China to invest $1 billion in Russian fund

11th October 2011, Comments 0 comments

China's sovereign wealth fund will invest $1 billion in a new Russian state-backed fund to encourage foreign direct investment in Russia, Prime Minister Vladimir Putin's spokesman said Tuesday.

The deal came at the end of the first day of Putin's meetings with Chinese Premier Wen Jiabao and other senior leaders, Putin spokesman Dmitry Peskov told AFP.

The China Investment Corporation will put $1 billion into the the Russian Direct Investment Fund, founded in June with backing from Putin and Russian President Dmitry Medvedev.

"Russia-China relations are very positive in various fields right now, from agriculture and high-tech cooperation to humanitarian relations and investment," Peskov said.

China's investment is the Russian fund's first major contribution.

Kirill Dmitriev, chief executive of the fund, told The Wall Street Journal that it hopes to raise an additional $1 billion to $2 billion from other Chinese investors.

Putin is in China for a two-day visit, on his first trip abroad since he said he is seeking a return to the Russian presidency.

© 2011 AFP

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