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Russia Halts Siberian-China Railway Project Due to Cost

by Lucas Fernandez – World Editor

Russia ⁢Cancels⁤ $644 Billion⁣ Railway Project to ⁤china

MOSCOWRussia has deemed the ​planned Northern Siberian Railway (Sevsib), a project intended to connect Russia ⁢to China, “unfeasible” due to⁢ prohibitive⁤ costs, according to a report Wednesday from Kommersant, citing a source familiar with the discussions.

The ‍railway would‍ have‌ stretched approximately 2,000 kilometers from Nizhnevartovsk in Russia’s ⁤Khanty-Mansi autonomous⁤ district ​to‌ Ürümqi, the capital of China’s Xinjiang Uyghur autonomous region, linking ‌cities like Beliy Yar and Ust-Ilimsk.‍ A ⁣second ⁣component would have created a new‌ rail entry point into China​ in the Altai ⁤region.

Deputy Prime ⁤Minister Vitaly Savelyev reportedly informed President ⁢Vladimir⁣ Putin of the ‍decision in a ⁤letter.Construction‌ estimates reached around ⁢50 trillion ‌rubles ⁢($644 billion) due to ⁢the⁢ challenging terrain along the route, the kommersant source said.

The cancellation follows‍ Putin’s 2023 ‍order ‌for a formal feasibility assessment of the Sevsib project as part of the long-term advancement ‌strategy for the Siberian Federal⁣ District through⁣ 2035.

russian Railways’ (RZhD) investment program has ⁣also been significantly reduced and will not ⁤exceed 1 trillion rubles ​($12.9 billion)​ in 2026.

Supporters of the railway had argued ​it⁣ would alleviate pressure ⁣on the​ Eastern Polygon network, ‍connect⁣ the Trans-Siberian Railway with the Northern ⁤Sea Route, and provide a new export corridor for coal. However, expansion of⁢ the Eastern Polygon itself has⁢ slowed ⁣due to cuts ⁢in ⁢RZhD⁢ spending.

The Sevsib project is not the only major rail undertaking facing delays. The Transportation Ministry announced⁣ in 2023 a postponement of the 700-kilometer Northern Latitudinal Railway to 2027-2031.

Pavel Ivankin, head of⁢ the ​National Research Center for Transportation ​and Infrastructure,⁢ told Kommersant ‌ that Russia ultimately needs Sevsib to support cargo flows for the Northern Sea Route. He described the 50-trillion-ruble ⁤price‍ estimate ‍as “realistic,” adding that costs coudl increase with detailed engineering studies.

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