China's mega-farm… for 100,000 cows: World's biggest dairy being built to supply Russian demand after Moscow boycotted EU exports
Farm in Mudanjiang City will have 60,000 more cows than current biggest
Russia wants milk as it's boycotting EU countries' milk and dairy exports
It will be 50 times bigger than the UK's biggest, which has 2,000 cows
100,000-cow-power dairy farm in China to feed Russian market
Updated: 2015-07-09 11:14
China Daily USA
Russian Agriculture is prime investment opportunities for economic, political, and security reasons. This is part of a larger irreversible trend,
By Staff Writer | May 9, 2015
he Russian Direct Investment Fund (RDIF), the Russia-China Investment Fund (RCIF) and the People’s Government of Heilongjiang province, plans to launch a specialist US$2 billion fund targeting investments in agricultural projects in Russia and China, according to issued by RDIF.
The investment fund is part of an agreement between the two countries to increase cooperation in agriculture, including farming, land management, customs procedures, food logistics and sales.
The signing ceremony was held as part of Chinese President Xi Jinping’s visit to Russia.
The countries are also considering creating an experimental agricultural free trade zone between the Heilongjiang province and the Amur Region.
This free trade zone will use the direct exchange rate between the Russian Rouble and China's RMB, and will support the implementation of incentives for Russian and Chinese high-tech agricultural businesses.
"The specialist US$2 billion fund will motivate Sino-Russia cooperation in agriculture, and accelerate forming new competitive advantages," says Kang
Hanqing, director of Heilongjiang Provincial Government Office.
Russia-China Investment Fund (RCIF) is a private equity fund established by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC).
RCIF are most focused on cross-border transactions, as well as investment opportunities across a broad range of sectors to facilitate both countries’ the structural reforms and economic efficiency.
Russian Direct Investment Fund (RDIF) was established in 2011 to make equity co-investments, primarily in Russia alongside reputable international financial and strategic investors.
and it is not just China seeing this opportunity.
Saudi Arabia plans investing up to $ 10 billion in projects in Russia
Saudi Arabia’s Public Investment Fund (PIF) plans investing up to $ 10 billion in infrastructure and agricultural projects in Russia in partnership with the Russian Direct Investment Fund (RDIF), Kirill Dmitriyev, RDIF director told TASS.
“That’s a token transaction, one of the largest transactions in the realm of sovereign funds,” Dmitriyev said. “These monies will be channelled to the farming sector, agriculture, healthcare, logistics, retail trade, and real estate.’
The agreement between the two funds came about as a result of a visit to Russia by the heir to the Saudi Crown Prince Mohammed bin Salman, the Defence Minister of Saudi Arabia, who attended the St Petersburg International Economic Forum in June.
The agreement between Saudi PIF and RDIF signals a reloading of economic relations between Russia and Saudi Arabia, Dmitriyev told TASS.
“The potential of relations between the two countries is huge,” he said.
Saudi Arabia is a traditional partner and ally of the U.S. in the Middle East and the volume of its economic cooperation with Russia was small enough until recently. Also, the Saudi Kingdom is the world’s largest exporter of crude oil and it occupies the leading positions in OPEC.
The governments of countries exporting oil and other natural resources set up sovereign funds to keep up and invest their revenues. RDIP is already cooperating with a number of sovereign funds in the Middle East.
The Saudi government set up RIF in 1971 to invest in strategic projects.
The aforementioned amount of $ 10 billion will be invested over a period of four to five years, and the first seven deals have receive preliminary endorsement, and ten or so investments will be made before the end of this year, Kirill Dmitriyev said. He also admitted a possibility of investing the monies in third countries.
Dmitriyev said other funds were present in a number of endorsed transactions. New development institutes, like China’s Silk Road Fund might also join the projects in which PIF was going to invest.
“RDIP is integrated with leading investment foundations in the world,” he said. “We should do large-scale investment together.”
RDIP has signed an agreement on partnership with the Saudi Arabian General Investment Authority (SAGIA) on bringing the Russian companies to the Saudi market.
“We believe there are unique opportunities in aircraft manufacturing and other sectors there,” Dmitriyev said. “We’ll be supporting our companies with investments as they tread the Saudi market.”.