Russia will invest around $2.54 billion renovating the Baikal-Amur Mainline and the Trans-Siberian Railway in a move to accelerate the construction of the Silk Road Economic Belt proposed by China, Rossiya Segodnya reports on Aug 19.
The experience of China has helped influence Russia that the investment in transport infrastructure, especially railways, can produce considerable GDP growth.
It is impossible to boost development in Siberia and Russia's Far East region without upgrading the railways.
The two projects were the focus of a heated national debate in Russia 10 years ago, resulting in delaying the start of the project.
Experts assume that Russia may be looking to attract private capital to participate in the two projects. Russia needs to send a clear signal to its trade partners in East Asia and Southeast Asia that it is determined to promote the economic rise of its Far East region.
The two railways, once upgraded, can serve as a major transport channel for the Silk Road Economic Belt and effectively increase the transport capacity of Russia in the region, as well as attract more investment in infrastructure construction from China and Japan.