Russia, China Launch Bilateral Yuan Fund - Russian Direct Investment Fund
BEIJING, April 26 (Sputnik) – The Russia-China Investment Fund (RCIF), and China's Suiyong Capital and Dazheng Investment Group have launched a Russian-Chinese yuan fund and already started to develop potential projects, the Russian Direct Investment Fund (RDIF) said on Friday in a statement.
"The Fund mainly focuses on investment into strategic important projects in Russia and China in equal proportion, setting up itself as the first and most important example of implementing regional cooperation between the two countries (Moscow Region, Far East, and Northeastern China). For Chinese projects, more focus will be put on Belt and Road related projects and other perspective sectors," the statement said.
The fund initially holds 1 billion yuan (about $150 million) but the target capital is going to be increased up to 6-7 billion yuan due to Chinese investments.
"The parties have identified priority areas of cooperation, and are now studying a number of specific investment opportunities in natural resources, financial services, industrial manufacturing and healthcare sectors. The parties also focus on the support of Russia’s state strategy for technology development and investments," the statement said.
RDIF CEO Kirill Dmitrievpointed out the importance that creating the new fund would have to the future development of Russian-Chinese relations.
"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 inter-regional level, through the use of national currencies in all settlements. The China-Russia Regional RMB Fund virtually is the first active RMB [yuan] fund focusing on Russia and China. It is one of the most important examples of regional cooperation between the two countries," Dmitriev said.
The move was also praised by co-CEO and President of RCIF Bing Hu.
"The China-Russia Regional RMB Fund is a landmark example of the productive development of the bilateral regional cooperation. It is especially important that the fund is formed in RMB, which will reduce foreign exchange risk between RMB and RUB via other currencies. We are pleased that RCIF participated in the initiation of this Fund and we welcome new partners as the two countries continue to develop their regional cooperation," Bing said.
The decision was announced amid the ongoing 2019 Belt and Road Forum in China.