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. Last Updated: 07/27/2016

Japan Aims For Direct Investment

TOKYO -- Japanese officials will visit Russia this week to discuss the creation of a joint investment company aimed at inducing direct investment into the Russian economy.

A group of Japanese officials from the Foreign Ministry, Trade Ministry, and Finance Ministry were to leave Tokyo on Monday to attend the meeting with Russian officials Tuesday, a Japanese Foreign Ministry official said Friday.

"The purpose of the visit is to exchange views over the idea of the investment company, but no details have yet been decided," the official said.

The meeting follows an agreement last month between President Boris Yeltsin and Japanese Prime Minister Ryutaro Hashimoto to enhance bilateral economic and cultural ties.

A source close to the Japanese government said the capital of the investment firm may total $200 million, with half coming from private institutions. The rest may come equally from the Japanese and Russian governments.

He added, however, that almost nothing has been decided, including whether the firm would seek to raise profits by investing in projects or be created only as part of Japanese government aid to Russia.

A report published Sunday said Japanese officials hope to base the investment firm in Tokyo to settle possible trade and financial disputes stemming from bilateral projects.

From there, the firm can arrange profit shares and settle debts, among other problems should any projects fail, the report said.

The Japanese officials include Koichi Haraguchi, deputy minister for foreign affairs at the Foreign Ministry, Takeshi Isayama, director general of international trade policy bureau at the Trade Ministry and Sakura Shiga, deputy director general of the Finance Ministry's International Finance Bureau, the Foreign Ministry official said.