Reuters citing Mr Vladimir Dmitriev VEB head as saying that Russian state bank VEB will sign a deal with China Development Bank under which CDB will provide USD 1.43 billion for building the first stage of UC RUSAL 750,000 tonne Taishet aluminium smelter.

The deal was to be signed o during a visit by Prime Minister Mr Vladimir Putin will ease financing concerns on the Russian side and seek to address supply constraints in China a high cost producer that is not self sufficient in aluminium.

Mr Dmitriev said "It is easier for us to estimate risks this way."

At the end of September VEB National Council approved project financing for Taishet of RUB 40 billion. Hong Kong listed RUSAL the world largest aluminium producer confirmed that agreement on the project financing had been reached with VEB and it was not worried about the source of the money.

RUSAL said "The sources of VEB's funding have no influence on the agreement."

Construction of the Taishet smelter located in the Irkutsk region started in 2007. It was mothballed in 2008 due to the global economic and financial crisis which forced RUSAL into a debt restructuring, and is expected to restart this year.

(Sourced from Reuters)