Ahead of the visit by Russian Prime Minister Vladimir Putin to China this week, Russia’s Vnesheconombank (VEB) and Direct Investment Fund (RDIF) have signed a memorandum of intent with China Investment Corporation (CIC) to set up an investment fund.
Talking to reporters, Yury Ushakov, deputy head of the Russian government's executive office, said the memorandum had been signed, by CIC Chairman Lou Jiwei , VEB Chairman Vladimir Dmitriev, and RDIF General Director Kirill Dmitriev.It follows confirmation in May by CIC Chairman Lou Jiwei that CIC was interested in direct investment in Russia, including equities and bonds, in Russia's resources and infrastructure sectors, and construction projects, when he named the RDIF and Russia's privatization program as the two main potential channels for Chinese investment.Lou joined the RDIF international advisory board in September, joining the heads of the South Korean and Kuwaiti sovereign funds, and the chiefs or founders of leading foreign private equity fundsThe RDIF, registered on June 1, is a 100% VEB subsidiary. Russia's government plans to invest $10 billion in the fund within five years, including $2 billion to be put in this year.