Turkey's Renaissance Holding commits investments to Russia

Reuters, 30.11.2014

Dec 1 (Reuters) - Turkey's Renaissance Holding and Russia's state-backed private equity fund have agreed to jointly invest $400 million in Russia, in sectors such as healthcare and commercial real estate.

"We intend to target projects such as the construction of healthcare centres, transport and commercial real estate projects including the development of new shopping centres," said Kirill Dmitriev, Chief Executive of the Russian Direct Investment Fund (RDIF). He told Reuters on Friday the venture would be split 50-50 between the two partners.

RDIF, a subsidiary of state-owned Vnesheconombank, plans to use a public private partnership model, he said on Monday.

Russia's economy has suffered because of a sharp fall in the price of oil, which accounts for around two-thirds of Russia's exports, and economic sanctions targeting the Russian energy, banking and defence sectors.

Russia is Turkey's biggest energy supplier, and Ankara is Moscow's second biggest trade partner after Germany. Turkish companies have enjoyed a rise in orders from Russia after limits to trade with the United States and EU were introduced.

Dmitriev runs the $10 billion RDIF, created in 2010 to co-invest alongside foreigners to give them greater comfort in Russia's uncertain business environment, often criticised for corruption.

Renaissance Holding has more than 37,000 employees bringing in more and than $3 billion turnover annually. (Reporting by Dasha Afanasieva and Asli Kandemir, editing by Louise Heavens)