Russia-China Investment Fund plans children's goods deal
BEIJING, Sept. 10 (Xinhua) - The Russia-China Investment Fund (RCIF) has announced plans to invest in JSC Detsky Mir, the biggest player in children's merchandise in Russia.
The two sides have agreed in principle on a deal that would see investment in new shops and logistics centers, said the RCIF in a press release on Tuesday.
Sistema JSFC, currently the sole owner of Destky Mir, said separately that the deal would involve a minority stake, and that the parties expect to sign binding agreements by the end of the year.
"Our investment will improve efficiency and support Russia's growing demographic providing access to high-quality children's goods at affordable prices. The investment will contribute further to the development of the production, logistics and transport sectors in Russia and China," said Kirill Dmitriev, co-CEO of the RCIF.
The RCIF is a private equity fund created by the Russian Direct Investment Fund and China Investment Corporation.
It will finance income-generating projects in key sectors of the economies and will announce a number of new investments in the near future, said the press release.
The RCIF was recognized at the first meeting of the Intergovernmental Russia-China Commission for Investment as a consultant on projects considered by the commission, and on collaboration between the commission and the business community, according to a Monday press release.
China has become the fourth-largest source of investment for Russia.