Russian Direct Investment Fund, Changi Airports International and Basic Element consortium acquires Vladivostok International Airport
Press release, 25.11.2016
Moscow, 25 November 2016 - The consortium comprising the Russian Direct Investment Fund (RDIF), Singapore’s Changi Airports International (CAI) and Russia’s Basic Element, has signed the agreement to acquire shares in Vladivostok International Airport in Russia’s Far East from Sheremetyevo International Airport.
Upon regulatory and corporate approvals, the consortium will own 100% of JSC Terminal Vladivostok which owns and operates the airport terminal building, and 52.16% of JSC International Airport Vladivostok which holds the airport license. RDIF, CAI and Basic Element, each hold an equal interest of 33.3%.
Kirill Dmitriev, CEO of the RDIF, said, “We have been working diligently and have finalised all the conditions for the prompt closing of the transaction and the development of the airport of Vladivostok as a key transportation hub in the region. The consortium has already started work to expand the airport’s international route network and attract new airlines from China. We see opportunities for further effective work in unlocking the potential of one of the leading airports in the Far East of Russia.”
Oleg Deripaska, Chairman of Supervisory Board Basic Element, said, “We are happy to cooperate with the Russian Direct Investment Fund and Changi Airports International on the development of one of the key airports in Russia and a strategic hub linking Russia and Asia. Thanks to Changi, our long-time partners, Basic Element has done a lot for the development of the airports in Krasnodar region. Our successful experience will also expand to Vladivostok airport. Together with our partners in the consortium, we will create a high-tech aviation facility that delivers safety and comfort to its passengers and adheres to the highest quality standards in aircraft handling which eventually will unlock Far East’s rich economic potential.”
Lim Liang Song, CEO of CAI, said, “Vladivostok is the largest economy in the Russian Far East, and is strategically placed to be the gateway between Russia and the Asia-Pacific. Together with our partners, RDIF and Basic Element, we will develop Vladivostok International Airport as one of the best air hubs in the region with strong air connectivity and top-class service – two of our priority areas. We will showcase the uniqueness and vibrancy of Vladivostok and Russian Far East to the rest of the world through the airport, and open up this region to the vast opportunities in international trade and tourism.”
Vladivostok International Airport is strategically located at the crossing of air routes between Russia’s Far East and the Asia-Pacific. With its geographical advantage and the Open Skies policy introduced in 2011, the airport will be positioned as a major air hub for domestic and international traffic.
The consortium will focus on expanding the airport’s route network, increasing flight frequencies, and improving its service offerings through quality training to meet the demands of business and leisure travelers.
Mikhail Vasilenko, CEO of Sheremetyevo International Airport, said, “Vladivostok International Airport has shown a high standard of work during the 2012 APEC Summit and other high-profile events in the Far East of Russia. The airport continues to increase its annual passenger traffic and route network, and improve its quality of service. I am confident that the new owners of the airport will further stimulate its development, in the interest of the Far East and the Russian aviation industry.”
Vladivostok International Airport currently has the capacity to handle 3.5 million passenger per annum and to receive all aircraft types.
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About Russian Direct Investment Fund
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
About Basic Element
Basic Element is one of Russia's largest and most dynamic diversified business groups. Basic Element's companies are controlled by or are within the scope of Oleg Deripaska's business interests. Through its affiliates, Basic Element owns significant stakes or manages dozens of companies operating in several market sectors, including energy, manufacturing, financial services, construction, airport management, agriculture and others. The Group consists of over 100 companies that between them employ more than 200,000 people across Russia, the CIS, Africa, Australia, Asia, Europe and Latin America. Many of Basic Element's companies play key roles in their respective market segments in Russia and internationally, including En+ Group, GAZ Group, Basel Aero, Glavstroy Development and others. Further information is available at www.basel.ru
About Changi Airports International
Changi Airports International (CAI) is a leading consultant, manager and investor in the global aviation market. As a strategic partner, CAI designs integrated solutions that enable its clients and partners to fulfil their potential of being world-class airports.
CAI has extensive global experience that spans over 20 countries in four continents, and more than 50 airports, including Singapore Changi Airport. Some of its projects include Tom Jobim International Airport in Brazil, the very first aerotropolis in India and four airports in the Krasnodar region in Russia.
CAI is committed to being a valued partner in the global aviation market, creating airports of the future and delivering sustainable value to our partners and investee airports. CAI is a wholly owned subsidiary of Changi Airport Group. For more details, visit www.cai.sg.
Russian Direct Investment Fund
Maria Medvedeva (Ms)
+7 495 644 34 14, ext. 2141
+7 964 726 17 73 (Mobile)
Changi Airports International
Teo Lay Cheng (Ms)
+65 6541 1989
Irina Pashinkina (Ms)
+7 495 720 5025