#AceFinanceNews – MOSCOW – July 10 – BRICS bank will be head-quartered in Shanghai, Russian presidential aide Yury Ushakov told journalists on Thursday.
President of the Federative Republic of Brazil Dilma Vana Rousseff, Prime Minister of the Republic of India Manmohan Singh, second left, President of the Russian Federation Vladimir Putin, President of the People’s Republic of China Xi Jinping and President of the Republic of South Africa Jacob Zuma, from left, pose for group photographs. (RIA Novosti)
This was recorded in the documents, he added and reported by Itar-tass as follows:
Russian Finance Minister Anton Siluanov earlier said the short-list of cities for the bank’s headquarters included Shanghai and New Delhi.
According to Ushakov, the agreement on founding the New Development Bank of BRICS and on creation of an exchange reserves’ pool will be signed at the next summit of the organization to take place in Brazil’s Fortaleza July 15-16.
“Thus, the basis for the macroeconomic coordination of the five states will be laid,” the presidential aide noted. “The new institutions will allow enforcing the global finance system, which is particularly important amid the IMF reform that reached a deadlock.”
The authorized stock of the bank amounts to $100 billion, the dedicated capital — $50 billion, the paid-in capital — $10 billion (paid upon request — $40 billion).
The paid-in capital will be formed within 7 years.
“Russia’s stake is $2 billion, that means the capital is proportionally distributed among the bank’s participants,” Siluanov noted earlier.
There is an agreement between the countries that the stake of BRICS members in the capital will not be lower than 55%.
The bank will engage in infrastructure projects mainly in the BRICS countries.
#AceFinanceNews – MOSCOW – May 21 – Russian gas monopoly Gazprom will get $25 billion in prepayment from the Chinese National Petroleum Corporation (CNPC) to be allocated for the Sila Sibiri (Power of Siberia) pipeline under the gas supply deal, a source close to Gazprom told ITAR-TASS.
The amount is similar to the earlier announced cost of the pipeline with an annual capacity of up to 38 billion cubic metres.
Construction would start as soon as the contract is signed, said Gazprom’s CEO Aleksey Miller. Gas should first be sold – this is the formula Gazprom had always stuck to, he said.
The companies signed the 30-year contract for gas supplies worth $40 billion to China via the eastern route pipeline on Wednesday.
Miller described the deal as Gazprom’s so far major gas contract but declined to reveal the gas price referring to commercial confidentiality.
The document granted the sides preferential tax regimes, he added.
Russian President Vladimir Putin told journalists in Shanghai works would start on the next day after the deal, as the sides would start to work on the western route for supplies from Western Siberia.
No strong growth in Gazprom stocks is to be expected over the short-term as the contract with China had already been priced in.
The gas holding’s stocks have already rocketed more than 20% from the local low of 122.8 rubles ($3.559 exchange rate fixed at May 21) per stock on April 28 to 149 rubles ($4.3) on Tuesday.
#AceFinanceNews – RUSSIA/CHINA – May 19 – Russia and China are set to sign a long-awaited 30-year gas contract during a two-day meeting, when Russian President Vladimir Putin visits Shanghai on May 20-21.
Gazprom, Russia’s largest natural gas producer, and China National Petroleum Corporation (CNPC) are set to sign a gas deal that will send 38 billion cubic meters of natural gas a year eastward to China’s burgeoning economy, starting in 2018.
The timing is almost flawless as Russia is looking to shield itself from Western sanctions by pivoting towards Asia, and China desperately needs to switch from dirty coal to more environmentally friendly natural gas.
“The arrangements on export of Russian natural gas to China have nearly been finalized. Their implementation will help Russia to diversify pipeline routes for natural gas supply, and our Chinese partners to alleviate the concerns related to energy deficit and environmental security through the use of ‘clean’ fuel,” President Vladimir Putin said.
The deal has been on the table for over 10 years, as Moscow and Beijing have negotiated back and forth over price, the gas pipeline route, and possible Chinese stakes in Russian projects. The gas price is expected to be agreed at between $350-400 per thousand cubic meters.
