The Russia-China Investment Fund (RCIF) has announced plans to invest in JSC Detsky Mir, the biggest player in children's merchandise in Russia.
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The two sides have agreed in principle on a deal that would see investment in new shops and logistics centers, said the RCIF in a press release on Tuesday.
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Sistema JSFC, currently the sole owner of Destky Mir, said separately that the deal would involve a minority stake, and that the parties expect to sign binding agreements by the end of the year.
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"Our investment will improve efficiency and support Russia's growing demographic providing access to high-quality children's goods at affordable prices. The investment will contribute further to the development of the production, logistics and transport sectors in Russia and China," said Kirill Dmitriev, co-CEO of the RCIF.
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The RCIF is a private equity fund created by the Russian Direct Investment Fund and China Investment Corporation.
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It will finance income-generating projects in key sectors of the economies and will announce a number of new investments in the near future, said the press release.
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China has become the fourth-largest source of investment for Russia.Â