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Russia: USD 1 Trillion Planned for Infrastructure

September 2007.


Russia wants to spend USD 1 trillion on infrastructure through 2020 together with investors, Economy Minister German Gref said. The financing of the projects is based on the constant flow of oil cash.

Parliament will pass legislation this year granting tax breaks and other incentives to invest in “special economic zones’’ around the country’s main ports, Gref said Thursday at a Russia-China investment conference in Sochi. So-called state monopolies including Gazprom, Unified Energy System and Russian Railways all plan to spend tens of billions of dollars in the coming decade to upgrade Soviet-era infrastructure and increase capacity.

The government plans to spend 400 billion rubles ($15.6 billion) on roads, rail links and other infrastructure in the sparsely populated
Far East alone in the next five years. This spending is part of a drive by Russia to develop areas outside of Moscow and St. Petersburg.

 



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