When Chinese premier Li Keqiang and his Russian counterpart Dmitry Medvedev start talks today that are expected to culminate in the signing of more than 50 deals it will be the latest demonstration of hopes that China is riding to the rescue as US and EU sanctions block new western funding for Russian banks and corporates.
But despite a steady flow of handshakes and signatures, Chinese money has been hard to secure. According to numerous executives and bankers, Chinese banks and investors are dragging their heels, unwilling to risk antagonising the west by providing the surge of funding that Moscow desperately needs.
“If you expect us to rush in and do everything the European and American banks can’t do any more, you will be disappointed,” said an official at Bank of China in Moscow. “We want to develop our Russia business, but we have to consider the risks as well.”