Russia, Japan to Form $1 Billion Investment Fund for 20 Projects

Bloomberg, 16.12.2016

(Bloomberg) -- The Russian direct investment fund and the Japan Bank for International Cooperation will sign an MOU on Friday to create a $1 billion fund that will invest in 20 Russian projects over a period of 3 to 5 years, Kirill Dmitriev, chief executive officer for RDIF, says in interview in Tokyo on Thursday.

* The fund will invest in 5 to 6 projects in 2017

* First transaction seen in the first half of 2017

* Projects to be focused on sectors including energy, infrastructure and healthcare

* RDIF currently reviewing 20 projects with Japanese partners

* One project under review is to send electricity to Japan from Russia

* Itochu Corp., Mitsui & Co. among companies looking to invest with RDIF in Russia

* Fund expected to produce a total of $5 billion to $10 billion of capital inflow into the Russian economy due to joint investments with Russian, Japanese companies

* RDIF, JBIC also considering establishing a venture fund in 1Q 2017 to focus on investing in Russia’s technology