Russian Direct Investment Fund, China's CITIC to establish investment bank

TASS, 07.05.2015

Agreement are expected to be signed Friday during Chinese President Xi Jinping's visit to Russia

MOSCOW, May 8. /TASS/. The Russian Direct Investment Fund (RDIF) and China's CITIC Merchant, a unit of financial group CITIC, have agreed to establish a Russian-Chinese Investment Bank, the RDIF said.

The RDIF told TASS that such an agreement is expected to be signed Friday during Chinese President Xi Jinping's visit to Russia.

Russia's Direct Investment Fund, its structure Russian-Chinese Investment Fund (RCIF) and the government of China's Heilongjiang province also plan to sign an agreement on Friday on the establishment of a specialised agricultural investment fund for projects in Russia and China.

The agreement is expected to strengthen cooperation in the field of agriculture, soil management, processing, customs clearance, logistics and sale of food.

In March 2015, RDIF head Kirill Dmitriyev told reporters that the fund was in negotiations with three Chinese companies on investment in Russian agricultural projects. He did not rule out that one of the transactions could be finalised by the end of June - by the St. Petersburg International Economic Forum.

In general, Dmitriyev said later, the Russian-Chinese intergovernmental commission on investment cooperation is currently considering 32 projects worth $75 billion. Requests for an additional 20 projects that may also be considered by the commission have been submitted.

"Thus, we have come up with more than 50 projects that the commission will consider in terms of removing barriers and providing investment opportunities for the Russian-Chinese Investment Fund and other financial instruments," said the head of the Russian Direct Investment Fund.