Business / Economy

China, Russia to embrace investment growth

(Xinhua) Updated: 2012-10-08 09:31

MOSCOW -- As trade between Russia and China is thriving, the two countries can expect a similar growth in investment, says an executive of a leading Russian investment bank.

In a recent interview with Xinhua, Damian Chunilal, CEO Asia for VTB Capital, highly valued the bilateral trade and the expanding connection between the two giant neighbors.

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"The recent APEC summit in Vladivostok has demonstrated increasing connections between Russia and the Asian region in general, and China in particular," Chunilal said.

He recalled the goals set by Russia and China of lifting bilateral trade to $100 billion by 2015 and to $200 billion by 2020.

In 2011, bilateral trade reached $80 billion, marking a record year-on-year rise of 42.7 percentage points.

In addition to the growth of bilateral trade, the two countries should step up financial cooperation so as to boost investment flows, including direct investments and portfolio investments.

"We've been seeing it," Chunilal said, referring to the existing investment flows between the two countries.

In June, Russia and China launched the $4 billion Russia-China Investment Fund, established by the Russian Direct Investments Fund and China Investment Corp. This move has been considered as a milestone in bilateral investment in the Far East region.

"We would hope to see more portfolio investment from Asia and, in particular, from China into Russia," Chunilal added.

According to Chunilal, many sectors in Russia, such as natural resources, agriculture and consumer goods production, are likely to attract Chinese investors and business people.

Chunilal praised China for its adjustment of the economic development policy to benefit its people.

"China rapidly evolved from a world manufacturer to a market and the success of economic reforms has real benefits to the economic welfare of the overall population," Chunilal said.

"And I'm very confident that exactly the same is going to happen in Russia," he said.

Indicators for economic growth, the median per capita income and the sovereign debt situation show clearly that Russia's consumer sector is likely to develop rapidly, Chunilal said.

Development of Russia in the recent five years has been impressive, he said, expressing confidence in Russia's future.

As one of the largest investment bank in Russia, VTB Capital will prove its ability to facilitate trade, financial and investment flows between Asia and Russia, Chunilal added.

"We are building our capability to serve Chinese investors," he said.

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