An underlying loan agreement was signed between Vneshtorgbank and Exim Bank of China within the framework of Russian President Putin`s visit to the People`s Republic of China.
The Agreement is aimed at extending to Vneshtorgbank a ten-year USD 100 million credit line to finance the export of Chinese durable commodities to Russia with an insurance cover provided by `SINOSURE`, an export credit and guarantee agency of China.
Presently, the banks have identified the first project eligible for financing under this credit line, that is the purchase by `Uralsvyazinform` JSC of the leading-edge telecommunications equipment produced by Huawei Technologies Co. Ltd. The project is planned to materialise within the current year with an overall volume of USD 10 million.
The Agreement signed will certainly give a further impetus to financing equipment imports from the People`s Republic of China under the Chinese State programme of export support without stipulating guarantees of the Russian government.
The Agreement between Vneshtorgbank and Exim Bank of China is built on the solid relationships the two banks have forged in the past. Last September a cooperation agreement was signed by the banks to finance projects in shipbuilding and telecommunications.
Earlier, also in the framework of a Cino-Russian summit, a Memorandum of Understanding was signed between Vneshtorgbank and Bank of China defining the terms and conditions of extending to Vneshtorgbank a similar credit line for USD 200 million.
Furthermore, in the context of a August meeting of the heads of the Russian and Chinese governments, one more agreement was signed by Vneshtorgbank with a major Chinese lending institution - the Industrial and Commercial Bank of China. The USD 200 million credit is extended for ten years.
Overall, Vneshtorgbank has already signed cooperation agreements with three leading banks of the People`s Republic of China - Bank of China, Industrial and Commercial Bank of China and Agricultural Bank of China. An agreement with a private bank - China Everbright Bank - has also been initialled. Actually, these agreements embrace the whole spectrum of banking activities.
Also, Vneshtorgbank has settlement agreements on frontier trade with Bank of China, Industrial and Commercial Bank of China and China Everbright Bank.
To facilitate and optimise mutually rewarding cooperation with its Chinese partners, Vneshtorgbank has a Representative Office operating in Beijing. The Bank`s network includes 39 branches covering a wide geography of Russian regions, with China-neighbouringong them.
Currently, Vneshtorgbank`s commitments are readily accepted by export credit and guarantee agencies, as well as Exim banks of all Russia`s trading partners in the region, such as India, China, South Korea, Vietnam, Malaysia and others.