Igor Shovalov announces collaboration between VEB.RF and Chinese businesses, estimating the value of upcoming joint projects at approximately 3.5 trillion rubles.
The Russian-Chinese Partnership:
Russian businesses have been strengthening their bonds with Chinese partners, with the VEB.RF group leading the charge. Notable entities like the Russian Export Center, Exiar, and Rosexportbank are fueling the growth of non-resource, non-energy exports, exceeding $3.6 billion in exports to China in 2024 alone. TheSkolkovo Foundation and the Russian Venture Company are helping Russian IT companies find tech partners and penetrate the Chinese market.
Igor Shuvalov, the chairman of VEB.RF, acknowledges that while there's been significant progress, Russian businesses still have financing needs—particularly for joint projects, securing technological partners, and long-term export agreements with China. "The demand for financing from Chinese financial institutions is growing, and meeting these needs will boost our interactive results," said Shuvalov.
A key move by VEB.RF to bolster Russian companies' presence in the Chinese market is the promotion of products under the "Made in Russia" brand. This program, supported by the Russian Export Center, recently gained federal recognition.
Chinese partners have played a crucial role in large-scale projects in Russia, often working alongside VEB.RF. The Skolkovo Foundation's Chinese representative office, operating since 2016, has facilitated the commercialization of residents' developments in both markets, enabling access to each other's respective markets through Skolkovo and Moscow Innovation Cluster infrastructure. Ten Skolkovo residents already have offices in China, including Motorika, Sensomed, and Geosplit.
For Russian businesses targeting partnerships with Chinese financiers, there are several avenues to explore. VEB.RF is committed to supplying credit resources, guarantees, and expertise for organizing project financing and structuring deals on public-private partnership principles, ensuring Chinese partners' success in implementing joint ventures.
Securing Financing with Chinese Partners:
To secure financing from Chinese financial institutions for joint projects with VEB.RF, consider these pointers:
- Utilize VEB.RF's substantial funding, designed to back strategic sectors like shipbuilding, equipment supply, and long-term export agreements with China.
- Engage in joint ventures or cooperative projects with Chinese financial institutions, supported or co-financed by VEB.RF.
- Participate in high-profile forums and business dialogues, such as the Russian-Chinese Forum, to create networking opportunities with Chinese financiers and industrial partners.
- Structure projects to align with VEB.RF's funding program criteria, ensuring they contribute to expanding Russian exports to China and enhancing technological ties.
- Consider alternative payment methods, such as using Chinese yuan or emerging systems like CIPS, to bypass international sanction complications during cross-border transactions.
- Igor Shuvalov, the chairman of VEB.RF, stated that the demand for financing from Chinese financial institutions is increasing, and meeting these needs will enhance interactive results.
- VEB.RF is providing credit resources, guarantees, and expertise for organizing project financing and structuring deals on public-private partnership principles, ensuring Chinese partners' success in implementing joint ventures.
- Engaging in joint ventures or cooperative projects with Chinese financial institutions, supported or co-financed by VEB.RF, can be beneficial in securing financing for non-resource, non-energy exports.
- To secure financing from Chinese financial institutions for projects under the "Made in Russia" brand, participating in high-profile forums like the Russian-Chinese Forum can create networking opportunities with potential Chinese partners.
- In order to bypass international sanction complications during cross-border transactions, consider using alternative payment methods such as Chinese yuan or emerging systems like CIPS.
