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. Last Updated: 07/27/2016

Shuvalov Says Moscow Roads Need $212Bln by 2015

First Deputy Prime Minister Igor Shuvalov said Wednesday that investment in transportation infrastructure for Moscow and the surrounding region would require 5 trillion rubles ($212 billion), more than double the planned government spending for the project.

"The Transportation Ministry, together with the Moscow city government and the Moscow regional government, has developed a program to 2015 — this program will require more than 5 trillion rubles," Shuvalov told reporters after a meeting of the government commission for road and transportation safety. "The program could even require more than that," he added.

Shuvalov said 2 trillion rubles should be earmarked from the federal budget, with other funds coming from regional governments and private investors.

The difference, he said, is "not catastrophic," adding that a number of tools, including land sales, could be used to fund the work.

Adding new urgency to the project, Stanislav Voskresensky, a deputy economic development minister, said at a tax conference Wednesday that Moscow becoming a financial center depended not on Tax Code innovations, but on solving transportation problems.

"Without a radical change of the situation, there can be no financial center," he said.

"The road system in Russia is very bad," said Michel Pascalis, the chief executive of Multinational Logistics Partnership, a Russian warehousing firm, which relies heavily on transportation infrastructure. "Improvements have to be made or the system will crash," he said.

"They've had a plan for the last 40 years … and nothing was done," he said. "They can't catch up overnight."