New DP World joint venture to invest $2b in Russia
DP World and the Russian Direct Investment Fund will potentially invest $2b in ports through a new joint venture
Dubai: DP World, one of the world’s largest port operators, signed a deal on Thursday to invest $2 billion (Dh7.34 billion) in upgrading Russian port facilities with the state-owned Russian Direct Investment Fund (RDIF).
The investment will be made through DP World Russia, a joint venture between the two entities with DP World holding an 80 per cent stake, according to an emailed statement. The RDIF will hold the remaining 20 per cent.
DP World Russia “is expected to potentially invest over time a total of $2 billion” in Russian marine, dry ports and logistics infrastructure, the statement. It will also give DP World, owned by the Dubai government, its first foothold into the Russian market.
“Russia has always been an attractive origin and destination market for us with huge long term growth prospects,” DP World Chairman Sultan Ahmad Bin Sulayem said in the statement.
The statement did not say which Russian ports the joint venture will invest in or whether it included DP World taking over the operations at Russian ports. In other markets DP World has signed long-term contracts to operate ports in Australia, Asia, Europe and elsewhere.
However, the statement did say the joint venture will introduce “international best practices in operations to improve trade connectivity for the benefit of Russian businesses, consumers and community.”
RDIFChief Executive Kirill Dmitriev said DP World’s international expertise, ability growth and develop efficient infrastructure makes it the “ideal choice to support the long-term goals for the development of Russia.”
“We are glad to welcome DP World in Russia and look forward to creating an effective partnership which will benefit both Russia and UAE.”
The agreement to form the joint venture was signed on the sidelines of the World Economic Forum in Davos, Switzerland, as per the statement.