Siemens, the German engineering giant, is eyeing the planned construction of a rail tunnel from the Russian mainland to Sakhalin Island after signing a framework agreement with Russia’s railways ministry to help upgrade the country’s rail network.

The deal, signed by minister of railways of the Russian Federation Nikolay Aksenenko and Volker Jung, a Siemens board member, covers the setting up of working groups that will identify potential projects.

Mr Jung confirmed that Siemens is interested in helping to develop the rail tunnel to Sakhalin Island which it is hoped could be extended to Japan. Mr Aksenenko confirmed that the railways ministry is planning to start preparatory work on the scheme by the end of this year, possibly by October, adding that the scheme has been approved by the Russian president, Vladimir Putin.

The ministry has already carried out technical and economic feasibility studies for the link across the Tatary Strait.