Russia-Japan fund invests in Transneft - Dmitriev in meeting with Putin

Interfax, 05.12.2017

NOVO-OGAREVO. Dec 5 (Interfax) - The Russia-Japan Investment Fund has invested in Transneft (MOEX: TRNF), the head of the Russian Direct Investment Fund (RDIF) Kirill Dmitriev said in a meeting with President Vladimir Putin.

RDIFco-founded the fund with Japan's JBIC.

"The Russia-Japan fund is now operating intensively thanks to your support and has rapidly conducted three investments, including in Transneft. We believe that this is a very important investment for our Japanese partners and thank you for your support for the Russia-Japan fund," Dmitriev said.

"They are investing in developing the company and believe that Transneft can boosts its capitalization," he said.

Dmitrievdid not specify how much the Russia-Japan Investment Fund has invested, but Deputy Energy Minister Alexei Teksler said earlier that it would total $150 million. Based on the current market quotations for Transneft preferred shares and the ruble/dollar exchange rate, $150 million could buy about 3% of preferred shares in the oil pipeline monopoly.

RDIFwill announce in the near future an investment in Yandex.Taxi, Dmitriev told Putin.

"We will announce in the near future investment in the company Yandex.Taxi," he said.

Dmitrievsaid Yandex.Taxi was of interest even before Yandex (MOEX: YNDX) reached agreement on a business combination with Uber (cleared by the Federal Antimonopoly Service in November) and reiterated its readiness to invest after that deal was announced. The investment would take the form of a small minority stake, he said.

In addition, RDIF will soon announce "investment in a number of our internet platforms with the aim of expanding their operations abroad as well as investment with Alibaba in internet logistics infrastructure in Russia," Dmitriev said.

RDIFhas a joint fund with Chinese CIC,Russia-China Investment Fund (RCIF). One of its portfolio companies is Didi Kuaidi, the biggest online taxi hailing service in China. Interest in joint investment with Alibaba had not previously been announced.

Dmitrievalso said that the RDIF is working extensively to expand investment in the tech sector, creating the organization RDIF Investment to this end. "We have invited leading partners from China, Japan, Singapore, Europe and the UAE who will invest with us in technology projects in the framework of your digital economy initiatives," he said.

Dmitrievsaid that in total, RDIF and its partners have invested over 250 billion rubles in the Russian economy in 11M. "As you know, we are focusing on investment in infrastructure projects with important multiplying effects for different sectors of the economy, in regional projects, which are increasing the profitability of regional budgets, in projects to diversify the Russian economy, including the current focus on technology projects. Indeed, since June this year we have already financed the Kutuzovksy relief road, the third section of the Central Ring Road, Pulkovo Airport and a number of other projects," the RDIF chief said.