RDIF, Korea’s Severance Hospital, Sistema and Medsi Group to launch joint medical project

Press release, 22.06.2018

Moscow, June 22, 2018. – The Russian Direct Investment Fund (RDIF, the sovereign wealth fund of the Russian Federation), the Republic of Korea’s Severance Hospital, Sistema PJSFC and the Medsi Group have agreed to jointly implement an innovative medical project. The agreement was signed in the presence of Vladimir Putin, the President of the Russian Federation, and South Korean President Moon Jae-in during his visit Russia.

The project involves the construction of an innovative multidisciplinary centre in Moscow based on international best practices for diagnosis and treatment. The 130-year experience of Severance Hospital, the largest clinical centre and leading medical operator in the South Korea, will help determine the optimal parameters and functionality of the clinic. The hospital’s technology and expertise have contributed to the development of the Yonsei University Health System, a world-leading comprehensive network of scientific, educational, diagnostic, medical and rehabilitative facilities utilizing the latest national and international developments in health care.

The next stage of the project is the development and expansion of the clinic. Opportunities for construction are being explored, including the site of a future medical hub in the village of Otradnoe near Moscow.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“RDIF pays special attention to attracting investments in key areas such as technological development and quality of life improvement. This project combines the unique experience and advanced technologies of South Korean partners with the capabilities of Russian partners. Not only will it make a significant contribution to the creation of flagship medical institutions, but will also help improve the accessibility of high-quality medical services and development of preventive medicines.”

Byung Seok Lee, General Director of Severance Hospital, said:
“Severance Hospital is one of the most active hospitals for overseas medical exchanges and wants to establish medical cooperation in various fields with Russia. Therefore, I think that the cooperation for the establishment of the Moscow Diagnosis Center will be a good opportunity for Severance Hospital and Russia to cooperate for mutual medical development, and I think it will be an opportunity to practice our mission of Severance Hospital, “Free mankind from disease with God's love.” We look forward to the success of this collaborative project in the future, and look forward to a closer partnership between the Russian Direct Investment fund, Sistema, and Medsi.”

Andrey Dubovskov, President of Sistema, said:
“This agreement once again confirms that Sistema and its subsidiaries are the Russian partners of choice for leading international companies. The signing of this agreement was preceded by several months of active work between Sistema and our Korean partners. We see excellent opportunities for creating and increasing shareholder value in our healthcare business, including through cooperation with leading international medical institutions.”

Medsi Chairman of the Board Artem Sirazutdinov, said:
“Medsi Group's top priorities include the comprehensive furtherance of the development of modern medical technologies, the introduction of advanced medical practices and the expansion of long-term cooperation in order to improve the quality of medical diagnostics. The Group employs global best practices on the basis of its centres of excellence at Medsi clinical and diagnostic centres, clinics and hospitals. The strategic partnership with Severance Hospital will open up new opportunities for us to strengthen our competences in various fields of high-tech medicine, including high-precision diagnostics in oncology, cardiology and traumatology. We are confident that this joint project will be successfully implemented.”

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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. The fund 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

Severance Hospital was founded in 1885 and is Korea’s first westernized hospital. With the cooperation of the Korean government, two Americans, businessman and philanthropist Louis H. Severance and medical missionary Dr. Horace N. Allen launched what is now Korea’s most globally advanced hospital. Severance Hospital has received accreditation from the Joint Commission International (JCI) for the first time in Korea, and has been acknowledged for employing state-of-the-art medical technology, including robotic surgery, to provide the highest standard of medical care to its patients. Since its first introduction in 2005, Severance Hospital performed over 20,000 robotic surgeries using da Vinci robotic surgical system as of June 2018, which is the largest number as a single institution in the world. Severance aims to provide the patients with the best and the most effective medical treatments within its 5 hospitals, 36 specialized centers and 2 specialized clinics. An estimated floating population of 40,000 visits Severance Hospital every day. The specialized care and the constant monitoring and support of the International Health Care Center staff ensure that more than 65,000 foreign patients visiting Severance Hospital each year have the best possible environment in which to get the treatment they need. Website: http://www.yuhs.or.kr/en/

Sistema PJSFC is a publicly-traded diversified Russian holding company serving over 150 million customers in the sectors of telecommunications, high technology, banking, retail, timber processing, agriculture, real estate, tourism and healthcare services. The company was founded in 1993. Its revenue in 2017 reached RUB 704.6bn; its total assets equalled RUB 1.1tn as of 31 December 2017. Sistema's global depositary receipts are listed under the “SSA” ticker on the London Stock Exchange. Sistema’s ordinary shares are listed under the “AFKS” ticker on the Moscow Exchange. Website: www.sistema.com

Medsi Group is Russia’s leading chain of private medical clinics, offering a full range of medical services – from primary care and emergency medical care to high-tech diagnostics, complex surgical interventions and rehabilitation. Medsi's assets include 25 clinics in Moscow and the Moscow region (including 2 children's clinics, 2 hospitals and 3 clinical and diagnostic centres), 12 clinics in Russia’s regions, an ambulance service, a home care service, a medical wellness club and 2 sanatoriums. The total area of Medsi clinics exceeds 233,000 sq m. Medsi's revenue in 2017 amounted to RUB 11.7bn. Roughly 8m people visit Medsi clinics every year. Medsi employs over 2,000 doctors.

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