BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/26
Despite the many economic agreements signed during state visits and their high collective value, many projects have either stumbled or never been realised. As a result of falling oil prices, Russian firms have found it increasingly difficult to finance necessary capital investments, which has helped Chinese firms insinuate themselves into Russian projects with partial equity ownership. For example, the Russians for some time now have been trying to sell a combined 20 % stake in Rosneft to Chinese and Indian oil companies.
Talks continue on a bullet train project spanning a 770-kilometre route between Moscow and Kazan. The Chinese want to play a central role in construction and financing of the project as China needs a successful bullet train project overseas to showcase its capabilities. Its bullet train projects in Mexico, the US and Indonesia are cancelled or on ice.