China

China Invests in Russia

During a visit by Russian Prime Minster Vladimir Putin to Beijing, the China sovereign-wealth fund agreed to invest one billion dollars in a Kremlin sponsored investment fund. The Russian fund was started by Prime Minster Putin and President Medvedev to increase foreign investment. China’s investment comes as the first foreign investment to the Russian fund that was started in June of this year.

The decision from China to invest in the slow Russian economy is a sign of the increasing diplomatic relations between the two states. The cloud of mistrust that has been shared between the two is slowing fading as the two nations that are both on the UN Security Council, and both have veto power, work to improve relations. At a time when the relations between Russia and China are the best they have ever been this investment is a welcome step. However, there are still several disagreements between the countries such as the gas pipeline proposed to run between the two. Beijing and Moscow see this opportunity to invest in Russia as a chance to foster further international security, economic, and diplomatic cooperation in the future.

Liberal

http://news.xinhuanet.com/english2010/china/2011-10/11/c_131185054.htm

http://www.thenews.com.pk/NewsDetail.aspx?ID=24374&title=China-to-invest-$1bn-in-Russian-fund

October 11, 2011 at 9:12 pm