Russia-Japan Investment Fund – a joint initiative by the Japan Bank for International Corporation (JBIC) and Russian Direct Investment Fund (RDIF) – has teamed up with AEON Infrastructure Corporation to set up a $789-million chemical cluster, RDIF said in a statement.
The project involves setting up of a methanol plant with 1 million tonne capacity slated for completion by late 2022.
“Its products will be highly competitive in the global market due to minimal production costs. We look forward to furthering collaboration with Japanese companies on new projects in Russia,” said RDIF chief executive Kirill Dmitriev in a statement.
AEON’s subsidiary GTM ONE has also signed an off-take contract through the chemical plant for Japan’s Marubeni Corporation. The engineering works will also be carried out through an agreement between GTM ONE and Mitsubishi Heavy Industries Engineering.
Through RJIF, both Russia and Japan have agreed to commit $500 million each to seek attractive investment projects to bolster trade, economic and investment cooperation.
The fund targets investments in healthcare, smart cities, energy, and technology. It also aims to develop industrial and export capacities in the Russian Far East region.
The Russian Far East has huge deposits of untapped petroleum, coal, and other mineral resources, which could support economic development and can be complementary for other economic sectors.
RDIF, which was established in 2011, has teamed up with several foreign investors and international financial institutions, including from China, India, Thailand, Saudi Arabia, and South Korea.
The fund is created for co-investments primarily in Russia.