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Schiller Institute Participates in Conference on Afghanistan’s Economic Development

A groundbreaking conference is taking place this week in Kabul, Afghanistan, that is aiming to help Afghanistan be among the new paradigm of nations seeking a beautiful future of collaboration and economic development. Titled: “Creating the Afghan Economic Miracle,” the conference runs from Nov. 6-8 and has attracted scholars and guests from across Afghanistan as well as from other parts of the world. It is being hosted by the Ibn Sina Research and Development Center. The conference’s stated aim is: “to present a comprehensive plan for the economic reconstruction of the entire country, with the goal to turn Afghanistan into a middle level-income country in the foreseeable future.”

Reports from the first day of the conference are that some 500 guests were in attendance in the auditorium, with another 100 spilling out into the hallways. Xinhua reports that Afghanistan’s acting Deputy Foreign Minister for Political Affairs Sher Mohammad Abbas Stanekzai kicked off the event, and called upon Afghan and foreign companies to invest in the war-ravaged country, and for Afghans living abroad “to return home and rebuild their country.”

One of the top organizers said that a common comment that he got from participants was that they now have a real sense of hope for the future of the country and its development. Participation was at a high level, including numerous government officials, such as deputy ministers and the Deputy Prime Minister. One participant said of the first days’ proceedings: “It’s been amazingly informative to speak with everyone. A real sense that Afghanistan is taking charge of its own future. No funding for this conference came from outside the country.”

A Schiller Institute delegation is among those in attendance, and will be making presentations during Tuesday’s proceedings on Nov. 7, focused on various topics of the economic reconstruction of the country.

The Ibn Sina Research and Development Centre’s Nov. 6 press release explained:

“Obviously, the alleviation and subsequent elimination of the humanitarian crisis must be a priority. But that is sustainable only if there is a nationwide program of basic infrastructure like transport, energy, water management, communications, education and health care. Only if these basics are built in the entire country can productive agriculture and industry be developed.

“For this goal, the Conference will present the economic plan called, ‘Operation Ibn Sina: The Coming Economic Miracle in Afghanistan,’ which has been worked out by the volunteer economists of the Schiller Institute, and provided to Afghan experts living abroad and in Afghanistan, to analyze and prioritize its goals.

“The transformation of Afghanistan into a stable, prosperous country is also in the interests of all of the country’s neighbors, since the geographic location of Afghanistan makes it an organic hub for much of the transport and trade between Central Asia, South Asia and Southwest Asia. The integration of Afghanistan into the corridors and infrastructure projects of the Belt and Road Initiative is in the interest of all Eurasia, as well as of Afghanistan.

“This program and outlook is in the tradition of one of the greatest sons of Afghanistan, Ibn Sina, whose father was born in Balkh, in the north of the country, and who is one of the greatest physicians and universal thinkers of all time. What an excellent metaphor for a rich and beautiful future for Afghanistan!”


Zepp-LaRouche on CGTN: “Fostering Cooperation in a Fragmented World”

Jan. 18, 2023 (EIRNS)–CGTN today published on its English-language YouTube channel (which has about 3 million subscribers) a 14-minute video commentary by Schiller Institute founder Helga Zepp-LaRouche, on the occasion of the Davos World Economic Forum. CGTN’s introductory blurb asked the question: “How should world leaders work together in a volatile situation? Join Helga Zepp-LaRouche, founder and president of the Schiller Institute, to explore these talking points.” The video can be found here.

 Helga Zepp-LaRouche:

          The world economic forum has given its annual meeting the title “Cooperation in a Fragmented World,” and shortly before the Forum published their Global Risk Report, in which they present the results of the latest Global Risk Perception Survey.  In that, they consider the current crisis, then the expectation of what many experts think will come out in the short term (two years), the most severe in the long term (ten years), in terms of the economy, the environment, society, and those geopolitical and technological risks that could become tomorrow’s crises.  Then they consider how these different crises could evolve into a “poly-crisis” by 2030. 

