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Vladimir Putin examines blueprints for the Orlovsky Tunnel under the Neva River while on a working trip to St Petersburg

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During the project presentation, it was explained that the underwater motorway would connect the Smolnaya and Sverdlovskaya embankments with the city centre providing a 24-hour transport link between the left and the right banks of the Neva. It will reduce the load on existing bridges and transport arteries, and allow the drawbridges across the Neva to be raised longer thus increasing Volga-Baltic Sea traffic capacity.

St Petersburg Governor Valentina Matviyenko said the design took several years, and that city hall signed an agreement with Germany's Herrenknecht several days ago. The German company will make a 19 metre diameter tunnel shield. Company representatives said it will be the largest tunnel shield in the world. The shield will be ready next year to start working in the beginning of 2013.

Vladimir Putin remarked that "this is a necessary and ambitious project, but it will cost big money, roughly $2 billion." He added that the project will be funded by the federal and municipal budgets and by private investors on an equitable basis. "The federal budget will provide a third of the amount. We expect the subcontractors to be efficient and meet deadlines," he stressed.