Russia-China Investment Fund Slated for June 2012
According to the press release, “During a meeting held today as part of the China-Russia Investment and Trade Forum, First Deputy Prime Minister of Russia Igor Shuvalov and Executive Vice-Premier of the State Council of China Li Keqiang announced the dates to create the Russia-China Investment Fund and outlined the sectors earmarked for the first investments.
“By creating the Russia-China Investment Fund, the RDIF and China Investment Corporation will once again highlight the strong results of economic cooperation between Russia and China,” Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said during the meeting between Igor Shuvalov and Li Keqiang. “The Fund’s capital is planned to reach USD 4 billion, with the RDIF and China Investment Corporation each contributing USD 1 billion and the remaining USD 2 billion coming from other Chinese institutional investors. The Fund is to be established by the end of June 2012.”
Mr Dmitriev also outlined industries to receive the first investments: these will include engineering, agriculture, forest and timber industries, transportation, and logistics. “Special attention will be given to energy efficiency and energy saving projects”, he added. “Up to 70 per cent of the Fund’s capital will be invested in businesses and projects across Russia and other CIS countries, and the remaining 30 per cent will focus on Chinese businesses and projects with Russian involvement. The Russian economy might see hundreds of millions of dollars in joint investments from Russia and China as early as the end of 2012.”
RDIF executives and China Investment Corporation also met today to hold talks led by CIC Chairman and CEO Lou Jiwei.
To manage the Fund, a Management Company is currently being established, with the RDIF and CIC as the founders controlling 60 and 40 per cent of the equity, respectively. The RDIF will nominate most of the key executives for the Management Company while also supervising the activities to search, select, analyse and evaluate investment projects appealing for the Fund.”
Read more: RDIF Press Release