Russia, China agree to strengthen, develop payment infrastructure - communique

MOSCOW. Aug 22 (Interfax) - Russia and China have agreed to strengthen and develop the payment and settlement infrastructure, including through opening correspondent accounts and bank branches and subsidiaries in both countries, a communique, adopted at the end of the 29th regular meeting of the two heads of government, said.

"The heads of government note the importance of further deepening of practical cooperation in the financial field to ensure stability of Russia-China trade and pledge further strengthening of mutual understanding and dialogue between financial and banking institutions and the provision of continuous and normal functioning of settlement channels in trade between Russia and China," the communique said.

To this end, they agreed to maintain a large share of national currencies in bilateral trade, investment, lending and other trade and economic operations, strengthen and develop the payment and settlement infrastructure, including through the opening of correspondent accounts and the establishment of branches and subsidiary banks in the two countries, expand cooperation in the field of banking and insurance, including in the area of regulation, and promote the sustainable development of banking and insurance institutions of both countries in Russia and China.

The sides also agreed to support insurance companies based on market principles, voluntary choice and controllability of risks, insurance coverage for cargo transported directly between the two countries and internationally.

The sides will create proper conditions and support mutual investments, enable Russian and Chinese entities to draw funds on the security markets of both countries by commercial methods, and provide relevant infrastructure based on market principles.

In order to facilitate the growth in tourism, the sides pledged to create favorable conditions for payments and to support further cooperation in insurance and reinsurance.

Russia and China will actively promote mutually advantageous cooperation in practical areas by mutually recognizing the equivalence of accounting standards (for bond issuance purposes), auditing standards and audit supervision.

They also agreed on boosting bilateral efforts to counter money laundering and sponsoring of terrorism with emphasis on closer contacts and cooperation at the Financial Action Task Force and the Eurasian Group on Combating Money Laundering and Financing of Terrorism.