Nov 22 Japanese and Russian state-backed lenders
will create a fund to jointly invest in Moscow's "priority
development projects", as the two countries look to promote
business and diplomatic ties, the Nikkei reported.
The Japan Bank for International Cooperation and the Russian
Direct Investment Fund will form an about 100 billion yen ($901
million) fund, and each will contribute roughly half of the
total amount to launch the development projects in 2017, the
The fund will invest in projects in fields of medicine,
urban development and involve upgrades to manufacturing
facilities, the Japanese daily reported.
JBIC will form a venture with Russia's Far East Investment
and Export Agency and the Far East and Baikal Region Development
Fund to encourage investment in a special economic zone, the
JBIC will also extend a new line of credit worth around 30
billion yen to Russia's largest bank, Sberbank,
subject to Western sanctions, the Nikkei reported.
Progress on the economic side hinges on making headway on
disputed islands off Hokkaido, Reuters reported earlier this
"The territorial issue and economic cooperation are two
sides of a coin," a Japanese government official had told
Reuters. "It's meaningless if only economic cooperation moves
($1 = 111 yen)
(Reporting by Divya Grover in Bengaluru; Editing by Maju