The Asian Infrastructure Investment Bank (AIIB) has approved its first investment in the Russian Federation to improve transport connectivity and road safety in the country’s key economic corridors.
The $500 million loan, which will be administered by the Ministry of Transport and Rosavtodor, the Federal Road Transport Agency, will be used to upgrade existing infrastructure and support road rehabilitation in several subprojects that align with national transport priorities.
Selection of the subprojects will target vital economic nodes and border regions, thereby enhancing trunk linkages and cross-border connectivity. Upgrading the road network will increase safety, reduce travel time and allow for greater resilience to challenging climate conditions.
According to Global Infrastructure Hub estimates, Russia requires $60 billion per year in the next five years for infrastructure. The projected spending of around $40 billion leaves about a $20 billion gap annuall
