The Study of the Potential for Attracting Foreign Investment to Support the Development of Railway Transport in the Eurasian Region

The article discusses the financing of railway transport development in the countries of the Eurasian region. This study is relevant because the development of railway transport in the Eurasian region is a key factor for improving the infrastructure of national economies and creating conditions for their effective interaction. In today’s reality, this is not only a response to the difficult geo-economic situation, but also an important factor for the growth of the EAEU member states’ economies. The purpose of the study is to identify the optimal sources of funding and investment tools for the development of the transport and logistics infrastructure of the railway network in the Eurasian region given limited budgetary resources. Methods of system analysis, scientific abstraction and logical generalization are used. The scientific novelty of the research lies in its analysis of foreign investment practices in the field of railway projects. As a result, potential financial sources have been identified for the development of railway transport in the Eurasian area in light of the sanctions. The study showed that it is nearly impossible to attract external financial resources from international development banks and international financial institutions. The key projects in the field of railway transport in the post-Soviet space that have attracted Chinese investors are analyzed. It has been concluded that financing most often occurs at the expense of internal reserves and public-private partnerships (PPPs). This is due to the fact that traditional methods of fundraising are limited due to Western sanctions. Companies from the Eurasian region, due to a lack of finance, are increasingly investing their profits in the development of transport and logistics infrastructure. The results of the study will be valuable for the economic departments of the member countries of the Eurasian Economic Union (EAEU), as well as direct investment funds in terms of understanding the investment potential of rail transport in the Eurasian region.

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