A group composed of Russian and Chinese companies is considering 73 joint investment projects totaling more than $100 billion in industrial production, infrastructure, mining, mineral processing and agriculture, according to a Tuesday statement.
The group overseeing the potential billions in investment is the Russian-Chinese Business Advisory Committee, a mechanism for cooperation between Russian and Chinese business owners involved in the Intergovernmental Russian-Chinese Commission for Investment Cooperation.
The Committee, which makes a significant contribution to the development of business relations between Russian and Chinese companies, facilitating investment projects across various sectors, held an annual meeting this week during the Eastern Economic Forum in Vladivostok, Russia.
The three-day Eastern Economic Forum takes place every year since 2015 in the port city of Vladivostok and aims to attract investors to the Russian Far East and improve the region’s competitiveness.
Due to the work of the Committee, seven projects worth a total of $4,6 billion have already been implemented.
From the Russian side, the Committee is headed by Kirill Dmitriev, CEO of the Russian sovereign wealth fund Russian Direct Investment Fund (RDIF), from the Chinese side – by Tu Guangshao, Vice Chairman and President of China's state-owned China Investment Corporation (CIC). In October 2011, RDIF and CIC established the Russia-China Investment Fund (RCIF) aiming to promote bilateral trade, economic and investment cooperation between Russia and China.
"While strong economic growth in both countries will certainly produce many domestic opportunities for profitable investments, we believe particularly promising transactions will be found in bilateral deals that capitalize on the Russia-China relationship. We look forward to realising the huge potential for mutually beneficial growth in sectors such as infrastructure, logistics, food and agriculture, natural resources, financial services, and consumer goods and services."Dmitriev said in a statement.
"As the fourth time this year the Russia-China Business Advisory Committee Meeting has been held, the previous ones have achieved remarkable results. The close cooperation between China and Russia has enable both sides to make substantial progress in various fields. RCIF will continue to play the role of a bridge between the two countries and help China and Russia achieve more mutually beneficial growth in key areas. Hereby, I wish this meeting a complete success" Bing Hu noted.
More investment plans
In a separate announcement, the RCIF and Tus-Holdings, a leading Chinese innovation-focused enterprise, supported by Tsinghua University, announced joint investment plans. One of the first investments will be the Russian Tushino Project Technology Park in the northwest of Moscow. The project will be worth around $1.28 billion.
The two groups are considering building a Sino-Russian tech innovation park with more than $100 million investment and have launched a Russia-China venture fund with capital of $100 million.
Tus-Holdings is considering the possibility to create a network of innovation facilities in Russia by building new technology parks in other areas of the country.
RDIF also announced that on the sidelines of a meeting between Russian President, Vladimir Putin and Chinese President, Xi Jinping during the Eastern Economic Forum, another agreement was signed.
Shandong Hi-Speed Group, the Chinese state road construction and service company, the Khabarovsk Region Government and VIS Group, a Russian multidisciplinary holding company, have agreed to jointly invest to develop road infrastructure in the Khabarovsk Region. The construction of the Khabarovsk bypass is the first example of a public-private partnership (PPP) to construct roads in the Russian Far East. It is also the first transport infrastructure concession in Russia to involve a leading Chinese strategic investor.
China's Alibaba signs a joint venture with Russian partners
Another deal signed at the Eastern Economic Forum was the one between the Kremlin fund and Chinese e-commerce giant Alibaba.
RDIF, Alibaba Group, PJSC “MegaFon” -a pan-Russian operator of digital opportunities- and Mail.Ru - the leading internet and IT company in Russia- announced a new strategic partnership to integrate Russia’s key consumer internet and e-commerce platforms and launch a leading social commerce joint venture in Russia and the CIS.
Under the partnership, the parties will form a new joint venture (JV) by leveraging on the existing businesses of AliExpress Russia. Collectively, the parties will inject new capital, strategic assets, leadership, resources and expertise to create an unmatched value proposition for merchants, consumers and internet users across Russia and the CIS, as well as accelerate the development of Russia’s rapidly growing digital economy.
Far East Economic Forum is sponsored by the organising committee appointed by Roscongress, an association of the Russian Government, which also sponsors other international forums, such as St. Petersburg International Economic Forum.