Ministry of Foreign Affairs of the Russian Federation Moscow State Institute of International Relations (University) Center for East Asian and Shanghai Cooperation Organization Studies Alexander Lukin, Director Sino-Russian Trade and Investment Cooperation: Prospects for the Future The Global Institute Russia-India-China (RIC) Conference 4 th Annual International Conference: November 2008

Main Economic Results in 2007, Russia and China (US $ bln) RussiaChina GDP GDP per capita (PPP) GDP Growth (%) GDP Structure (Share, %) Industry Services Budget Revenue Budget Spending Foreign Debt Currency Reserve Foreign Trade Turnout Export Import Inflation, в %124.7

Russia’s Exports’ Structure Food Alcohol and Tobacco Raw Materials except Food and Fuel Fuel and Oil Products Fat and Food Oil Chemicals Industrial Products made of raw materials Machinery Other

Russia’s Exports’ Structure in 2006 and 2007 (US $ thousands) CIS Code Commodity Growth $ thousands % % Total: Food products and agricultural raw materials (except for textile) Mineral products including: Oil and Energy products Products of chemical industry, rubber Leather and fur Timber, paper Textile, textile products and shoes Precious stones and metals and jewelry Metals and metal products Machinery and vehicles Other

Russia’s Imports’ Structure Food products Alcohol and tobacco Raw materials (except food nd oi) Oil a nd oil products Fat and Food oil Chemicals Industrial products, made of raw materials Machinery and vehicles Other industrial products

PRC Trade with 10 Major Trading Partners in 2006, US $ blns (Chinese statistics) Total turnoutExportImportShare of the total turnout Growth (%)Change of the share (%) US Japan Hong Kong ROK Taiwan Germany No data Singapore No data Malaysia No data Netherlands No data Russia

PRC Trade with 10 Major Trading Partners in 2007, US $ blns (Chinese statistics) Total TurnoutExportImportShare of the turnout (%. January- November ） Growth (%)Change of the Share (%. January- November) USA (14.4/17.2) Japan （ 11.4/15.8 ） -0.9 Hong Kong （ 18.8/18.9 ） -0.3 ROK （ 26.1/15.6 ） -0.3 Taiwan （ 13.1/16.0 ） -0.5 Germany （ 20.8/ 19.8 ） Russia (79.9/12.1)0.3 Singapore (27.8/-0.9) Malaysia （ 30.7/21.8 ） Netherlands （ 34.2/35.0 ）

China’s Outward FDI Stock by Countries and Regions (US $ mln) Country/Region Total Hong Kong Cayman Is Virgin Is. (UK) USA Australia Singapore Russia ROK Macau Germany Kazakhstan Mongolia Sudan

China’s Oil Imports 2006 (mln tons) Share.%Growth (%)2007 (mln tons)Share (%)Growth (%) Total Saudi Arabia Angola Iran Russia

Russia’s Trade with Major Partners ( ) US $ blns CountryTurn out 2005 Expor t 2005 Import 2005 Share of total trade (% ) Turno ut 2006 Expo rt 2006 Import 2006 Share of total trade (% ) Growth 2006 (%) Turn out 2007 Expor t 2007 Impor t 2007 Share of total trade (% ) Growth 2007 (%) Germany (24.1/38. 9) (7.3/43.9) Netherlands (45.7 /38/0) (19.2/43.5) Italy (31.8/29. 5) (9.7/49.1) China (20.7/77. 4) (0.9/89.0) Ukraine (20.8/17. 9) (8.9/44.2) Belarus (29.3/19. 8) (31.2/29,8)

China’s Outward FDI Flow by countries and regions Country/Region Total Hong Kong Cayman Is Virgin Is. (UK) Australia Russia (112) Singapore Kazakhstan Germany Mongolia USA Sudan ROK Macau

Russian Total Foreign Investment

Russian Total Foreign Investment by Country

Russian Total Foreign Investment by Country, 2006

Russian Federation: Inward Foreign Direct Investments in Nonbanking Corporations. by Country, Q2 2008* (Balance of Payments Data, inflows minus outflows) (mln. USD), Central Bank of Russia Country (Jan-June) Total Cyprus Bermuda Netherlands Germany US Norway ROK China11237 Japan8020

Недооценка китайских инвестиций за счет операций в оффшорных зонах Example: In July 2006, China National Petroleum Corporation (CNPC), bought a US$500 million stake during Rosneft's IPO and China Petroleum & Chemical Corporation (Sinopec) acquired a 96.9 percent stake in Udmurtneft for US$3.5 billion from TNK-BP International (British Virgin Islands). The Udmurneft acquisition is a prime example of Chinese investments in Russia which do not appear in the FDI statistics due to the channeling of funds through off-shore vehicles. (Krkoska and Yevgenia Korniyenko 2008)

Chinese Investment. Major Sectors forestry mining light and textile industry consumer electronics communications services

Major Russian-Chinese Projects in Russia Building of a Residence District “Baltic Pearl” in St. Petersburg (investment – $1.313 bln) Huaming Park in Moscow (Chinese biseness centre) - $ 300 mln.) Paper factory in Chita region - $ 270 mln.) Paper factory in Khabarovsk region - $ 230 mln.) Federation Tower in Moscow - $ 58 mln.)

Russian Investment in China In 2007 Russia’s contract investments in China decreased from $190 mln (2006) to $ mln. In new project with Russian capital registered in China (2006 – 126). Major areas – industrial production, construction and transport. Accommodated Russian contract investment by the end on $1.83 ( 2006 г. – 1.64 mln), growth 11,58%. Russian FDI stock in 2007 $660 mln. (+ 8.19%), Total number of projects with Russian capital

Major Russian-Chinese Projects in China 2 block of Lianyonggang nuclear power plant (Jiangsu province) Uranium enrichment factory. Tu С aircraft Russian energy equipment sales to a number of Chinese power plants Russian mining equipment sales for Chinese coal mines

Chinese Contract Labour in Russia Total 2007Growth Work Completed ($ mln) % Contracts Signed % Labourers sent to Russia (person/times) Major sectors: - Agriculture - Construction - Forestry - Textiles (Clothes) - Medicine labourers in Russia in the end of 2007