High speed rail to Nizhny Novgorod needs finance

RUSSIA / FSU POLITICS - In Brief 15 Mar 2019 by Alex Teddy
Prime Minister Medvedev ok'd the first part of the enlarged Moscow-Nizhny Novgorod high speed rail line. President Putin will have the final say though. This rail line is unlikely to make a profit. It will cost USD 9.5 billion. Only USD 3 billion dollars will come from Russian Railroads and the federal government. Who would finance the rest? Presumably someone wishing to be in the president's good graces. The Ministry of Finance is deeply skeptical about the project. To break even this rail line would need a dramatic rise in passenger numbers. This line may well be an unsound investment.The government refuses to let Chinese firms bid for these contracts. Therefore Russia will not be part of the Belt and Road Initiative. China Eryuan Engineering Group worked with Russian companies in planning the Nizhny Novgorod line. If the government relents and let the Chinese get a slice of the pie then financial problems can be resolved. The Chinese tend to drove a very hard bargain and only employ their compatriots where possible. They push their workers very hard and these projects tend to benefit China more than the other country. But the Chinese get things done. It would be faintly humiliating to let the Chinese do this. Moreover, deep down people realize China is as much a rival as an ally.The high speed rail line to Nizhny Novgorod might not go ahead even if someone offers to finance it. Chelyabinsk and Ekaterinburg are more important cities. Some have said high speed rail should reach these cities first. Only then should Nizhny Novgorod be considered. Oleg Belozerov (head of Russian Railways) is keen on the Nizhny Novgorod line. It is supposed to be a litmus test for upgradi...

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