Investors refuse to fund Putin’s Kerch bridge, will be built on public funds

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2014/08/01 • Russia

Only Russia will be investing in the construction of a bridge over the Kerch Strait, estimated to cost approximately 247 billion rubles [$7 billion USD].

This was stated by Russian Vice Prime Minister Dmitry Kozak, reports Censor NET citizen Zerkalo Nedeli.

“The sole investor will be the state. The investor will be the federal government: the Ministry of Transport, specifically the Federal Service for Road Maintenance,” he said.

Private investors will not participate in the construction of the bridge over the Kerch Strait since there is no opportunity to ensure its profitability by implementing a toll, because of the absence of a free alternative.

The bridge over the  Kerch Strait will directly tie Krasnodar Krai [Russia] to Crimea.

At the moment, the only way to reach the peninsula from continental Russia is through Ukraine or through the [Kerch] Strait ferry.

Construction is planned to start in the fall and the preliminary cost of the project is about 280 billion rubles ($8 billion).

The head of state-owned company “Russian Roads” (“Avtodor”) stated earlier that Chinese, European, and Russian companies could invest 80 billion rubles ($2.3 billion) there.

However, Kozak denied rumors that private investments would be involved in construction.

“Profitability is necessary to involve private investors. And what does that mean? That we have to make a toll road. It is a political decision,” said Kozak.

He added that, to make a toll road, a free alternative has to also be available.

“There is no such alternative, except the ferry, which is not free,” he said.

It was reported previously that the European Union expects international financial institutions will abstain from financing projects which might acknowledge the annexation of Crimea as legitimate.

Additionally, the EU suspended its project for developing tourism in Crimea, which cost 5 million Euro.

Source: Censor NET

Translated by Mariya Shcherbinina, edited by Elizabeth Martin

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  • Alex Ku

    Russia GET THE HELL OUT OF UKRAINE!

    • Milton Devonair

      And Chechnya, Ingushetia, Dagestan, Georgia, etc.
      Russia is rats scurring into other countries to eat all their food, sleep in their houses, then kick them out and claim it as theirs all along….

  • On the Balcony

    Over 20 million Russians went to EU countries on holiday last year. If the EU were to stop issuing tourist visas (effective as of Dec 1, say) Putin’s popularity would plummet.

  • Jacks Channel

    Where are these “Banderites”? They are nowhere because they don’t exist. Lets bankrupt the Russian economy and put an end to this right now.

    Push Russia back inside of its own borders were it belongs. Look at Siberia. How much more land does Russia want anyway? Long Live Ukraine.

  • Milton Devonair

    Russia wants to build something, construction type, and they can’t find private investors? lmao! Gee, why wouldn’t people want to spend 5 times what it should be due to russian corruption and in exchange, get shoddy, russian quality work then have them short change you on your financial returns and if you complain, you’ll be lucky to just get away from them with the clothes on your back.

    russia, lol. Planet of corrupt apes…..

  • evanlarkspur

    Crimea is Ukraine. No-one with real money is going to invest in an occupied territory, unrecognized by any real government, and still under the jurisdiction of Ukraine under international law. Where would such an invester take a legal case regarding loss of property when Ukraine regains control of Crimea? All the courts that anyone will listen to will uphold the UN resolution on the status of Ukraine. It’s over for crimea

  • sandy miller

    If they know what’s good for them the Russian Oligarchs will give Putin money for his bridge or you know what he’ll do to them. Did you hear that Obama is already negotiating with Putin to give up Crimea. OIY…If Obama allows this with EU’s consent….Disgraceful and dangerous to appease a bully like Putin. We will fight WW3 with Putin sooner or later.