Company close to Rotenbergs to make millions off Ministry of Defense’s scrap metal
Former subsidiary of the Russian Railways, TransLom has received a contract for the sale of scrap of ferrous and nonferrous metals of the Ministry of Defense.
The former subsidiary of the Russian Railways TransLom, which Kommersant accused of having relation to Rotenberg's business, has received the right to sell scrap of ferrous and non-ferrous metals, as well as decommissioned military equipment from the Ministry of Defense at market value and without trading. This is reported by RBC citing a presidential decree. According to the publication’s estimates, the company will be able to earn at least 2.8 billion rubles ($49,770,000) a year selling black scrap alone.
It is noted that TransLom had previously engaged in the disposal of the decommissioned rolling stock of Russian Railways, being the largest player in this market. The company's capacities allow processing more than 250 thousand tons of scrap per year. In addition, there is a possibility to transport goods, even in remote areas of the country.
According to the explanatory note to the presidential decree, the Ministry of Defense plans to sell from 230 thousand tons of ferrous and non-ferrous metals in 2017. As RBC notes citing a source, the Ministry has accumulated a large amount of scrap metal over the recent years; in addition to unused vehicles and motorcycles, there are old APCs and T-54s.
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