Russia-China JV Fund to Give $200 Mln Boost to Russia Forest Products

Against the backdrop of a summit held to promote Asia-Pacific-region economic cooperation, a new joint venture Russian-Chinese fund has been started to fund over USD 200 mln towards a Russian forestry company. The investment fund will subsequently be among the stakeholders in Russia Forest Products, the country’s second largest company in this segment. Russia Forest Products holds, under a long-term lease agreement, over 6.4 mln hectares of forest area, and also has rights to 4.5 cubic meters of timber per year. The Chinese export portion accounts for approximately 10 per cent of the annual timber yield. The new investment will enable the company to offer high-value forestry products in addition to its current portfolio.