The Russian government has approved the construction of the country's first high-speed railway line, connecting Moscow and St. Petersburg. The 679 km project is estimated to cost over 2.3 trillion rubles ($25.97 billion) and will be funded by a combination of state budget allocations, loans, and private investments.
The new railway line will significantly reduce travel time between the two major cities, with Russian-made trains expected to complete the journey in 2–2.5 hours, compared to the current 4-5 hours. The government plans to provide substantial financial support for the project, including loans from the National Welfare Fund and subsidies.
Russian state-owned banks VTB, Sberbank, and Gazprombank are also expected to participate in financing the project. This ambitious infrastructure development comes as Russia proposes to raise taxes on companies and the wealthy to bolster its budget revenues and increase spending, including on its war in Ukraine.
