Putin Approves $3bn Kaliningrad Deepwater Port

A long-discussed deepwater port project near the Russian enclave of Kaliningrad on the Baltic Sea has won the support of President Vladimir Putin, Kommersant reports.

The construction of the shipping hub with a 48-million-ton capacity and linked infrastructure including railway and roads may cost more than $3.1 billion (200 billion rubles), the business newspaper wrote. One-quarter of the sum may come from the Russian budget, while the rest is set to be covered by investors.

Putin has already greenlighted the project, Kommersant reports, citing a letter from the presidential aide, Andrey Belousov. The adviser to the Russian leader suggested creating a business plan for the hub to prove its efficiency. The document is reportedly set to be reviewed by the government by September 1.

The construction of the port in the region has been under consideration since the 2000s.

An additional terminal for passengers and cargo is under construction in the same area, in the coastal town of Pionersky.

The new port could potentially attract a cargo base using the federal government support, according to Mikhail Burmistrov, CEO of INFOLine-Analitika. The analyst said, however, that it may still face some difficulties in finding investors.