Volga-Don Canal
Postponed until Kazakhstan's cargo base is warranted
The construction of a navigable canal connecting the Caspian Sea and the Azov-Black Sea basin (Eurasia Canal) has been postponed until Kazakhstan's cargo base is warranted, Russia's Deputy Transport Minister Viktor Olersky said in an interview with journalists, PortNews reported.
"To date, our colleagues from Kazakhstan could not confirm a sufficient volume of cargo transportation via the Eurasia," said Mr. Olersky. "Previously, they had planned crude oil shipments here, which will now be delivered through the pipeline. Therefore, there is no sense to invest huge money in the canal construction."
Over the past three years, the cargo makeup of Kazakhstan has changed significantly. According to Kazakhstan officials, China is interested in shipping transit cargoes via the Caspian Sea to Europe, however Kazakhstan is not yet ready to provide information on volumes and types of cargoes.
The idea of the Caspian-Azov Sea canal has existed for over 80 years. Back in 2007, the then Russian President Vladimir Putin offered to revive the project. In 2009, the Eurasian Development Bank allocated a US$2.9 million credit facility for the assessment of two options: construction of the Eurasia Canal or a second Volga-Don canal. According to expert estimates, the draft Eurasia Canal project would cost about RUB500 billion (US$17 billion).