Russia and China sign agreement on establishing regional RMB fund
The Russia-China Investment Fund (RCIF, established by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC)), Suiyong Capital and Dazheng Investment Group plan to establish a regional China-Russia RMB Fund. The agreement was signed on Friday during the official visit of Russian President Vladimir Putin to Beijing.
It is expected that the fund will initially und hold 1.5 bln yuan ($225 mln) under management. The Fund's target capital, which will be raised by leading institutional investors from China reaches 5 bln yuan. According to RDIF, the Fund was established within the Years of Russian-Chinese of Interregional Cooperation (2018-2019) - supported by President of Russia Vladimir Putin and President of China Xi Jinping.
The fund's investments will be used to support projects in Russia and China in equal proportion. The parties have identified priority areas of cooperation - extraction and processing of natural resources, financial services, industrial production, healthcare, support for Russia’s state strategy for technology development and investments.
"The Fund will engage in the implementation of strategically important investment projects, focused on the Central Federal District, the Far East of Russia and the north-eastern part of China. The Fund will actively promote the strengthening of economic ties at an interstate level, through the use of national currencies in all settlements, CEO of RDIF Kirill Dmitriev said.
"The regional China-Russia RMB Fund is a landmark example of the productive development of the Russian-Chinese regional cooperation. It is especially important that the fund is formed in RMB. We are pleased that the RCIF has become the base for this Fund and welcome new partners as the two countries continue to develop their regional cooperation," Co-CEO and President of RCIF Bing Hu said.
Russia-China Investment Fund (RCIF)is a joint fund, established by the Russian Direct Investment Fund and China Investment Corporation (CIC) aimed at development of bilateral economic, trade and investment relations between Russia and China.