Putin Going After Chinese Money to Sustain Sagging Russian Economy
By Evgenia Pismennaya, Yuliya Fedorinova and Ilya Arkhipov May 9, 2014 11:14 AM ET
Russian President Vladimir Putin plans to open the door to Chinese money as U.S. and European sanctions over Ukraine threaten to tip the economy into recession, according to two senior government officials.
The move would roll back informal limits on Chinese investment as Russia seeks to stimulate growth, said the officials, who have direct knowledge of talks and asked not to be identified as the information isn’t public. The government wants to lure cash from the world’s second-biggest economy into industries from housing and infrastructure construction to natural resources, they said.
The Chinese won’t be welcome in all areas: Russia plans to set “red lines” around significant gold, platinum-group metals, diamond mining and high-technology projects, the officials said.
Putin is turning to Asia as financing from the U.S. and EU tightens and capital outflows surge amid the worst standoff since the fall of the Iron Curtain. The U.S. and the EU have accused Putin of fomenting unrest in Ukraine’s easternmost regions after annexing the Crimean peninsula in March, threatening to widen the sanctions to target the economy unless Russia helps ease tensions.
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http://www.bloomberg.com/news/2014-05-08/putin-said-to-seek-chinese-money-with-limits-on-platinum-gold.html
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