Nabiullina Suggests China Trade Fund

Russia and China may set up a fund to finance trade in machines and industrial goods to boost ties as the financial crisis worsens, Economic Development Minister Elvira Nabiullina said Tuesday.

"Against an unpleasant backdrop on world financial markets, I hope the trade turnover will continue to develop dynamically," Nabiullina said.

Vneshekonombank, also known as the Development Bank, may set up the fund with China's Eximbank, Nabiullina told reporters in Moscow after meeting with a Chinese delegation headed by Commerce Minister Chen Deming.

The meeting had "special importance," given that the mortgage crisis from the United States has spread to the rest of the world and is affecting the real economy, Chen said.

Machines and other industrial goods account for 1.3 percent of Russia's exports to China while comprising 40 percent of what China sells to Russia, Sergei Tsyplakov, Russia's trade representative to China said.