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China Development Bank to Provide Over RUB 600bn to Stimulate Russian Economy

June 9, 2018

To help stimulate the Russian economy, Vnesheconombank and China Development Bank (CDB) have executed a framework agreement to provide over 600 billion rubles to the country. The agreement was timed in conjunction with the Russian President's state visit to China.

The document was signed by Vnesheconombank Chairman Igor Shuvalov and CDB Chairman Hu Huaibang. The Agreement is designed to provide a mechanism for coordinating integration processes across the Eurasian Economic Union (EAEU) and China's The Belt and Road Initiative.

"Within the cooperation in coordinating the Eurasian Economic Union and The Belt and Road Initiative, we have a number of major projects, in particular, those on the Northern Sea Route, and China-Europe high-speed link. Currently, there are about seventy projects we could co-finance, which would greatly contribute to coordinating integration processes," said Igor Shuvalov.

In the context of alignment, the Agreement allows for CDB extending loans to VEB as part of the programme for the maximum amount of CNY65bn(equivalent to over RUB600bn) to finance the projects approved by the parties. Furthermore, the document identifies major areas, mechanisms, and forms of cooperation on expert support for integration project alignment, and provides for advisory interaction with the relevant national and intergovernmental organisations and institutions.

"In terms of the loan proceeds, this agreement is unique for the Russian-Chinese interbank relations. Cooperation between VEB and CDB will significantly contribute to integration processes in Eurasia," said Igor Shuvalov.