RDIF and Veolia create a partnership and announce first potential investment in Rosvodokanal Group

Press release, 24.05.2018

Saint-Petersburg, May 24, 2018 – The Russian Direct Investment Fund (RDIF, the sovereign wealth fund of the Russian Federation) and Veolia, France’s largest water, waste and energy management solutions company, have agreed to jointly identify and cooperate on investment projects in Russia. The partnership is considering an investment in the Rosvodokanal Group as its first joint transaction with intentions to create best-in-class nationwide utility leader in Russia and other CIS states and to provide exceptional value to customers on a basis of international best practice. Corresponding agreements were signed today at the Saint Petersburg International Economic Forum.

The parties intend to further strengthen the position of Rosvodokanal Group by investing in existing assets of the company in the cities of Barnaul, Krasnodar, Omsk, Orenburg, Voronezh, and Tyumen where it serves more than 5 million people, or 24% of Russian private utilities market, as well as to grow its business in water and waste water sector through concessions and further acquisitions. Veolia will contribute its state-of-the-art technological expertise and best practice, while RDIF will act as a catalyst for successful synergy.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“We are pleased to invest in the development of Russian infrastructure with one of the world’s leading utilities operators. I am confident that our partnership will support Rosvodokanal’s operations by providing access to Veolia’s unique expertise, and that we will successfully identify a range of attractive communal infrastructure projects in Russia.”

Philippe Guitard, Senior Executive Vice President of Veolia, Member of the Veolia Executive Committee, said:
“Being an undisputable leader in environmental services, Veolia accelerates its development in the Russian utilities market and joins its expertise with Rosvodokanal, Russian leading water and waste water company. This joint action is backed by RDIF as a long-term and reliable partner for infrastructure and utilities development in Russia.”

German Khan, the Chairman of the Board of Directors of Rosvodokanal, said:
“We do believe that partnership with Veolia, leading global water and waste water operator and RDIF, the largest sovereign fund will result in perfect blend of expertise and technological innovations, which will benefit all partners as well as Russian customers. Infrastructure in Russia requires capital investments and professional management. We will provide both.”

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Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Further information can be found at www.rdif.ru

Veolia group is the global leader in optimized resource management. With nearly 169,000 employees worldwide and consolidated revenue of €25.12 billion in 2017, the Group designs and provides water, waste and energy management solutions that contribute to the sustainable development of communities and industries. Through its three complementary business activities, Veolia helps to develop access to resources, to preserve available resources, and to replenish them. www.veolia.com

Rosvodokanal is the largest private operator in water and waste water (W&W) industry in Russian Federation operating 6 municipal water utility enterprises in 6 regions across Russia, having substantial industry and operational know-how and controlling 24% of private W&W market. Further information can be found at www.rosvodokanal.ru

For additional information contact:
Arseniy Palagin
Russian Direct Investment Fund
Press Secretary
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru

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