VTB Bank and Bank of China have signed an agreement expanding their product lines for servicing trade contracts between Russia and China.

The deal is expected to increase trade between the two countries in different sectors of their economies. It will provide banking services to finance bilateral trade flows within the limits of credit lines approved by Bank of China for VTB, the details of which have not been disclosed yet.

It will also enable VTB to offer new financial solutions involving a broader range of structural products to Russian companies working with partners in mainland China. In particular, it provides multicurrency options for letters of credit, documentary collection, and remittance financing of trade turnover between Russia and China.

“This agreement is an important step for us in improving and diversifying our relations with Chinese counterparties, as well as supporting trade between our countries. This agreement extends our significant trade finance proposal for companies working with China,” Igor Ostreyko, VTB managing director, trade and export finance, tells GTR.

Herbert Moos, deputy president and chairman of the VTB Bank management board, adds: “This agreement is evidence of the strong relationship with our partner Bank of China. Given the fostering of ties between Russia and China, this also confirms VTB’s intention to strengthen its co-operation with China’s leading financial institutions. We have been working closely with different divisions of Bank of China and hope to continue expanding our joint product line.”