Russian state owned VTB Group and China's largest state owned oil and gas producer and supplier, have agreed to sign a memorandum of understanding on mutual business cooperation.
Under the MOU, which was signed yesterday (1 October) in Moscow, VTB Group will provide China National Petroleum Corporation (CNPC) with a range of products and services to support the Chinese company’s business development activities across Russia and the CIS, particularly in
Kazakhstan and Azerbaijan. Additional areas of cooperation will be analyzed to expand cooperation opportunities beyond the CIS region and the oil & gas industry, VT Group said in a statement.
Riccardo Orcel, deputy chief executive of VTB Group, said: "VTB Group is one of the fastest growing international financial institutions and we are delighted to develop closer relations with, potentially,the single most important trading partner for Russia. CNPC has a track record for signing some of the largest commercial agreements in the country and we intend to facilitate and support thedevelopment of these investments. VTB Group has an excellent relationship with China and after advising an established local financial institution on over US$3.8 billion investments in Russia, we look forward to working closely with CNPC.”
The bank was not able to disclose what the immediate transactions under this agreement would be, but said that the agreement reflected a commitment on both sides to make VTB Group the financial partner. No time limit was put on the agreement, both sides hope the partnership will continue growing, VTB Group said during a briefing about the MoU at the Russia Calling Investment Forum in Moscow.
CNPC is China’s largest oil and gas company and one of the largest investors in Russia and the CIS.
The company provides oilfield, engineering, petroleum exploration and development, as well as construction services in cooperation with a number of companies, including Gazprom, Lukoil, Novatek, among others.
Damian Chunilal, chief executive Asia for VTB Capital, said: “The Asia-Pacific region is strategically important for VTB Capital’s business development and I am delighted that VTB Group is signing a Memorandum of Understanding with CNPC, China's largest state owned oil and gas company. I am confident that through this MOU, VTB Group will build a long-term and mutually beneficialpartnership across the full range of commercial and investment banking services, allowing us to strengthen business and trade relations between the two countries.”