VTB and China Construction Bank have signed a Memorandum of Understanding (MoU) to cooperate in servicing and financing Russian-Chinese foreign trade transactions.

The agreement was signed during the official visit of the Russian president Dmitry Medvedev to China and brings the total volume of base credit agreements signed between VTB and Chinese banks to support trade flows to US$1.8bn.

The latest agreement follows similar arrangement signed by VTB with other leading financial institutions in China, including the Bank of China, the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of Communications, SITIC Bank, as well as the Chinese export credit insurance corporation Sinosure and the National bank card-issuing processing company China UnionPay.

"We see enormous potential in the development of cooperation with the largest banks of China, one of the world's fastest growing and most perspective economies. Successful experience of VTB in interbank cooperation with Chinese Banks and its leading position in servicing foreign trade turnover between Russia and China allowed the bank to become the first Russian financial organisation to receive a banking licence in China. Today, VTB has a branch in Shanghai and a representative office in Beijing. Thus, we have the infrastructure required to effectively service and further develop the Russian-Chinese foreign trade”, comments Andrei Kostin, VTB chairman and CEO.