Russia Plans to Build a New Railway to China

Russia is planning to construct a new railway to China to simplify the transportation of raw materials from Siberia. The Transaltai Railway is being considered, which will create an entry point into China through a section between Kazakhstan and Mongolia. This route, previously discussed as a pipeline route, has become relevant again for increasing coal supplies to China. Currently, coal from the Kemerovo region is sent to the Chinese market via the Far East. Cost estimates for the Transaltai Railway are not yet available. The Kyzyl-Kuragino railway project, which connects Tuva to the railway network, has a length of about 410 km and was preliminarily estimated at 1 trillion rubles (11.6 billion USD). At this cost per kilometer, the Russian section of the road through Altai could cost between 1.5 and 2.2 trillion rubles (17.47 to 25.63 billion USD). The long-term prospects for demand for Russian coal in China remain uncertain as Beijing emphasizes renewable energy. The International Energy Agency expects coal consumption in China to decline until 2030, with imports decreasing by 2.5% per year. Authorities are considering measures to support coal companies that have lost Western markets and are incurring losses.

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