Transport infrastructure construction boom imminent in Russia

Russia’s 2010-2015 transport infrastructure development programme envisages a total investment of approximately $450bn over the next five years. The crisis has reduced the ability to raise such substantial sums. However, as a result of several measures undertaken by the government, such as the reintroduction of road funds, the planned volume of spending for infrastructure development will not have to be substantially reduced. After the preparations for the Sochi Olympic Games, a further additional boost for the industry will come from investments needed for the 2018 World Cup finals.
In 2008, the Russian government rolled out an ambitious programme designed to effect radical improvements to the country’s ailing transport infrastructure. At a cost of RUB 13.5tr ($450bn), thousands of kilometres of new motorways, railways and waterways were to be built, along with numerous sea ports and airports. Roads and railways were to account for almost 80% of the programme’s proposed funding. Of the total amount, one-third was to have come from the federal coffers, 5% from regional budgets and interbudgetary transfers, and more than 60% from non-budgetary sources such as banks and private investors.

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