Russia and China to Jointly Expand into Markets in Third Countries

Russian companies are ready to create joint enterprises in China in the engineering and energy sectors, and also to jointly develop oil and gas fields. Russian Prime Minister Mikhail Kasyanov made this announcement on Wednesday in Shanghai at a meeting with representatives of Chinese business circles. According to the government press office, among potential directions for cooperation the Russian Prime Minister highlighted the development of China's western regions, mining, and joint expansion into markets in third countries.

Mikhail Kasyanov announced that an agreement between the Russian Central Bank and the Chinese National Bank on clearing between banks for trade in the border regions is planned to be signed in Shanghai today. He explained that the agreement concerns the organisation of a new form of clearing which is intended to be used in the countries' national currencies, the rouble and the yuan. If the project, which is to run for two years, is successful, the use of this form of clearing may be expanded in economic relations between the two countries. In addition, the Russian Prime Minister is convinced that the time has come for a Russian-Chinese business association to be founded. He pointed out that the current level of investment between Russia and China is not satisfactory for either party. According to his figures, the total volume of Chinese investment in Russia is USD 280 million, and the level of Russian investment in China is USD 300 million. Kasyanov appealed to Chinese entrepreneurs to develop their niche in the Russian market more intensively, although he noted that it was necessary to increase the quality of Chinese goods exported to Russia.