China invests in Russia 11.05.2015

Russia and China will create a platform for the funding of Russian companies by Chinese banks. Also, they signed an agreement on the establishment of the Russian-Chinese investment bank. The documents were signed during the visit of Chinese President Xi Jinping to Moscow. In addition to the creation of new financial institutions, China will also invest in the Russian agricultural sector, the projects of the state corporation "Rostec", and the promotion of the Sukhoi Superjet 100.

The agreement was signed in the presence of Vladimir Putin and Chinese President Xi Jinping, who visited Moscow on an official visit on May 8-10, during which the head of China took part in a ceremony to celebrate the 70th anniversary of the Victory in the Great Patriotic War.

In addition to the agreement on the extension of credit, Russian Direct Investment Fund and China's CITIC Merchan will sign an agreement on the establishment of the Russian-Chinese investment bank.

The main objective of the new organization, which will provide consulting services in the field of mergers and acquisitions, should be the involvement of Chinese strategic and financial investors to the share capital of Russian companies. The Bank will also organize primary and secondary offering of securities of Russian companies on the stock markets of China, as well as the placement of corporate bonds of Russian issuers in the Asian stock markets.

Russia and China will establish a joint leasing company for the promotion of Russian aircraft Sukhoi Superjet 100 in China and Asia. Through the newly created company, which will be established in a new area of Xixian, Shaanxi Province of China (PRC), the consortium plans to sell in the markets of China and South-East Asia over 100 aircraft SSJ-100, totaling more than $ 3 billion, in the next three years.

Also, according to the agreement, the parties intend to form a specialized investment fund for investments in projects in the field of agriculture in Russia and China.

In addition to the signing of agreements, at the meeting, Vladimir Putin and Xi Jinping have discussed the cooperation between the two countries in the oil and gas industry. There may also have probably been other subjects in their discussion, such as financing the high-speed highway Moscow - Kazan (in this project, China could invest about 300 billion rubles), military-technical cooperation, cooperation in civil aviation and other high-tech industries.