          Concerning the methodology used to come to their evaluations, they report that they interviewed over 1200 experts from academia, business, government, the international community, and civil society between September 7th and October 5th, 2022.  In other words, this Global Risk Report is not based on scientific methods, but rather on an Aristotelian method to arrive at the common denominator of the opinions of selected experts. 

          While there will also be attendance from countries of the Global South, who may try to set different accents, the World Economic Forum represents a good portion of the top global corporate establishment; and they clearly try to continue to push their agenda, which is an acceleration of the Great Reset, that they have been pushing before.  It completely leaves out the optimistic perspective, for example, of the circa 150 countries working with the Belt and Road Initiative and their optimism that through investments in infrastructure, agriculture, industry, and international scientific cooperation, etc., most of the problems they insist will dominate the next years can be overcome.

          Instead, there is a lot of talk about “progressive tipping points” and “catastrophic outcomes,” which are all designed to motivate the assembled business leaders and beyond, to adopt the program fitting the financial interests of the main financial players of the neo-liberal system.  For example, in the section called “Natural Ecosystems; past the point of no return” they write:

          “Human interventions have negatively impacted a complex and delicately balanced global natural ecosystem, triggering a chain of reactions.  Over the next ten years, the interplay between biodiversity loss, pollution, natural resource consumption, climate change, and socioeconomic drivers will make for a dangerous mix. 

          “Given that over half of the world’s economic output is moderately to highly dependent on nature, the collapse of ecosystems will have far-reaching economic and societal consequences.  These include increased occurrences of zoonotic diseases, a fall in crop yields and nutritional value, growing water stress exacerbating potentially violent conflict,” etc., etc.

          The deep Malthusian pessimism reflected in such a statement makes clear that this report is more a program of their intent than a scientific prognosis.  Because of human interventions, the world population has increased from a few millions after the last Ice Age to 8 billion.  If there will be a fall in crop yields, then [it will be] only because of the Green demonization of modern agriculture.  And if there will be a violent conflict, then only because the necessary development of new fresh water resources will be blocked by the Malthusian environmentalist agenda.

          Economic Risks in 2023

          Unfortunately, I think that 2023 will see an escalation of the financial and economic crises.  The central banks have tried to curb inflation by raising the interest rates rather rapidly.  Then, as we could see for example in Great Britain, they had to suddenly go from quantitative tightening to quantitative easing again, because of the danger of a chain reaction of over-indebted firms; thus going back to the inflationary money pumping.  Since the tendency towards hyperinflation is the result of ever more monetarist policies going for profit maximization at the expense of physical economy and the reckless liquidity injections following the systemic crisis of 2008 by the trillions of dollars, euros, and pounds, only an end to the casino economy could solve the problem.

          What should be put on the international agenda is the reintroduction of a Glass-Steagall banking separation, which puts the commercial banks under state protection, but forces the investment banks to straighten out their balance sheets on their own without taxpayer money.  Then, each country must create their own national bank, because credit creation must be under the sovereign control of the governments.  These national banks must then cooperate to create a new credit system, which is only devoted to investments in projects serving the common good of the people.  There are already efforts going on in this direction among many countries of the Global South — also, to create a new international currency.

          While it is very difficult to predict the exact time when the systemic crisis of the neo-liberal system will come to a head, it cannot be excluded that the decision to have a complete reorganization of the international financial system could force itself on the agenda in this year of 2023.

          Geopolitical Conflict Triggering a Chain of Reactions

          Right now, unfortunately, the crisis over Ukraine — which is not a crisis between Russia and Ukraine, but between NATO and Russia — is accelerating in a dangerous way.  I think it is extremely urgent that a diplomatic solution is found quickly to end the war.  There are various efforts, like Pope Francis has offered the Vatican as a venue for negotiations, and I and a group of Latin American legislators have written an open letter to the Pope to mobilize people around the world to support this idea.  We are also asking people to sign that letter.  Also, President Lula from Brazil has been asked to mediate by several countries from the Global South; and also President Erdogan from Turkiye has made some efforts.

