Cabinet willing to borrow $7 bln from China for infrastructure projects

The Cabinet of Ministers of Ukraine intends to conclude a framework loan agreement with China on a number of infrastructure projects worth $7 billion, said Deputy Minister of Infrastructure of Ukraine, Viktor Dovgan, who spoke at the presentation of the exhibition project China International Import Expo.

"The government is aiming to come out with an official proposal to the Ministry of Economy of China regarding the conclusion of a framework loan agreement between China and Ukraine on a number of projects worth approximately $7 billion," Dovgan said.

He also noted that contracts have already been signed worth EUR 200 million with two Chinese companies to build roads in Ukraine in 2018, and a contract for the construction of a bridge near Kremenchug is also expected.

Read alsoCabinet appoints new acting chief of Ukraine's State Grain and Food CorporationAs UNIAN reported, China is one of Ukraine’s ten largest trading partners. Food products take up the largest share of Ukraine’s exports to China. At the end of 2016, Ukraine and China held preliminary consultations on the possibility of forming a free trade zone between the two countries.

In early December 2017, Ukraine and China signed a roadmap for the implementation of the initiatives titled "Economic Belt of the Great Silk Road" and the "Sea Silk Road", designed to strengthen economic cooperation between Europe and Asia.

China's "One Belt - One Way" initiative envisages the development of trade relations between China and Europe. Chinese Ambassador to Ukraine Du Wei noted that this project would be unthinkable without Ukraine. Projects in the framework of the "Silk Road" may in the future allow Ukraine to bypass Russia's transit restrictions to the countries of Central Asia.