Saint Petersburg once had the second-largest tram network in the world,[1] consisting of about 340 kilometres (210 mi) of unduplicated track in the late 1980s.

However, since 1995 the tramway network has declined sharply in size as major portions of track were removed, particularly in the city centre.

Several private companies were formed, and the horsecar network eventually expanded to 25 routes covering over 100 kilometres of track.

Carrying over two million passengers a year, the street rail network in Saint Petersburg proved a successful commercial venture.

An electric public transit company was formed, and several routes crossing the river in various places began regular operation.

Even though the Horsecar Stock Company still possessed absolute rights on city street railways, and hence filed a lawsuit against the electric tram operators, it eventually lost the case because the judge claimed that the horsecar company's monopolizing agreement with the city did not cover laying tracks on ice.

Immediately following this, Saint Petersburg began planning out the future electric tramway network, which was due to replace the ageing horsecar one.

A number of issues had to be resolved; in particular, the narrow-gauge horsecar tracks were to be replaced by the heavy rail-grade ones; the network had to be electrified, and new depots suitable for electric trams had to be constructed.

Following the demise of the Soviet Union, the public transportation in Saint Petersburg has been continuously underfunded, resulting in poor maintenance and an unreliable service.

A lot of existing tramway track has been demolished, and this trend continues up until today, which upsets both passengers and public transit enthusiasts.

As a result, the system has since acquired some batches of cars from other builders to determine what will be best for fleet replacement in an ongoing basis.