Igor Shuvalov: About RUB1tn Invested by VEB.RF in Projects to Develop Infrastructure for Living

VEB.RF has invested about 1 trillion roubles for the last five years in urban economy projects worth a total of 2.4 trillion roubles, VEB.RF Chairman Igor Shuvalov told journalists following the State Council meeting chaired by Vladimir Putin about measures to develop infrastructure for living.

According to Igor Shuvalov, VEB.RF’s portfolio includes urban development projects that cover 97 cities. “VEB.RF continues to finance projects related to tourism infrastructure and airports; the modernisation of urban electric transport in Saratov and Nizhni Novgorod is under way. Currently, 229 new trams are already in operation in different cities,” he said.

As stated by Igor Shuvalov, in addition to replacing old tramcars, the programme to modernise urban electric transport includes improving urban areas, renewing tramway tracks, putting up new tram stops, installing new lighting systems, landscaping local sites, and more.

According to him, the total value of the programme is 227.8 billion roubles, with VEB.RF’s commitment of 17.8 billion roubles. Almost 8 million people will see a change for the better in Kursk, Rostov-on-Don, Volgograd, Saratov, Perm, Yaroslavl, Lipetsk, Nizhni Novgorod and Krasnodar.

Additionally, support from VEB.RF has already resulted in helping to modernise 12 airports serving 110 million passengers per year across the country. Total investment is 376 billion roubles, with VEB.RF’s commitment of 148 billion roubles.

For example, created with financial support from VEB.RF, the new terminal in Kamchatka began handling regular passenger flights in April. The first customers were passengers of Aeroflot flights from Moscow, and passengers of Kamchatka Airlines flights to Magadan. According to Igor Shuvalov, VEB.RF’s new strategy includes building and modernising a further 11 airports across the country by 2030.

VEB.RF also participated in financing the preparation of master plans for urban development in more than 25 cities. An example is different investment and infrastructure projects in the Arkhangelsk agglomeration. For instance, the investment projects cover such areas as logistics, shipbuilding and ship repair, and the woodworking and timber industries. The master plan proposes 25 projects for the development of Arctic tourism and 162 projects in housing construction. In terms of new infrastructure, the master plan includes the creation of 59 utility and environmental infrastructure facilities, 40 transport infrastructure facilities (streets and roads), 39 recreational and leisure infrastructure facilities, 89 educational and research facilities, 22 facilities designed for integrated security.

VEB.RF also provides financing for projects to renew public utility systems and other facilities in several Russian cities for a total of approximately 102 billion roubles, with VEB.RF’s approved commitment of 31.9 billion roubles.

“Currently, 10 regional projects receive financing to modernise public utility infrastructure and street lighting. For example, VEB.RF provided initial financing in 2023 for the modernisation of the Lipetsk water utility. To carry out a large-scale investment programme without raising tariffs for customers, we used several tools provided by the Russian Government for infrastructural projects,” Igor Shuvalov said.

On completion, the project will reduce water network losses and network failures by 30 per cent and will almost double the share of safe drinking water, according to Igor Shuvalov. The project will also provide the city with approximately 500,000 square metres of new housing.

Additionally, VEB.RF provides financing for the creation of a treatment and neutralisation facility for municipal solid waste in the Kemerovo Region, for the creation of an all-season resort in the Perm Territory, and for the construction of hotel complexes in Olginka, Tuapse District, in Baikalsk, Irkutsk Region, in Goryachinsk, Republic of Buryatia, in Zavidovo, Tver Region, and in Krasnogorsk, Moscow Region.

“Infrastructure for living is a driver of economic growth across the country. We focus our efforts in this area not only on investment goals, but also on the impact of our projects on the improved quality of life of people, real-life families. We at VEB.RF firmly believe that together with local residents, federal, regional and municipal authorities, and business partners, we will be able to give Russian cities a new quality for self-actualisation and a comfortable life,” Igor Shuvalov said.