The Russian newspaper Kommersant reported yesterday that the Agricultural Bank of China is starting operations in Russia.  

This is a big deal, because this bank is huge, the eighth largest in the world.

It’s a sign of how quickly China will be able to fill the financing vacuum left by sanction, and an example of European companies losing markets to Chinese competitors.

It is also a sign that China is seriously interested in investing in Russia’s enormous unrealized agriculture potential.  China, a net food importer, has been scooping up agricultural deals around the world, competing for scarce crop lands.

Expect to see increased Chinese investment in Russian agriculture.