Russian Direct Investment Fund, Changi Airports International and Basic Element consortium wins tender to acquire shares in Vladivostok International Airport

Press release, 25.02.2015

Moscow, February 25, 2015 - The consortium comprising the Russian Direct Investment Fund (RDIF), a $10 billion fund established to make equity investments into Russian economy, Changi Airports International (CAI), a wholly-owned subsidiary of the world’s leading airport operator Changi Airport Group, and Basic Element, one of Russia’s diversified industrial groups, has been announced as the winner of the tender to acquire shares in Vladivostok International Airport in Russia’s Far East. Each member will hold an equal share in the consortium.

The consortium's bid was recognised as the best based on the strength of the technical, legal and financial components in the submission. The transaction will be closed after regulatory approvals are received.

Vladivostok International Airport is strategically important for the development of the air transportation system in the region due to its geographical location – the crossing of two air routes between the Russian Far East and the Asia Pacific region.

In 2012, the aerodrome at Vladivostok International Airport underwent large-scale modernisation and a new terminal construction and is since able to receive all types of aircraft. The upgraded infrastructure has also enhanced the travelling experience of passengers.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“The unique global and local experience of our consortium partners, CAI and Basic Element, will be crucial for the further development of Vladivostok International Airport. We are glad that four large investment funds from the Middle East including the leading sovereign wealth funds of the region expressed their intention to join this deal as part of RDIF automatic co-investment mechanism. With an Open Skies policy in place, this airport has the potential to become a key Russian hub within the Asia-Pacific transportation and logistics network. Over 400 million people live within two hours flight of Vladivostok. The transportation hub will promote economic development in the region at every level.”

Gulzhan Moldazhanova, CEO of Basic Element, said:
“We are happy to cooperate with the Russian Direct Investment Fund and Changi Airports International, our long-time partner in airports of the Krasnodar region. Basic Element has done a lot for the development of the airports in Krasnodar region and has successfully provided smooth service to the passengers of the Sochi International Airport, the main port of entry to the Winter Olympic and Paralympic Games. Together with our partners in the consortium, we’ll achieve equally impressive results in Vladivostok International Airport by providing highly efficient and smart management, ensuring security, comfort and high standards of servicing aircraft.”

Lim Liang Song, CEO of CAI, said:
“We look forward to a strong partnership with Basic Element and RDIF to develop Vladivostok International Airport. Vladivostok is the biggest economy in the Far East of Russia and has been identified to be developed as Russia’s strategic gateway to economies in Asia Pacific. We see long-term potential in our investment and will work with all parties to develop the airport into an important aviation hub in the region.”

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About the Russian Direct Investment Fund
Russian Direct Investment Fund (RDIF) was established in June 2011 to make equity co-investments primarily in Russia alongside reputable international financial and strategic investors. Based in Moscow, RDIF’s management company is a 100% subsidiary of Vnesheconombank. Further information is available at www.rdif.ru.

About Basic Element
Basic Element is one of Russia's largest and most dynamic diversified business groups. Basic Element's companies are controlled by or are within the scope of Oleg Deripaska's business interests. Through its affiliates, Basic Element owns significant stakes in and manages dozens of companies operating in several market sectors, including energy, manufacturing, financial services, construction, aviation, agriculture and others. The Group consists of over 100 companies that between them employ more than 200,000 people across Russia, the CIS, Africa, Australia, Asia, Europe and Latin America. Many of Basic Element's companies play key roles in their respective market segments in Russia and internationally, including En+ Group, GAZ Group, Glavmosstroy, Basel Aero and others. Further information is available at www.basel.ru.

About Changi Airports International
CAI is a wholly-owned subsidiary of Changi Airport Group, the operator of award-winning Changi Airport in Singapore, which is the world's sixth busiest airport for international traffic. Leveraging the expertise gained from Changi airport and proven track record in international airport investment and consultancy in more than 40 airports in over 20 countries, CAI develops sustainable practice-based solutions for every project. Attention to details and excellent execution are hallmarks that distinguishes CAI. CAI continually creates sustainable value for its clients, investee airports and stakeholders, making CAI a valued partner in the global aviation market. Some of CAI’s recent projects include Tom Jobim International Airport in Brazil and the first aerotropolis in India. In Russia, CAI formed its first joint venture with Basic Element and Sberbank of Russia to develop the airports in Krasnodar region, including Sochi, Krasnodar, Anapa and Gelendzhik. Vladivostok International Airport would be CAI’s second investment in Russia through its joint venture with Basic Element, its long-time partner and RDIF. Further information is available at www.cai.sg.


For more information, please contact:

Russian Direct Investment Fund
Maria Medvedeva (Ms)
+7 495 644 34 14, ext. 2141 (Phone)
+7 964 726 17 73 (Mobile Phone) 
mm@rdif.ru

Hudson Sandler
Andrew Hayes / Maria Ignatova / Elena Garside
Tel: +44 (0) 20 7796 4133

Basic Element
Irina Pashinkina (Ms)
+7 495 720 5025
Irinavp@basel.ru

Changi Airports International
See Ngee Muoy (Ms)
+65 6541 2964 (Phone)
see.ngeemuoy@cai.sg