VEB, RDIF, and Japan Bank for International Cooperation create joint Russian-Japanese Investment Platform
Moscow, April 29, 2013 – The State Corporation Development Bank for Foreign Economic Activity (Vnesheconombank), the Russian Direct Investment Fund (RDIF) and the Japan Bank for International Cooperation (JBIC) have today signed a joint memorandum creating a Russian-Japanese Investment Platform. The ceremony took place in the presence of Russian President Vladimir Putin and Japanese Prime Minster Shinzo Abe at the Kremlin.
Under the new agreement RDIF and JBIC will each invest $500 million. VEB will potentially provide financing to fund projects and design new financial products to support the platform.
The aim of this platform is to develop economic cooperation, trade and investment between Russia and Japan as well as to make exchanging technologies and expertise easier.
The memorandum details guidelines that will provide the foundation for future investment decisions including projects in the Russian Far East and East Siberia. Investment will focus on infrastructure development, the latest healthcare technologies, alternative sources of energy and the creation of efficient urban environments (smart cities).
Vladimir Dmitriev, Chairman of VEB, said:
"The Asia-Pacific region is the driving force behind the global economy’s growth today and this joint venture with our Japanese partners will not only help us capitalise on this but also help the development of the Far East and East Siberia, both of which are potentially profitable for Russia and our close neighbours. These regions have many opportunities, including infrastructure projects. I am confident that investors will recognise that and the possibility for potential returns."
Kirill Dmitriev, CEO of the RDIF, said:
"Forming partnerships in the East is important in achieving RDIF’s objectives and the platform is a natural alliance between two countries with a shared vision and similar interests. One of our focuses will be to develop infrastructure projects with the Japanese in the Russian Far East. This region is strategically important to Russia and private equity investment will improve the efficiency and profitability of many projects.”
Earlier today RDIF held an event to explore opportunities for co-operation and investment between the two countries. It was attended by more than 150 CEO’s from a number of Japanese and Russian companies, including JBIC, Toshiba, Mitsubishi, Sumitomo, Olympus, Nissin Foods, Kawasaki, NIPON, Medical Excellence, Nomura, Vnesheconombank, Eskar, MEDSI, Sistema Financial Corporation, GK Mother and Child, Rusagro Group of Companies, Miratorg, RUSNANO, Enel OGK-5 and several others.
The discussion concentrated on the most attractive investment opportunities in a number of sectors of the Russian economy. During the event there were also sector-specific sessions covering infrastructure, agriculture and food production, medicine and the healthcare industry, energy efficiency and the formation of efficient urban environments.