Russia-China fund puts $1b into deals

By Cai Xiao (China Daily) Updated: 2014-05-20 07:01

The railway bridge's construction will create a new export corridor between Russia and China, and alleviate transport constraints between new fields being developed in Russia's Eastern Siberia and the Far East.

The bridge also will significantly increase the turnover of goods and the competitiveness of Russian producers and exporters, reducing transportation distances to the end consumer by about 700 kilometers, compared with existing rail routes.

"The Russia-China Investment Fund not only builds financial bridges between Russia and China but also invests in the infrastructure to benefit both countries," said Dmitriev.

China-Russia gas deal set to be signed

Top 10 trading partners of the Chinese mainland

"The future development of new natural resource deposits and increased level of traffic over the next 10 years means the region could face a shortage of export transportation capacity."

The tourism deal between RCIF and Vcanland Holdings Group, a leading developer of tourism infrastructure and senior living communities in China, will create a joint investment fund targeting $800 million with a focus on Hainan province in China and Lake Baikal, Vladivostok and Sochi in Russia.

The Russian travel and tourism industry is expected to grow by 4 percent annually, and tourism between Russia and China is projected to grow even faster. About 3.3 million Chinese tourists visited Russia in 2012 - triple the number from 2007, according to Beijing Daily.

"We are very excited about the opportunity to capture the favorite social and economic trends in both sectors and create significant values for both parties and future investors," said Li Defu, chairman of Vcanland.

RCIF and Hopu Investment Management Co reached an agreement in principle with Global Logistic Properties Ltd to invest in its Chinese division as part of a consortium.

GLP's expertise may be highly valuable in the Russian logistics services market because of the increasing trade turnover between Russia and China.

China is Russia's largest trading partner, with trade volume between the two countries reaching $90 billion in 2013. The two countries aim to raise that volume to $200 billion by 2020.