China Railway Construction Corporation (CRCC) continues to operate in the Russian Federation, building subways, bridges and highways. This was the reason for the National Agency on Corruption Prevention (NACP) to add the company to the list of international sponsors of the war.
CRCC Railway Construction Corporation is the second largest state-owned construction company in the People's Republic of China. It is engaged in the construction of railway infrastructure in China, including highways, tunnels, bridges, expressways, airports, ports, etc.
CRCC has been operating in Russia for 6 years, so it opened its representative office in the terrorist state after the start of Russian aggression in 2014.
CRCC is controlled by the China Railway Construction Group, which is fully subordinated to the State Administration of State-owned Assets of China (SASAC).
In 2017, the company's Russian subsidiary, Siarsisi RUS LLC, signed a contract for the construction of three stations of the Moscow Metro's Big Ring Line: "Amenievskoye Shosse, Michurinsky Prospekt, and Vernadsky Prospekt. They were opened in December 2021. In the same year, Siarsisi RUS LLC began construction of a cross-border cable car across the Amur River between the cities of Blagoveshchensk (Russia) and Heihe (China) with a passenger terminal.
A subsidiary of China Railway Construction Corporation International has signed a contract for the construction of the fifth section of the 107 km-long Moscow-Kazan national highway, which is an important part of the more global Europe-Western China transportation route. China is building the fifth stage of the highway, which is located entirely in the Nizhny Novgorod region of the Russian Federation. The site allocated to the Chinese company was initially worth RUB 58.9 billion, but its cost has increased to RUB 70-80 billion (over USD 900 million). Construction is due to be completed in December 2023 (according to other sources, in June 2024). At the same time, this highway is being advertised with the direct participation of the president of the aggressor country, Vladimir Putin. He opened a new section of the Moscow-Kazan highway from Moscow to Arzamas in the Nizhny Novgorod region in September 2023.
Also, according to international media reports, at the end of October 2023, the leaderships of Russia and China secretly discussed plans to build an underwater tunnel to connect Russia with the occupied Crimea.
The company, represented by Siarsisi RUS LLC, continues to be an active participant in import and export operations, in particular, in the period from February 24 to July 31, 2023, it imported goods worth more than USD 22 million. The company imported goods worth over USD 22 million. The imported goods include materials, spare parts, tools for building structures and construction (frames, columns, beams, posts, etc.) from China.
CRCC provides technological capabilities to the aggressor, continues to actively support Russia's economy and, accordingly, sponsor aggression against Ukraine. There have been no attempts by the company's management to condemn Russia's war against Ukraine.
Additional information. China CRCC is represented in Russia by the following subsidiaries:
- 16th Siarsisi Management LLC. The company's revenue for 2022 amounted to USD 3.9 million. The company paid taxes of USD 141.4 thousand.
- Siarsisi Rus LLC, the company's revenue for 2022 amounted to USD 424.3 million, net profit - USD 13.3 million. Net profit amounted to USD 13.9 million. The company has contractual relations with the sanctioned company JSC RZD Logistics, JSC Oktyabrskaya Revolyutsii Shipyard;
- Specialized Developer TPU Michurinsky Prospekt LLC. Net profit amounted to USD 923 thousand. The net profit amounted to USD 923 thousand, taxes were paid in the amount of USD 34 thousand. USD;
- Silver City Construction LLC. Revenue for 2022 amounted to USD 123 thousand. Revenue for the year amounted to USD 123 thousand, taxes were paid in the amount of USD 81.4 thousand.
- 19 Bureau Sears Russia LLC and Sears Russia Harbor LLC were established in 2023, after the full-scale invasion of Ukraine by Russia.
The NACP is responsible for promoting the development of a compliance system in the private sector. During compliance procedures, counterparties are subject to integrity checks, including compliance with socially responsible business practices in accordance with OECD standards. The list of "International Sponsors of War" on the web portal "War and Sanctions" is a powerful reputational tool for achieving integrity of supply chains in the international dimension, for international businesses to leave Russia, and thus for reducing the financial and technological capacity of the terrorist country to kill Ukrainians. One of the platform's "levers of pressure" is cooperation with the World-Check database, which is used by banks and insurance companies to assess risks. That is why for global companies, the consequences of being on the list are worse than continuing to do business with the aggressor country.
