3 Sep 2019 18:59

RDIF, Mongolia's DBM Asset Management to create a joint fund

ULAANBAATAR. Sept 3 (Interfax) - The Russian Direct Investment Fund (RDIF) has signed an agreement with DBM Asset Management, a subsidiary investment company of the Development Bank of the Republic of Mongolia, to create a joint Russian-Mongolian Investment Cooperation Fund, the RDIF said in a press release.

The agreement was signed during Russian President Vladimir Putin's visit to Ulaanbaatar.

The parties will focus on sourcing and implementing projects in Russia and Mongolia, which will contribute to developing the economic potential in both countries and to improving the business climate.

"RDIF is pleased to announce a partnership with DBM Asset Management, and I look forward to strengthening trade and economic relations between our countries through productive cooperation, jointly investing in projects and helping Russian companies gain access to markets both in Mongolia and more widely across the entire Central Asian region," the press release quoted Kirill Dmitriev, CEO of the RDIF, as saying.

The new fund's aims include boosting investment cooperation between the two neighboring countries, Dmitriev told reporters. "This is literally tens of millions of dollars per year, but we think it could amount to hundreds of millions of dollars per year," he said.

More and more Russian-Mongolian projects in new technologies and transport infrastructure will emerge, he said.

"The joint fund will help Russian companies to cooperate better with Mongolian companies," he said.

Dmitriev sad the fund's first projects would be investment in Mongolian transport infrastructure in conjunction with a number of leading Russian companies.

"The RDIF also plans to bring its major international partners in Asia and the Middle East to finance projects in Mongolia," he said.

Russian President Vladimir Putin said following talks with Mongolian President Ukhnaagiin Khurelsukh that Russia and Mongolia would work together on new projects in infrastructure, mining, energy and agriculture.

"We will jointly implement new projects, including in infrastructure, the mining industry, energy and agriculture. The Intergovernmental Commission on Trade, Economic and Scientific Cooperation is active in this field. These projects will be financed by the Russian-Mongolian Investment Cooperation Fund: the Russian Direct Investment Fund and our Mongolian partners have signed an agreement on establishing it during this visit. Let me note that the Fund's investment will be mostly denominated in the two countries' national currencies," Putin said.