Russia, China, Set Up US$1 Billion Technology Innovation Fund
Maxim Oreshkin, Russia’s Economic Development Minister, and Wang Zhigang, China’s Science and Technology Minister have signed an MoU to create a US$1 billion Research and Technology Innovation Fund.
The Russian Direct Investment Fund (RDIF) and the China Investment Corporation (CIC) will finance the project. The new fund will be created for eight years, with the possibility to extend its existence by another four years, in two year increments. “The new institution will contribute to transferring, promoting and implementing joint innovative decision with a special emphasis placed on supporting small-and medium-sized enterprises.” Oreshkin said.
The introduction of such a fund is partially designed to support Russian and Chinese SME’s in the technology sector. Both countries are advanced in this field but want to move away from reliance on US technologies. The new fund is not expected to take operational control of invested businesses, merely provide the startup and development capital required to see the businesses to maturity.
The two countries have established several joint funds, including the China-Russia Far East Fund in addition to the significant Russia-China Investment Fund and the China-Russia RMB Cooperation Fund amongst others. Applications for funds can be made through the Russian and Chinese diplomatic avenues and chambers of commerce. We will provide further details when the funds are designated and available for use.
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