Moscow has agreed to invest $500 million into the Indian infrastructure space. This deal came along with an equal investment by the newly formed National Infrastructure Investment Fund (NIIF).
NIIF to form a $1 billion 'Russian Indian Investment Fund (RDIF) which will invest $500 million into the joint fund, RDIF chief executive Kirill Dmitriev said.
The RDIF will support the investment opportunities and growth of Russian business activity in India. The money will be invested in infrastructure projects with Russian component, Dmitriev added.
"We will look at energy, petrochemicals, transport infrastructure and different projects where our companies can also have a foot in India," said Dmitriev as reported in PTI.
Dmitriev said the actual money flow from the arrangement will be much higher as Russian businesses tend to invest a lot more when the RDIF signs agreements like these with any other country.
An agreement to start the fund, the first of its kind partnership for the newly-formed NIIF, will be signed before Prime Minister Narendra Modi and President Vladimir Putin on the sidelines of the eighth BRICS Summit.