May 13, 2015 / 7:46 AM / 4 years ago

UPDATE 1-China Railway Group wins $390 mln Russian high-speed rail contract

(Adds details on consortium)

SHANGHAI, May 13 (Reuters) - Construction firm China Railway Group Ltd said it won a 2.4 billion yuan ($390 million) contract to build a high-speed railway in Russia connecting Moscow with the city of Kazan.

The company, which is aiming to expand its business overseas after years of building China’s railway network at home, said in a regulatory filing late on Tuesday it expected to complete the project before the 2018 FIFA World Cup in Russia. Kazan, in west-central Russia, is one of the venues for the tournament.

The work will be carried out by a consortium comprising of China Railway Group unit China Railway Eryuan Engineering Group Co. Ltd, and Russian firms National Transportation Engineering Design Institute of Moscow and Nizhny Novgorod Metro Design AG, the firm said.

Chinese President Xi Jinping signed billions of dollars worth of deals with Russia last week on a visit to Moscow for the 70th anniversary of the defeat of Nazi Germany in World War Two.

Russian foreign policy adviser Yuri Ushakov said earlier this month that China had offered to provide 300 billion roubles ($6 billion) of financing for the project.

The Moscow-Kazan segment is part of a planned 1.1 trillion rouble, 770-kilometre (478-mile) network designed to allow trains to run at up to 400 kilometres per hour. Travel time between Moscow and Kazan, the capital of Tatarstan, will be cut to 3.5 hours from 14 hours currently. ($1 = 6.2086 Chinese yuan renminbi) ($1 = 49.9389 roubles)

Reporting by Brenda Goh and Twinnie Siu; Editing by Kenneth Maxwell and Stephen Coates

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