          I think all of these proposals should be merged, because too much is at stake.  But, I think because the crisis around Ukraine is so dangerous, the initiatives made by President Xi Jinping with the Global Security Initiative, together with the Global Development Initiative are probably the most important angle to solve the crisis.  The Global Security Initiative is really a proposal for a new international security architecture, and obviously that must take into account the security interests of every single country on the planet for it to work. 

          I am aware that right now it does not look very likely that the countries of the so-called West would be willing to discuss such a new international security architecture, given the fact that NATO is trying to become Global NATO, and Japan and Great Britain have just signed the so-called “Reciprocal Access Agreement,” and the US, the UK, and Australia have signed the AUKUS pact.  But the BRICS countries already have a higher GDP than the G-7; and 17 countries of the Global South are applying for membership in the BRICS.  So, they are in the process of representing the vast majority of the human species.  And the countries of the Global South have made it quite clear that they don’t want to be drawn into a geopolitical conflict between the West on the one side, and the China and Russia on the other side.

          I think it is therefore quite possible that in the course of 2023, the financial crisis erupts even more dramatically, and that that will be the right moment to put the combination of the Global Security Initiative and the Global Development Initiative on the international agenda.  I think President Xi is very right that security can only exist if there is development.  So, I am sure that the vast majority of the countries who are striving to overcome the relics of colonialism, and who really want to develop into become modern and prosperous countries, would support such an intervention.

          And then hopefully, the countries of the West can see that it would be in their best interest to cooperate with the Global Security Initiative, the Global Development Initiative, and the Belt and Road Initiative.

          Global Risks in the Next Two Years

          There are policy initiatives which can overcome the inflation by reorganizing the financial system, by addressing the root causes for the crisis.  The excessive profit orientation at the expense of the physical economy clearly did not work.  And what the World Economic Forum calls the geo-economic confrontation can be stopped the moment these CEOs recognize that win-win cooperation with the majority of the countries in the world would also be in their best interest; since to cooperate with growing markets with billions of people with growing buying power is for sure better than to go bankrupt in a crash.  And the best way to cope with natural disasters and extreme weather events is to invest in basic infrastructure, water management, and scientific and technological progress in order to develop the technologies to have early warning systems, secure housing construction, and other means of adaptation.

          Disagreements on Cybersecurity in Major Countries

          There have been various attempts to have agreement between major countries on cybersecurity.   There was an agreement for example in 2013 between Russia and the United States to establish a secure phone connection, and a working group to mitigate cybersecurity threats.  In 2017, in light of the allegation of election interference made against Russia, Trump and Putin agreed to create a cybersecurity unit to prevent election interference and other cyber threats.  Trump praised it as a big step forward, but was forced to backtrack only 12 hours later, due to massive pressure from Congress and the mainstream media.  Then, in preparation work for the 2018 meeting in Helsinki between Trump and Putin, Russia offered the United States cooperation in the field of preventing cyberattacks on critical infrastructure — power plants, water supply and transport management systems, hospitals, banks, and so on.  The corresponding provision was included in the joint statement of the Presidents of the two countries prepared by the Russian side for adoption at the summit in Helsinki.  While the summit between the two Presidents worked well, all hell was unleashed against Trump afterwards by the same forces, and the agreement was not signed. 

          At this point, the trust between the West and Russia and China is at an historic low point.  Under these circumstances, an isolated agreement on cybersecurity seems very unlikely.  Therefore, a great vision is required on how a solution can be put on the table which addresses all the major problems together, such as a new, just world economic order based on such concepts as the Global Security Initiative in combination with the Global Development Initiative.

