Vnesheconombank, RDIF, CIC and RCIF to promote investment into infrastructure and Russian Far East projects
Press release, 22.03.2013
Moscow, 22 March, 2013 - State Corporation “Bank for Foreign Economic Affairs” (Vnesheconombank), The Russian Direct Investment Fund (RDIF), China Investment Corporation (CIC) and The Russia-China Investment Fund (RCIF) have today signed a Memorandum of Understanding (MOU), which sets forth a number of principles to promote future cooperation on investments into infrastructure projects and projects in the Russian Far East Region.
Parties have set out three main investment themes that will provide the foundation for a range of future investments in the region. Investments will be focused on projects with growing demand for new infrastructure, logistics, as well as high value-added development and processing of natural resources, and leading manufacturing and services companies with strong credentials.
The signing ceremony took place in Moscow today in the presence of the Russian President Vladimir Putin and the President of the People’s Republic of China Xi Jinping.
Vladimir Dmitriev, chairman of Vnesheconombank, said: “Together with our partners in China we have been financing Russian-Chinese development projects in priority sectors of the economy. These are primarily technology, innovation and energy efficiency amongst others. Our partnership is an important step towards greater economic cooperation between Russia and China.”
Kirill Dmitriev, CEO, The Russian Direct Investment Fund (RDIF) commented: "This opportunity will help to further attract long-term investments into the Russian economy, and will concentrate on investment and development of Russia’s Far East, including the implementation of large-scale infrastructure projects."
Gao Xiqing, Vice Chairman and President, China Investment Corporation (CIC) said: “This memorandum gives further impetus to the ongoing cooperation between CIC and its partners in Russia to jointly seek investment opportunities with attractive returns and win-win solution”.
Hu Bing, Co-CEO, The Russia-China Investment Fund (RCIF) commented: “Today’s memorandum marks another significant step for the Russia-China Investment Fund. The growing demand for infrastructure in the Russian Far East offers excellent opportunities to deliver on the objectives set out in the memorandum to promote economic development and to achieve strong risk-adjusted returns for our investors”.
State Corporation 'Bank for Development and Foreign Economic Affairs (Vnesheconombank)' was established in spring 2007 in accordance with the Russian Federal Law "On the Bank for Development" on the basis of Vnesheconombank USSR. The Bank's activity is designed to remove economic growth infrastructure restrictions, modernize and boost non-raw materials economy, high-technology industries as well as to stimulate innovations and the export of high-tech products and implement projects in the special economic zones, projects in environment protection, provide support for small and medium-sized enterprises.
The Russian Direct Investment Fund (RDIF) was founded in June 2011 to make profitable investments in corporate equity under co-investing principles, predominantly in Russia. As part of each investment project, the RDIF attracts investment partners, whose contribution shall not be less than the contribution of the Fund itself, and which should become a catalyst for the growth of direct investment into the Russian economy. Further information at www.rdif.ru
China Investment Corporation (CIC), founded in September 2007, is a state-owned company incorporated in accordance with China’s Company Law. Headquartered in Beijing, CIC is established as an investment vehicle to diversify China’s foreign exchange holdings to achieve higher risk-adjusted financial returns. It invests globally on a commercial basis across a diversified range of asset classes including equities, fixed income, absolute return investments and long-term investments. Additional information is available at www.china-inv.cn.
Russia-China Investment Fund (RCIF) is a private equity fund investing in unique opportunities brought out by rapid development of economic cooperation, fast growing trade, and increasing purchasing power of the middle class in Russia, China and CIS countries. RCIF will emphasize cross-border transactions, as well as investment opportunities within the region across a broad range of sectors to facilitate the structural adjustment and the improvement of quality of those countries’ economies. The fund will invest in infrastructure, transportation and utilities, real estate, agriculture and forestry, business services, manufacture, TMT, health care, high-value added development and processing of natural resources, and other related sectors offering good risk-adjusted returns to investors.
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