Spending spree

Russian president Vladimir Putin said private investors, including foreign ones, would have a major role in a US$ 1000 billion programme planned to modernise the country's infrastructure over the next 10 years.

Speaking at an investment forum in Sochi, southern Russia, Mr Putin said Russia would use the money accumulated during the recent years of high oil and gas prices to invest in development. However, Alexei Kudrin, acting financial minister, said the state would contribute only 20% of total investment, with the private sector supplying the majority through public-private partnerships.

Sergei Ivanov, acting first deputy minister, said in the report that state investment would be 3.8% of gross domestic product in the next two years, rising to 4.5% by 2015. Mr Ivanov revealed that Russia is planning to build 4000 km of new roads annually by 2010 and to invest US$ 437.9 billion in its rail network by 2030.

He added investment in the country's airport network would reach US$ 30 billion by 2020.