Russian Direct Investment Fund initiative for BRICS nations
Q. A joint mechanism was proposed to finance infrastructure projects in BRICS nations. Which of the following are parts of this mechanism??
1) Russian Direct Investment Fund
2) India’s National Investment and Infrastructure Fund
3) China’s Silk Road Fund- Published on 07 Oct 16
a. 1, 3
b. 2, 3
c. 1, 2
d. All of the above
ANSWER: 1, 3
- Brazil, Russia, India, China, and South Africa (BRICS) have backed the initiative of the Russian Direct Investment Fund (RDIF) and agreed to establish a joint mechanism for financing of infrastructure projects.
- The Russian Direct Investment Fund together with sovereign wealth funds from its peers among the BRICS developing nations aims to form a joint fund to invest in infrastructure projects.
- The relevant agreement was signed by RDIF, Indian group IDFC, Brazil's BTG Pactual, Chinese fund Silk Road, and Development Bank of Southern Africa during the BRICS summit in Ufa.
- The parties agreed to jointly look for and fund infrastructure projects that contribute to greater trade, economic and investment cooperation among BRICS states.
- The RDIF originally put forward its proposal to set up the infrastructure projects funding mechanism at the BRICS summit in Brazil in 2014.
- Established in June 2011, the RDIF is in charge of encouraging investment primarily in Russian companies jointly with leading foreign financial and strategic investors.
- RIDF now has become sovereign fund of Russia.