Russian government freezes construction of Arctic railway worth over $10 billion: reasons revealed

The government of the aggressor country wants to freeze the construction of a railway in the Arctic worth 800 billion rubles, which is more than 10 billion US dollars. This is reported by UNN with reference to Russian "media".

Details

The Russian government is discussing the possibility of postponing the concession agreement for the construction of the Northern Latitudinal Railway, as the sources of financing for the project have not been determined.

They want to postpone the start of construction for three years. The Northern Latitudinal Railway involves connecting the northern and Sverdlovsk railways by building a 700-kilometer link between Salekhard and Nadym, as well as a bridge over the Ob River, which flows through the western part of Siberia and flows into the Kara Sea.

The construction of this latitudinal railway would allow connecting the raw material deposits of Yamal with the railway infrastructure, as well as providing access to the Northern Sea Route. The likely reason for the postponement of construction may be the negative impact of sanctions on the Russian economy due to the full-scale invasion of Ukraine.

In addition, the increase in railway tariffs and the negative financial condition of the Russian railway make the construction of this route impractical, the publication says.

Recall

According to The Washington Post, Russia's position is currently weaker than ever, as the Kremlin has spent most of its cash reserves and borrowed funds on the war against Ukraine. An economic crisis next year is not ruled out due to tough new sanctions against the Russian oil sector.