Transoil has increased its fleet of rail cars by around 70 percent after acquiring 10,000 from Russian rival Freight One for an undisclosed sum, to extend its lead as the country's biggest transporter of oil and refined products by rail.

Transoil, which accounts for over a fifth of oil shipments by rail, said on Friday it now had 25,000 rail cars after the deal with Freight One, controlled by Vladimir Lisin, Russia's No.2 richest businessman.

Oil shipments by rail are key to exports since a large volume of refined products in particular reach port by rail.

Transoil is controlled by billionaire Gennady Timchenko, also the co-owner of trade house Gunvor.

Lisin outbid Timchenko when Freight One was auctioned by state-controlled Russian Railways last October.

Freight One said most of the rail cars it sold had been rented out to several firms, including Transoil. The proceedings will be used to buy other types of rail cars and locomotives.

Transoil shipped over 28 million tons of oil and refined products by rail in the first half of the year. Its main clients were Russia's top crude producer - Gazprom Neft, Rosneft and Surgutneftegaz. (Reuters)