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Oct 31, 2018

Russian Railways to submit parameters of 2025 Long-Term Development Programme to Government by 1 December 2018

On 29 October 2018, the Russian Prime Minister Dmitry Medvedev held a meeting at Bekasovo sorting station at Moscow Railways in the city of Moscow.

Under discussion at the meeting was the 2025 Long-Term Development Programme (LTDP) for Russian Railways. Also in attendance were Russia’s Transport Minister Yevgeny Dietrich, the CEO and Chairman of the Board of Russian Railways Oleg Belozerov, the Head of Russia’s Federal Anti-Monopoly Service Igor Artemyev, the President of the Russian Union of Industrialists and Entrepreneurs Alexander Shokhin, Moscow’s Mayor Sergei Sobyanin and other officials.

According to Dmitry Medvedev, the LTDP was prepared in order to improve the efficiency of Russian Railways and to achieve the country’s key national development goals, which were defined in a presidential decree issued in May this year: to achieve economic growth above global rates and ensure Russia’s place among the world’s five biggest economies.

"Economic growth without precise work on the part of the railways is simply impossible due to the size of our country, the nature of the economy and the geographical location of our production. The development of the railway therefore affects the regions, business and the competitiveness of our exports – almost everything in fact," said Dmitry Medvedev.

The Prime Minister stressed that the Company’s Long-Term Development Programme required integration with other development programmes, national projects and sectoral plans and strategies.

"It is especially important that the Russian Railways’ Long-Term Development Programme focuses on a comprehensive plan for the modernisation and expansion of trunk infrastructure for the period up to 2024, which I approved recently. Nine out of the 11 federal projects that are included in the plan are aimed at upgrading infrastructure, including that of the railways. They involved the East - West and North - South transport corridors, the development of railway routes and links between the major economic centres," said Prime Minister.

At the same time, Dmitry Medvedev said that it was necessary to make plans which take into account the general situation in the economy.

"At the moment, the draft document outlines two scenarios: the target and a conservative version. They focus on the parameters of the forecast for the country’s socio-economic development for the period up to 2024. If necessary, we should be ready to make adjustments to this forecast," said Dmitry Medvedev.

Among the most promising projects is the development of passenger rail services in the largest conglomerations.

Another task is the development of infrastructure, in particular, the continuation of work on major projects such as the modernisation of Baikal Amur and Trans Siberian Main Lines and the development of approaches to Russia’s ports in the Far East, North-West and Azov-Black Sea basin.

Medvedev added that special attention must also be paid to the introduction of digital technologies.

According to the Prime Minister, the prepared Long-Term Investment Programme of Russian Railways, which envisages investment of 10 trillion roubles by 2025, sets ambitious tasks.

To solve them, Medvedev said that new investment models and additional funding sources were needed. The implementation of the investment programme will almost double the contribution of rail transport to the country’s GDP.

As Russia’s Minister of Transport Yevgeny Dietrich noted at the briefing following the meeting, it was decided to conduct additional research on and refine a number of positions in the Long-Term Development Programme.

Dietrich said that the draft LTDP should be further developed and reviewed at a government meeting by 1 December 2018 so that Board of Directors of Russian Railways could confirm and approve it subsequently.

According to the Company head Oleg Belozerov, the provisions relating to the specific content and financing of the Long-Term Development Programme will be clarified within a month.

"The decisions that were discussed today can make the Programme even more balanced," said Belozerov.

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