The Russian Direct Investment Fund (RDIF) and National Investment and Infrastructure Fund (NIIF), established by the Government of India with the support of RDIF, have agreed to set up a US$1 billion Russia-India Investment Fund.

The partners will work together to identify attractive investment opportunities that promote economic, trade and investment co-operation between the two countries. Under the agreement, RDIF and NIIF will each invest up to US$500 million into the new fund. The signing ceremony took place in October, 15 in the presence of Russian President Vladimir Putin and Indian Prime Minister Narendra Modi.

Russian Direct Investment Fund (RDIF) was established in 2011 to make equity co-investments alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. 

The National Investment and Infrastructure Fund (NIIF) was created by the Government of India to attract equity investments from domestic and international sources into the infrastructure sector in commercially viable projects, both greenfield and brownfield, including stalled projects. It has been registered as a Category II Alternate Investment Fund under Securities and Exchange Board of India regulations with a total corpus of INR400 million, 49% of which will be contributed by Government of India.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:

"The Russia-India Investment Fund will support attractive investment opportunities and growth of Russian business activity in India. Our joint investments will also help Russian businesses to significantly expand their presence in one of the largest markets in the world."