Chinese Bank Will Lend 1 Million Dollars to the Sverdlovsk Oblast

14.06.2009 — News

THE SVERDLOVSK OBLAST.

The state-owned China Development Bank will establish a 1 billion U.S. dollar credit line for the Vnesheconombank. According to the framework loan agreement that was signed in Ekaterinburg on 14 June, the funds will be used for the financing of investment projects in the Sverdlovsk Oblast.

The main condition for granting the loan is the participation of Chinese companies in the implementation of the projects. The following projects are viewed as priorities: power engineering industry, power infrastructure, metallurgy (production of special steels), construction, chemical industry, and timber processing.

As Eduard Rossel, Governor of the Sverdlovsk Oblast, told RusBusinessNews, the implementation of the projects that were presented - including the construction of the new Akademicheski district in Ekaterinburg and a new plant for production of metal magnesium in Asbest - will require nearly 67 billion roubles. Out of these, 40 billion roubles will be presented as a loan under the Vnesheconombank line. In addition to that, Governor Rossel is prepared to visit Beijing to make a presentation of the Sverdlovsk Oblast in the China Development Bank, and negotiate the increase of lending limits for the region.