Turkey, Russia agree to establish joint investment fund

ANKARA (AA) - Turkey and Russia on Friday signed a memorandum of understanding to establish a joint investment fund in a bid to strengthen bilateral ties and investment flow.

The agreement was signed during Turkish President Recep Tayyip Erdogan’s official visit to Moscow, according to a written statement from Turkey Wealth Fund, TVF.

Each country is to invest up to $500 million in the Turkey-Russia Joint Fund, the statement said.

Mehmet Bostan, TVF chairman and CEO, said the joint fund was one of TVF's first international initiatives, and "hopefully the beginning of a long-lasting cooperation" between the two establishments.

“We believe that the Turkey-Russia Investment Fund will accelerate the development of economic relations between two countries.

“Turkey Wealth Fund and the Russian Direct Investment Fund will pursue profitable investment opportunities both in Turkey and Russia in an effort to contribute to economic growth and prosperity," Bostan said.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said the agreement would give impetus to the development of Russia-Turkey relations.

“RDIF has been in close contact with the Turkey Wealth Fund since its foundation. The common approach in investment processes will further promote economic cooperation," he said, adding RDIF and TWF were already in talks on a number of potential joint investment projects.

The Russian Direct Investment Fund is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors.

Turkey Wealth Fund (TWF) is the Sovereign Wealth Fund of Turkey and it was established in 2016. TWF’s mission is to develop Turkey’s strategic assets, to grow their value and thereby to provide funding for Turkey’s priority investments.