The deal has been on the table for over 10 years, as Moscow and Beijing have negotiated back and forth over price, the gas pipeline route, and possible Chinese stakes in Russian projects.
The gas price is expected to be agreed at between $350-400 per thousand cubic meters.
” Of course Russia wants to sell gas and resources at the highest possible prices. But because of the sanctions from European partners, we need to find a partner that can buy our gas long-term, which is why at the moment China looks very attractive to us,” Aleksandr Prosviryakov, a partner at Lakeshore International, a Moscow-based asset management firm, told RT at a Confederation of Asia Pacific Chambers of Commerce and Industry (CACCI) in Moscow ahead of the big meeting on Tuesday.
On Sunday, Gazprom chief Aleksey Miller sat down with his CNPC counterpart, Zhou Jiping, in Beijing to discuss final details, including price formulas.
But the sticking point is how to finish the pipeline from Russia to China.
Currently there is one complete gas pipeline that runs throughout Russia to the Chinese border, “Siberian Power” which Gazprom broke ground on in 2007, three years after Gazprom and CNPC signed a strategic cooperation agreement in 2004.
The pipeline stretches across Russia’s Far East and after extension to China, it will deliver gas to the country’s populous north, near Beijing.
“Now is the time for Russia to compromise a little bit so that they can lessen their dependence on Western Europe as a buyer of Russian gas. Diversification is a strategy for Russia to have good long-term business relationships with both Europe and China,” Benedicto Yujuico, president of the Confederation of Asia-Pacific Chambers of Commerce and Industry, told RT at an Asian business gathering in Moscow on Wednesday.
A record amount of agreements are expected to be signed at the working meeting between Russia and China. Already 30 out of the 43 prepared agreements are expected to be inked, according to presidential aide Yury Ushakov, as reported by RIA Novosti.
#AceFinanceNews – BEIJING – April 24 – A Chinese court released a seized Japanese freight ship Thursday after owner Mitsui OSK Lines agreed to pay about $39 million in a dispute dating back more than seven decades.
Including interest payments, Mitsui O.S.K. agreed to pay 4 billion yen ($39 million), the Kyodo News Service and other Japanese media said.
Chinese authorities seized the container vessel on Saturday, as ordered by the court, after Mitsui failed to pay compensation as ruled in an earlier lawsuit.
The Shanghai court said it levied the judgement against Mitsui based on the lease costs, operating loss and damage to the two Chinese vessels, which sank while in the hands of Mitsui’s predecessor Daido Kaiun.
The seizure and release of the boat came at a time when the relations between Beijing and Tokyo are tense over sovereignty claims over a chain of uninhabited islets in the East China Sea.
The Shanghai Maritime Court said that it freed Mitsui’s Baosteel Emotion after the company paid more than $28 million in compensation for two leased Chinese ships it lost in 1938 and 1944 and also court costs, AP reported.
Japanese government spokesman Yoshihide Suga downplayed the possibility that the settlement might encourage similar lawsuits by Chinese companies.
#AceFinanceNews – BEIJING – March 27 – Chinese insurance companies have begun to offer payouts to the relatives of the missing Boeing 777-200, news agency Xinhua reported on Thursday.
The firms begun offering insurance payments after Malaysian Prime Minister Najib Razak announced that the plane had probably fallen into sea with no survivors.
On Monday, the prime minister held a press-conference, where he said that the flight has been last registered on satellite images to the west of the Australian city of Perth in the Indian Ocean.
Najib added that the plane was too far from the place where it could land, so the most probable version was that it had crashed in the ocean.
As of today, China’s largest insurance firm China Life has already paid more than 4 million yuan ($666,000) to the relatives of 7 out of 32 passengers of the missing Boeing, who were clients of the company.
All insurance payments will stand at 9 million yuan ($1.46 million).
On Wednesday, China Pacific Insurance, registered in Shanghai, made the first insurance payment of 525,000 yuan ($87,500). The relatives of 9 passengers, clients of China Life Insurance Co, will receive up to 1 million yuan ($166,000).
Chinese and Malaysian News