will end by the end of the year at the latest,” he told.
VR Group has also commenced negotiations over the sale or liquidation of two of its Finnish associated companies, Container Trans Scandinavian and Freight One Scandinavian. Read More...
