VLADIVOSTOK, Russia, Sept 7 A joint
Russian-Chinese fund will invest over $200 million in a Russian
forestry company under a preliminary deal announced on Friday on
the fringes of a summit held to promote economic cooperation in
the Asia-Pacific region.
The Russia-China Investment Fund would become a shareholder
in Russia Forest Products, Russia's second-largest forestry
products firm, in a deal that would enable the business to
produce higher-value processed products.
The deal was announced by the Russian Direct Investment Fund
(RDIF), which was set up last year with $10 billion from the
state to co-invest in private-equity style deals with foreign
Russian Forest Product holds annual allowable rights to fell
more than 4.5 million cubic metres of timber and has long-term
leases on 6.4 million hectares of forest. It accounts for around
10 percent of Russia's timber exports to China, the RDIF said.
(Reporting by Douglas Busvine; editing by Vladimir Soldatkin)