The Russian Direct Investment Fund (RDIF) and China Development Bank (CDB), the world’s largest financial development institution, have envisaged the constitution of the China-Russia RMB Investment Cooperation Fund. The Memorandum of Understanding was signed today by the executives of the RDIF and CDB during the Russia-China negotiations in Moscow. It was attended by Vladimir Putin, the leader of the Russian Federation, and Xi Jinping, the leader of the People’s Republic of China.
China-Russia RMB Investment Cooperation Fund is expected to facilitate the establishment of a simplified framework for direct investments with settlements in national currencies. The investments will be total RMB 68bn ($10bn equivalent). The investment activities will focus on Russian and Chinese projects, including One Belt-One Road and Eurasian Economic Union initiatives. RDIF will implement the project via the Russia-China Investment Fund (RCIF) created jointly by RDIF and China Investment Corporation, while CDB will implement the project via its wholly owned subsidiary China Development Bank Capital (CDBC).
Kirill Dmitriev, the CEO of the Russian Direct Investment Fund (RDIF) and the Co-CEO of the Russia-China Investment Fund (RCIF), said:
“We are happy to announce our partnership with China Development Bank and offer Chinese investors an opportunity to provide capital denominated in the national currency. This framework is a powerful driver of direct cross-border investments with a potential to increase the number of joint Russia-China projects significantly.”
Huaibang Hu, the Chairman of the China Development Bank (CDB), said:
“China-Russia RMB Investment Cooperation Fund is an important co-operation between China and Russia in the equity investment segment, which is acknowledged and supported by Chinese and Russian governments. It will promote the comprehensive and long lasting financial and economic partnership between two countries, and facilitate RMB internationalization.”