China ’s main sovereign wealth fund will invest $1bn with its Russian counterpart, giving the Russian Direct Investment Fund its first capital commitment since it was established in June.
The agreement was signed in Beijing on Tuesday at a meeting between Chinese premier Wen Jiabao and Russian prime minister Vladimir Putin, who is in China for his first overseas visit since announcing his intention to reclaim the Russian presidency next year.
China Investment Corp and RDIF will both contribute $1bn to a new Russia-China Investment Fund, which is also hoping to raise an additional $2bn from other Chinese investors.
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