RDIF and State Bank of India agree to invest in joint projects up to 1 billion USD each

Press release, 24.12.2012
New Delhi, 24th  December 2012 – Russian Government promoted sovereign wealth fund the Russian Direct Investment Fund (RDIF) and State Bank of India (SBI) have created a new co-investment consortium in order to expand bilateral economic cooperation. A memorandum of understanding was signed today as part of Russian President Vladimir Putin’s official visit to India. The document was signed by RDIF CEO Kirill Dmitriev and SBI Chairman Mr Pratip Chaudhuri in the presence of the leaders of both countries – Russian President Vladimir Putin and Prime Minister of India Manmohan Singh. 
Following the agreement, RDIF and SBI will team up to develop infrastructure to facilitate access to long-term capital in Russia and India, and to actively promote mutual investments between the two countries.
The MoU notes that each of the parties may invest up to 1 billion USD each or facilitate investment in projects and companies with a Russia-India angle, as well as initiatives associated with privatization, globalization or mutual trade.  The document also reflects the main principles of selecting investment targets and managing investments by the parties, with the emphasis being promotion of trade and economic cooperation between Russia and India.    Emphasis will be placed on projects geared towards higher purchasing power of the population, ensuring demand for infrastructure, creation of value addition in the extraction and processing of natural resources, and the development of manufacturing businesses and service sector companies.
Commenting after the signing Russian President Vladimir Putin said: “I believe that the Memorandum signed between RDIF and State Bank of India will provide additional stimulus to build mutually beneficial cooperation, including SME. It is about creating an efficient, real and actionable mechanism for co-financing investment projects of approximately one billion dollars.”
Commenting on the signing of the Memorandum Kirill Dmitriev said: “We are delighted to find a new partner represented by India’s largest state-owned banking institution. At present, BRICS countries show strong investment potential, and the co-investment consortium, given the government support, helps mitigate the risks that might arise from the global economic situation. Our agreement is focused primarily on the most promising and highest-demand sectors. Also, let us not forget that given Russia’s and India’s macroeconomic performance one can expect high investment returns.”
State Bank of India Chairman Mr Pratip Chaudhuri said: “By partnering with a sovereign wealth fund like RDIF, our bank will have access to interesting and very attractive projects from an investment point of view. Both the Russian and Indian economies are in need of substantial investment. Together this partnership between RDIF and SBI is expected to make a major contribution towards enhancing the economic cooperation between the two countries. In our view, a partnership of developing economies can really result in a win-win situation for both the countries.  
The Russian Direct Investment Fund (RDIF), established in June 2011, is to be capitalized with $10 billion in Russian government funds to make equity investments that generate strong returns. In each investment it makes, RDIF is mandated to secure co-investment that as a minimum matches its commitment, thus acting as a catalyst for direct investment into the Russian economy. RDIF’s Management Company is a 100% subsidiary of Vnesheconombank (VEB). Additional information is available at www.rdif.ru
SBI is India’s largest commercial bank by assets, profits, deposits, branches and employees with market capitalization of more than USD 30 billion.  SBI is widely perceived as a proxy to the Indian Economy.    The Bank has more than 170 branches overseas across all time zones, in addition to nearly 19,000 branches of the Group in India.   As one of the leading project finance providers in India and, with more than 200 years experience in the Indian market, SBI brings unparalleled knowledge of the local market and relationships to the joint venture.  Further details on SBI can be found on the Bank’s website, www.statebankofindia.com. 
Contacts for additional information:
For the RDIF:
Maria Medvedeva
+7 964 7261773