Russian Railways in Gefco talks

Russia's state railway monopoly is in talks to buy Peugeot's logistic business Gefco, which distributes General Motor's (GM) Vauxhall and Opel cars around Europe and Russia.

Russian Railways is expected to pay €800m (£640) for a 75 per cent stake in Gefco, which would first pay a €100m dividend to the debt-laden French car group Peugeot.

Gefco became GM's exclusive logistics partner in Russia and Europe in July, in a deal that will see it distribute around 1.2 million vehicles a year.

Russia, the world's ninth-largest economy, is seeking to diversify away from oil and gas and has made developing its manufacturing base – particularly the Russian car industry – an economic priority.