Brazil, Russia, India, China and South Africa (BRICS) have supported an initiative by the Russian Direct Investment Fund (RDIF) to set up a joint mechanism for equity investments in infrastructure projects in BRICS countries.
RDIF, India's IDFC group, Brazil's BTG Pactual, China's Silk Road Fund, and the Development Bank of Southern Africa signed a framework agreement at the BRICS summit in Ufa. This initiative was also supported by the BRICS Business Council.
Under the agreement, the parties will work together to identify and finance infrastructure projects that will improve trade, economic and investment cooperation between BRICS countries. The initiative was first announced by RDIF at the 2014 BRICS summit in Fortaleza (Brazil).
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
"We are pleased that our international partners are supporting this initiative to establish a joint financing mechanism for infrastructure projects in BRICS countries. Together we will create an effective new tool for financing infrastructure projects in emerging economies. Our combined experience and expertise will ensure that even projects on major scales are viable for investment. We will also attract private investment into these projects, and aim to substantially strengthen investment cooperation among our countries. We also plan to coordinate our efforts under this mechanism with BRICS New Development Bank."
The BRICS members are all developing or newly industrialised countries, but they are distinguished by their large, fast-growing economies and significant influence on regional and global affairs; all five are G-20 members. Since 2010, the BRICS nations have met annually at formal summits. Russia currently holds the chair of the BRICS group.