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Tokyo leans on state lender to fund Russia cooperation

Megabanks wary of contravening US sanctions

TOKYO -- A state-owned Japanese bank has emerged at the forefront of the effort to fund economic cooperation between Japan and Russia, potentially exposing taxpayers to the risk of losses as sanction-wary megabanks show caution.

The Japan Bank for International Cooperation on Friday announced eight agreements with Russia's public and private sectors. One standout was a plan to set up a joint investment fund worth 100 billion yen ($847.8 million) with the state-run Russian Direct Investment Fund. This joint vehicle will furnish Japanese and Russian enterprises with capital in situations too risky for private lenders.

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