Russian banks eye closer ties with China

MOSCOW - Russian banks will forge closer ties with Chinese partners and attract more investments to develop Russia's Far East region, a Russian Banker has said.

During Russian President Vladimir Putin's scheduled visit to China next week, Russian banks expect to sign agreements with Chinese partners on financing several projects in Russia, head of Russia's Bank of Foreign Economic Activity (VEB) Vladimir Dmitriev told Xinhua in a recent interview.

"Russia-China inter-bank cooperation proved that the Russian market is attractive for foreign investors despite all negative assessments of its investment climate," he said.

Both countries pay special attention to the development of Russia's Far East and trans-Baikal region, Dmitriev noted.

For example, the Russia-China Investment Fund, which was jointly created by the two countries, has been equipped with "all necessary tools" on examining projects, establishing investment bases and looking for potential investors, he said.

Talking about regional cooperation in the banking sector, Dmitriev lauded inter-bank cooperation within the framework of Shanghai Cooperation Organization (SCO) as successful.

Members of the SCO inter-bank union put their priorities on projects and organizations which are aiming at developing industry, infrastructure and agriculture, improving the people's livelihood, creating new jobs and protecting the environment, he said.

As for VEB, it will sign an agreement on investment projects with the China Development Bank, Dmitriev said.

The Russian Fund of Direct Investments, a VEB subsidiary, plans to sign accords with the China Investment Corporation on investments in Russia's real economic sectors which supplies "electricity and forestry products to China," the banker said, adding that those projects are appealing to both Russia and China.

Another VEB subsidiary, the Russian Export Credits and Investments Insurance Agency (Exar), is prepared to strengthen its ties with the China Export & Credit Insurance Corporation, he said.

Having issued credits of about $300 million for financing the shipments of Russian machinery products to China, VEB has hopes the launching of the Exar tools would strengthen the "dynamic of trade, economic and banking relations" between Russia and China, he said.

As a promoter of the SCO inter-bank union mechanism, VEB helps banks of member states enhance coordination, the banker said.