RDIF teams with Turkish firm for PPPs

Infrastructure Investor, 30.11.2014

"The Russian Direct Investment Fund has formed an agreement to invest in Russian public-private partnerships with Turkey’s Renaissance Holding.

The $10 billion Moscow-based Russian Direct Investment Fund (RDIF) has agreed to invest jointly in public-private partnerships (PPPs) across Russia’s regions with Turkey’s Renaissance Holding.

Investments will be made in the healthcare and infrastructure sectors as well as in the construction of new shopping centres. The agreement was signed during a state visit to Turkey by Russian President Vladimir Putin.

Kirill Dmitriev, chief executive officer of RDIF, said his firm would “capitalise on Renaissance’s track record of initiating public-private partnership (PPP) models and multi-year concessions in Turkey which we intend to implement in Russia”.

Founded in 1993, Renaissance is a group of companies active in construction, real estate, energy, health and education. With an asset base of $5.4 billion in the second quarter of 2014, Renaissance is the largest foreign construction company in Russia.

RDIF was formed in 2011 to make equity co-investments, mainly in Russia alongside international financial and strategic investors. Based in Moscow, it is a 100 percent subsidiary of state corporation Vnesheconombank.

RDIF has signed a series of strategic initiatives during 2014 including a tie-up with the Macquarie Russia & CIS Infrastructure Fund to develop a smart grid programme alongside JSC Russian Grids; and a partnership with Gazprombank and foreign investors to invest $700 million in a liquefied natural gas (LNG) and light oil products trans-shipment terminal.