China Investment Corporation (CIC), China’s sovereign wealth fund, and the Russian Direct Investment Fund (RDIF), which was recently established by the Russian government, are planning to set up a US$ 3-4bn investment fund.
The Russia-China Investment Fund will operate commercially to make equity investments primarily in projects in Russia.
According to a written statement, the founding organizations will each contributeUS$1bn and expect to raise an additional US$1-2bn from third-party investors. Vnesheconombank (VEB) http://www.veb.ru, the Russia’s state development bank, will act as a strategic partner to the fund.
The vehicle is expected to be formally established by 31 December 2011 following all necessary approvals and begin operations in the first quarter of 2012.