Skip to main content

China pledges $10bn to Silk Road, Arctic projects in Russia

by Janne Suokas 

Yamal, a Russian nuclear-powered icebreaker.Christopher Michel Flickr CC BY 2.0

China Development Bank (CDB) has agreed to lend up to 65 billion yuan (US$10bn) to Russia’s Vnesheconombank (VEB) for financing projects under Beijing’s Belt and Road initiative and the Moscow-led Eurasian Economic Union (EAEU).

The two state-owned development banks signed a framework agreement in Beijing on the sidelines of Russian President Vladimir Putin’s state visit to China last week. It follows up on a pledge made by Putin and Chinese President Xi Jinping in 2015 to seek an integration of the EAEU and the Chinese trade and infrastructure initiative, according to the Russian bank.

Under the agreement, CDB and VEB could co-finance some 70 projects approved by the parties, especially in the Arctic region.

“Within this coordination, we have a number of major projects, in particular those on the Northern Sea Route and China-Europe high-speed link. Currently, there are about seventy projects we could co-finance, which would greatly contribute to coordinating integration processes,” VEB Chairman Igor Shuvalov said in a press release.

“Cooperation between VEB and CDB will significantly contribute to integration processes in Eurasia,” he continued.

The loan deal is the biggest yet between VEB and CDB, which have signed credit agreements worth more than US$10bn over the past 12 years. The two banks had been in talks about loan terms and interest rates since November last year, according to Vedomosti.

US and EU sanctions placed on VEB over the Ukraine conflict prevent it from raising money in Western capital markets.

Related Articles

China adds Arctic sea route to its Silk Road plan

Jun 21, 2017 13:43 Belt and Road Initiative Arctictrade environment China europe

China-Europe rail cargo grows dramatically but challenges remain

Mar 08, 2018 16:43 Belt and Road Initiative tradeeurope Hamburg

China’s Belt and Road initiative explained

May 09, 2017 07:30 Belt and Road Initiative tradeChina asia europe

China’s Arctic ambitions

China and Russia are seeking to strike a delicate balance between cooperation and competition in Central Asia, the Russian Far East and the Arctic.

The Belt and Road initiative was proposed by Xi in 2013 to boost China’s trade links with up to 70 countries, from Asia to Europe and Africa, including every member of the Eurasian Economic Union – Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.

China has so far launched direct Belt and Road cargo train links to 42 cities in 14 European countries, with most of them passing through Kazakhstan, Russia, Belarus and Poland to destinations in western and southern Europe.

Last year, Beijing moved to include an Arctic sea route linking China to Europe in its ambitious initiative. The Polar Silk Road would make use of the Northern Sea Route, which is a shipping lane running between the Pacific Ocean and the Atlantic Ocean along Russia’s northern coast.

For its part, Russia has promoted the Northern Sea Route as an alternative route that would help cut shipping times from Shanghai to Rotterdam by about a week compared to the journey through the Strait of Malacca and the Suez Canal.

In its first Arctic policy, released in January, China called itself a “near-Arctic state” and said it hopes to cooperate with other countries in the exploration and development of the region and its vast natural resources, which are expected to become available as ice melts due to global warming.

China is cooperating with Russia in a liquefied gas (LNG) project on the Yamal Peninsula, which lies along the Northern Sea Route and has boosted cargo traffic in the shipping lane.

The US$27bn project started commercial operations in December, largely thanks to loans worth US$12bn from CDB and Export-Import Bank of China. In addition, the Shanghai-based Silk Road Fund has invested US$1bn for a 9.9 percent stake in the project.

While Chinese money may be needed to realise infrastructure development goals in the Russian Arctic, Moscow remains keen to protect its sovereignty over the region.


https://gbtimes.com/china-pledges-10bn-to-silk-road-arctic-projects-in-russia

Comments

Popular posts from this blog

Balochistan to establish first medical university

https://www.dawn.com/news/1366135

The Newspaper's Staff CorrespondentOctober 25, 2017QUETTA: The provincial cabinet on Tuesday approved the draft for establishing a medical university in Balochistan.Health minister Mir Rehmat Saleh Baloch made the announcement while speaking at a press conference after a cabinet meeting.“The cabinet has approved the draft of the medical university which would be presented in the current session of the Balochistan Assembly,” he said, adding with the assembly’s approval the Bolan Medical College would be converted into a medical university.Published in Dawn, October 25th, 2017

5 Shia Hazara community members gunned down in Pakistan

http://m.hindustantimes.com/world-news/5-shia-hazara-community-members-gunned-down-in-pakistan/story-CHWR4lYByRHzf2KjHjMloI.html



Five members of the minority Shia Hazara community, including two women, were killed on Sunday in an attack by unidentified gunmen in Pakistan’s restive Balochistan province.This is not the first time that members of the Hazara community have been targeted in Quetta and other parts of Balochistan.(Reuters File Photo)Updated: Sep 11, 2017 00:20 ISTBy Press Trust of India, Press Trust of India, KarachiFive members of the minority Shia Hazara community, including two women, were killed on Sunday in an attack by unidentified gunmen in Pakistan’s restive Balochistan province.The gunmen targeted a car in Kuchluck area of Quetta while it was coming from the Chaman border crossing area, police said.The firing took place when the travellers had stopped at a filling station to refuel their vehicle. Five people of the Shia Hazara community, including two women, died in …

China’s 'Digital Silk Road': Pitfalls Among High Hopes

https://thediplomat.com/2017/11/chinas-digital-silk-road-pitfalls-among-high-hopes/


Will information and communication technologies help China realize its Digital Silk Road?By Wenyuan WuNovember 03, 2017In his speech at the opening ceremony of China’s 19th Party Congress, President Xi Jinping depicted China as a model of scientific and harmonious development for developing nations. Xi’s China wants to engage the world through commerce but also through environmental protection and technological advancement. This includes Beijing’s efforts to fight climate change with information and communication technologies (ICTs) that it plans to export along its “One Belt One Road” initiative (OBOR). Xi may have ambitious plans, but could China be throwing up obstacles in its own way?In his speech, the Chinese president emphasized the need to modernize the country’s environmental protections. The Chinese state is taking an “ecological civilization” approach to development and diplomacy, with a natio…