European development bank EBRD signs 'silk road' MoU with China

LONDON, June 15 (Reuters) - The European Bank for Reconstruction and Development has signed a Memorandum of Understanding (MoU) with China to carry out joint projects on Beijing's planned new 'silk road' trade route to Europe.

China became a shareholder of the London-based EBRD last year and Phil Bennett, the development bank's First Vice President said the MoU, signed with the infrastructure-focused Silk Road Fund, was a major step in the fledgling relationship.

"Our regions have a funding gap of about $400 billion a year for necessary infrastructure investments," Bennett said. "A joint effort by all stakeholders is needed to bridge that gap and we see working with partners like the Silk Road Fund as the most efficient way forward."

The EBRD did not give details of the planned projects but it works in a number of countries on and around the so-called "One Belt, One Road" route such as Kazakhstan, Mongolia, Turkey as well as eastern Europe's big economies. (Reporting by Marc Jones; Editing by Gareth Jones)