RDIF, Turkey’s sovereign fund to launch $1 bln joint fund

Prime, 04.04.2018

ANKARA, Apr 4 (PRIME) -- The Russian Direct Investment Fund (RDIF) and Turkey’s sovereign fund Turkiye Wealth Fund have coordinated cooperation conditions and a plan to launch a joint Russia–Turkey investment fund with each country contributing up to U.S. $500 million, the RDIF said in a statement late on Tuesday.

“We are happy that all agreements with our Turkish counterparts have been finalized, allowing us to move from identifying attractive investment opportunities to executing those investments. Our investment teams have already assessed exciting projects in the field of information technology and healthcare,” the RDIF said quoting its CEO Kirill Dmitriev.

The joint fund will also work on scrapping barriers in mutual trade. Turkey has higher duties for fertilizers imported from Russia than for fertilizers imported from other states, so the fund will also work on lifting this and other trade barriers, Dmitriev added.

The RDIF also signed an agreement with leading Turkish construction company Makyol for joint implementation of infrastructural projects, including construction of highways.

“The agreement with Makyol will attract another significant partner in existing and new infrastructure projects. As part of the partnership, we have an excellent opportunity to bring industry expertise in the construction of regional highways. This will additionally speed up the pace of the revitalization of Russia’s infrastructure and create new world-class facilities,” Dmitriev said as cited by the fund.

The Russian fund plans to sign more agreement with Turkish companies during the St. Petersburg International Economic Forum that will take place in St. Petersburg from May 24 through May 26, Dmitriev said separately.