Russia Seeks Chinese Investment to Expand Infrastructure in Occupied Crimea

Russia is planning a large-scale expansion of transport infrastructure in Crimea with the involvement of leading Chinese state-owned companies, a development Ukrainian intelligence warns could entrench Moscow’s occupation and deepen strategic ties between Russia and China.

The Gaze reports on this with reference to Ukraine’s Foreign Intelligence Service (SZRU).

The initiative was spearheaded by Sergey Aksyonov, the Kremlin-appointed head of Crimea’s occupation administration, during a recent high-level meeting.

Aksyonov is said to have announced preliminary agreements with Chinese partners focused on developing two strategic locations:

1. The Kerch Seaport, a key node for Russia’s gray export operations, circumventing international oversight;

2. The Donuzlav area, which hosts a significant Russian naval base on the western Crimean coast.

SZRU reports that Aksyonov intends to invite executives from China State Construction Engineering Corporation (CSCEC), a global giant in transport and rail development, to visit the peninsula in the coming weeks. 

The total cost of the proposed projects is estimated at $10 billion, a figure Ukrainian officials describe as evidence of Beijing’s calculated alignment with Russian geopolitical ambitions.

“Such cooperation would not only boost Russia’s illegal infrastructure in occupied Crimea but also symbolize a dangerous normalization of the occupation in the eyes of Chinese business,” the SZRU warned in a statement.

The intelligence report also underscores the growing pattern of strategic collaboration between Russia and China, which extends beyond infrastructure. 

Earlier investigations revealed that Chinese-made industrial equipment and raw materials, including precision computer numerical control (CNC) systems and titanium components, have helped Russia accelerate missile production despite Western sanctions.

For example, the Votkinsk Plant, the Russian primary facility producing Iskander missiles, has reportedly received over 7,000 machines, many routed through intermediary firms. 

“This project is not merely economic,” said a senior Ukrainian analyst. “It reflects a broader geopolitical alignment in which Chinese state entities actively support the militarization of occupied Ukrainian territory.”

Read more on The Gaze: Beijing’s Role in Russia-Ukraine War: How China’s Military Support Impacts Ukraine and the West