The state-backed Russian Direct Investment Fund (RDIF) will work with an Indian fund to invest $1 billion in Asia’s third-largest economy, the head of the fund said before a bilateral summit expected to yield several big business deals.
The RDIF and India’s National Investment and Infrastructure Fund (NIIF) will each invest up to $500 million in the joint fund, replicating partnerships the Russian entity has with countries like China. “We helped in the process of the NIIF being created,” RDIF CEO Kirill Dmitriev said in an interview with Reuters. “Now we will provide equity capital to joint Russian-Indian projects, mainly in India.” Dmitriev said the actual money flow from the arrangement will be much higher as Russian businesses tend to invest a lot more when the RDIF signs agreements like these with any other country or institution. “There would be more money from Russian banks, Russian companies and other partners of the RDIF,” he explained and pegged the actual investment from Russia, including those by companies, can go up to $8 billion through an arrangement like this.