The Asian Infrastructure Bank (AIIB) has pledged roughly $300 million in financing to Russian Railways (RZD), a state-owned vertically integrated railway company, to help alleviate economic strains caused by the COVID-19 pandemic.
RZD owns and operates Russia’s integrated national passenger and freight railway network and is the largest commercial employer in Russia, according to AIIB. This loan is intended to help preserve jobs and working conditions, as well as ensure continuous operations.
Russia’s railway system covers some 85,500 kilometers (53,100 miles) of track, and is the world’s third-longest railway network. Its rail routes link to busy seaports that service Asia and Europe. The COVID-19 pandemic has had a severe impact on long-haul passenger rail operations in Russia, causing passenger turnover to decline 70 percent.
This latest project will be funded through the bank’s COVID-19 Crisis Recovery Facility (CRF), which provides up to $13 billion
