China and Russia negotiate trade deals
Article 1 minute read

China and Russia negotiate trade deals

27 June 2013

China and Russia have negotiated mutual trade deals to encourage foreign direct investment (FDI).

New reports have emerged suggesting investment cooperation between China and Russia will see further expansion after delegates met at the 17th St Petersburg International Economic Forum. More funding will be channelled into the Russia-China Investment Fund (RCIF) which will be used to back numerous projects, with around US$2bn earmarked for direct investment which will be matched by third party capital.

Hu Bing, President of the RCIF, said the fund had invested about US$170m into a forestry project in Russia's Far East and was mulling more investment. Speaking to Xinhua, he added: "Direct trade is not enough to level up the China-Russia relations. Investments, instead, will strengthen the ties in longer term."

Damian Chunilal, CEO Asia for Russia's VTB Capital, said investors in Asia, especially China, are seeing tremendous growth opportunities. As trade flows continue to flourish between the two regions, an increase in FDI will invariably occur. This is being executed through joint ventures, direct investments or share holdings, highlighting the flexible nature of negotiations which is freeing up new models of investment.

Currently, more than 30 Chinese companies longing to set foot in Russia have been in touch with VTB Capital. Sluggish global growth has stalled capital flows, but investors focusing on longer term fundamentals and opportunities have shown considerable interest in the future of Russia and China.

TMF Group has offices located across both countries where our dedicated accounting, legal and HR and payroll staff can take care of administrative details, leaving you free to focus on your global ambitions.


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