Japan, Russia to create ¥100 billion fund to boost economic ties in Far East region Investment
IIKSS - Japan and Russia have decided to create a ¥100 billion ($880 million) fund with the aim of promoting economic cooperation, sources close to the matter said Sunday.
The planned fund will be set up probably next year, with the Japan Bank for International Cooperation and the Russian Direct Investment Fund splitting the capital, the sources said.
In boosting economic ties with Russia, Japan aims to make progress in the decades-old territorial disputes over Russian-held, Japanese-claimed islands off Hokkaido.
The fund will be aimed at providing aid for Japanese companies to make inroads into Russia by investing in such fields as urban development and cutting-edge medicine mainly in the country’s Far East region, according to the sources.
Tokyo and Moscow are expected to reach an agreement over the launch of the fund during Russian President Vladimir Putin’s trip to Japan on Dec. 15 and 16, they added.
Japan and Russia have proceeded with the eight-point plan that Prime Minister Shinzo Abe proposed to Putin in May by working out details of some 30 priority projects involving private companies.
As major Japanese commercial banks remain cautious about investment for these projects, the two countries will support Japanese firms by utilizing the fund.
In the field of medicine, opening outpatient rehabilitation centers and establishing hospitals providing state-of-the-art medical care including cancer treatment are among the items subject to the investment, the sources said.
From Japan, the National Center for Geriatrics and Gerontology and the National Center for Child Health and Development are expected to take part in the projects.
Regarding urban development, such projects as addressing traffic jams, modernizing postal deliveries and waste processing systems will be conducted in the southern city of Voronezh and the Russian Far East port city of Vladivostok.
To attract more Japanese firms, the JBIC also plans to tap into a scheme which was agreed on with local organizations in September to bring more investment into special economic zone in the Far East region.
Source: Japan Times