Jun. 7, 2012 (China Knowledge) - China
Investment Corp (CIC), the country's sovereign wealth fund, said today it has signed a memorandum of understanding with state-backed Russian Direct Investment Fund (RDIF) to create an investment fund.
Last October, both CIC and RDIF had the plan to set up the joint fund to boost economic cooperation between the two countries.
CIC and RDIF will each contribute US$1 billion in the fund, which would be expanded to US$4 billion in 18 months, with the net addition contributed by outside investors, said RDIF CEO Kirill Dmitriev.
Around 70% of the fund is expected to invest in Russia, while the remaining 30% in China
. The pipeline of potential deals for the fund includes machinery, forestry and logistics industry.
Dmitriev also noted the first investment might start next month, adding that one of Russia's largest forestry firms would export a substantial amount of wood to China
. But Dmitriev declined to unveil the name of the company.