Empire of the Ring

Chapter 670 - An Unexpected Variable (2)

Chapter 670: An Unexpected Variable (2)

The complete construction of a modernization facility for the Trans-Siberian Railway was five years away.

Until then, construction of the railway modernization project in Kazakhstan would be complete, so even if the Russian government’s railway section became saturated, turning it to a bypass from Krasnoyarsk would open up a way for the railway logistics.

If that happened, Kazakhstan would not have to stop Chinese logistics because passing China’s logistics would make Kazakhstan huge transportation fees.

Although it had been confronting China everywhere, Kazakhstan would cooperate with China as well if it was beneficial to the national interest.

Because the Chinese government was worried that the Kazakh railway, the shortest route to Europe, would be blocked, it was trying to stay amicable with Kazakhstan even though it had had undesirable confrontations with Kazakhstan.

So it was building an exit through Afghanistan to Iran in preparation for not being able to use the Kazakh route.

“I’m so relieved to hear that there’s a bypass line. Now it’s about whether Putin agrees.”

“There is no reason for Putin to object, so don’t worry. If he can take advantage of the railways across Russia, he’d be more than happy to.”

Even if the logistics were transported through Kazakhstan, it would eventually have to pass through Volgograd again, so there was not much damage to Russia.

“People were worried about the increased cost of construction, but it seems to have been a blessing in disguise. If you hadn’t come up with a solution, we would have been devastated.”

That remained to be seen, but for now, the construction up to only Krasnoyarsk was less of a burden for Youngho, too.

“The Trans-Siberian Railway project will certainly be a golden goose so wait and see.”

“If that turns out to be true, I will invest in Kazakhstan as well.”

“Are you interested in the new railroad section? This is a branch line connected to the Trans-Siberian Railway. As I said earlier, I think your line will be quite active in the future.”

Then, everyone at the conference was intrigued.

“Your Highness, why don’t all the companies investing in the Trans-Siberian Railway participate? It’s an extension of the Trans-Siberian Railway anyway.”

“That’s great. It’s about securing a new line, so I’ll actively consider it.”

“I feel like I’m on a roller coaster. My mind still doesn’t know where to lean toward.”

“Hahaha... There will be good results tomorrow.”

“We’ll trust you and wait, Your Highness.”

***

Consortium companies’ proposal to divide the construction sector and its management was accepted as Youngho said.

As for the Russian government, what it was concerned with was resolved by this proposal, so it had no reason to oppose it.

Public opinion was rife that the Trans-Siberian train would be handed over to foreign companies, but now a way for Russia to manage the key railway section, from Krasnoyarsk to Moscow, was open.

On top of that, it was an easy business for Russia as the most difficult section to modernize the Trans-Siberian Railway was from Central Siberia to Far East Siberia.

Putin was very pleased and welcomed Youngho who visited the Kremlin.

“I looked at the report, and there were clear signs of your suffering. Thank you for all your hard work.”

“We will complete the construction of the Far East Siberian section no matter how much it costs. The consortium companies were about to give up the construction, so I had to drink vodka quite a bit with them to turn them around.”

“Hahaha... Your Highness has brought me another big gift. I received a report from the Krasnoyarsk market yesterday. I hear you’re building a steel mill.”

“I tried to present it to you first, but the mayor took the initiative and visited the site first. If you give us your final approval, we will start the development as soon as possible, Mr. President.”

“The cross-country railway project has been cleared up, so let’s sign this contract right away.”

“Great. You’ll never be disappointed.”

“I don’t know how to thank you. We’ll set up a legal measure to start the development business right away.”

It was obvious that Putin was in a hurry, fearing that Youngho might change his mind.

Since Putin took power, there had been no investment projects of this size.

When he was re-elected president this time, he promised to revitalize the economy, and the way to achieve his pledge in the near future was finally open.

At this rate, he could even win the next presidential election.

“Mr. President. I’m thinking of offering some of the profits of the Far East railway project as a governing fund for you. Would you like that?”

Putin’s eyes got bigger at the sudden suggestion, but he soon nodded since Youngho was also the ruler of Kazakhstan and understood Putin’s struggle.

“Don’t get me wrong, sir. While running many businesses in Kazakhstan, I found that I needed a lot of money besides the official budget. I’m wondering if you’ve been in trouble like me.”

“Your Highness, you scratch the spot where it itches most for me.”

