Archive · 13 Aug 2025
Vande Bharat JV Restructured Amid Sanctions Concerns
India is working with Russia on new Vande Bharat sleeper trains.
However, sanctions against a Russian company were causing problems with getting parts.
To solve this, the ownership of the project changed.
Now, a different Russian company owns more of the project, which should help keep supplies coming without issues.
The goal is to build the trains faster and deal with any challenges from the sanctions.
Indian Railways restructured its Vande Bharat sleeper train joint venture.
Locomotive Electronics Systems increased its stake to 40%.
Metrowagonmash's stake decreased to 35%, RVNL holds 25%.
Restructuring addressed potential Western sanctions concerns.
Changes aim for uninterrupted supplies and project acceleration.
- Who
- The joint venture involves Indian Railways, RVNL, and two Russian entities: Metrowagonmash and Locomotive Electronics Systems.
- What
- Indian Railways restructured the Vande Bharat sleeper train joint venture.
- When
- The changes were announced on August 13, 2025.
- Where
- Involving a joint venture related to Indian Railways.
- Why
- To ensure continued supply of components due to Western sanctions.
Official Purpose vs. Actual Motivation
Impact of the Change
Reason for Change
Official Purpose vs. Actual Motivation
The reshuffle was solely intended for cost optimisation purposes.
Impact of the Change
The primary intention was to circumvent Western sanctions against Metrowagonmash.
- JV Name
- Kinet Railway Solutions
- LES Stake (Before)
- 5%
- LES Stake (After)
- 40%
- Metrowagonmash Stake (Before)
- 70%
- Metrowagonmash Stake (After)
- 35%
- RVNL Stake
- 25%
- RVNL Equity
- Over 8,600 crore