China and Kazakhstan on Dec 14 signed an agreement on the establishment of a production capacity cooperation fund of $2 billion.

The framework agreement was signed between China’s Silk Road Fund and KAZNEX INVEST JSC, a major development institution in Kazakhstan, according to a statement.

The Silk Road Fund was set up in December 2014 to finance the China-proposed Belt and Road initiative, which encompasses the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

The China-Kazakhstan fund is the first special fund since the Silk Road Fund’s establishment.

The fund will support production capacity cooperation between China and Kazakhstan and investment, the statement said.

“The Silk Road Fund will actively contact financial institutions and companies in Kazakhstan wanting to initiate cooperation,” it said.