Russia’s first high-speed railroad between Moscow and St. Petersburg may cost as much as 1.12 trillion rubles ($38 billion), Kommersant reported, citing estimates by the country’s Transportation Ministry.

The state budget should finance at least half of the construction and provide a 25-year subsidy to a private investor who may be selected by year-end, the Moscow-based daily said, citing the ministry’s proposal to the government.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net