Russian Sovereign Fund Plans Investments in BRICS Infrastructure

Dow Jones, 15.07.2014

FORTALEZA, BRAZIL--The state-run Russian Direct Investment Fund is planning to join with other sovereign funds to invest in infrastructure projects in the so-called BRICS countries, Chief Executive Kirill Dmitriev said Tuesday.

Brazil, Russia, India, China and South Africa all need investments in their transportation systems, and RDIF and its partners are already looking at projects in those countries, Mr. Dmitriev said.

"We believe that infrastructure is a big area that unites the BRICS nations," he said during an interview at a meeting here of BRICS heads of government. "We want to invest in some of the projects Russian companies might be doing outside of Russia."

Sovereign investment funds from at least two other BRICS countries and three other nations are interested in putting money into a new fund in partnership with RDIF, Mr. Dmitriev said, though he declined to say which ones.

The RDIF was created in 2011, and the Russian government has committed to contributing $10 billion to it. The government has thus far contributed $4 billion and will add $2 billion per year for the next three years, Mr. Dmitriev said.

The RDIF is currently considering investing in a European meat processor to help the company expand in Russia and China, and next week will announce an agreement to help finance a residential real estate development in the Moscow area, together with a "very large Arab investor," Mr. Dmitriev said, while declining to provide more details.

The RDIF has attracted $14 billion in partnerships with other sovereign funds, and together they've already invested $7 billion, with $1.5 billion coming from the Russian fund, he said.