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Russian Rail to Spend on Ust-Luga, Not Primorsk, Vedomosti Says

OAO Russian Railways is seeking to spend 7.5 billion rubles ($250 million) of government funds to develop the Ust-Luga port instead of the Primorsk seaport as intended, Vedomosti said, citing letters from key ministries to Chief Executive Officer Vladimir Yakunin.

The Primorsk port relies on pipelines and truck routes as it lacks a direct rail link, the Moscow newspaper said. Ust-Luga and Primorsk are both Baltic Sea ports in Russia’s northwestern Leningrad region. Primorsk is owned by OAO Novorossyisk Commercial Seaport, which is in turn controlled by oil-pipeline operator OAO Transneft and businessman Ziyavudin Magomedov’s Summa Group.