A of high-speed train project consisting of a railway between two huge Russian cities has reportedly taken a huge step forward. The project between Moscow and St. Petersburg, the country's former capital and President Vladimir Putin's birthplace, is set to move forward, as VEB.RF, a state development corporation and investment company, has opened financing for the project to build a plant, according to Russian news service Interfax. This is being carried out at the site of Ural Locomotives, a railway engineering joint stock company, officials say.

A report stated: "The first funds, in the amount of approximately 7billion rubles, were directed to finance the general contract." The agreement ensures the execution of contracts for the supply of rolling stock, with the amount of guarantees provided approximately 52billion rubles (£487million). Interfax adds the production of high-speed trains of up to 33.915billion rubles (£317.7million) has been approved in this latest deal for a period of up to 14 and a half years.

The loans from the Industrial Development Fund - a state-owned body that provides loans to Russian industrial companies - were agreed to fund the advanced purchase of equipment for the new plant.

The Sinara Group, a Russian investment company, is reportedly at an early stage of construction of a plant for the production of high-speed trains, and has invested around 7billion rubles (£65.5million) of its own borrowed money in the project.

The VSM-1 railway, also known as High-Speed Railway line-1 or HSR-1, will be 679 km long and it is thought that travel time between the cities will be two hours and 15 minutes.

In December, Deputy Transport Minister Alexey Shilo told reporters that the construction of the main section of the railway between could begin in the first half of 2025, according to Russian news service TASS.

It has been previously planned that construction would begin in 2024.

Also in December, First Deputy Prime Minister Denis Manturov said that the first experimental train for the route will be supplied at the turn of 2026 and early 2027.

He said: "We are to provide for the delivery of the first experimental train for Russian Railways in late 2026 - early 2027, and, starting from 2028 to 2030, to supply about 30 high-speed trains for the Moscow - St. Petersburg high-speed railway."