Russia's massive road investment continues

Russia’s road building and upgrading programme is now gathering pace. Russia's Federal Highway Agency plans to bring over 85% of federal roads into conformity with road traffic regulations. The Federal Highway Agency has boosted construction of rural roads by establishing road funds and built over 500km in 2011.
March 23, 2012 Read time: 2 mins
Russia’s road building and upgrading programme is now gathering pace. Russia's 2865 Federal Highway Agency plans to bring over 85% of federal roads into conformity with road traffic regulations. The Federal Highway Agency has boosted construction of rural roads by establishing road funds and built over 500km in 2011.

The Russian Government plans to allocate nearly US$198 million to build key roads in 2012. The Federal Highway Agency has set road upgrades as a top-priority. Under this plan road bearing capacity will be improved and the Federal Highway Agency intends to repair 8,000-9,000km/year of roads.

Each federal district is establishing a federal testing centre to trial the materials and improve the performance of roads. The annual budget investments in road construction will rise from the current $23.07 billion to $32.96 billion due to the financing of road development through road funds. If fuel taxes are boosted by $0.03.3/year as planned, the federal road fund will amount to $12.92 billion in 2012, $14.8 billion in 2013, and over $15.44 billion in 2014. Regional funds are being established as well and they will total some $17.45 billion by 2014.

Thanks to regional road funds, the Moscow Region plans to increase investments in road construction two-fold, the Volgograd Region (South) from $33 million to $214 million, the Sverdlovsk Region (Urals) from $322 million to $404 million by 2014, the Pskov Region (North-West) from $66 million in 2012 to $115 million in 2014.

For more information on companies in this article

Related Content

  • Putin orders doubling road-building in Russia by 2022
    November 21, 2014
    Russia looks set to accelerate its road building programme – Eugene Gerden writes The volume of road building in Russia should be doubled by 2022, according to a recent order of Russia’s president Vladimir Putin. He said, “We need a real breakthrough in road building during the next several years. These volumes should be doubled during the coming decade.”
    Read More
  • Russian road-building industry on verge of massive cuts
    June 10, 2015
    Russia’s road building programme looks set to be cut due to economic issues - Eugene Gerden writes The Russian Government is considering a significant cut to the existing road building programme for the current year. This is due to a current economic crisis in the country, caused by Western sanctions as well as a collapse in the price of oil and gas.
    Read More
  • RADOR highlights claimed shortfall in North West Russia road funds
    February 13, 2013
    The RADOR association, the leading organisation for advocating, planning, financing, building and maintaining roads in Russia’s regions, estimates the country’s North-Western Federal District needs US$5.367 billion (RUB 161.8bn) for road network repair and maintenance every year. RADOR says that around 19.7% of required funding was provided for regional road maintenance in 2012, along with 41.4% of funding for road repairs, and 6.3% of funding for road overhaul. The Leningrad region received 25% (RUB 5.1bn)
    Read More
  • Russia seeks outside investment in road building
    November 6, 2012
    The Russian road building industry is on the verge of big changes as it bids to improve quality and speed of construction says Eugene Gerden The Russian road building industry is on the verge of big changes as the national government considers creating conditions to attract foreign companies to build roads in the country. According to a recent order of President Vladimir Putin, due to poor quality and high cost of road construction, there is a need for the development of a mechanism to attract foreign compa
    Read More

Highlighted Content