China and Russia have formally launched a trade platform that will allow letter of credits (L/Cs) transactions and futures trading between the two countries.

The move comes as part of both countries' efforts to strengthen bilateral ties

Early days

In the preliminary stages of building the Sino-Russian trade platform, trading companies will be set up in Jilin and Saint Petersburg for the direct exchange of cement, construction materials and other goods.

Russian businessmen will be able to use L/Cs with values up to US$200 million in transactions.

L/Cs accepted

"Russian companies will give L/Cs issued by European banks to Chinese firms," says assistant mayor of Jilin city Li Yan.

Up until this move, L/Cs have not been accepted in recent years for Sino-Russian trades of this type.

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