Russia-China Investment Fund (RCIF) has completed the acquisition of an approximately 42% stake in RFP Group (Russian forest products group), a leading forestry holding company in Russia’s Far East.
RCIF’s investment in the company will support the construction of the “Center for deep wood processing”, the biggest in the region. The investment by RCIF supports the company’s strategy to further develop high value-added wood processing.
The Russian Direct Investment Fund (RDIF) and Abu-Dhabi’s Department of Finance announce the creation of the partnership to invest in Russian infrastructure projects and develop cross-border investment cooperation.
Under the agreement Abu-Dhabi’s Department of Finance will invest up to $5 billion in the partnership.
Norway’s sovereign wealth fund is now the second-largest investor after the state in VTB, Russia’s state bank, following the privatisation of a 14 per cent government stake this month.
It was the second significant stake in a state bank to be sold as part of plans to privatise Russian banks announced in June 2012. In September, the central bank sold a 7.6 per cent share in Sberbank, Russia’s largest bank, bringing the government ownership to 50 per cent plus one share.
“We like Russia and think it’s the cheapest way to buy into the oil and gas story. It’s cheap in both relative and absolute terms,” says Philip Poole, global head of strategy at HSBC Asset Management.
“The Russian issues are well known and that continues to dampen interest. But if you think the world economy is on the mend, then it is a cheap way to gain exposure to a cyclical market.”
The co-owners of Russian potash miner Uralkali have issued exchangeable unlisted bonds to VTB Capital, a subsidiary of the country's No.2 bank VTB, and to Chengdong Investment Corporation, a subsidiary of China's CIC.
CIC (China Investment Corporation) signed a MOU with RDIF (Russian State Direct Investment Fund) to set up a joint USD2-4bn private equity fund.
Chinese-Russian Private Equity Fund's target size may reach USD4bn, with CIC and RDIF contributing USD1bn each, the rest is supposed to come from other private equity investors.