Results of RDIF and international partners’ investment activity in the Far East of Russia

Press release, 01.09.2016

Vladivostok, September 1, 2016 - The Russian Direct Investment Fund (RDIF) summarizes the interim results of itsactivity in the Far East and the Baikal region. Since its establishment, RDIF and its partners have invested and approved investments in the region totaling more than 90 billion rubles. Of this amount, RDIF’s own funds exceeded 30 billion rubles which is higher than the minimum quota of 25 billion rubles originally allocated to RDIF for investments in the Far Eastern projects. The financing from its international partners topped 60 billion rubles.

The Fund’s investments in the region include projects in transport infrastructure, logistics and processing of natural resources with high value-add. RDIF and its partners are considering further investment opportunities in the Far East, including projects in port infrastructure, mining and mineral processing, agriculture and industrial production.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF),said:

“The implementation of projects in the Far East is in line with RDIF’s strategy to contribute to the unlocking of the investment potential of Russian regions. The Far East was among the first regions in Russia where RDIF launched its investment activity. The Fund’s international partners are greatly interested in the region’s wide range of industries – not only extraction and processing of natural resources, but also infrastructure, agriculture, manufacturing and tourism.”

For reference:

The projects being implemented in the region with the participation of RDIF include:

  • The largest Far Eastern timber company RFP Group. The investments by RDIF and its partners have enabled the company to significantly increase the added value of its exports. The deal is the first investment of the Russia-China Investment Fund. Status: deal closed in 2013; the company is implementing a comprehensive investment program.
  • Diamond producer "ALROSA".RDIF invested in the company over several investment rounds and attracted major international investors during the company’s IPO and SPO in 2013 and 2016 respectively. Status: the deals are completed; RDIF became an anchor investor and facilitated the entry of new long-term investors into the company’s share capital. The new investors were some of the world’s largest funds.
  • Tigers Realm Coal,developer of coking coal deposits in Chukotka. The proceeds were used to complete a feasibility study and further develop a number of fields. Status: deal closed in 2014; the company raised additional financing in 2016; the feasibility study has been completed.
  • International Airport of Vladivostok. RDIF, jointly with a leading international airport operator Changi Airports International, and Basic Element Group, are investing in the airport of Vladivostok. The unique international expertise and RDIF’s domestic experience will enable the creation of a key Russian hub within the Asia-Pacific transportation and logistics network. Status: The parties are finalizing the deal’s terms and it is expected to close before the end of 2016.
  • Construction of a railway bridge across the Amur River on the Russian-Chinese border. Construction is being carried out with the participation of the Russia-China Investment Fund and the Far East and Baikal Region Development Fund. The project will create a new export corridor between Russia and China, removing infrastructure constraints for shipments from new deposits that are being developed in Eastern Siberia and the Russian Far East. The bridge will also significantly increase the turnover of goods and the competitiveness of Russian producers in the Far East, reducing the distance to end-consumers by 700 km as compared to other export rail routes. Status: financing lines have been open, project contractor selected, the construction of the Russian part of the bridge is underway.  

RDIF has attracted in aggregate more than $27 billion of long-term foreign capital, creating co-investment platforms with the world’s leading sovereign funds and strategic investors. Among them are the largest Asian and Middle Eastern funds, who have demonstrated a great interest in the Far Eastern projects. RDIF partnerships in the Asia-Pacific region include:

  • Russia-China Investment Fund (jointly with the China Investment Corporation)
  • Russia-Japan Investment Platform (jointly with the Japan Bank for International Cooperation)
  • Russia-Korea Investment Platform (jointly with Korea Investment Corporation)
  • Russia-Vietnam Investment Platform (jointly with the State Capital Investment Corporation)
  • Partnership with CP Group, Thai agribusiness conglomerate
  • Partnership with Changi Airports International, a Singaporean airport operator, as part of the VladivostokAirport acquisition

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The Russian Direct Investment Fund (RDIF) was established in 2011 to make equity investments alongside leading international financial and strategic investors, primarily in Russia. The fund acts as catalyst for direct investment in Russia’s economy. Additional information can be found at: www.rdif.ru

For additional information contact:
Maria Medvedeva
Russian Direct Investment Fund
Director, Media Relations Department
Tel: +7 495 644 34 14, ext. 2141
Mobile: +7 964 726 17 73
E-mail: mm@rdif.ru

Andrew Hayes / Yulianna Vilkos
Hudson Sandler
Tel: +44 (0) 20 7796 4133