According to the Chinese Ministry of Commerce, non-financial direct investments into Russia in 2014 increased by over 250% to more than USD 8 billion.
However, a lot of the contracts were signed back in May 2014, and currently, many still remain as just intentions.
Some examples beyond oil and gas:
- Several Russian banks acquired financing from Chinese banks: VTB received a credit line of USD 2 billion; VEB, a leasing of USD 300 million; and VnesheconomBankhas, a framework agreement for USD 2 billion.
- RusHydro and Sanxia signed a contract for the construction of two hydroelectric power plants in Russia.
- Eurocement signed procurement contracts worth nearly USD 1 billion with China CAMC Engineering and other Chinese suppliers.
- Great Wall Auto started building a plant in the Tula Region.
- Volga Group created a JV with China Harbour Engineering (CHEC).The JV’s primary activities will be coal mining and logistics services, including the construction of a container terminal in the Far East region of Russia.
- Huawei won a tender for the construction of optical fiber communications in the Far East region.
- Chengdong investment acquired 6% of the Moscow Stock Exchange for USD 100 million.
- The Russian Direct Investment Fund and China Investment Corporation jointly acquired a company that is responsible for the construction of a railway bridge over the Amur River.
2015 will see another wave of Chinese investments in Russian energy. Initiatives discussed in the media include:
- Chinese banks funding the Yamal LNG project, which will include the construction of a liquefied natural gas plant.
- Chinese investors entering into the Vankor oil production venture, one of the largest oil production projects in the country
- Chinese investors entering the Udokan copper field.
Additionally, there will likely be a broadening of investments to other sectors, such as:
- A new high speed rail line out of Moscow.
- Entertainment projects such as theme parks in southern Russia.
- Service infrastructure projects from airports to hotels to bring more Chinese visitors to Russia.
- Agriculture projects in wheat, fish, pork, premium fruits and dairy, among other products
- Technology substitution projects.
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