The government approved the construction of this 679-kilometer railway line on the first day of the St. Petersburg International Economic Forum today.
Russia has approved a plan for construction the first high-speed passenger train line between its two largest cities, Moscow and St. Petersburgwhich will be financed with billions of dollars from the state budget, according to today’s government directive.
The government approved the construction of this 679km long railway line, which is expected to allow Russian-made trains to travel at speeds of 360km/h to reach from Moscow to Saint Petersburg in 2-2.5 hours instead of the 4-5 required today.
The rail line, which will cost more than 2.3 trillion rubles ($25.97 billion), will be built by a Russian company, VSM Two Capitals, on concession terms and with state and private capital.
The Russian government plans to provide loans at least 300 billion rubles from the National Welfare Fund with an interest rate of 1% in 2025 and subsidies equivalent to about 328 billion rubles between 2024 and 2038, according to the directive.
More than 580 billion rubles are needed from the National Welfare Fund for the program, while other funding will come from sources including Russian state banks VTB, Sberbank and Gazprombank, former transport minister Vitaly Saveliev said in February.
The head of Russia’s Sberbank, German Gref, said today that his bank will participate in financing the program.
Russia has proposed raising taxes on corporations and the wealthy, which could add an extra $30 billion to next year’s budget revenue and allow Moscow to increase spending, including on its war in Ukraine .
Source :Skai
With a wealth of experience honed over 4+ years in journalism, I bring a seasoned voice to the world of news. Currently, I work as a freelance writer and editor, always seeking new opportunities to tell compelling stories in the field of world news.
