Russia Freezes About 20 Road Projects Due to High Key Interest Rate - Husnullin

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Around 20 new road projects in Russia, which were planned to be implemented with extra-budgetary funds, have not yet transitioned to the construction phase due to high key interest rates, according to Russian Deputy Prime Minister Marat Khusnullin.

He explained that the cost of borrowed capital directly affects infrastructure projects, where a significant portion of funding comes from private investors. In the current conditions, he noted, the start of construction on these projects has been postponed, although the projects themselves have not been canceled.

Khusnullin emphasized that preparatory work continues: authorities are developing project estimates, finalizing urban planning decisions, and preparing territories for future highways. This will allow for a quicker start to implementation when financial conditions become more favorable.

The deputy prime minister recalled that with the participation of Avtodor (Russian state highway company), about 3,600 km of high-speed roads have been built in the country in recent years, with almost all projects using extra-budgetary funding.

He also expressed hope that the key interest rate would be reduced in the future, enabling the launch of deferred projects and accelerating the development of road infrastructure.