Russia stops financing the Kerch bridge construction in Crimea

Kerch bridge

Construction financing of the bridge across the Kerch Strait from Russia to Crimea, carrying out by the Strojgasmontazh Company, has been temporarily stopped.

Forbes reports that for the last time Strojgasmontazh received money for the bridge construction purposes from budget in December 2015. 65.4 billion rubles, planned for budget year 2016, have not been allocated yet.

This is stated in a letter of the Strojgasmontazh Director General Andrey Kirilenko addressed to the Transport Minister Deputy Evgenij Dietrich and the Rosavtodor (the Federal Road Transport Agency of Russia) Chief Roman Starovoyt.

In his letter Kirilenko points out that the company cannot build the bridge at the target rates and purchase expensive construction equipment due to delay of payment for the completed work. According to a Forbes source, the construction site is already lack of equipment due to the financing problems.

The reason for the delay is that since the start of 2016 all major public construction projects, including the Kerch bridge construction site, have been transferred from the usual banking service to the Treasury one.

According to a representative of the Ministry, all the documents for this transfer have already been directed to the Government and the changes will be approved at the end of June. Rosavtodor also stresses that the money from the budget have been allocated and will be credited to the contractor as soon as the contract is under the Treasury Department support.

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