A Memorandum of Understanding (MoU) has signed between the $10 billion Russian sovereign wealth fund, RDIF and SBI to set up a $2 billion investment consortium to promote direct mutual investments between two nations.
The signed pact contains 10 deals, including defence, signed as part of Russian President Vladimir Putin’s official visit to India at the 13th annual India-Russia summit.
“RDIF and State Bank of India would each invest up to USD 1 billion in the proposed co-investment consortium,” RDIF Chief Executive Officer Kirill Dmitriev told reporters.
Expressing bilateral satisfaction over the consortium, Indian Prime Minister Manmohan Singh and Putin both has made confidence in key rise in bilateral trade by approving joined efforts to achieve the target of $20 billion by 2015.
The consortium will open doors in India and Russia, teaming up RDIF and SBI for long term investments for high return projects in interesting sectors.
“Our bilateral trade has grown by over 30 per cent this year. There is still untapped potential in areas such as pharmaceuticals, fertilisers, mining, steel, information technology, civil aviation, telecommunications, infrastructure, food processing, innovation and services, which we will work to exploit,” Mr. Singh said in a statement.
