CORRECTED-Russia, Libya sign $3.4 bln rail contract

Thu Apr 17, 2008 8:59am EDT

(Corrects Yakunin's first name to Vladimir from Alexander)

TRIPOLI, April 17 (Reuters) - State-controlled Russian Railways signed on Thursday a 2.2 billion euro ($3.48 billion) contract with Libya to build a line between the cities of Sirte and Benghazi, witnesses said.

The deal was signed by a Libyan official and Russian Railways head Vladimir Yakunin, one of several Russian executives accompanying President Vladimir Putin on a visit to Libya, they said.

Officials have said the venture would take four years to complete and involve Libyan subcontractors. (Reporting by Oleg Shchedrov, Writing by William Maclean, editing by Rory Channing)

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