OREANDA-NEWS. November 22, 2007. Russian Railways is to receive state support to the amount of 28 billion roubles for high-speed passenger services between Saint Petersburg and Helsinki, the company's press service reported.

Last Friday, a government commission under the chairmanship of Dmitry Kozak, Russian minister of regional development, approved an investment project to develop high-speed passenger services between Saint Petersburg and Helsinki and will provide Russian Railways with state support of 28 billion roubles.

According to Vadim Morozov, the project will be paid for by Russian Railways and the Russian Federation's investment trust. It has been proposed that the construction of the new, 64-km two-track electrified railway line between Petyayarvi and Kamennogorsk should be paid for by the investment trust. Russian Railways plans to pay for the reconstruction of the line between Saint Petersburg - Pargolovo - Vyborg - Buslovskaya to take high-speed trains, the construction of 52 km of alternate lines and the electrification of 97 km. Expenditures on the project in forecast prices and including VAT total 79.7 billion roubles, of which 29.4 billion roubles will be invested in high-speed services and 50.3 billion roubles in hiving off the freight division.

The state support for the project amounts to 35% of the total value of investments (28 billion roubles including VAT), with the money to be disbursed from the budget during 2008 to 2010. Russian Railways will contribute the remaining 65%, or 51.7 billion roubles.