Experienced financial operator tightens bonds between neighboring countries

Russian bank VTB has been instrumental in assisting the expansion of Chinese companies into new global markets, and has played a significant role in strengthening trade and economic relations between the two nations.

As an international financial group, VTB Group offers a wide range of financial and banking services and products.

Since establishing its Shanghai branch in 2008, VTB has emerged as the only Russian bank to hold a full banking license in China, providing services for Chinese customers including trade finance, cash management and foreign exchange.

VTB Shanghai witnessed a significant increase in demand from new clients in 2022. An executive of VTB Shanghai said: “Our principal objective is to offer reliable financial assistance for bilateral trade and economic connections. This entails a proactive shift toward autonomous channels for national currency payments and the closer integration of other national financial infrastructure elements.

“The bank is fully prepared to actively participate in such collaborative efforts. We are keen on broadening our multifaceted cooperation with Chinese companies and developing sustainable and secure solutions for their business expansion into new markets,” the executive said.

With the trade and economic partnership between Russia and China having a positive outlook and significant growth potential, VTB forecast that trade turnover may exceed $200 billion this year.

The company said that Russia is keen to expand its export portfolio in China, particularly by boosting the supply of chemical and agro-industrial products, and is creating new opportunities for Chinese companies to import industrial equipment, investment goods, cars and consumer goods.

The two nations also have considerable potential for co-investment in infrastructure projects, and the tourism sector is emerging as a highly lucrative area.

Against this backdrop, there has been a significant rise in demand for national currency transactions, especially in renminbi, for crossborder trade. Businesses facing external limitations and pressures have made reliable settlement channels a top priority, noted VTB.

To address this need, VTB’s unique position, with a presence in Russia, China, India and the Commonwealth of Independent States, enables the bank to offer Chinese companies a tailored solution that uses its infrastructure integrated with national interbank payment systems.

Additionally, VTB has taken steps to enhance cooperation in the pilot financial business service between the two countries.

In 2021, the company inked a memorandum of understanding with Harbin Vanke Enterprise and Harbin New District in Northeast China’s Heilongjiang province. It aims to foster the growth of the financial industry and bilateral trade in the Harbin New District, building on the “China-Russia SciTech Park” project.

In 2020, VTB Shanghai participated in the China International Import Expo and showcased its services for domestic and cross-border transactions in several currencies, such as the renminbi, rouble and Kazakhstani tenge. As a member of the China Foreign Exchange Trade System, or CFETS, and a market maker for RMB-RUB trading, VTB Shanghai is well positioned to provide reliable settlement and conversion solutions for its clients.

A spokesperson for VTB Shanghai emphasized the bank’s extensive experience in direct RMB-RUB conversion and settlement of foreign trade contracts in RUB and RMB, provided in compliance with the laws and regulations of China and Russia.