Russia, French state funds sign mutual investment pact

Reuters, London South East, 28.02.2013

The state investment funds of Russia and France signed a cooperation pact on Thursday, during a visit by French President Francois Hollande to Moscow, to deepen investment and trade ties between the two countries.

The Russian Direct Investment Fund (RDIF), Russian state development bank VEB and the French state financial corporate Caisse des Depots et Consignations (CDC) signed the memorandum of understanding.

RDIF head Kirill Dmitriyev said the partnership was similar to agreements already struck by the RDIF, which is being capitalised with $10 billion in state funds to invest mainly in Russia in partnership with foreign strategic investors.

The volume of French investments in the Russian economy stands at more than $9 billion, while Russia has invested around $190 million in France.

"Russia will attract a lot of investors to (develop) its infrastructure. A large part of the fund will be invested into Russian infrastructure projects," Dmitriyev said.

The RDIF signed a similar agreement in December with the State Bank of India to invest up to $2 billion jointly to promote trade and economic cooperation projects.