Russia, China Set up New RMB Investment Fund to Support Far East Russia and North-East China
Russia and China agreed last week to establish a new investment fund holding an initial RMB 1.5 billion (US$234 million) with the aim of supporting and managing financial and industrial projects in both countries.
The agreement was signed by the Russia-China Investment Fund, Capital, and the Dazheng Investment Group, during the Russian President Vladimir Putin’s visit to Beijing, while the new fund will have a target capital of RMB 5 billion (US$780 million).
“The Fund will engage in the implementation of strategically important investment projects, focused on the Central Federal District, the Far East of Russia and the north-eastern part of China,” CEO of the Russian Direct Investment Fund (RDIF) Kirill Dmitriev said.
The Russia-China Investment Fund, established by RDIF and China Investment Corp also announced that it planned to invest in Russian lender Sovcombank in cooperation with a group of leading funds in the Middle East. At the same Putin-Xi meeting, Russian state-owned nuclear company Rosatom signed agreements to establish four nuclear power units in China. Rosatom will construct two plants each at Xudabao in Liaoning and Tianwan in Jiangsu.
“We have already heard how Russia-China bilateral trade will reach US$100 billion this year, says Chris Devonshire-Ellis of Dezan Shira & Associates. The two nations are becoming far more mutual investor friendly and we can expect to see more finance made available for infrastructure projects connecting the Russian Far East to northern China.”
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