State-owned Vnesheconombank (VEB) said the deal with the Chinese State Bank for Development and Chechnya had been clinched as part of President Vladimir Putin's two-day visit to China, which began Tuesday.
"The banks will provide financial support for investment projects in various sectors of Chechnya's economy, in particular housing construction, infrastructure development, machine-building, manufacturing and oil refining," VEB said. The bank added that the agreement would facilitate the region's socio-economic development and attract investment into the Chechen economy, which has been devastated by years of fighting.
VEB said one $5.7-million project was a brick making factory in the capital, Grozny, with a capacity of 50 million bricks a year.
A second project worth $2.5 mln will reconstruct a timber processing plant in the southwest of the republic with a capacity of 130,000 metric tons of end products a year.
