Russia's VTB Bank and Bank of China have signed an agreement that should make it easier to obtain letters of credit (L/Cs) for trade between the two countries.

The deal, which includes a range of trade finance offerings, will provide banking services to finance bilateral trade flows within the limits of credit lines approved by Bank of China for VTB, the details of which have not yet been disclosed.

L/C options

The deal provides multicurrency options for L/Cs, documentary collection, and remittance financing of trade turnover between Russia and China.

It will also enable VTB to offer new financial solutions involving a broader range of structural products to Russian companies working with partners in mainland China.

Trade finance expansion

"This agreement is an important step for us in improving and diversifying our relations with Chinese counterparties, as well as supporting trade between our countries," according to VTB managing director, trade and export finance, Igor Ostreyko.

The agreement "extends our significant trade finance proposal for companies working with China," he added.

More to come

Deputy president and chairman of the VTB Bank management board, Herbert Moos, added that it is the bank's intention to strengthen its co-operation with China's leading financial institutions.

"We have been working closely with different divisions of Bank of China and hope to continue expanding our joint product line," he said.

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