On November 3, 2005, within the framework of a visit by Mikhail Fradkov, Prime Minister of the Russian Federation, to the People`s Republic of China, Vneshtorgbank signed a number of agreements with Chinese financial institutions.
In particular, a Basic Loan Agreement was signed between Vneshtorgbank and the Bank of China, which stipulates opening a USD 200 million credit line for Vneshtorgbank to finance export of Chinese durables to Russia under insurance coverage by Sinosure, China Export and Credit Insurance Corporation.
Under the Agreement, Vneshtorgbank will be able to enhance long-term financing of Chinese import on market-driven terms using the Chinese export state support without resorting to any guarantees from the Russian government.
On the whole, agreements signed by Vneshtorgbank with Chinese banks have presently amounted to USD 900 million. Earlier, Vneshtorgbank signed similar loan agreements with Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China and the Export-Import Bank of China; besides, in July 2005, a cooperation agreement was signed with Sinosure, China Export and Credit Insurance Corporation.
Also, during this visit Vneshtorgbank signed a Mutual Understanding Memorandum with China UnionPay processing company. The agreement provides for mutual servicing of bankcards of China UnionPay (CUP) standard through Vneshtorgbank`s ATMs and outlets in Russia and CUP members in China.
The Memorandum signed will contribute to stronger trade and economic relationship between the two countries and create favourable environment for further cooperation in the sphere of clearing through China UnionPay bankcards.
Bank of China is state-owned bank. As of 01.01.2005, it is ranked 2nd among Chinese banks and 31st in the world in terms of assets. Shareholders` equity of the bank has approximated USD 25.5 billion. The bank`s assets are about USD 516 billion.
CUP is the only national processing company in the People`s Republic of China. Presently, all Chinese financial institutions issuing bankcards are members of the China UnionPay network. The amount of CUP`s paid out capital is CNY 1.65 billion which is amount USD 200 million.