Русский
The St.Petersburg International Economic Forum (SPIEF) 2024 has now finished, attracting guests from 139 countries. Investment deals worth US$71 billion were signed, as Russian companies look to invest in alternative markets as its economy moves away from Europe.
In this article we highlight some of the larger investment deals that Russian investors made to instigate improved infrastructure, largely within Russia itself, but executed in order to further prepare for increasing trade with the international, but non-Western business community.
Russian Railways
Infrastructure
Russian Railways, VTB and the GK National Project signed an agreement according to which the South-West detour of St. Petersburg becomes a pilot project within the framework of the interaction of the parties in the implementation of large-scale infrastructure lines. This ultimately facilitates improved Russian rail transit to markets in West Africa and Latin America. The project cost is ₽170 billion (US$1.9 billion).
Black Sea Rail Infrastructure
A third High Speed Railway south, from Moscow to Adler, on the Black Sea coast will pass through Voronezh, Krasnodar, Tuapse, Stavropol and Sochi. The travel time on the full route from Moscow to Adler will be reduced by three times and will be 7 hours 50 minutes, from Moscow to Lugansk and Donetsk — a little more than 12 hours. This improves direct connectivity between Moscow, Crimea and Black Sea ports with specific maritime benefits to Georgia and Turkiye.
Air Connectivity
New Omsk Airport
Financing and contracts have been signed to construct a new Omsk-Fedorovka airport, to be completed in late 2028. The total cost of the airport construction project is over ₽43 billion (US$480 million. Omsk is a key Siberian transit hub with links to the Trans-Siberian railway, Kazakhstan and China trade routes.
New Direct International Flights
Russia is exploring the possibility of resuming direct flights with South Korea, Indonesia and Saudi Arabia in the near future. In addition, Russian airlines plan to start flights to Jordan and Kuwait.
Emerging Markets Finance
Mutual Investment Fund
The Russian State Corporation WEB.RF and Sberbank announced on the creation of a new closed combined mutual investment fund “The Fund of the First” with ₽50 billion rubles (US$560 million). The fund was created to participate in the capital of investment projects, including within the framework of Project Finance Factories in new emerging markets.
Energy
Central Asian Gas Transit
Russia’s Gazprom signed 15 year contracts with Kazakhstan for gas supply transit to Uzbekistan and Kyrgyzstan.
Hydro Electric
WEB will finance the RusHydro projects for the construction and modernization of hydro-electric stations in the Russian Far East within the framework of Project finance factories. The total amount of funds raised from VEB.RF and partner banks is estimated at ₽650 billion (US$7.3 billion). The additional power will help to redevelop the Far East and Arctic regions and assist support for the Northern Sea Route.
Nuclear Power
VTB and Atomenergoprom signed a loan agreement for ₽50 billion (US$560 million) for the development of the Northern Sea Route and the construction of supporting nuclear power plants.
Northern Sea Route
Vladivostok Satellite City & Lena River Bridge
Indian and Chinese companies are investing in the construction of a new city – satellite Vladivostok, which will be called Satellite City, according to Alexey Chekunkov, Minister for the Development of the Far East and the Arctic. In China, an overabundance of construction facilities and construction personnel can now be redeployed to Satellite City. The bridge over the Lena River in Yakutia is officially included in the master plan for the development of the region. The Lena Bridge will be the first in the Republic of Sakha (Yakutia) and will connect the Trans-Siberian and Baikal-Amur railways with the Northern Sea Route. Construction will begin in 2025. In September 2023, the Lena River Bridge budget estimate of ₽122 billion (US$1.36 billion) was approved.
Middle East
UAE Logistics
Wildberries, Russia’s equivalent to Amazon, has signed contracts with numerous economic free zones and ports in Abu Dhabi to build a logistics center for entering the UAE and Middle Eastern regional markets.
