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Sberbank has signed an agreement to finance letters of credit with Harbin Bank, one of the largest regional banks in China.

The building up of the network of financing banks and increasing the lending limits are due to a growing letters of credit volume between Sberbank customers and counterparties in China. The agreement with Harbin Bank will enable the bank to offer its customers even more convenient services along with better and more flexible financing terms when dealing with import letters of credit.

Evgeny Kravchenko, Head of Trade Finance, Sberbank:

“Sberbank has been working with Harbin Bank since 2014. It’s one of the first Chinese banks we started doing business for trade finance services in national currencies. In 2015, Sberbank and Harbin Bank led the initiative to establish the Russian-Chinese Finance Council.

We are registering stable demand from our customers for documentary operations with Chinese contractors. This business sphere added 24% year-on-year. Thanks to the agreement we’ve signed with Harbin Bank, we’re expecting to boost the business in financing Russian-Chinese trade flows significantly.”

Wang Tao, Assistant to President at Harbin Bank:

 “Sberbank is one of the most important strategic partners of Harbin Bank. In recent years, the parties’ cooperation has reached significant heights in settlements denominated in Russian and Chinese national currencies, interbank lending for trade finance, etc. We hope that such business directions as banknote operations, cooperation on global markets and capital markets will help contribute much to the multilateral development of the Russian-Chinese financial cooperation down the road, in part thanks to the Russian-Chinese Financial Council.”

Harbin Bank was established in February 1997. With its headquarters in Harbin, Heilongjiang Province, the bank operates via 17 branches in the largest Chinese cities. As of June 30, 2020, the assets of Harbin Bank reached USD 90 bn. The bank’s stocks are listed on the Hong Kong Stock Exchange (06138.HK).