Russian Railways (RZD) has approved a joint venture between its subsidiary JSC Freight One and Finland-based VR for freight rail transport between the two countries.

The joint venture company (jvc) will be involved in the sales, shipping, marketing and related services of freight rail transport. The JVC will mainly transport paper in covered wagons.

The company will be formed under Finnish law under a 50:50 partnership between the two firms.

The volume of traffic is estimated at 50,000t per annum.

RZD says the JVC could extend its scope to other European countries in future.