Saying that he scratched the itchy spot meant that he would accept Youngho’s offer.

The reason why Youngho made such a proposal was because it was the cost to go to Putin in any way. Thus, he was going to deliver it to him directly so that he could get credit and build Putin’s trust.

“I can relate to you, and we are on the same boat. If you get in trouble, our business is in trouble.”

“I’m telling you, it’s hard to create a slush fund as it was before. The opposition parties and civic groups are not ordinary.”

In order to save his slush fund, Putin had to be cautious since he had many eyes on him.

The world knew that Putin was involved in various projects in Russia, but as he was ruling a huge country like Russia, there would be more than one or two places to spend his money.

In particular, the pockets of his followers should be filled for a long-term dictatorship. Money made them loyal.

Under such circumstances, if the Duke of the Kazakh royal family offered to give money to him, why would he hesitate?

“And I will also provide you with a governing fund from the operating profits of the Volga-Don Canal, but it’s a problem because the Russian Navy is making trouble in the Sea of Azov.”

“It’s really embarrassing. That’s what’s happening because we’ve been unable to properly support the Navy due to a lack of budget. We will instruct the Black Sea Fleet to prevent further illegal activities.”

The Russian Black Sea Fleet in Crimea had a grand name, but it did not have much power beyond the Black Sea.

Perhaps, that was why it was only active in the Sea of Azov and the northern Black Sea, next to Crimea.

Because of the lack of budget, the fleet often demanded bribes from cargo ships passing through the Volga-Don Canal, which was a shame as the fleet belonged to the Russian Navy, not pirates.

The expansion of the Volga-Don Canal would allow 50,000-ton cargo ships to and from the area, whereas only up to 5,000-ton of ships could travel through the canal before.

Youngho mentioned the navy’s problem to Putin to prevent further mishaps of the Black Sea Fleet. Only by preventing Russian naval forces from engaging in activities could the canal significantly increase logistics volume and generate a lot of revenue.

***

When the main contract for the Trans-Siberian Railway project and the Siberian Development Project were signed, the Russian government immediately announced it both at home and abroad.

It was advertised that large-scale investments were made because it provided legal and institutional safeguards for foreign investors.

The rapid move was not only to give hope to the Russian people but also to receive new foreign investment in the future.

It was a message to relieve foreign companies since global companies and the Kazakh royal family also made investments.

In fact, the Russian government and parliament promised to enact and pass related bills as follow-up measures under the main contracts.

On the surface, it seemed to have perfect safeguards but few believed it.

This was because it was a socialist country that could change its policy at any time.

Still, companies participating in the Trans-Siberian Railway project seemed to be relieved that uncertainties had been removed.

“Your Highness, now we can finally start the construction.”

“Yes, to do so, please deposit the contracted amount of investment at the time you promised.”

“Of course. It will be deposited into the joint business account on a quarterly basis.”

Expecting total construction costs of seven billion dollars, the Kazakh royal family and Yaniv contributed two billion dollars together.

In addition, large companies of Spain and the U.S., and France would invest a billion dollars each, and the remaining two billion dollars would be invested by ten other companies from different countries including Korea.

The stakes in the Far East section of the Trans-Siberian train were 100 percent invested by the consortium companies.

Russia decided to build the Moscow section from Krasnoyarsk and operate independently.

Although the Russian government said it would do the construction, how could the Russian government, which lacked budget, pay for the construction? If that caused logistics bottlenecks, it would be the consortium companies that suffer.

So, the alternative was to use a detour route in Kazakhstan.

Consortium companies had also decided to invest in the Kazakh detour route.

“Your Highness, I wish there were no more variables, but would that be feasible?”

“There won’t be many variables in the meantime. Whether Putin stays in power or not, legal safeguards are in place, and we have a blood alliance with Kazakhstan and Russia. Even for our relationship, Russia will not break our promise.”

“Is there a measure for when the promise is broken?”

It was a very difficult question to answer.

It was common for countries to break their promises, what could private companies do against them?

If Youngho failed to convince them in this part, it was obvious that the companies participating in the consortium would feel insecure.

“I have a measure for non-compliance with the contract, but I’d rather not share them right now. Instead, if you are disadvantaged by the Trans-Siberian train project, the Kazakh royal family will offer a counter-payment. Under no circumstances will your companies lose.”

Now that the contracts were signed, Youngho had no fear of Russia. It would be Russia that would be sorry if Kazakhstan turned its back on it.