On 27 September 2010, within the official visit of the Russian President to the People’s Republic of China, JSC VTB Bank and the Industrial and Commercial Bank of China entered into an agreement aimed at enhancing cooperation under the Framework Loan Agreement signed on 22 August 2002.
In the presence of Dmitry Medvedev, Russian President and Hu Jintao, President of the People’s Republic of China, the new agreement was signed by Vasily Titov, First Deputy Chairman of VTB Management Board and Jiang Jianqing, President of the Industrial and Commercial Bank of China.
Under the agreement, the credit line will be increased from USD 200 to 500 mln, which was granted by the Industrial and Commercial Bank of China for long-term financing of Russian import from China under the insurance coverage of SINOSURE, a Chinese insurance agency. This will enable VTB to provide loans to Russian importers in Dollars, Euro and Yuan.
VTB Bank has been traditionally cooperating with Chinese financial institutions and plays an important role in Russian-Chinese trade servicing. In 2008, VTB was the first Russian bank to open its branch in the People’s Republic of China.
The cooperation under loan agreements aimed at financing export-import operations between Russia and the People’s Republic of China has been conducted with the largest Chinese banks. Over the last years, within credit lines extended by Chinese banks, VTB has raised financing for its projects in telecommunication, power energy, supply of equipment for oil production industry totaling USD 300 mln.The Industrial and Commercial Bank of China is the largest bank of the People’s Republic of China in terms of assets. It ranks forth among the “political” banks of China, which are the backbone state banks participating in implementation of priority state programs.