Russia-China Investment Fund Invests in Russian Forestry Firm

The Russia-China Investment Fund, a joint venture vehicle, will invest over US$ 200 million in Russian Forest Products. Russian Forest Products is Russia’s second biggest forestry products business. Russia is keen on attracting foreign direct investment in the Russian Far East. In fact, Russia strategically views Asia as a major export customer in energy and resources, as Europe struggles in maintaining economic stability.

The Russian Direct Investment Fund (RDIF) and the China Investment Corporation (CIC) are investors in the Russia-China Investment Fund.

Russian Forest Products accounts for 10% of the country’s timber exports to China. The firm has extensive operations in Siberia. The fund investment in the forestry company accomplishes two goals. First, it is a token investment that will begin the process of thawing economic relations between China and Russia. Second, the funds will be used to create jobs in the region and enable the company to sell processed wood instead of raw material.



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