Vnesheconombank (VEB) of Russia has obtained a series of loans from Chinese banks.

VEB secured two facilities from the China Development Bank (CDB). The first is a US$800mn package which will be used to construct a multipurpose development facility in Moscow.

The second is a US$400mn loan for the construction of the third generating unit at the Ekibastuz GRES-2 power plant in Kazakhstan.

VEB has also opened a credit line of US$700mn with the Export-Import Bank of China (Cexim) to be used to finance Russian projects.

The financing agreements came as part of a flurry of 20 deals okayed and signed by the Russian president Dmitry Medvedev on an official visit to China. The trip was designed to strengthen trade between the two powers and also led to a number of MOUs and co-operation agreements signed between Russian and Chinese firms.

The president of Russia’s En+ Group signed a framework agreement with Huaneng Power which will see the two energy companies collaborate on projects.

Rosneft and China National Petroleum Corporation (CNPC) – the oil conglomerates – inked a deal which will see Rosneft supply oil to a refinery it wants to build alongside CNPC in China.

Despite opening a host of credit lines from Chinese financial institutions, Medvedev used the trip to call for greater direct investment between China and Russia. He suggested that the current model, whereby Russia is reliant on Chinese lending facilities, is outdated.