The government of the Russian Federation intends to refuse financing from the National Wealth Fund of the high-speed railway project between Moscow and St. Petersburg.

High-speed railway construction

Vedomosti writes about this, citing two sources close to the government and a federal official, informs Economic Pravda.

The project was launched at the end of last year. Almost 500 billion rubles were reserved for it in the Fund, but now these plans have been withdrawn, the interlocutors of the publication say.

According to them, the financial model of the project has lost its relevance due to the rise in the cost of imports, a decrease in solvent consumption, and worsening transportation forecasts, reports Railway Supply magazine.

Another reason for the possible refusal to finance the project from the Fund was the decrease in technological capabilities due to sanctions restrictions on imports.

It is noted that the Ministry of Transport of Russia in mid-December estimated the cost of building a high-speed highway Moscow-St. Petersburg at 1.39 trillion rubles. Russian Railways intended to complete construction in 2027.

Recall that the German concern Siemens – the manufacturer of “Sapsan” (the main trains on the Moscow-St. Petersburg railline) informed Russian Railways about the termination of the contract for the supply of trains.

The reason is the sanctions against the Russian Federation due to the large-scale invasion of its occupying forces into Ukraine.

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