My Realistic Simulation Game

Chapter 225 Great Change
Many people didn't get a good night's sleep.

The purge in Moscow continues, with NKVD police and KGB plainclothes agents precisely targeting individuals based on intelligence.

The former gang stronghold was forcibly stormed, with screams and gunshots rang out sporadically before quickly falling silent again.

The stench of blood, mingled with the chill of the winter night, permeated the air, sending shivers down the spines of everyone involved, who feared that the shadow of being caught in the crossfire would descend upon them at any moment.

At the Volga plant, however, a completely different kind of restlessness was spreading.

Excitement, anticipation, and boundless hope for the future kept many people tossing and turning at night.

The cooperation between Chery and Volga was already attracting much attention, especially when the astronomical figure of "1.5 billion US dollars" was spread through Izvestia.

Furthermore, the firm stance displayed by factory director Kadnikov and Qin Yuan on site made everyone realize...

A momentous change that could alter the fate of many is about to occur.

This premonition also spurred more reporters to travel day and night, flocking to the Volga plant from all directions.

Not only were authoritative Soviet media outlets such as TASS, Pravda, and Izvestia present, but also Moscow-based journalists from top Western news agencies such as Reuters, Agence France-Presse, and Associated Press drove to the scene.

They keenly realized that this might not be a simple business collaboration.

Rather, it is an economic event that could shake the entire Eastern Europe and even influence the Asian landscape.

It is precisely because of this overwhelming surge that the resulting public opinion has become so powerful.

Even the Kremlin found it hard not to notice the commotion here.

Late at night, the phone in Kadanikov's office suddenly rang.

The voice coming from the other end of the receiver made even the old fox straighten his back.

Because this was a direct call from Mr. Goethe's office!
Although Gorbachev himself did not speak directly during the phone call, his core staff clearly conveyed the highest instructions.

We must make every effort to advance cooperation with Chery and Far East Trade, and make this project a "demonstration project of the year" for economic reform!
The aide on the call even hinted meaningfully that if Kadanikov could complete the task brilliantly, his political future would be "limitless."

Upon hearing this, Kadanikov could no longer remain calm.

He has a strong desire for power, and this further potential makes it worthwhile for him to make even greater investments.

He immediately made a decision to upgrade the press conference, originally scheduled to be held in the factory lobby, to a large auditorium that could accommodate more people!

Moreover, he ordered his subordinates to work around the clock to set up the venue, making sure to showcase the grandeur of the Volga plant and even the Soviet Union.

He then eagerly sought out Qin Yuan and Berezovsky, and bluntly stated, "Qin, Boris, circumstances dictate our actions!"

"The higher-ups have already spoken: this cooperation cannot remain just on paper; it must be put into practice, and we need to see substantial progress and investment as soon as possible!"

Qin Yuan was well aware of the change in Kadanikov's attitude; it was undoubtedly due to pressure and promises made by the Kremlin.

Faced with this sudden situation, Qin Yuan immediately took action.

He wrote a complete business plan in just one night.

In addition to Chery and Volga, a new partner, Auto Union, has joined the partnership.

With these three parties at the core, we will jointly advance this ambitious plan.

As for how to raise funds, Qin Yuan also has a plan.

The initial investment is set at $2 million.

The new plant was jointly funded by the Far East Group and the Volga Plant. The Far East Group contributed funds to upgrade and renovate the equipment, while the Volga Plant contributed its vast land, manpower, and equipment as equity.

There are two main ways to raise the subsequent $13 billion.

One is to issue "Volga-Chery Future Automobile Bonds".

Targeting the vast Soviet population and institutions, with the grand vision of participating in the construction of the nation's pillar industries and sharing the dividends of reform, high-interest bonds were issued to absorb the ruble funds that had been deposited in the private sector.

Another approach involved packaging compelling stories of "opening up the Chinese market with its billion-strong population" and "helping to modernize the Soviet automobile industry" to seek large-scale debt investments from international financial giants such as Deutsche Bank, Morgan Stanley, and Credit Suisse.

Whether it's bond issuance or negotiations for loans with Western capital, all these financial operations will be executed through the soon-to-be-established "Far East International Bank" as its core platform.

He formally invited Kadanikov, the rising political star, and Berezovsky, the legendary king of thieves, to become founding shareholders of the bank and share the enormous profits generated by its financial operations.

This move completely tied the interests of the two Soviet oligarchs to Qin Yuan's financial empire.

Faced with such a massive and seemingly feasible plan, and the readily available financial windfall, Kadanikov and Berezovsky had no further objections and agreed in unison.

The next morning, in the Volga factory auditorium.

The auditorium was packed, and the atmosphere was as lively as in the height of summer.

On the stage, the national flags of China and the Soviet Union were hung side by side, with a huge "Soviet-Chinese Automobile Alliance" logo and an eye-catching banner that read "Volga-Chery Future Strategy Launch Conference" in the background.

The flashes of light, like a continuous barrage of lightning, illuminated the scene as bright as day.

The Volga plant director, Kadankov, personally oversaw the operation.

