Russia, Germany to sign loan deal to finance joint projects

16:39, 16 July 2009

MOSCOW. July 16. KAZINFORM Russia and Germany will sign a credit agreement worth 500 million euros ($706 mln) to finance joint projects after talks between the countries' leaders on Thursday, a Kremlin aide said, Kazinform cites RIA Novosti.

Russian President Dmitry Medvedev and German Chancellor Angela Merkel will meet in Munich on Thursday to discuss bilateral trade, economic cooperation, and energy security.

"A 500-million euro credit agreement is planned to be signed between the Vnesheconombank state-run corporation and Germany's KfW Ipex-Bank," Sergei Prikhodko said. The funds will be spent on Russian-German projects, primarily in mechanical engineering.

German engineering giant Siemens AG and rail monopoly Russian Railways (RZD) are set to sign an agreement to establish a joint venture for the production of new generation locomotives.

The parties are also expected to sign a memorandum of understanding to modernize Pulkovo airport in Russia's second city of St. Petersburg, Kazinform refers to RIA Nvosoti.

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