KSA sovereign fund to join RDIF investing in leading Russian railway operator NefteTransService

Press release, 14.10.2019

Riyadh, October 14, 2019 - The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, announces that the Public Investment Fund (PIF), the sovereign wealth fund of the Kingdom of Saudi Arabia, considers to join RDIF together with certain co-investors in the investment in NefteTransService (NTS), one of the largest Russian operators of railway rolling stock.

The corresponding announcement was made today in presence of Russian President Vladimir Putin and King Salman bin Abdulaziz Al Saud of Saudi Arabia.

The investment of up to $300 mn is aimed at expansion of NTS’ fleet of rolling stock and strengthening its position in the railway logistics market.

NTS is ranked among the top-four Russian rail rolling stock operators in terms of cargo volume and car fleet number, has a particularly strong position in the rail tanks segment, being one of the largest operators in terms of transportation of oil products.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
“Our cooperation with the Public Investment Fund in the Russian railway logistics sector is a testament to our close collaboration with PIF and other partners from Saudi Arabia in various sectors. We support the expansion of NefteTransService's business as one of the leading players in the railway logistics market”.

Aleksey Likhtenfeld, Member of the Board of Directors, NefteTransService Management Company, LLC, said:
“We are grateful to our investors and business partners for their trust. Cooperation between RDIF and PIF will contribute to not only the fulfilment of NefteTransService’s production potential, but also to the overall development of Russia’s railway transport as the country's leading infrastructure sector”.

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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. Currently, RDIF has experience of the successful joint implementation of more than 70 projects with foreign partners totaling more than RUB1.5 tn and covering 95% of the regions of the Russian Federation. RDIF portfolio companies employ more than 800,000 people and generate revenues which equate to more than 6% of Russia’s GDP. RDIF established joint strategic partnerships with leading international co-investors from more than 15 countries that total more than $40 bn. Further information can be found at www.rdif.ru

The Public Investment Fund (PIF) is one of the largest and most impactful sovereign wealth funds in the world, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia. PIF is building a world-class, diversified portfolio through investments in attractive, long-term opportunities across sectors and asset classes at both the domestic and international level. Working alongside global strategic partners and renowned investment managers, PIF acts as the Kingdom’s main investment arm to deliver a strategy focused on achieving attractive financial returns and long-term value for the Kingdom of Saudi Arabia, in line with Vision 2030. More information can be found at www.pif.gov.sa.

NefteTransService is one of the leading private operators of rolling stock in Russia. It is ranked among the top-four largest companies in terms of car fleet and volume of traffic. NefteTransService cooperates with leading Russian enterprises of the fuel and energy complex, metals and mining industry. The regional network of the company is represented by 35 branches and offices in Russia and Kazakhstan. The Group also owns production facilities in Saratov, Samara Oblast, Ryazan, and Komsomolsk-on-Amur. The fleet of rolling stock includes 35 locomotives and more than 70 thousand open freight cars and tank-wagons. NefteTransService is 100% owned by Vyacheslav Aminov, Vadim Aminov and Alexey Likhtenfeld.

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 Leach / Maria Shiryaevskaya
Hudson Sandler
Tel: +44 (0) 20 7796 4133