Even though he had stayed up all night, he was still beaming and full of energy when he thought about the amazing results that were within his reach.

"Ladies and gentlemen! Friends from the press!"

His voice, transmitted through the microphone, filled the auditorium: "Today, we gather here to witness a historic moment, which is not only a new chapter for the Volga Automobile Plant toward the future, but also a milestone in the Soviet Union's industrial reform and opening up to the outside world."

He turned to the side and gestured to his side. The spotlight immediately followed his movement, shining precisely on the young, almost too-young Chinese face in a custom-made dark suit.

"Now, please allow me the honor of introducing our most distinguished partner, Mr. Qin Yuan, the founder of Chery Automobile and the president of Far East Trading Group!"

"He will reveal to us the grand blueprint we have jointly planned!"

Under the spotlight of countless eyes, Qin Yuan calmly stood up and walked to the podium.

He didn't use a prepared speech; he simply placed his hands lightly on the edge of the stage and calmly surveyed the entire audience.

"Ladies and gentlemen, I believe you have already heard some rumors about Chery and the Volga plant."

"Yes, the rumors you've heard are true."

"The first phase of the project involves a total investment of US$15 billion and will establish a brand-new, modern automobile manufacturing base in Volgograd!"

"Wow——!"

Despite prior rumors, when Qin Yuan so clearly stated the astronomical figure of "1.5 billion US dollars," an uncontrollable gasp of astonishment still erupted from the audience.

Reporters lowered their heads and frantically took notes, the sound of camera shutters clicking even more frequently.

Qin Yuan seemed oblivious to the reactions below, and continued to outline the blueprint in a calm tone: "Our goal is to build a new automotive industrial city with an ultimate annual production capacity of 500,000 vehicles. The new factory will directly create tens of thousands of jobs."

"And the first product to drive out from here will be the 'Fengyun' sedan, born to connect the friendship between the Chinese and Soviet people, and the 'Baikal' off-road spirit, capable of conquering the vast land of Siberia!"

The reporters in the audience looked shocked upon hearing this.

They launched two new models right from the start, and with such a large investment.

Are you really confident?

In contrast to these journalists, several representatives from Western automotive giants based in Moscow attended the meeting.

At this moment, their faces showed a hint of vigilance and unease.

They are not afraid of a single Volga.

Because they were remnants of the old era, they only had some competitiveness in markets like China and the Soviet Union under the planned economy.

To Western car brands, these cars are nothing but scrap metal.

They're not afraid of a Chery.

A newly established car company, even with the support of the entire Anhui province.

However, the two companies collaborated, complementing each other's strengths, and were able to launch a completely new series of cars in such an organized manner.

This is somewhat alarming.

Soon, with the release of Qin Yuan's complete business plan, they became even more certain.

A new automotive giant, integrating the strengths of both China and the Soviet Union, is about to rise. This rise will inevitably impact Western car brands like Volkswagen and Fiat, which have long coveted the markets of both countries. Furthermore, it may one day even affect the Eastern European markets they have already entered.

Soon, it was time for the Q&A session.

Seemingly in response to the expectations of these automakers, a Reuters reporter stood up and asked, "Mr. Qin, I am a reporter from Reuters. The blueprint you have drawn is very exciting, but 1.5 billion US dollars is an astronomical figure."

"May I ask, what is the source of funds for this huge investment? Is it your personal wealth, or..."

Everyone's hearts were in their throats; this was the most crucial question.

A faint smile appeared on Qin Yuan's lips, as if he had been waiting for this question.

"Thank you for your question," he replied calmly. "An investment of this scale naturally requires diversified financing channels."

"Part of the project will be funded by our alliance members themselves. At the same time, we are open to strategic investors with a global vision and long-term perspective to conduct equity financing."

Another reporter pressed on, "Mr. Qin, 1.5 billion US dollars is an astonishing figure. With such a huge investment, what is the source of your confidence? How can you be sure that it will succeed?"

Qin Yuan smiled calmly, "Before something is successful, no one can be 100% certain that they will succeed."

"Unless that person is God."

Upon hearing this, the audience burst into laughter.

But then, Qin Yuan held up three fingers and said seriously, "Although no one can guarantee 100% success, there are patterns to follow in all successes."

"And my confidence is based on three points."

"First, China's increasingly mature low-cost, high-quality auto parts supply chain system, as well as Chery's successful introduction and assimilation of advanced Western European engine and chassis technologies, are our cost and technological advantages."

"Secondly, the Volga plant and the entire Soviet Union's strong heavy industry base and highly skilled industrial workforce provided a solid foundation for product quality and large-scale production."

"Third, and most importantly, both China and the Soviet Union had huge and hungry car markets."

"I believe that as long as we put enough effort into the products of our 'Fengyun' and 'Baikal' and catch up with Western cars, one day our cars will be able to travel freely on the roads of China and the Soviet Union."

After the words were spoken, there was a moment of silence, followed by an even more heated discussion.

As Qin Yuan stepped down from the podium, the reporters present could no longer contain themselves and began to quickly copy down his words, trying to disseminate them through various means.

