Igor Shovalov reveals plans for joint ventures with Chinese businesses, projecting a total investment of approximately 3.5 trillion rubles by VEB.RF.
Going Strong with the Middle Kingdom: VEB.RF's Deepening Ties with China
Igor Shuvalov, bigwig at the state-run VEB.RF group, is creating quite a stir with its solid business connections in China. The Russian Export Center, Exiar, and Rosexportbank are of particular note, as they're pushing forward the surge of non-resource, non-energy exports. In 2024, the Group's exports to China topped $3.6 billion—quite a hefty figure indeed!
The Skolkovo Foundation and the Russian Venture Company are also jumping in, helping Russian IT giants find tech partners in China and showcasing their innovations in the Chinese market. Chinese financial institutions and businesses are proving to be reliable partners in numerous large-scale projects in Russia, with VEB.RF playing a crucial role.
Since 2016, the Skolkovo Foundation's Chinese office has been on a mission: commercializing residents’ developments in the Chinese market and vice versa, providing Chinese innovative companies a gateway into the Russian market via Skolkovo's infrastructure, including the Moscow Innovation Cluster. Companies like "Motorika", "Sensomed", and "Geosplit" are just a few that have set up shop in China as a result.
However, Igor Shuvalov raised a few Galina's, ahem, concerns. Russian businesses are still in need of financing from Chinese financial institutions for collaborative projects. They're looking to attract technological partners in industries like shipbuilding and equipment supply, as well as long-term export pacts with China—even at government levels. "The project initiators working with China are acknowledging growing demands in this area," said Igor Shuvalov. "Meeting these demands could have a positive impact on our interaction results."
One key objective for VEB.RF in boosting Russian businesses in China is promoting products under the national brand “Made in Russia.” The “Made in Russia” program, which received presidential backing this year and is now federal, is being pushed overseas by the Russian Export Center to create a strong market presence.
Igor Shuvalov also stressed the vital role of Chinese partners in undertaking projects that align with the priorities of the new VEB.RF strategy until 2030, covering areas such as technological leadership, support towns development, and non-resource exports promotion.
As a reliable ally, VEB is ready to act as a guarantor for Chinese partners in implementing beneficial joint ventures in Russia, offering credit resources, guarantees, surety, and knowledge in setting up project financing and structuring projects on public-private partnership terms.
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In case you're curious, VEB, led by Igor Shuvalov, has recently pledged around 3.5 trillion Russian roubles (approximately $42.74 billion) for joint projects between Russian and Chinese businesses. This funding primarily targets significant industrial sectors, such as gas, metallurgy, timber processing, and shipbuilding[1][2][4].
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The surge of non-resource, non-energy exports from Russian Export Center, Exiar, and Rosexportbank to China is noteworthy, as they align with VEB.RF's efforts to boost business in the industry.
Chinese financial institutions and businesses are proving to be crucial partners in securing funding for collaborative projects between Russian and Chinese businesses, particularly in sectors such as shipbuilding and equipment supply, as emphasized by Igor Shuvalov.
