Russian oligarchs will be forced to build the St. Petersburg-Moscow railway

Russian authorities intend to attract the largest private raw materials companies to finance the Moscow-Saint Petersburg high-speed railway project, which President Vladimir Putin has ordered to be built.
09.10.2024
Origin source
As Kommersant reports, citing sources familiar with the situation, the authorities expect about 19 billion rubles from big business. For this money, companies are offered to purchase a stake in the authorized capital of the construction operator, UK VSM Dve Stolitsy. Its largest shareholder should be the State Unitary Enterprise Moscow Metropoliten (51.7%), with another 15.5% going to Russian Railways.

Officials are offering companies from the oil and gas and metallurgy sectors to invest in the construction operator, a source familiar with the results of the meeting at the Ministry of Transport told Kommersant.

Among them are Russia's largest LNG producer Novatek, owned by billionaire Leonid Mikhelson (worth $24.7 billion, according to Forbes) and Russia's largest private oil company Lukoil, whose main shareholder, Vagit Alekperov, tops the list of the richest Russians ($28.6 billion).

Large fertilizer producers have also received offers to invest in the 679-km high-speed railway, which, according to government plans, will reduce travel time between the two capitals to 2 hours 15 minutes: Uralkali of billionaire Dmitry Mazepin (worth $2.4 billion), PhosAgro of Andrey Guryev ($9.3 billion), and EuroChem of Andrey Melnichenko ($21.2 billion).

In addition, the list of possible investors includes Severstal of Alexey Mordashov ($25.5 billion) and state-owned Rosneft.

In exchange for investment, companies are offered priority in the transportation of goods along the Russian Railways network via the October and Northern Railways. We are talking about 30 million tons of carrying capacity of approaches to the ports of the North-West, which should be formed as a result of the construction of the high-speed railway and the return of freight traffic to the main route of the October Railway.

The total cost of the high-speed railway, which the authorities promise to build by 2028, is estimated at 1.8 trillion rubles, of which about a third will be allocated by the budget. The length of the highway will be 679 km, trains will make up to 16 stops, in particular in Tver, Valdai and Veliky Novgorod. It is assumed that the speed of trains on the high-speed railway will be 200-400 km/h. The lead enterprise for the construction of high-speed trains for the new line will be the Russian company Sinara.