          I think that we have reached a point in the history of mankind where we really must get serious about the international order of relations among nations, and how we can organize them in such a way that we can self-govern as a species which is gifted with creative reason.  In an existential crisis, [such] as the one we are experiencing right now, and which is very likely going to get much worse, it is not the amount of money one owns that counts; but it is the quality of political leadership of exceptionally wise and moral men and women who have the ability to shape the future for the benefit of all humanity.

          In Davos, there will be a great number of billionaires, millionaires, and hangers-on to power.  It will be very interesting to watch if they are also up for the larger job required.


China’s Overview of the Program of the Forum on China-Africa Cooperation

China’s Overview of the Program of the Forum on China-Africa Cooperation

Aug. 18, 2022 (EIRNS)–The FOCAC (Forum on China-Africa Cooperation) Coordinators’ meeting to follow up on FOCAC program implementation, took place Aug. 18. In anticipation of the meeting, Li Zhigang, Chargé d’ Affaires of the Chinese Embassy in South Africa, wrote an overview of these programs, which appeared in the Independent Online (IOL) Aug. 17.

One project of especial interest: “The two sides have set up a China-Africa RMB [renminbi] center to explore RMB settlement for China-Africa trade, logistics, and industrial cooperation.”

The nine broad points are presented here in brief:

The medical and health program: China has provided more than 250 million doses of COVID-19 vaccine to Africa, covering almost all African countries, and launched joint production of COVID-19 vaccine in Egypt, Algeria and Morocco. China has made constant efforts to pair up Chinese and African hospitals for cooperation, and the African CDC headquarters project (Phase I) is expected to be completed in early 2023. China has also been helping with control of malaria, schistosomiasis and AIDS.

Poverty reduction and agricultural development program: China has provided emergency food aid and other humanitarian assistance to the Horn of Africa and other regions. China has offered locust control insecticides, irrigation equipment, and technical assistance. The first four “China-Africa joint centers for modern agrotechnology exchange, demonstration and training” have been set up to train professionals in the fields of tropical crops, aquaculture, biomass energy and dry farming.

Trade promotion: From January to June this year, China-Africa trade volume registered U.S. $137.38 billion, up by 16.6% year-on-year, of which China’s exports to and imports from Africa increased by 14.7% and 19.1% respectively. China has opened “green lanes” for faster export of African agricultural products to China. As a result, products such as Rwandan stevia, South African fresh pears and soybeans, and Zimbabwean citrus have gained access to the Chinese market. China has signed agreements with Togo, Eritrea, Djibouti, Guinea, Rwanda, Mozambique, Sudan, Chad and Central Africa, among other LDCs, on expanding the scope of zero-tariff treatment to 98% for products exported to China, covering 350 kinds of African products.

Investment promotion program: From January to June this year, China’s industry-wide direct investment in Africa amounted to U.S. $1.74 billion, growing by 1.5% against all the odds. The turnover of Chinese enterprises’ contracted projects in Africa amounted to U.S. $18.32 billion, an increase of 8.4% year-on-year. The two sides have set up a China-Africa RMB center to explore RMB settlement for China-Africa trade, logistics and industrial cooperation. China has continued to provide aid in the form of grants, interest-free loans and concessional loans to help African countries achieve independent and sustainable development.

Digital innovation program: To expand Silk Road e-commerce cooperation, China and Africa have jointly made a success out of the “Quality African Products Online Shopping Festival” to market African products in China. Fifteen China-Africa science and technology cooperation projects have been initiated.

Green development program: China has completed the construction of hydroelectric power stations, photo-voltaic power stations, and water supply projects. China participates in the “Great Green Wall of Africa” initiative, and strengthens cooperation with Africa in desertification control.

Capacity-building program: China provides vocational skills training for local youths where there are Chinese enterprises in Africa, and give the graduates jobs in these enterprises. China helps African students who have completed study courses in China to find jobs in Chinese enterprises in Africa.

People-to-people exchange program: The first Conference on Dialogue Between Chinese and African Civilizations and the 11th Meeting of the China-Africa Think Tanks Forum were successfully held, contributing to the building of a China-Africa community with a shared future.

