VTB Capital is wagering that the increasing trade flows between the Commonwealth of Independent States in Russia and Asia will soon transform into more mergers and acquisitions, according to a VTB senior executive. China's Citic Securities is also looking to help intermediate trade and investments across the two regions.
VTB Capital, a Russian investment bank, is gradually constructing a workforce in Hong Kong in an effort to capture a portion of this new business. "We're seeing an enormous amount of interest from China in Russia, mainly from state-owned enterprises so far," VTB's chief executive in Asia, Damian Chunilal, said.
The Chinese sovereign wealth fund, the CIC fund, bought stakes in VTB in 2011. Later, the CIC fund also bought stakes in potash miner Uralkali and gold miner Polyus. "It's becoming broader than just interest in natural resources," Chunilal added, referring to increasing Chinese awareness to the Russian agriculture, consumer and real estate sectors.
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