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Unprecedented project: Belarus, China set up investment fund
MINSK, 19 July (BelTA) – Belarus and China set up an investment fund. A memorandum of cooperation on the establishment of the fund was signed by the Belarusian Finance Ministry and the Chinese company Citic Construction Co., Ltd after the meeting of Belarus’ Prime Minister Andrei Kobyakov and President of Citic Group Wang Jiong on 19 July, BelTA has learned.
“This will be an unprecedented project to set up the first interstate investment fund in Belarus. It fully complies with the agreements between our heads of state reached in May 2015 on the development of investment cooperation with a focus on direct investments. The establishment of the fund is one of the crucial steps in starting a new era in the development of the Belarusian-Chinese strategic partnership,” Andrei Kobyakov noted.
In his words, at the initial stage the capital of the fund will make up $50 million. “This is a small fund; in the future it will depend on the eagerness of companies to implement joint projects on the territory of Belarus,” the prime minister explained.
It is supposed that a working group will be created by 1 August. By 1 September it will prepare a framework agreement to specify the mechanism of establishment, principles of work and management of the fund. The Belarusian head of government said that at the initial stage the fund will co-finance Belarusian-Chinese investment projects which are implemented in Belarus with the assistance of Chinese banks providing loans and purchasing shares of Belarusian companies. “In the future the fund is expected to begin looking for independent projects and to finance them in full,” Andrei Kobyakov said.
He emphasized that it is a pleasure to work with the company which has an impeccable reputation in Belarus and all over the world. “I am glad to say that the relations with Citic are increasingly vibrant. We appreciate the fact that your company is currently implementing two high-profile projects in belarus – to build a car factory Geely and modernize Orsha Linen Mill. The total cost of the projects is about $350 million,” Andrei Kobyakov said.
Wang Jiong thanked Andrei Kobyakov for the warm welcome and expressed hope for further cooperation.
Andrei Kobyakov and Wang Jiong were also present at the ceremony of signing of a memorandum of cooperation in agricultural machine-building between OAO Amkodor and Citic Construction Co., Ltd, a memorandum of cooperation between ZAO Absolutbank and Citic Construction Co., Ltd, a memorandum on the establishment of a joint agricultural holding company between OAO Amkodor and Citic Group.
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