RDIF and Mubadala Investment Company Announce Six New Cooperation Agreements

Press release, 15.10.2019

Abu Dhabi, October 15, 2019 - The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, and Mubadala Investment Company (Mubadala), the UAE’s sovereign wealth fund, have announced a series of six cooperation agreements as part of their successful long-term investment partnership that began in 2013.

The announcements have been made on the occasion of the official visit of Russian President Vladimir Putin to the United Arab Emirates.

More than 45 investments have been jointly made by RDIF and Mubadala with an aggregate value in excess of $2 bn. The six new cooperation agreements announced today cover a wide range of sectors that are central to the Russian economy. They include advanced technologies, Artificial Intelligence (AI), healthcare, transport and logistics. 

Kirill Dmitriev, CEO of the Russian Direct Investment (RDIF), said:

“We are grateful to our partners at Mubadala for the strong interest they have shown in our country for many years. We are confident that together we will continue to make successful investments both for implementing Russia’s national projects and reaching technology development targets, particularly in AI. The investments we make are aimed at advancing all the key areas of the economy, as well as enhancing living standards in Russia. RDIF is dedicated to bringing these six cooperation agreements to fruition, by raising capital and through engaging the expertise of international partners such as Mubadala.”

Khaldoon Khalifa Al Mubarak, Mubadala Group CEO and Managing Director commented:

“We are proud of the dynamic partnership we have developed over the years with RDIF. The six collaboration agreements announced today demonstrate the strength of the multidimensional relationship that continues to flourish between RDIF and Mubadala as a symbol of the much deeper bond between our two nations. We remain committed to supporting these new initiatives and to maintaining our productive partnership with RDIF in the long term.”

In summary, the six cooperation agreements are: 

MOU 1 – Artificial Intelligence and National Projects

RDIF and Mubadala have agreed to explore Russia’s national projects and Artificial Intelligence (AI) projects. The parties will jointly implement investment projects in key areas of Russia’s five-year strategic development plans. 

MOU 2 – Healthcare cooperation 

RDIF and Mubadala will cooperate to enhance the healthcare infrastructure in Russia. The collaboration will include an exchange of expertise, and give patients from the Russian Federation the opportunity seek treatment and medical care by advanced clinics in the UAE.  

MOU 3 – Industry – The construction of an advanced new pulp mill in Vologda 

RDIF and Mubadala will jointly consider an investment into a new pulp mill construction project with Sveza, one of Russia’s leading woodworking companies. The total project size is expected to be up to $2.8 bn and will have a design capacity output of over 1.3 mn tons of wood pulp per annum, focusing on Russian and key European and Asian markets. 

MOU 4 – Transport – Expansion of rolling stock fleet for Russian railways

RDIF and Mubadala are considering a joint investment into NefteTransService (NTS), one of Russia’s largest operators of railway rolling stock. The agreement forms part of a consortium, led by RDIF, that is looking to invest $300 mn into the expansion of NTS’ fleet of rolling stock, strengthening its position in the railway logistics market. 

MOU 5 – Advanced Technologies – Facial Recognition

RDIF and Mubadala have agreed a partnership with the leading Russian facial recognition technologies developer, NtechLab, a world leader in facial recognition systems based on artificial intelligence (AI) and neural networks. RDIF and Mubadala will support the expansion of NtechLab’s business in the Middle East.

MOU 6 – Logistics - the PLT logistics platform

RDIF and Mubadala have agreed to expand their investment in the Professional Logistics Technologies (PLT) platform to build new logistics facilities. The parties will invest in the construction of a new class A multi-temperature distribution centre and related infrastructure in the Moscow region with gross leasable area of over 100,000 square metres. 

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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

Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for its shareholder, the Government of Abu Dhabi. Mubadala’s $229 bn portfolio spans five continents with interests in multiple sectors including aerospace, ICT, semiconductors, metals and mining, renewable energy, oil and gas, petrochemicals, utilities, healthcare, real estate, pharmaceuticals and medical technology, agribusiness and a global portfolio of financial holdings across all asset classes. Mubadala has offices in Rio de Janeiro, Moscow, New York and San Francisco, with a joint venture in Hong Kong. Mubadala is a trusted partner, an engaged shareholder and a responsible global company that is committed to world-class standards of governance. 

For additional information contact:

Arseniy Palagin                                       Maria Shiryaevskaya / Andrew Leach
Russian Direct Investment Fund               Hudson Sandler
Press Secretary                                        Tel: +44 (0) 20 7796 4133 
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru