Connecting Moscow and Beijing via a 7,000 kilometer high-speed railway will cost around 7 trillion rubles, or around $153 billion, a Russian Railways executive said on Friday, the Moscow Times reported on Friday.
More than half of the total funds, around 4 trillion rubles, or around $87.5 billion, is expected to be funded by Chinese investors, said Alexander Misharin, the First Vice President of Russian Railways’, the chief of the subsidiary High-Speed Rail Lines, the Moscow Times said.
Construction of the Russian stretch of the rail link will cost around 2.8 trillion rubles, or around $60 billion, Misharin said.
In mid-October, both Russia and China had signed a memorandum of cooperation for the construction of a high-speed rail network.
On the new Moscow – Beijing rail link, trains are expected to reach an average speed of around 400 kilometers per hour, which would cut travel time significantly from the current “6 or more days” to around 33 hours, according to the Moscow Times.
Russian officials have suggested that funding for the new rail project with China may be allocated from the National Welfare Fund, which is one of Russia’s sovereign wealth funds (SWF).
Source: Moscow Times
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