Russian Economy Minister Alexei Ulyukaev said on Sunday President Vladimir Putin and his Turkish counterpart Recep Tayyip Erdoğan had agreed to form a joint investment fund between their two countries.

The two leaders met on the sidelines of the G20 summit in the eastern Chinese city of Hangzhou on Saturday.

"We are concluding work on the formation of a Russian-Turkish investment fund," Ulyukaev said. "At the end of August, Turkey made the necessary legislative changes to create a corresponding partner to our direct investment fund - the Turkish sovereign wealth fund."

"I think by some time in October or November we will have a list of projects and allocate a credit line to begin work."

Putin and Erdoğan have been working to restore ties between the two former regional allies following the downing of a Russian plane on the Syrian border by Turkish forces last year over violation of airspace.

Turkey announced plans for a sovereign wealth fund last month, intended to boost annual growth over the next decade.