The African Film Festival project: It has introduced well-made African films and TV shows to the Chinese audience. The “2022 China Culture and Tourism Month” has served as a window for African friends to learn and understand more about China.

The peace and security program: At the second China-Africa Peace and Security Forum, the two sides agreed to maintain strategic communication, strengthen cooperation in equipment and technology, expand maritime exercises and training, and enhance exchanges in professional fields. Chinese peacekeeping troops to Africa have performed to satisfaction, and the 25th batch of Chinese peacekeeping troops sent to the Democratic Republic of Congo was awarded the United Nations “Peace Medal.”

The full text of Li Zhigang’s article is here.


Rhine Valley Railway Tunnel Would Be Cheaper Than Previously Believed

Rhine Valley Railway Tunnel Would Be Cheaper Than Previously Believed

Aug. 15, 2022 (EIRNS)–The official feasibility study for building a railway tunnel along the Rhine Valley between Bonn and Wiesbaden, concluded that it would be cheaper to build than it had been believed in the past. The 118 kilometer tunnel dedicated to freight traffic would enable freight trains to avoid the narrow part of the Rhine valley where the infrastructure is in many places over 150 years old and creates unacceptable noise pollution for the communities along the valley. The route is one of the most important and heavily utilized railway routes in Europe and connects the ports of Rotterdam and Antwerp with the Italian port of Genoa. The project has been featured in both EIR and the EIR Eurasian landbridge reports. The study, commissioned for the German States of Rhineland Palatinate and Hesse found that the project would cost 6.8 billion euros, rather than the 8 to 10 billion euros of previous estimates.

In an interview in Germany’s SWR TV on August 12 Federal Transport Minister Volker Wissing (FDP) said the report was a “Thumbs up” for the states of Hesse and Rhineland-Palatinate, and said: “It’s very gratifying that we have positive news from this feasibility study. Now the question is: How is the benefit-cost ratio to be assessed? And for that we need the traffic forecast for 2040. That’s the next step. But the first signal for the region is: thumbs up!”


Northern Brazil State Eager to Join the Belt and Road

Aug. 3, 2022 (EIRNS)–Leading representatives of industrial, port and rail interests in the northeastern state of Maranhão turned out in force for a three-day seminar July 11-13, sponsored by the state government, on the subject of “Maranhão’s Potential in China’s New Silk Road: Business and Development Opportunities for Brazil.” The central subject was the proposal to transform the Itaqui port complex at the state capital, São Luis, which already handles major grain and metals exports from Maranhão and several surrounding states, into a logistics, distribution and manufacturing center on the Belt and Road. The featured speaker was Paul Tae-Woo Lee, a professor of International Logistics and Maritime Transport at Zhejiang University, who came from China specifically for the seminar. Lee was one of the authors of the 2022 study, “Strategic Locations for Logistics Distribution Centers along the Belt and Road,” which includes the Maranhão port in the potential sites it takes up, and he briefed the seminar at length on the global scope and current status of the BRI.

 The key organizer of seminar was the state of Maranhão’s Secretary for Economic Development and Strategic Projects, José Reinaldo Tavares, a civil engineer known for getting things done. He has played a key role for decades in great infrastructure projects aimed at developing Brazil’s poor but resource-rich northeast. He headed SUDENE, the big northeast Brazilian development agency created in 1959 on the model of the TVA; is described as the “author” of the São Francisco Water Transfer project (also modeled on the TVA); and as (federal) Transport Minister under President Sarney, was responsible for the creation of the North-South Railway.

“The Maranhão capital possesses extraordinary conditions for joining [the BRI] because of its road, rail connections and exceptional port conditions. The connection with the North-South Railway, Brazil’s leading cargo transport axis, linking the railroads of the country’s five regions, is an example. In the region called the ‘Northern arc,’ that is, above the 16th parallel, no state has similar transport logistics conditions,” local media emphasized. “Including São Luís in the greatest economic expansion program in the world, that of China, will guarantee tremendous resources for infrastructure, commodity distribution centers, and privileged access to the other countries which make up the project.”

