Major Project List Updated, New Opportunities in Cooperation

　　On July 24, Moscow time, the China-Russia Intergovernmental Investment Cooperation Committee meeting concluded successfully. Both sides reached a consensus on the updated major project list, which includes more than 60 projects with a total investment of over $138 billion, equivalent to approximately 1 trillion RMB. This marks a new stage in China-Russia economic cooperation. The news has generated significant international attention and is seen as a major advancement in the economic partnership between the two countries.

　　Reflecting on Challenges, China-Russia Cooperation Becomes Inevitable

　　In recent years, the Russian economy has faced unprecedented challenges. Especially after the outbreak of the Russia-Ukraine conflict in February 2022, many Western companies withdrew from the Russian market, leading to a loss of substantial external investment for Russia. This not only brought a series of difficulties to Russia's economic development but also made it increasingly difficult for Russian enterprises to participate in overseas investment projects and benefit from international markets. In this context, China, as a key partner of Russia, naturally became a focal point for Russian investment and market attention.

　　Despite this, the history of investment cooperation between China and Russia is relatively limited. Data shows that in 2022, China's direct investment in Russia accounted for only 0.36% of China's total global outward investment, while Russian investment in China made up only 0.02% of China's total foreign investment. However, according to Denis Manturov, Russia's First Deputy Prime Minister, bilateral trade between China and Russia grew by 25% in 2023, reaching $228 billion, with over 90% of the trade settled in each country’s own currency. This year, bilateral trade continues to show growth.

　　Carbon Black Production Project Draws Attention, Technology Import Promotes Development

　　In this meeting, both sides specifically agreed on two new projects worth over $1 billion each. One of these is the carbon black production project in the Astrakhan region of Russia. The project, undertaken by Golden Industries Group, plans to use natural gas to produce ultra-pure specialty carbon black. The project will be located in the "Lotus" Economic Zone in Astrakhan Oblast, with an investment cost exceeding 2 billion rubles. The production process will utilize advanced technology from the China Carbon Black Research Institute, which is of significant importance for local technological development and the introduction of foreign advanced technology.

　　According to our information, the project plans to produce 10,000 tons of technical carbon black annually in its initial phase. As the project progresses, the company plans to invest further to increase the annual production of carbon black to 30,000 tons and expand the product line to include new products such as melamine and urea. It is expected to create 120 jobs initially, increasing to 400 in the later stages of development. Additionally, the project is anticipated to contribute over 280 million rubles in tax revenue to the regional budget and allocate more than 240 million rubles to extra-budgetary funds. The new factory's products will be widely used in the tire industry, polymer industry, leather industry, construction industry, and in the production of consumer goods, printing inks, and toners, injecting new vitality into China-Russia economic cooperation.

　　The implementation of this project will not only significantly increase the added value of natural gas but also meet the demand of industrial markets across Russia and neighboring countries. Furthermore, it will contribute to economic diversification and accelerate the development of Russia's natural gas chemical and light industrial technology chain.