VTB to finance Petersburg metro construction

VTB head (MOEX: VTBR) Andrei Kostin has officially confirmed the bank’s plans to participate in financing construction of the Saint-Petersburg metro and has informed the head of state of the plans.

In early October a VTB company has established JSC Northern Capital Metrostroy (MOEX: METP). The new subsidiary is named under the same principle as the management company for Pulkovo airport in Saint-Petersburg – Northern Capital Gateway, where VTB group has a controlling stake. As Interfax was informed by VTB’s press-service, the company was established for participation in Saint-Petersburg infrastructure development projects. The bank did not disclose any specific project the company would be involved in.

" We have now reached an agreement with the St Petersburg government that we will participate directly in and help financially to expand the metro, which needs it ", - said Kostin on Thursday during his meeting with Vladimir Putin, Russian President.
The Saint-Petersburg subway is the second largest in Russia with five lines and 72 stations. Two new lines are under construction.

Until recently Metrostroy was the monopolist in subway construction in Saint-Petersburg, and now the company is under credit watch.

Gennady Timchenko’s Stroytransgaz (STG) has been expressing its interest in the metro construction market of Saint-Petersburg. The primary goal of STG is to openly enter the metro construction market of Saint-Petersburg, keeping the professional staff of Metrostroy and ensuring continuity at current construction sites and maintaining required construction rates for new-build stations, as the company said in August. At the same time Stroytransgaz announced of appointing Vadim Aleksandrov, a former head of Metrostroy, an advisor to the CEO of STG, where he will be in charge of the subway construction in Petersburg.