China may help Russian Railways to build Pacific rail link

Friday, 31 Oct 2008

Russian news agencies reported that, Russian Railways, which will need to cut spending next year and seek about USD 6 billion in loans, has asked China to help to develop rail links from the Pacific Ocean to Europe, its head told Russian news agencies on Tuesday.

Mr Vladimir Yakunin, president of state railway monopoly RZD said that China had reacted positively to an offer to join RZD's venture with Deutsche Bahn to carry out the project. He said that we asked our Chinese colleagues to join the joint venture. They reacted positively, and we are now negotiating with them.

Mr Yakunin said earlier this month that RZD would have to freeze some projects and cut its spending by USD 8 billion to 2010 due to the global liquidity crisis. He added that its investment program for 2009 would have to shrink by RUR 50 billion to RUR 430 billion. The company would seek to attract RUR 150 billion in loans in 2009.