Chinese State-Owned Enterprise Joins Putin's Key Infrastructure Project for the First Time

[Asia Economy Reporter Hyungsoo Park] China has signed a large-scale construction contract with Russia. There are expectations that China, which has taken a confrontational stance against the United States, will move closer to Russia.

According to major foreign media on the 27th, China Railway Construction Corporation will participate in the key infrastructure construction project of Russian President Vladimir Putin.

Russia has planned to build an 8,000 km highway connecting Western Europe and Western China, from Saint Petersburg to Lianyungang in Jiangsu Province, China. The Moscow-Kazan highway is also included. China Railway Construction Corporation will construct a 107 km section of the 729 km highway connecting Moscow and Kazan.

This is the first time a Chinese company has participated in a Russian national construction project. The contract is valued at $760 million (approximately 893 billion KRW). Upon completion in 2024, travel time between Moscow and Kazan will be reduced from the current 12 hours to 6 hours and 30 minutes.

Artyom Lukin, Deputy Director of the Institute of Oriental Studies at the Far Eastern Federal University in Russia, stated, "Chinese companies will likely secure more road construction contracts in Russia," and "Russia will provide work to Chinese companies while receiving related technology transfers."

Deputy Director Lukin added, "China Railway Construction Corporation winning the Russian highway construction contract is a signal that Russia, which desperately needs Chinese investment in infrastructure projects, will seek cooperation with China in the future."