23 May 2008, VTB and China Construction Bank signed a Memorandum of Understanding during the official visit of the Russian President Dmitry Medvedev to the People's Republic of China (the PRC).
The Memorandum was signed by Andrey Kostin, VTB Chairman and CEO, and Guo Shuqing, Chairman of China Construction Bank, in the presence of the Russian President Dmitry Medvedev and the Chinese President Hu Jintao.
Implementation of the agreements reached by the counterparties will promote further cooperation between VTB and China Construction Bank in servicing and financing Russian-Chinese foreign trade transactions, as well as interaction in the capital markets.
The Memorandum signed is another step to strengthen the Bank's competitiveness in cooperation with Chinese financial organizations and to service foreign trade with the PRC.
VTB already signed similar agreements with China's leading financial organizations, including the Bank of China, the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of Communications, SITIC Bank, as well as the Chinese export credit insurance corporation Sinosure and the National bank card-issuing processing company China UnionPay Co., Ltd. The total volume of base credit agreements between VTB and Chinese banks aimed at financing Russian-Chinese export and import transactions with terms of up to 10 years, including agreements covered by Sinosurе insurance, amounts to USD 1.8 billion.
"We see enormous potential in the development of cooperation with the largest banks of China, one of the world's fastest growing and most perspective economies. Successful experience of VTB in interbank cooperation with Chinese Banks and its leading position in servicing foreign trade turnover between Russia and China allowed the Bank to become the first Russian financial organization to receive a banking license in China. Today, VTB has a branch in Shanghai and a representative office in Beijing. Thus, we have the infrastructure required to effectively service and further develop the Russian-Chinese foreign trade", Andrey Kostin, VTB Chairman and CEO, commented on the Memorandum.
China Construction Bank Corporation is one of the leading banks of the PRC with the second largest assets in China. As of 01.01.2008 the bank's total assets amounted to USD 878.5 billion and its net profit accounted for USD 9.2 billion (according to China Construction Bank). International rating agencies (according to the Bankers' Almanac) assigned the following credit ratings to the bank (long-term/short-term): S&P: BBB+ / A-2; Fitch: А / F1; Moody's: A1 / P-1.