Developing the Northern Sea Route, including the associated logistical chains and infrastructure, enjoys high priority in Russia. Inadequate south—north transportation capacity is recognized as a problem. China has shown increasing interest in Arctic shipping over the past fifteen years. The construction of a railway from the Urals, with connections to China, to a deep-water port with access to the Arctic Ocean appeared attractive—both as a strategic opportunity for China and as a natural area for Chinese engagement in Russia, given announcements of the close partnership and common interests between the two countries. Since 2012 various Chinese companies have investigated business opportunities, and the conclusion of a concession agreement has been announced several times. The Russian federal authorities have voiced support—without committing budget funding. Although regional support has remained strong, critical remarks have increasingly come from the federal government, and the project has now been put on hold. Reviewing the history of the project since Chinese companies first became involved, this chapter offers insights on the Russian regional authorities’ interaction with Chinese stakeholders and the relationship between central and regional power in Russia. It also reveals Russian misinterpretations of Chinese interest in the project.