Interview: Chinese-Russian joint investments beneficial: Russian fund

Xinhua News Agency, 02.05.2012

MOSCOW, May 2 (Xinhua) -- Russia and China will benefit from increased joint investments in a number of different sectors, a Russian official said.


Kirill Dmitriev, chief executive officer of the Russian Direct Investments Fund (RDIF), told Xinhua recently that the joint investments made by China and Russia were also expected to facilitate the development of relations between the two neighbors.


Dmitriev said the RDIF and the China Investment Corp. (CIC) are building a joint investment fund that is expected to be officially launched this June, adding the RDIF hopes the fund could conduct its first transaction in July or August.


The fund initially will have 1 billion U.S. dollars, and will expand gradually in the future, according to CIC chief Lou Jiwei.


"Joint investment is a corner stone of this recently created fund," Dmitriev said. "The RDIF and the CIC have already considered many projects of the fund in various areas, such as agriculture, logistics, forestry, energy efficiency and machine building. There are the trans-border projects, too."


The RDIF, a fund worth 10 billion dollars, was established last June by the Russian government to make equity investments primarily in the domestic economy.


Dmitriev used the two countries' cooperation on forestry as an example, saying Russia wants to realize the localization of timber processing, which needs the help of the Chinese investment.


"For Russia, the localization could create more jobs for its people; while China could receive stable timber supplies from Russia. This is a win-win deal," Dmitriev said.


He also recalled Prime Minister Vladimir Putin's visit to China last October, when the two countries agreed to establish the joint investment fund.


"The fund is of great significance to both Russia and China. Within the framework of the fund, we could carry out specific investment projects and get a good return," Dmitriev said.


"It will also create jobs for both countries and facilitate our development on technical innovation," he added.


With regard to Vice Premier Li Keqiang's recently concluded visit to Russia, Dmitriev said the trip was "important and pragmatic."


"It gives a huge boost to Russia-China relations," he said.