China Development Bank to finance upgrades to transportation corridors Priomrye-1 and Priomyre-2 in Russian Far East

Around Nov 7, 2017, China Development Bank offered Russia financial support to upgrade two vital transportation corridors in the Far East: Primorye-1 and Primorye-2 (Приморье-1 and Приморье-2). CDB has offered the financing to be either in direct credit or in a loan transfer. On July 4, 2017, Xi Jingping and Vladmir Putin signed a Memorandum of Understanding on the joint development of Primorye-1 and Primorye-2. Both sides were to contribute to a feasibility study for the project. China Communications is slated to be the contractor for the project. China Railway Group Limited expressed interest in implementing the project. The details of the project have not been finalized China would support Chinese enterprises in executing cargo transits through the corridors, and Russia would enlist the Agency of the Far East for Attracting Investments and Export Support (ANO) for conducting the feasibility study (MOFCOM). Transport corridors Primorye-1 and Primorye-2 are part of China’s Belt and Road Initiative. The corridors allow transportation of agricultural goods such as soybeans, corn and rice, as well as mining commodities including coal and ore. Primorye-1 connects northern provinces of China with the ports of Nakhodka and Vladivostok, from where cargo is sent by sea to the south of China, and to South Korea and Japan. Primorye-2 connects the province of Jilin with the Russian ports of Slavyanka, Zarubino and Posiet.

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