The government of Russia is considering the idea of redirecting USD 3 billion (RUB 100 billion) in state budget funds that were originally intended for financing two infrastructure projects to the Crimea. These projects involve construction of the Taman port with a design capacity of 76 million tons per year and construction of a bridge across River Lena near Yakutsk. In this case, construction of the port will be suspended and construction of the bridge postponed, the Vedomosti publication reported, citing Bloomberg.

Such a possibility is stated in a letter by presidential adviser on economic affairs Andrei Belousov. According to the document, Russia’s President Vladimir Putin has instructed the government to evaluate such a decision.

Russian Minister for Crimean Affairs Oleg Savelyev said on May 7 that the Crimea could require investments ranging from RUB 500 billion (USD 14 billion) to RUB 900 billion by 2020. Belousov’s letter states that Russia will invest RUB 526 billion in development of the Crimea from 2014 to 2017 in addition to infrastructure projects and construction of a bridge across the Kerch Strait. The government planned to spend RUB 112 billion on the port of Taman and the bridge across the Lena River until the year 2020, the letter states. It also clarifies that allocation of RUB 71 billion in budget funds for the port of Taman and RUB 41 billion for the bridge across River Lena has been approved.

The program for development of the Russian transport system stipulates that the port of Taman should go into operation in in 2020 and become the largest dry-cargo port in the country. In total, RUB 228 billion should be spent on development of the port of Taman, out of which the government planned to provide RUB 115.5 billion rubles and investors were expected to provide the remainder. However, the budget provides for allocation of only RUB 76 billion.

Investors in the project were expected to emerge after the Ministry of Transport determines the legal structure of the port. This decision had not yet been made as of April 22. Eurochim, Uralkali, SUEK, UCL Holding, Metalloinvest, UGC, Global Ports, Basic Element, KRU, and the Delo group expressed interest in investing in the port of Taman in 2011.

The automobile bridge across River Lena, which is estimated to cost RUB 64 billion, was expected to be the most expensive bridge built in recent years. Private investors were expected to assume only 15% of this cost. A consortium led by Transport Concessions LLC (Sakha), which also includes VTB bank, won the competition for construction of the bridge.