China, Russia seal financing, energy, logistics deals

Reuters, 20.05.2014

SHANGHAI/MOSCOW, May 20 (Reuters) - Chinese and Russian firms signed a variety of financing, energy and infrastructure deals on Tuesday as Russian President Vladimir Putin met with his Chinese counterpart Xi Jinping in Shanghai. COMPANIES: China Development Bank Corporation, Vnesheconombank and Gazprombank DEAL: China Development Bank, Vnesheconombank (VEB) and Gazprombank signed a memorandum on project financing for the Yamal LNG project. The three institutions will work to close the project financing by the fourth quarter 2014, with CDB coordinating financing from Chinese banks at tenors up to 15 years.

COMPANIES: China National Petroleum Corporation (CNPC) and OAO Yamal LNG DEAL: Yamal LNG announced a contract for the supply of liquefied natural gas (LNG) with CNPC. The contract is for a supply of 3 millions tons per year (tpy) of LNG for a period of 20 years delivered at ex-ship terms.

COMPANIES: Sinopec Corp and Sibur DEAL: Sinopec Corp agreed with Sibur, a Russian gas processing and petrochemical firm, to set up a joint venture plant in Shanghai to produce 50,000 tpy synthetic rubber. Sinopec will hold a 74.9 percent stake of the plant and Sibur 25.1 percent.

COMPANIES: CNPC and Rosneft OAO DEAL: Russia's top oil producer Rosneft has reached an agreement to ship 180,000 barrels per day (bpd) of oil to its jointly owned Chinese refinery project from 2020.

The Tianjin refinery, a project between Rosneft and CNPC, will be operational by the end of 2019 with Rosneft shipping 9.1 million tonnes a year of crude oil for the plant from 2020 via the Pacific port of Kozmino.

COMPANIES: VTB Bank OAO and Bank of China DEAL: VTB Bank OAO and Bank of China plan to build their partnership on rouble and renminbi settlements, investment banking, trade finance and capital markets transactions and inter-bank lending.

COMPANIES: Russian State Development Bank and the Export Import Bank of China DEAL: The two banks signed an agreement on a $500 million credit line to finance projects in Russia.

COMPANIES: United Aircraft Corporation and Commercial Aircraft Corporation of China DEAL: Russia's United Aircraft Corporation the Commercial Aircraft Corporation of China signed a cooperation agreement on a joint program to develop a wide-body, long-haul passenger plane, UAC said.

COMPANIES: Hopu Investments Co. Ltd. and Baikal Mining Company DEAL: Hopu plans to acquire a minority share in Russia's largest untapped copper deposit Udokan by the end of 2014.

COMPANIES: The Russia-China Investment Fund (RCIF), formed by the Russian Direct Investment Fund, the China Investment Corporation and the Far East and Baikal Development Fund DEAL: The RCIF will invest in the first railway bridge between the two countries. The bridge which will span the Amur river will have a 21 million tpy throughput capacity.

COMPANIES: Joint venture between Russian Direct Investment Fund (RDIF) and China Investment Corp (CIC) – RCIF. DEAL: The JV will raise an $800 million fund to invest in infrastructure for senior living centers and to tap rising Sino-Russia tourism.

COMPANIES: The RCIF, HOPU Investments and Global Logistic Properties Holdings DEAL: RCIF and HOPU Investments agreed to invest in Global Logistic Properties Holdings' Chinese division.