Violations Found on Vladivostok - Nakhodka - Eastern Port Highway Construction Site
Russia’s Audit Chamber has uncovered financial mismanagement in the construction of the Vladivostok–Nakhodka–Vostochny Port highway. The regional transport ministry faces criticism for incorrect budget calculations and delays in securing a concession agreement for the project’s second section.
Since 2016, 27.3 billion rubles ($300 million) have been spent on the highway’s first section, with 22.5 billion rubles ($247 million) coming from federal funds. By September 1, 2025, the ministry had approved payments totaling nearly 27 billion rubles ($297 million). However, auditors found that incorrect inflation indices were used, and contractor expenses were wrongly included in the budget. These errors may have led to 2 billion rubles ($22 million) in unnecessary payments.
The ministry has also failed to comply with a presidential directive. President Vladimir Putin ordered a concession agreement for the highway by December 15, 2024, but no deal has been signed. Six years after attempts to attract investors began, the second section still lacks funding, a selected contractor, and completed design documents. The Audit Chamber has now issued a formal directive. It demands the transport ministry eliminate all identified violations and correct financial mismanagement in the project.
The Vladivostok–Nakhodka–Vostochny Port highway remains unfinished, with no clear timeline for the second section. Without a concession agreement or proper budget oversight, further delays and financial risks are likely. The ministry must now address the Audit Chamber’s findings to avoid additional losses.
