Viktor Ishayev told journalists that far fewer projects were being implemented than planned, with financing falling well below what was hoped; however, the governor hailed new investment agreements and said the booming East Asian country had huge potential as a consumer market.
The official said: "Another reason for Chinese entrepreneurs' reluctance to invest money in Russia's economy is that there are no 'exclusive' proposals in natural resources production projects."
Ishayev said only five projects were being implemented out of the 13 projects, worth $800 million, which had been considered at the first Russian-Chinese forum in Khabarovsk in 2004, and that the volume of financing was only $4.3 million, or 0.5% of the total projected sum.
However, the governor said China has huge potential as a consumer market, and that bilateral cooperation was likely to focus on pipeline transport, development of ports and airports, agriculture, natural resources processing, and environmental protection projects.
He said Russia and China signed 10 investment agreements worth a total worth of over $1 billion during the November 9-13 investment forum in Beijing. The agreements envision cooperation in oil and gas, the power industry, banking, and aluminum production.
Last year, Russia was China's eighth largest trading partner after the United States, Japan, South Korea, Germany, Hong Kong, Singapore and Malaysia. Trade between the two countries exceeded $29 billion.
Russia and China hope to more than double the current annual turnover in the next few years.
Ishayev said natural resources account for 70% of trade with China, while the share of high-tech goods Russia supplies to China is just over 2%. He said 70% of China's exports to Russia are high-tech products.
