On 12 October 2010, VTB Bank Branch in Shanghai (China) launched a new service for its customers – discounting L/Cs issued by VTB in Rubles to be paid in installments. O’stin company was the first applicant for this type of L/Cs.
This was the first operation to make trans-border settlements and financing in Rubles conducted in China beyond the frontier zone where such operations have been made available since 2002.
Similar operations in a foreign currency are a general practice for many credit institutions operating in the territory of another country. They make it possible to provide trade financing services within one bank, which is convenient for customers of both countries.
Such operations conducted by the Branch are aimed at expanding the settlement zone in national currencies between Russia and China.
VTB Bank Branch in Shanghai (China) has been operating since March 2008 and is the first branch of a Russian bank in the territory of the People’s Republic of China. The key tasks of the Branch include servicing Russian-Chinese trade turnover, conducting foreign trade operations for Russian companies, expanding their business in China, as well as supporting Chinese companies operating in the Russian market.