Vladimir Putin has pledged to boost the Russian economy with $13.6 billion of oil revenue into the local infrastructure projects.
The projects that are public-private partnerships and will be paid for using half of the reserves in Russia’s national welfare fund include a new high-speed railway from Moscow to Kazan and the modernization of the trans-Siberian railway.
“The reserves of our national welfare fund should not be spent on trifles. They should be channelled to projects that are changing the shape of the country,” Putin told the St. Petersburg International Economic Forum on Friday.
Russia state energy group Rosneft NK OAO (MCX:ROSN) has also entered into a deal to supply China oil over the next 25 years in a $270 billion deal.