Last month in Hong Kong, Rostec, a major, government-backed Russian tech corporation, signed a memorandum of understanding about “strategic cooperation” with China CYTS Industrial Development. The partners intend to launch a fund with “an initial $4 billion target” to develop projects related to China’s ‘One Belt One Road’ — an economic development strategy which includes the ‘Silk Road Economic Belt’ and the ’21st Century Maritime Silk Road’ across Eurasia.
Part of the fund’s resources will be used to fuel jointly-approved Russian IT and other high-tech projects.
The fund will be managed by China Baoli Technologies Holdings Ltd. While China CYTS will contribute $500 million to the fund, which will be reserved for cooperation with Rostec, the latter’s role in the fund is not financial. The Russian corporation will “originate project pipeline, provide GR communication and local support in Russia,” its press service told East-West Digital News.
China CYTS Industrial Development is a branch of China CYTS (China Youth Travel). This company is directly owned by the Communist Youth League Central State Holding Co., which owns assets in a variety of sectors, including logistics, education, healthcare, gold trading and internet banking.
In addition, according to the MOU, the Chinese partner will prepare a roadmap to promote Rostec’s business interests on the Chinese market of IT-technologies. Rostec’s subsidiary RT-Business Development, a company engaged in the management of financial-industrial groups and the holding of companies, will in its turn make an effort in promoting a dialogue between China CYTS Industrial Development and the leading Russian financial and industrial groups.
In separate moves earlier this year, Russia’s Sistema and China’s TUS Holdings announced plans to launch $100 million venture fund, while Rusnano and Zhongrong International Trust agreed to launch another fund in the field of nanotechnologies.
Sources: JCN Newswire, Rostec
