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. Last Updated: 07/27/2016

Cabinet Approves '02 Rail Program

The Cabinet on Thursday approved the Railways Ministry's 114.7 billion ruble ($3.75 billion) investment program for 2002, Interfax reported.

The ministry will contribute some 94 billion rubles ($3 billion) from its own resources and will seek investors for the remaining 20.7 billion rubles ($677 million).

The original 2002 program, as drawn up by former Railways Minister Nikolai Aksyonenko, had been harshly criticized by the Cabinet as unrealistic.

Heeding the government's wishes, new Railways Minister Gennady Fadeyev distanced himself from Aksyonenko's ambitious $5.25 billion program and slashed it by 40 percent by dropping some of the more expensive projects.

The ministry cut a $14 billion project to build a bridge from the mainland to the Far East island of Sakhalin. In addition, it took out the construction of a railroad to the Czech town of Bohumin and stopped work on offshoots from the Baikal-Amur Railroad to coal mines.