China Investment Corporation and Russian Direct Investment Fund to Set Up a US$ 3-4BN Investment Fund
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.