They could imagine the enormous impact this news would have if it became known to the outside world.

The business plan announced by Qin Yuan was meticulously planned and incredibly ambitious.

If it proceeds smoothly, it will not only profoundly affect the automotive industries of China and the Soviet Union, but may even shake the traditional dominant position of Western automotive giants in Eastern Europe and even East Asia.

The open approach of financing the $1.3 billion through the market is an even more tempting and huge pie for international financial capital.

The news spread like wildfire, quickly reaching every corner of the globe.

a few days later.

Moscow, the financial district.

This wide avenue, adjacent to Arbat Street, presents a peculiar landscape in the heart of the Soviet Union.

Instead of the heavy but somewhat dull Soviet-style buildings that line both sides of the street, there are modern buildings with gleaming glass curtain walls and eye-catching English signs for Citibank, HSBC, Deutsche Bank, Credit Suisse, and other banks.

In stark contrast to the sparse crowds outside state-owned banks, long, winding queues form outside these Western banks every morning.

The people queuing were dressed in various ways: some were intellectuals in decent woolen coats, some were government clerks carrying briefcases, and some were workers in work clothes with anxious expressions.

You can even see some "scalpers" with shifty eyes and carrying heavy handbags.

This phenomenon has intensified since the beginning of 1991.

The reason is obvious.

Compared to the Soviet Union's state-owned banks, which were aloof and constantly changing their rules.

These privately owned banks, run by Westerners, not only offer better service but are also open 12 hours a day.
Furthermore, it offers higher savings interest rates and allows access to overseas accounts.

This point was very tempting for ordinary Soviet citizens.

The latter point applies to Soviet citizens who hold rubles of dubious origin or aspire to one day emigrate to the West, especially emerging businessmen, speculators, and certain privileged groups.

The ability of Western banks to open accounts that can freely exchange foreign currencies and connect to overseas financial systems is an irresistible attraction.

This is not just about wealth, but also about a potential "fallback" or "way out".

Therefore, the amount of ruble cash flowing into these Western bank branches every day is astonishing, like a trickle of water flowing into a lake.

They were like financial straws clinging to the body of the Soviet Union, silently draining the country's capital lifeblood.

Among these banks, Citibank is definitely the boldest and most aggressive.

The American capital behind it harbored great ambitions and a spirit of adventure in penetrating the Soviet market.

At this moment, on the top floor of the branch, in a luxurious office overlooking the entire Financial Street.

Bank President Williams was reading today's newspaper.

The front page of the newspaper was filled with reports about Chery, AvtoVAZ, and Auto Union announcing a $1.5 billion cooperation plan, which took up most of the page.

Looking at the grand blueprint and specific details described in the report, a meaningful smile appeared on his lips.

"It's really interesting."

"Going to such lengths and investing $1.5 billion, how much of that do you think is just hype?"

Sitting opposite Williams was another professional manager in a suit and tie, who was the general manager of the Moscow investment bank of the Swiss bank next door.

"The amount of water (referring to the amount of content) is not important; what matters is that it's a beautifully packaged story, isn't it?"

Herik pushed up his gold-rimmed glasses and smiled faintly: "A huge engine of economic growth, covering the two major automobile markets of China and the Soviet Union. The Soviet government is supporting it, and I heard that China is also providing support with the resources of a single province."

"If—and I mean if—this story were to come true even halfway, what would the future market value of this fledgling automotive alliance be?"

"Billions of dollars? Or even more?"

"For early investors, this means a potential return of up to 100% or even 200%."

"While risks certainly exist, the potential rewards are tempting enough."

He paused, then looked down at them and said, "Moreover, for those of us who control capital, any loan we extend to them, the interest, terms, collateral..."

“Each item will be a carefully calculated ‘gift,’ with a price tag, and the risks are largely manageable.”

Williams nodded; Herik's analysis was largely in line with his initial assessment.

As bankers, they are natural-born risk price setters and story evaluators.

The story of this project is indeed captivating.

But what made him frown was another crucial piece of information.

“I know all of this, but what alarms me is that the report explicitly states that all financing matters for this project, including bond issuance and syndicated loans, will be coordinated and managed by the newly established ‘Far East International Bank,’ which will also act as the exclusive financial advisor.”

Williams pointed to the newspaper on the table and said in a heavy voice:
"I have received reliable information that, under the strong intervention of certain powerful figures in the Soviet Union, the Central Bank of the Soviet Union has made special arrangements and approved the establishment of this bank."

"All approval procedures were expedited, incredibly fast."

His eyes narrowed slowly as he looked at Herik across from him.

"They're undertaking such a large project again, and establishing their own bank."

"Heylick, what do you think that Qin from China is really up to?"

Herik smiled faintly: "Compared to that Qin, I am more interested in the results of the Soviet referendum next month."

Politics is the nourishment of life.

The political dynamics of the Soviet Union determined how much flesh and blood these Western capitalists could gnaw from this giant.

(Also, it will be later)
(End of this chapter)