Minister: Authorized capital of joint Armenian-Russian investment fund will be USD 100 mln

ArmInfo. The authorized capital of the joint Armenian-Russian investment fund will be USD 100 mln, Armenian Minister of Economic Development and Investments said on March 16, when replying to ArmInfo's question.

He said that the Russian side has given its preliminary consent for providing USD 50 mln to the authorized capital. Armenia will have a similar share. But the minister stressed that the amount of the authorized capital will depend on the investment programs and may be increased.  

Karayan recalled that on March 14 the Russian Direct Investment Fund and the SME Investments UCO (Armenia) signed in Moscow an agreement on establishment of the Armenian-Russian investment fund aimed at creating a joint investment platform. However, before creation of the fund, the Russian side may open funding for a number of projects in Armenia. To remind, the signing of the document was preceded by an agreement reached between Suren Karayan and Russian Minister of Industry and Trade Denis Manturov. 

"Armenia is an important trade and economic partner of Russia, particularly, within the EEU. The fund will facilitate implementation of various joint projects in such priority sectors as agriculture, industry, transport and logistic infrastructures," said Kirill Dmitriev, Chief Executive Officer of the Russian Direct Investment Fund.

For his part, SME Investments CEO Arthur Badalyan said, "I am sure our joint investments will contribute to the economic integration of Armenia and Russia, as well as to the increase of commodity turnover and strengthening of the good neighborly relations".

The sides worked out attractive programs aimed at promoting trade, economic and investment cooperation and Armenia's EEU integration.  The relevant agreement was signed by Armenian President Serzh Sargsyan during his visit to Russia.    

The National Statistical Service of Armenia says that in 2016 the Armenian-Russian foreign trade turnover increased by 15.1% to $1.3 bln. Exports rose by 51.5% to $371 mln, and imports - by 5.7% to $996 mln.

According to ArmInfo's Ranking of Credit Companies of Armenia, SME Investments UCO is among the top 10 UCOs in Armenia by its balance sheet indicators. As of 1 Jan 2017, the company's lending totaled 8.02 bln AMD ($16.6 mln), assets - 12.4 bln AMD ($25.6 mln), net profit - 283.7 mln AMD ($586.2 thsd).  SME Investments UCO has been operating in Armenian market since August 2009. Its sole shareholder is the Small and Medium Entrepreneurship Development National Center.