Russia signs agreement with China Development Bank

Aims to attract financing for large infrastructure projects.

The projects are located in the Far East and southern Siberia, said Russia’s Far East Development Ministry. State-owned China Development Bank is one of the largest development banks in the world.

Russian officials said the challenges facing Russia’s Far East means that almost US$100 billion of investment will be required to develop the region over the next 10 to 15 years. Russia’s Far East comprises 45% of the country’s territory but just 7.6% of its population.

The Far East Development Ministry said that up to US$5 billion in investments are expected to be forthcoming from China. It proposes infrastructure projects such as the building of ports, airports, roads, railways, heating and electricity systems, water supply systems, social and sports facilities, the creation of high technology and environmentally friendly manufacturing, and telecommunications technology.

Trade between Russia and China is growing rapidly and this year is expected to surpass the US$87.5 billion recorded in 2012.