Building of the Northern Latitudinal Railway may be financed by the Russian National Wealth Fund
The Government of the Russian Federation is considering financing the construction of the Northern Latitudinal Railway (hereinafter referred to as NLR) in Yamalo-Nenets Autonomous district by means of the Russian National Wealth Fund (hereinafter referred to as RNWF). This was announced by the Minister of Economic Development of Russia Maksim Reshetnikov dyring the working meeting dedicated to the construction of Northern Latitudinal Railway.
“The project is extremely important, so we need to start its implementation as soon as possible”, said the Minister. He has also pointed out that the possibility of financing at the expense of the National Wealth Fund is also being discussed.
Besises, Maksim Reshetnikov has noted that the project is difficult and capital-intensive, as it requires the reconstruction of Northern Railway, as well as part of the Sverdlovsk Railway. It will be implemented with the help of Gazprom financing and concession agreenment.
Implementation of NLR will shorten the route by more than 700 km and reduce the freight time by 2-3 days.
In his turn, the Governor of Yamalo-Nenets Autonomous district Dmitry Artykhov has shared that the bridge across the Ob River will be built with the use of infrastructure budget loan.
Presidential Envoy to the Ural Federal District Vladimir Yakushev has noted that the construction of the Northern Sea Route will give an impetus to the development of the Arctic and the Northern Sea Route.
The Northern Latitudinal Railway is a 707 km long railroad project that will connect the Northern and Sverdlovsk railroads and make it possible to export cargo from new fields in the northern regions of the Yamal Peninsula. The estimated cost of the project is more than 200 billion rubles. The projected volume of transportation via NSR will be 23.9 million tons of cargo a year, the main part of which will be the transportation of gas condensate. The project will also speed up containerized cargo transportation.