Russia, S. Korea to launch US$500 mln joint investment platform
SEJONG, Nov. 13 (Yonhap) -- A Russian investment corporation said Wednesday that it will launch a US$500 million "joint investment platform" with South Korea's sovereign wealth fund in a move to facilitate trade and investment cooperation between the two countries.
The deal was reached between the Russian Direct Investment Fund (RDIF) and the Korea Investment Corporation (KIC). It was announced in time for the summit talks between South Korean President Park Geun-hye and Russian President Vladimir Putin in Seoul.
"The parties intend to invest in companies and projects that facilitate trade and encourage investment cooperation between the two countries," the RDIF said in a press release emailed to Yonhap. "The platform will focus on cross-border investments that fulfill Russian-Korean strategic interests."
The RDIF is a $10 billion fund established in 2011 by the Russian government to make equity investments primarily in Russia.
In each investment it makes, the RDIF is mandated to secure co-investment that matches its commitment, thus acting as a catalyst for direct investment into the Russian economy.
A KIC official told Yonhap that the platform will be used to make investments not just in Russia but also in other countries. Neither the RDIF nor the KIC mentioned which areas the investment will be focused on.
The RDIF expected that the deal is expected to help boost investment flows between Russian and South Korea by acting as a "catalyst."
"Since 2009, direct investment from the Republic of Korea to the Russian Federation has declined by roughly six fold," said Kirill Dmitriev, the chief executive officer of the RDIF.
"I am confident that the creation of the Russian-Korean investment platform will help to reserve this trend and act as a catalyst for strong growth in investment flows between our two countries and strengthen economic cooperation," he added.