The road, beginning at the arctic port of Kirkenes in Norway's Finnmark province, will pass through the Russian border town of Borisoglebsk, and cover about a hundred miles to Murmansk, the world's largest city north of the Arctic Circle with a population of around 360,000.
The agreement on the road's reconstruction was signed in Murmansk Wednesday by the governors of the Murmansk Region and the Finnmark Province, in the presence of Norwegian Foreign Minister Jonas Gahr Stoere.
Murmansk is a major transit point for the fishing industry, as well as for metals and coal, and oil, all key Norwegian exports. Norwegian oil company Statoil, which has a network of filling stations in the city, is expected to sign an agreement with the Murmansk regional authorities during the foreign minister's visit.
A spokesman for the regional administration said the first part of the financial aid for the road's construction, amounting to 75% of the total, would be paid within two months of the signing of the agreement. The remainder will be paid after the work has been completed, he said.
The spokesman said that the Murmansk Region would allocate at least $755,850 from its own budget for the reconstruction.
The road's reconstruction is a part of a project organized by the Finnmark Province and the Murmansk Region on cooperation in safety of road traffic, he said.
