Billions of St. Petersburg Forum
Among global problems discussed at the 12th St. Petersburg International Economic Forum, which was held on June 6-8, the transportation issue was brought up as the development of international trade requires active development of transport infrastructure. However in the present time Russian transport companies are not as competitive as their foreign rivals at the global market. Even the Ministry of Transport acknowledges this. Meanwhile, St. Petersburg enters international level in terms of oil sales. St. Petersburg is to launch trading at its raw materials and commodity exchange by the end of 2008.
Seventeen agreements to a total of $14.6 billion were signed at the 12th St. Petersburg International Economic Forum, Russian Economic Development Minister Elvira Nabiullina said. Several agreements are related to transport industry. United Company RUSAL, the global leader in the aluminium industry, and Ust-Luga Company OJSC, which is building a sea merchant port at Ust-Luga in the Gulf of Finland outside St. Petersburg, signed a memorandum on implementing a project to build a transshipment complex. RUSAL is to spend over $300 million on building two terminals to supply aluminum products and alumina to world markets.
Russian railways (RZHD OJSC) and Bank of Moscow OJSC signed the cooperation agreement, defining the general principles of interaction of the parties. The agreement is concluded with the purpose of establishment and development of long-term cooperation of the parties, realization of joint investment projects, organization of financing of projects of RZHD due to the means of the international financial organizations, granting of guarantees for RZHD, organization of financing of RZHD, rendering of financial consulting services by the bank, concerning realization of joint projects. According to Vladimir Yakunin, President of Russian Railways, Russian infrastructure assets are attractive today for both investors and creditors.
Under another agreement, a rail line is to be laid between Kyzyl, capital of the Russian republic of Tyva, and Kuragino in the republic's Elegest coal field. The project presented by the United Industrial Corporation is the largest infrastructure project in today’s Russia. The project’s total value makes RUR 131 billion including 49 billion to come from the RF Investment Fund.
Besides specific projects the forum participants discussed more general issues as well. In particular, RF Transportation Minister Igor Levitin noted that infrastructure is one of the priorities in the development of Russian economy. According to Levitin, it is time to develop the infrastructure rather than to modernize it especially as the state has money for that. The Federal Special-Purpose Program known as Russia’s Transport Infrastructure Development in 2010-2015 will get RUR 13.9 trillion including RUR 4.6 trillion to be allocated by federal budget, RUR 615 billion – from the budgets of RF constituent entities and RUR 8.6 trillion – by off-budget sources. The Ministry of Transport also thinks it is necessary to propose banks to manage part of infrastructure projects. A number of changes are being prepared to be introduced into legal documents for that purpose. Besides, Igor Levitin noted that Russia needs “brand companies, well-known national carriers», having emphasized that it is time for transport companies to become more active at a global market. As for consolidation and IPO, The Ministry of Transport is willing to support business. Among the most urgent problems in Russia is the issue of long-term lease of berths. According to Igor Levitin, the related regulatory documents are under coordination in the Government.
Based on media materials