According to Itar-Tass, China and Russia are expected to sign an agreement during President Vladimir Putin’s visit to Shanghai next week for joint construction of a $1.2-3 billion transport corridor to Crimea via the Black Sea’s Kerch Strait.
State-owned China Railway Construction Corporation (CRCC) as well as private investment fund China International Fund Ltd (CIF) will participate in the project. The latter may participate in the funding. Currently, the Russian Transport Ministry is preparing to sign a memorandum on construction.
Preliminary documentation for the construction should be elaborated by May 30; the financial scheme and construction model will be developed in July. The project may involve major Russian companies: almost all leading players engaged in infrastructure construction confirmed their interest in the project.
The Russian Ministry of Transportation is currently preparing a memorandum on the construction and the final plans will be revealed later this month.
The project envisages either a bridge to carry rail and road traffic, or for part of the route to pass through a subterranean tunnel.
The total project cost is estimated at 45.4 billion rubles ($1.27 billion), with China being the first foreign investor in Crimea since its accession to Russia.
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