FIRST PROJECTS OF THE RUSSIAN-CHINESE JOINT AGRO-INDUSTRIAL FUND TO BE PRESENTED AT THE EASTERN ECONOMIC FORUM
08 June 2016
At the Eastern Economic Forum in September 2016, the Russian-Chinese Fund for Agro-Industrial Development (RCFAD) will present the first projects it is to finance, said Head of the Ministry for the Development of Russian Far East Alexander Galushka in an interview for RIA Novosti.
“The first projects have already been prepared. About three to five of them are quite realistic, readier than others for a final review and disbursement of funds from the Russian-Chinese Fund for Agro-Industrial Development. These are projects in the Amur Region, Jewish Autonomous District and Primorye. It is important that, besides the money, the Chinese partners give Russian producers access to their extensive and very attractive market for agricultural products”, said the Minister.
The Fund is currently reviewing 27 projects in crop farming, animal husbandry and infrastructure, with total investments nearing RUB 200 bn. The first deals will reportedly be closed during the next three months.
Officials from the Ministry for the Development of Russian Far East also mentioned the already reached agreements with Chinese partners on RCFAD: “Late in May, an agreement was signed in Beijing between China’s biggest banks and corporations (in particular, the Agricultural Bank of China, Construction Bank of China, ICBC, Sinolight Corporation) for engagement within the framework of RCFAD projects. It was agreed that Russian agricultural companies would, for the first time, be allocated quotas for grain deliveries to China.”
The Russian-Chinese Fund for Agro-Industrial Development was co-founded by the Far East Development Foundation and MC of Asia-Pacific Food Fund (China), as part of agreements on joint development of crop production in the Far East achieved between the Ministry for the Development of Russian Far East and the State Committee of China for Development and Reforms.
At all stages, 90% of the Fund’s capital will be provided by Chinese investors and 10% by Russian ones.