The sovereign wealth funds of Russia and China will each commit $1 billion in a joint investment fund worth as much as $4 billion, raising additional money from third-party international investors, according to the China Investment Corp., Beijing.
Lou Jiwei, China Investment Corp.’s chairman, and Kirill Dmitriev, CEO of the $10 billion Russian Direct Investment Fund, Moscow, signed a memorandum on Tuesday “signifying the full launch of the joint fund,” according to the statement posted on the $400 billion Chinese sovereign wealth fund’s website.
The China-Russia Investment Fund is being set up in the form of a limited partnership and will be run as a “commercial operation,” the statement added.
The joint fund is likely to target transactions in Russian forestry, logistics and agriculture, Mr. Dmitriev said in an April interview. As much as 70% of the joint fund will be invested in Russia and the Commonwealth of Independent States, Mr. Dmitriev said in a statement April 29.
