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Main War — The second-largest state-owned construction company in China has been added to the list of sponsors of the war

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The second-largest state-owned construction company in China has been added to the list of sponsors of the war

20 Dec, 2023
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The second-largest state-owned construction company in China has been added to the list of sponsors of the war

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The Chinese China Railway Construction Corporation (CRCC) continues to operate in the Russian Federation, constructing metro systems, bridges, and highways. This has led to the company being included in the list of international sponsors of the war by the National Agency for the Prevention of Corruption (NAPC), reported by NAPC.

The CRCC is the second-largest state-owned construction company in the People's Republic of China. It engages in the construction of railway infrastructure in China, including highways, tunnels, bridges, high-speed roads, airports, ports, and more.

CRCC has been operating in Russia for six years, opening its office in the country after the start of the Russian aggression in 2014.

CRCC is under the control of the China Railway Construction Group, which is fully subordinate to the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) of the People's Republic of China.

In 2017, the Russian branch of the company, LLC "Cearsisis RUS," signed a contract for the construction of three stations on the Moscow Metro's Big Circle Line: "Aminevskoye Shosse," "Michurinsky Prospekt," and "Vernadsky Prospekt." The opening of these stations took place in December 2021. In the same year, "Cearsisis RUS" commenced the construction of a Cross-Border Cable-Stayed Bridge across the Amur River between the cities of Blagoveshchensk (Russia) and Heihe (China) with a passenger terminal.

The subsidiary company China Railway Construction Corporation International has signed a contract to construct the fifth section of the national highway "Moscow–Kazan," spanning 107 km. This segment is a crucial part of the broader transportation route "Europe–Western China." China is undertaking the construction of the fifth stage entirely located in the Nizhny Novgorod Oblast of the Russian Federation. The initially estimated cost of the section allocated to the Chinese company was 58.9 billion rubles, but its value has increased to 70-80 billion rubles (over 900 million USD). Construction is expected to be completed by December 2023 (according to other sources, by June 2024). Notably, the promotion of this route involves the direct participation of the president of Russia, Vladimir Putin. He inaugurated a new section of the Moscow–Kazan highway from Moscow to Arzamas in the Nizhny Novgorod Oblast in September 2023.

Additionally, according to international media reports, at the end of October 2023, the leadership of Russia and China secretly discussed plans for the construction of an underwater tunnel connecting Russia with the occupied Crimea. The subcontractor for the tunnel construction under the Kerch Strait is reported to be the CRCC company.

The company, represented by LLC "Cearsisis RUS," continues to be an active participant in import-export operations. In the period from February 24 to July 31, 2023, goods worth over 22 million USD were imported, including materials, spare parts, and tools for construction structures (frames, columns, beams, supports, etc.) from China.

CRCC, by providing technological capabilities, actively supports the Russia's economy, contributing to the sponsorship of aggression against Ukraine. There have been no attempts by the company's leadership to condemn Russia's war against Ukraine.

Additional information: The Chinese CRCC is represented in Russia through various subsidiary companies:

  1. LLC "16th Management Searsisi" - The company's revenue for 2022 amounted to 3.9 million USD, with taxes paid totaling 141.4 thousand USD.

  2. LLC "Searsisi Rus" - The company reported a revenue of 424.3 million USD in 2022, with a net profit of 13.9 million USD. The company has contractual relations with the sanctioned companies AO "RZD Logistics" and AO "Sudostroitelny Zavod im. Oktyabrskoy Revolutsii."

  3. LLC "Specialized Developer TPU Michurinsky Prospekt" - The net profit was 923 thousand USD, and taxes paid amounted to 34 thousand USD.

  4. LLC "Silver City Construction" - The revenue for 2022 was 123 thousand USD, with taxes paid reaching 81.4 thousand USD.

  5. LLC "19 Bureau Searsisi Rus" and LLC "Searsisi Haven Rus" - These companies were established in 2023, after the full-scale invasion of Ukraine by the Russian Federation.

The Odessa Journal

The Odessa Journal

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