The renovation program of Russian Post offices, with current annual funding of RUR 500 mln ($6 mln), will likely take 228 years and conclude in 2253, according to a report by Deputy Director General Zakhar Gruznov presented to the Federation Council.
“With funding maintained at RUR 0.5 bln per year, completion of the presidential renovation program is possible in 228 years, by 2253,” the report states.
The renovation program began in 2022, when 1,195 offices were modernized for RUR 5 bln ($60.4 mln). In 2023, 1,282 facilities were renovated with RUR 7.3 bln ($88.2 mln) allocated. Last year, 773 offices were renovated for RUR 4.2 bln ($57 mln). This year, renovations are planned for 105 offices with RUR 500 mln. For the remaining period (2025–2030), there are still 21,805 post offices requiring renovation.
“Slowing down now would mean we may definitely fail to meet the 2030 target. It is crucial to maintain the initially set pace,” Gruznov emphasized.
As previously reported by Invest Foresight, the Ministry of Digital Development is considering financing Russian Post through traffic fines, which could allocate about RUR 5 bln annually for post office modernization.
“The irony of the Russian Post office renovation situation reveals a systemic problem of chronic underfunding,” says economist Dmitry Afanasyev. “Even assuming that inflation and construction material prices do not affect estimates, and budget allocations remain unchanged, a 230-year timeline appears absurd. Such calculations voiced by company management resemble a cry for help rather than an actual action plan.”