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Russian Railways to receive EUR 261 million for infrastructure projects in 2014

The Russian Government will allocate RUB 12.9 billion ( EUR 237 million) to Russian Railways (RZD) for developing major infrastructure projects in 2014 (Federal law of December 2, 2013, No. 349-FZ Regarding the Federal Budget for 2014 and the planned 2015 and 2016 Period)

The key infrastructure projects to receive Government support are:

1.The implementation of measures to build  Moscow – Kazan high-speed rail line – RUB 0.02 bn.

2. Moscow Transport Hub –  RUB 1.58 bn. The measures to develop the railway infrastructure of the Moscow transport hub are aimed at increasing the through capacity and processing ability of the railway infrastructure as passenger traffic increases on the sections of the Moscow railway hub.

3. Reconstruction of the section between Mezhdurechensk – Taishet – RUB 8.45 bn. According to RZD investment plan, this development project is aimed at providing freight rail transport for clients of the company’ services and developing freight flows over the long-term, primarily from the Kyzyl – Kuragino line (Elegest coal field) in the amount of 12 million tons per annum to the ports of the Far East.

4. Comprehensive reconstruction of the section between M. Gorky – Kotelnikovo – Tikhoretskaya -Krymskaya with a bypass around the Krasnodar Hub – RUB 2.91. The aim of the investment project “Comprehensive Reconstruction of M. Gorky – Kotelnikovo – Tikhoretskaya – Krymskaya with the construction of a bypass around the Krasnodar Hub” is to reconstruct the railway infrastructure for the delivery of freight to the ports of the Azov- Black Sea Transport Hub (Novorossiysk, Tuapse, Kavkaz, Temruk and the new seaport of Taman), as well as to optimise operations at the Krasnodar hub and bypassing it by switching freight traffic to the section Timashevskaya – Krymskaya.

2014 RZD investment programme

Another important target for RZD’s investment activities is the removal of infrastructure bottlenecks on the railway infrastructure. Russian Railways has allocated RUB 123.2 billion to achieve this aim in 2014.

In 2014, it is also planned to continue the reconstruction of the Mga – Gatchina – Vaimarn – Ivangorod section and railway approaches to ports on the southern shore of the Gulf of Finland, start high-speed passenger traffic on the stretch between St. Petersburg – Buslovskaya (Stage 2), develop the section between Tobolsk – Surgut – Korotchaevo and commence the complex reconstruction of the stretch between Trybnaya – V. Baskunchak – Aksaraiskaya.

For the upgrade of the railway lines, RUB 75.5 billion have been allocated in 2014. This will enable the reconstruction of 3,950,000 km of railway track (including the purchase of Russian-made rails).

It is planned to spend RUB 101.1 billion on rolling stock in 2014. The bulk of these funds (RUB 83.3 billion) will go on renewing locomotives. Investments envisaged in the draft for the investment budget will allow the purchase of 629 new locomotives in 2014.

RZD will spend RUB 23.3 billion on other projects, including measures to improve transport accessibility for the population, in particular the infrastructure of the suburban commuter and long-distance passenger business, the introduction of resource-saving technologies and the development of the social sphere etc.

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