Chinese and Russian companies have signed a $400 Million contract on Thursday, June 18, to jointly conduct a design and pre-construction survey for a high-speed railway between Moscow and Kazan in Russia.

The deal was signed between Russian Railways, Russia's state-owned JSC Russian Railways and China Railway Eryuan Engineering Group (CREEC).

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CREEC is reportedly one of China's top-level design and consultant companies in engineering.

The contract states that the Chinese company shall go hand in hand with its Russian partners between 2015 and 2016 in conducting surveys, regional development planning as well as designs for the high-speed railway, according to Xinhua.

The new Russian high-speed railway is considered one of the first manifestations of China-Russia deals since officials in Russia have fallen out with the West, according to The Wall Street Journal.

The railway will be constructed in Kazan, located about 800 kilometers east of Moscow.

Considered the capital of the Republic of Tatarstan in Russia, Kazan is considered the country's sports capital as it has already hosted several international championships, reported CCTV.

Meanwhile, Kremlin is considered a World Heritage Site. Proposals on the railway say that passengers will be able to take the 800-kilometer trip in about three and a half hours.

After design developments, there will reportedly be a separate contract for the actual construction of the railway, which will then cost around $19.5 billion.

Since the Ukraine crisis which has caused a falling out with the West, the Kremlin has paved new close relations with China.

Last year, during the Ukraine crisis, President Vladimir Putin made a $400 billion deal for building a pipeline to bring Russian gas to China, and earlier this year, Moscow and Beijing have signed a financing agreement for Russian companies to receive $25 billion from China's banks.

The new railway will be the first between Moscow and Beijing. Part of the "Silk Route" project, its construction is set to finish by 2030, connecting China with the markets of Europe and the Middle East.

Tagschina Russian railway, Russian railway, Russian high-speed railway, Russia