Russian Railways is Open for Investment for Private Railways Construction

Russian Railways is open to investment in the construction of private railways, RZD President Oleg Belozyorov said.

VLADIVOSTOK (Sputnik) — Mr. Belozyorov said in his speech at the Eastern Economic Forum:

“We are open to investment. We can implement each project on our own, and today we are offering the entire range of potential combined investment opportunities that exist in the financial world: from SPV to the construction of private railways.”

He reminded his audience that Russia’s Ministry of Transport has the necessary legal base and is ready to provide comprehensive assistance.
The government may encourage investment by offering lower rates and creating more favorable terms than those existing now, he added.

The RZD head urged the government to participate in railway projects. “The government’s main task is to create a favorable regulatory environment. The Ministry of Transport is currently working on that,” he said.

All railways intended for public use are state-owned and operated by RZD. But this summer, the Federal Railway Transport Agency (FRTA) and Tamanneftegaz signed Russia’s first concessionary agreement for the construction of railway infrastructure. In order to increase freight volume to OTEKO Group’s terminals to 70 million tons a year, the company will build 3.5 km of railway track, valued at 362 million rubles, for public use.