Trade Situation and Investment Projects Between Russia and China The Breakthrough Rise of Chinese Small and Medium Enterprises
The number of Chinese small and medium-sized enterprises opening bank accounts in Russia has increased by 50% over the past 12 months. Sberbank, Russia’s largest bank, has opened a representative office in China and established a center in Vladivostok, a strategic port in the Far East. These moves are aimed at promoting bilateral cross-border cooperation and trade.
Training and Market Development Topics
In addition, at the St. Petersburg International Economic Forum, Alexander Vedyakhin said that Chinese-language courses on how to start a business in Russia organized by Sberbank have contributed to the increased presence of Chinese companies on the Russian market. At the same time, VTB, Russia's second bank, has expanded its services through its Shanghai branch, increasing its customer base.
Foreign Direct Investment (FDI) Market and Global Brand Trends
Discrepancies in Reporting by International Organizations
Trade between Russia and China hit a record 1.74 trillion yuan ($239 billion) last year, reflecting a surge in growth since Western sanctions, according to Chinese customs data. But foreign direct investment in Russia is expected to fall to just $3.3 billion in 2024, the lowest level since 2001, according to a United Nations report released Thursday.
The figures show a 62.8% drop between 2023 and 2024, and a 50% drop from 2021, the year before Russia expanded its war. The Russian Central Bank also confirmed that FDI in the non-financial sector has fallen by 57% over the past three years, from $497.7 billion to $216 billion (the lowest since 2009).
Views of Experts and Investors
Sergei Aleksashenko, a former deputy governor of Russia’s central bank, said that even if the war ended tomorrow, many companies would still hesitate to invest in Russia due to the lingering political risks. The UNCTAD report also noted a wave of capital flight in 2022, with international companies repatriating $15.2 billion in capital after the conflict in Ukraine and heavy sanctions.
Russian Economic Outlook According to Major Banks
Sberbank's Policy Orientation towards the Russian Economy
Alexander Vedyakhin warned that tight monetary policy and high interest rates could slow down the Russian economy too much, making recovery difficult. He predicted GDP growth in 2025 would be only 1% - 2%, lower than the government's official forecast of 2.5%.
“The economy is at risk of cooling too much and is unlikely to escape stagnation, growth will be limited,” Vedyakhin said.
Analysts say that the Russia-China strategic relationship is getting closer, as evidenced by the two countries’ joint military exercises scheduled to take place this year. This clearly reflects the intention to promote strategic cooperation and overcome the challenges of sanctions and international conflicts.
Source: https://tintucbitcoin.com/sberbank-nga-mo-tai-khoan-doanh-nghiep-trung-quoc/
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