China may help RZhD build Pacific rail link-reports

MOSCOW, Oct 28 (Reuters) - Russian Railways, which will need to cut spending next year and seek about $6 billion in loans, has asked China to help develop rail links from the Pacific Ocean to Europe, its head told Russian news agencies on Tuesday.

Vladimir Yakunin, president of state railway monopoly RZhD, said China had reacted positively to an offer to join RZhD's venture with Deutsche Bahn [DBN.UL] to carry out the project, the agencies quoted him as saying.

"We (Russian Railways and Deutsche Bahn) asked our Chinese colleagues to join the joint venture. They reacted positively, and we are now negotiating with them," Yakunin was quoted as saying.

The rail monopoly's press service said it could not immediately confirm the comments.

The project to link rail systems from the Pacific coast to Western Europe is in the early planning stages. A test run of several rail wagons from the Beijing to Hamburg in Germany was organised in January with the participation of RZhD.

SPENDING CUTS, LOANS

Yakunin said earlier this month that RZhD would have to freeze some projects and cut its spending by $8 billion to 2010 due to the global liquidity crisis.

On Tuesday, he said its investment programme for 2009 would have to shrink by 50 billion roubles ($1.83 billion) to 430 billion roubles, the agencies reported.

Yakunin also told reporters the company would seek to attract 150 billion roubles in loans in 2009.

"But this figure will be adjusted depending on the realisation of our plans," he said. (Writing by Simon Shuster; Editing by Quentin Bryar)