The NLR Update

The construction of the Northern Latitudinal Railway (NLR) was discussed at a high-profile meeting recently held in Salekhard, the capital city of the Yamal-Nenets Autonomous District, one of the Russian Arctic provinces known to be rich in oil and gas.

NLR is a planned 707-kilometer-long railway route, which should link the western and eastern parts of the autonomous district, connecting the Northern Railway in the east with the Sverdlovsk Railway and opening up an access via rail to the region’s hydrocarbon deposits.

According to Maxim Reshetnikov, the federal Minister for Economy, the NLR project should be launched “in the nearest future”, given the importance of this initiative to the remote Arctic region and its economy.

The key issue -- that of funding -- appears to have been finally resolved, with the Russian National Wealth Fund making a pledge to at least partially cover the expenses related to the construction of the railway totaling about half a trillion rubles (USD 6.8 billion). The remainder of the sum will be raised through the newly introduced low-interest infrastructure budgetary loans and concession contracts.

The railway is expected to be put into operation by 2027.