RF's CB, People's Bank of China to sign agreement Thursday.

NIZHNY NOVGOROD, June 23 (Itar-Tass) -- Russia's Central Bank and the
People's Bank of china will sign in Nizhny Novgorod on Thursday an
agreement on settlements and payments.
On Wednesday, the Russia-China sub-commission on cooperation in
finances said that the document will remove all barriers in the bilateral
trade between Russian and Chinese players of the trade and economic
relations.
The agreement will provide a legal opportunity to make settlements and
payments for goods and services between Russian and Chinese players both
in convertible currencies and in national currencies of the two countries
in accordance with the international practice and laws of each country.
The document states that "payments will be made under agreements between
subjects of civil relations."
"The new document will have a big effect on development and
improvement of mutual trade and economic cooperation between Russia and
China," Deputy Chairman of Russia's Central Bank Viktor Melnikov told
Itar-Tass reporter. "This agreement will favour a lot the work of Russian
banks in the territory of China, as they will have a more favourable
situation in legal basis of their activities in China, where legislation
in the financial sphere differs greatly from that of Russia."
The first day of the Russia-China sub-committee in Nizhny Novgorod
showed that bilateral relations in the financial sphere are developing
successfully.
"The discussions of expanding cooperation and the searches for
break-through directions have shown that we manage to find new point and
spheres of mutual understanding, for example, our suggestions on
improvement and expanding of cooperation are appreciated by our
counterparts from China," he said.
The Russia-China sub-commission on cooperation in the financial sphere
will be closed on June 23.