Russia's largest hydropower producer, RusHydro , signed agreements with two Chinese companies on Sunday that will boost Chinese investment in Russia's energy sector and could increase Russia's electricity exports to China.
RusHydro and China Three Gorges Corp agreed to jointly build and operate four hydropower stations in Russia's Far East, while the Russian firm agreed to jointly invest in a hydropower station near St. Petersburg with Power Construction Corp of China Ltd, RusHydro said in a statement.
RusHydro said the approximate combined value of both agreements signed in Beijing was up to 368 billion roubles ($7.9 billion), 230 billion roubles for the projects with China Three Gorges Corp and 138 billion roubles for the one with PowerChina.
RusHydro said it would found a joint venture with each partner in which it would have a 51 percent stake and its Chinese partner 49 percent.
The companies intend to attract project financing, mainly from Russian and Chinese investors, for over 70 percent of the funds needed to complete the projects, RusHydro said.
Russia is increasingly shifting focus to Asian markets after Western sanctions this year targeted a number of Russian lenders and energy companies by limiting their access to funding over Moscow's role in the Ukraine crisis.
In May, RusHydro signed a number of cooperation agreements with leading Chinese energy firms, including PowerChina and Dongfang Electric, during a visit by Russian President Vladimir Putin to Shanghai.
Reporting by Anastasia Lyrchikova; Writing by Alexander Winning; Editing by Michael Urquhart)