Russia, Japan to Equally Contribute to $900-Mln Joint Investment Fund

Moscow and Tokyo have agreed to form a joint venture fund with each contributing roughly half of the agreed $902 million, media reported on Tuesday.

TOKYO (Sputnik) — The Japan Bank for International Cooperation (JBIC) and the Russian Direct Investment Fund (RDIF) are going to launch a joint venture fund in 2017, with each party financing 50 percent of the project, Japan's Nikkei newspaper reported.

According to the media outlet, the venture fund will provide investment for the projects in the field of medicine, urban development as well as for the modernization of factories.

JBIC is reportedly planning to form another venture fund with Russia's Far East Investment and Export Agency and the Far East and Baikal Region Development Fund to attract investment to Russian special economic zone. The joint fund is expected to become a mediator between Russian and Japanese businessmen in reducing red tape.

The Japanese lender will sign 10 more memorandums with its Russian partners during Russian President Vladimir Putin's visit to Japan in December, Nikkei added.

On November 20, Putin met with Japanese Prime Minister Shinzo Abe in Lima, Peru, where both politicians confirmed progress on major cooperation issues.