Russia and China have agreed to establish a US$10 Billion Russia-China RMB Cooperation Fund following last week’s meetings between the two leaders in Moscow.
Both the China Development Bank and the Russian Direct Investment Fund have signed an agreement to establish a joint investment worth 68 billion yuan (US$10 billion). The fund will invest in projects related to China’s Belt and Road initiative as well as the Russia-led Eurasian Economic Union initiative.
The new fund will make ruble and yuan settlements, with Beijing expecting it to help boost the yuan’s international standing.
According to a statement from China Development Bank Chairman Huaibang Hu, the Russia-China fund “Will promote the comprehensive and long lasting financial and economic partnership between the two countries, and facilitate the yuan’s internationalization.”
In a separate announcement, the Russian sovereign fund and China Investment Corporation, a Chinese sovereign fund, said they will increase the capital of their joint Russia-China Investment Fund by US$1 billion. They also said an additional amount of up to US$2 billion can be provided by new investors.
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