 The president of Itaqui Port, Ted Lago, emphasized to the seminar that while the port is already a leading point of cargo shipments to China, by Maranhão becoming a major center on the BRI, South America as a whole can be brought into that global project. He also insisted that Brazil wants its trade relations with China to be more than its shipping commodities; it wants Chinese industries to set up in Maranhão, to add value and generate jobs.


Transregional Connectivity Projects Debated at Tashkent Conference on Afghanistan

Aug. 1 (EIRNS)—As the organizer and host of the July 26-27 conference in Tashkent, entitled “Afghanistan: Security and Economic Development,” the government of Uzbekistan issued a summary report on some of the major points of discussion which took place there, with an important focus on priority infrastructure projects to enhance regional connectivity.

Published July 27 by The Diplomat, the report emphasizes participants’ understanding that lasting peace will only be achieved through stabilization and recovery of Afghanistan’s economy. It is therefore necessary, it states, “to promote the integration of Afghanistan into interregional economic processes, to promote the implementation of socially significant and infrastructure projects, including the formation of transregional transport, energy and other corridors.”

Among the projects were those put forward by Uzbek President Shavkat Mirziyoyev to advance the construction of the trans-Afghanistan railroad as a means of connecting South Asia via Afghanistan. Other projects include laying the (Uzbekistan to Afghanistan) Surkhan-Pul-i-Khumri power transmission line, the creation of the Termez, Uzbekistan, cargo transport and logistics hub, as well as the transformation of the training center in Termez into an educational cluster for training Afghan personnel.

According to The Diplomat, Uzbekistan is the major promoter of the 573 km Trans-Afghan railroad. First proposed in December 2018, it would extend the Afghan rail network from Mazar-e-Sharif—a regional hub in northern Afghanistan, close to both Uzbekistan and Tajikistan—to Kabul and then to Nangarhar province in eastern Afghanistan, where the railway would cross the border with Pakistan at Torkham and run into Pakistan via Peshawar. Goods will then be offloaded to connect with the Pakistan rail system and from there travel down to the seaports of Karachi, Gwadar, and Qasim.

The railroad would have an estimated capacity of 20 million tons of cargo per annum, and once operational, would cut down travel time from 35 days to 3-5 days from Uzbekistan to Pakistan, The Diplomat reports. There are many challenges to be overcome in building the project, including very difficult geography, security issues, different rail gauges, and not least of which is the $4.8 billion in financing.

Another important project is the Central Asia-South Asia Electricity Transmission and Trade Project (CASA-1000), a $1.2 billion project that would bring 1,300 MW of seasonal power from Tajikistan and Kyrgyzstan to Afghanistan and Pakistan. Because of their hydroelectric power capacity, Tajikistan and Kyrgyzstan have excess electricity to sell. Although the project was put on hold when the Taliban took power, construction has now been resumed with an estimated completion date of 2024. It is financed by a consortium of international financial organizations.


Chinese Foreign Minister Wang Yi’s Visit to Kyrgyzstan and Tajikistan Has Development Focus

Aug. 1 (EIRNS)—Chinese Foreign Minister Wang Yi continued on his Central Asian diplomatic tour, which brought him to high level meetings in Uzbekistan July 28-29, including the SCO Foreign Ministers’ meeting, and then to Kyrgyzstan on July 30, and Tajikistan July 31-Aug. 1, all focused on the growth of both the nations, and Central Asia as a whole.

