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Russia and China have agreed on a new list of significant projects in excess of $120 billion

First Deputy Prime Minister of the Russian Federation Andrey Belousov and Deputy Premier of the State Council of the People's Republic of China Han Zheng held the 8th meeting of the Intergovernmental Russian-Chinese Commission on Investment Cooperation.

The parties discussed the current state and prospects for the development of cooperation in the investment sphere. The results of their work were presented by the Commission's secretariats, the Advisory Committee of Entrepreneurs, state development institutions, companies, representatives of the administrations of Russian regions and Chinese provinces. Special attention was paid to bilateral cooperation in the production of COVID-19 vaccines and projects in the field of gas chemistry.

Opening the meeting, Andrei Belousov stressed that China is Russia's most important partner in trade and investment. In just 9 months of this year, bilateral trade increased by 32% (to $98.9 billion). The First Deputy Prime Minister expressed confidence in the high potential both for increasing the volume of mutual trade and for expanding its nomenclature. "We see great opportunities in the field of mutual direct investments. The volume of accumulated direct investments from China to Russia after a reduction due to "covid" restrictions last year increased by 15% in the first half of this year. We must actively promote the continuation of this trend. I am convinced that we need to support investment projects in the most promising sectors, such as gas and petrochemicals, pharmaceuticals, transport, and the development of high technologies," Belousov said.

At the meeting, the parties agreed on a new list of significant projects of Russian-Chinese investment cooperation with a declared investment volume of over 120 billion US dollars.

The projects of Russian-Chinese international cooperation in the field of vaccine production – for $50 million, the gas chemical complex in the village of Ust-Luga – for $21.7 billion, the production of household appliances of the brand "Khayer" in the city of Naberezhnye Chelny – for $198 million received the status of significant.

"Our Commission has become a platform for discussing issues of cooperation between Russia and China in the fight against coronavirus, including the most important projects of the Russian Direct Investment Fund for the organization of production and commercialization of Russian vaccines Sputnik-V and Sputnik-Lite," the First Deputy Prime Minister stressed.

The Russian Direct Investment Fund plans that over 150 million doses of the vaccine per year will be produced by Chinese factories. Contracts have already been signed with six manufacturers. Test series of vaccines have been produced and approved by the quality control system of the N.F. Gamalei Center at several sites, which already makes it possible to scale production.

According to the secretary of the Russian part of the IPC, Deputy Minister of Economic Development of the Russian Federation Vladimir Ilyichev, a new list of promising joint projects was agreed on November 3, which will include 3 new ones: on the creation of the production of formalin and resins in the Tula region; on the construction of the Vladivostok Ring road; on the creation of an integrated development park near the Nizhneleninskoe – Tongjiang bridge. Thus, the portfolio of promising projects will amount to $40.1 billion.

The meeting was also attended by the Governor of the Amur region Vasily Orlov. He noted that due to its unique geopolitical position, the region plays a special role in realizing the potential of Russian-Chinese relations. A large-scale joint project of the Amur Gas Chemical Complex is already being implemented here. "New projects for the construction of plants for the production of nitrogen fertilizers, liquefied hydrogen and acetic acid are being formed on the basis of the gas chemical cluster. We are ready for dialogue with Chinese partners in all these areas," said the governor of the region Vasily Orlov. He drew attention to the fact that new gas chemical projects in the Amur region are being implemented in compliance with all requirements of industrial and environmental safety. "In general, this is our great advantage – from the point of view of the ESG agenda, the generation of the Amur Region is 90% based on renewable energy sources," the governor stressed.

Active work is underway to implement a complex of two enterprises – gas chemical and gas processing in the Ust-Luga area. "The project to create a complex for processing ethane-containing gas in Ust-Luga is of national importance. Chinese partners are involved in its implementation, and the products will be sold, including to the Chinese market. It is planned to involve Chinese financial institutions in financing the project. The inclusion of the gas chemical complex in the list of significant projects of the Commission will provide the necessary level of support for its implementation, which is beneficial to Russia and China," the VEB Deputy Chairman noted.RF – Member of the Management Board Daniil Algulyan.

During the meeting, the parties also discussed the importance of promoting an increase in cargo transshipment capacity, including at the Zabaikalsk-Manchuria checkpoints, given the expansion of food trade between Russia and China.

Next year, it is planned to put into operation a specialized grain terminal in Zabaikalsk, which will significantly increase grain supplies to China.

Andrey Belousov noted that in order to start the operation of the grain terminal in Zabaikalsk, it is necessary that JSC Russian Railways and the Chinese State Railways Group of companies determine the volumes of transshipment of Russian grain to China on the territory of Russia and conclude an appropriate agreement.

Summing up, Belousov additionally stressed the importance of the recapitalization of the Russian-Chinese Investment Fund, which the heads of Russia and China agreed to consider in 2019. "The Fund has confirmed its relevance – more than 80% of its capital has already been invested in projects, and the Fund's investments demonstrate positive returns," the First Deputy Prime Minister said.

Following the meeting, it was decided to prepare a new version of the Russian-Chinese Investment Cooperation Plan, to work out the possibilities of launching joint high-tech projects, not only large, but also "medium-sized" enterprises, as well as projects in the field of "green financing". To do this, it is planned to more actively use the resources of two Russian-Chinese funds: venture, as well as scientific, technical and innovative.