World Economy

Moscow, Beijing to Discuss Railways Project

Moscow, Beijing to Discuss Railways ProjectMoscow, Beijing to Discuss Railways Project

Russia and China have agreed to formulate the principles on which Chinese companies may join the Moscow-Kazakh high-speed railway project within weeks, the first deputy president of the Russian railways company RZD, Aleksandr Misharin said.

“In accordance with this memorandum we held a meeting of the working group to agree that by December 15 we are to produce a combined report regarding the possibility of Chinese companies’ participation in the project. In other words, the conditions on which they may join in,” Itar-Tass quoted Misharin as saying.

The four-chapter report will reflect the basic principles of the financial model, the regulatory and legal structure, feasibility of investment, construction technologies and the localization of production.

 Memorandum on Cooperation

On October 13 Russia and China signed a memorandum on cooperation in developing high-speed railway lines. In accordance with the document the parties will draft a project for a high-speed Eurasian transport corridor Moscow-Beijing, including the pilot project Moscow-Kazan. The memorandum envisages cooperation in design and construction work, maintenance, equipment supplies, investment and financing.

China is prepared to consider its participation in the high-speed rail project within the framework of public-private partnership, co-financing of the project in the form of capital investment or lending. In implementing the project Chinese partners will have the right to propose supplies of corresponding technologies and localization of rolling stock and spare parts production in Russia.

Russia is prepared to consider using Chinese high-speed rail technologies and also construction and equipment manufacturing know-hows.