In Kyrgyzstan, Wang met with Foreign Minister Jeenbek Kulubaev in the town of Cholpon-Ata. The Chinese Foreign Ministry readout reported that Wang said “the Chinese side has felt the great importance and ardent expectations by Kyrgyzstan and Uzbekistan to the China-Kyrgyzstan-Uzbekistan [CKU] railway project, and will jointly advance this important project at a faster pace…. The Chinese side is ready to import more green and quality livestock products from Kyrgyzstan.” Wang said that China and Kyrgyzstan are ready to increase the frequency of direct flights. Kulubaev said he looks forward to accelerating the CKU railway and welcomed Chinese experts’ arrival in Kyrgyzstan to “carry out the survey work.” His country is “ready to work with China to speed up the implementation of key projects such as the new North-South Highway” and the renovation of the municipal roads of Bishkek, the nation’s capital.

Kulubaev attached special importance to China’s pledge to construct in his nation the Luban Workshop, a program China has developed in several nations, in which Chinese engineers and professionals educate host country’s students and labor force in such subjects as industrial robots, cloud computing, high-speed train maintenance, and vocational training.

On July 31, Wang set foot in Dushanbe, Tajikistan, where he met with President Emomali Rahmon, who noted on his website that China is one of the major trading partners of Tajikistan and its largest investor. Bilateral trade between Tajikistan and China during the first six months of 2022 increased by 82%, compared to the same period last year, and accounted for one-fifth of Tajikistan’s foreign trade.

Some of the groundwork for this trip was worked out at the third China + Central Asia Foreign Ministers’ meeting in Nur-Sultan, Kazakhstan on June 12. The C-5 include Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan; at the ministerial, Wang outlined a 10-point program, stemming from the Belt and Road, for the region’s development. It is significant that for the Eurasian Economic Union (EAEU), which Russia helped to found in 2014, both Kazakhstan and Kyrgyzstan are full-time members, and Uzbekistan is an observer.

It is not accidental that both the China and Russian headed organizations seek the agricultural and industrial development of landlocked Central Asia, including Afghanistan, over the Anglo-American looting eyes.


Russia Helping Hungary to Build Rail Link to Ukraine

Russia Helping Hungary to Build Rail Link to Ukraine

Feb. 2 (EIRNS)–President Vladimir Putin informed Hungarian Prime Minister Viktor Orban during their joint press conference after meeting in Moscow yesterday, that he had confirmed that Russian Railways could provide $2 billion in additional funding to help finance the construction of railway line V0, the Hungarian bypass around Budapest that is to connect Hungary’s border with Ukraine to the border with Austria—a key connection for Hungary intention to become a key center for Belt and Road cargo coming from China, through Russia, into Europe.

The project was a major point of discussion between the two Presidents. As Orban reported, “Hungary made a big investment in the construction of a terminal on its border with Ukraine. This cutting-edge terminal is capable of reloading goods from trucks much faster than any other facility of this kind. This is a tremendous opportunity. We discussed the formation of a Russia-Hungary joint venture on shipments … [which] will improve the Hungarian economy and will allow us to use Hungary’s good geographical location. It is suitable for transport routes, pipes, roads and railways.”

The “Railfreight” site summarized the  project on January 31st: “Hungary is moving fast to gain its position as a transit country on the New Silk Road. In Fenyestlitke, a city close to the border with Ukraine in the Záhony region, a state-of-the-art terminal is currently under construction and expected to be operative in April….

The role of Hungary on the Eurasian corridor has been acknowledged by Russia and Austria. In December, the three countries formed a joint venture that will take the role of freight forwarder and logistics provider on the New Silk Road. The partnership consists of Russian Railways Holding, CER Cargo Holding (Hungary) and Rail Cargo Group (Austria).

The focus of the newly formed team will be on cargo transportation from Chinese provinces to South Europe and Balkan countries, through Russia and Hungary and backwards. The route via Ukraine will be of particular importance, as this route serves that particular part of Europe on the Eurasian corridor. (For more information and details see: http://en.kremlin.ru/events/president/news/67690, and https://www.railfreight.com/beltandroad/2022/01/31/russia-sides-with-hungary-in-building-budapest-bypass/, and https://www.railfreight.com/specials/2021/10/15/hungary-back-on-the-map-with-replenished-border-area.)