On 23 March 2010, an agreement was signed between JSC VTB Bank and the Export-Import Bank of China (China Eximbank) aimed at extending cooperation of the two banks within the Basic Loan Agreement dated 26 March 2007. The agreement was signed within the framework of an official visit to Moscow of Xí Jìnpíng, member of the Politburo Standing Committee of the Communist Party of China.
For JSC VTB Bank, the document was signed by Vasily Titov, First Deputy Chairman of the Management Board, for China Eximbank – by Zhu Xinqiang, its Vice President. The signing ceremony was also attended by Alexander Zhukov, Chairman of the Russian party to the Russian-Chinese commission for preparing regular prime ministerial meetings.
The agreement provides for increasing long-term credit facilities opened by China Eximbank to finance import by Russian companies from the PRC, from USD 500 million to USD 800 million; and also for an option to withdraw the facilities not only in hard currencies, but in Chinese Yuans too.
Citing Vasily Titov, “in the context of better trade relations between Russia and China, and more liberal settlement procedures between the two countries, the agreement signed opens a window of opportunity for Russian companies to raise funds.”
The Export-Import Bank of China is a government policy bank engaged in promoting and financing export of Chinese goods and services.Under the Basic Loan Agreement signed between JSC VTB Bank and China Eximbank on 26 March 2007, funds were raised to finance projects in telecommunications, energy, supplies of equipment for oil industry totaling about USD 300 million. At the same time, a number of large projects are under consideration related to the construction of housing and infrastructure facilities by Chinese contractors. Large Russian companies engaged in foreign economic activities are also showing increased interest in using loans from China Eximbank.