RDIF, the Ministry of Transport of the Russian Federation and Avtodor agree to jointly develop transport infrastructure
Moscow, April 1, 2020 - The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, the Ministry of Transport of the Russian Federation and the State Company Russian Highways (Avtodor) have signed an agreement on joint implementation of projects aimed at upgrading and expanding Russia’s core infrastructure.
The collaboration will focus on attracting extrabudgetary funds for the construction of a number of key highways. The projects include the reconstruction and construction of various sections of the federal M-4 Don and M-1 Belarus highways, as well as the development of the Europe – Western China International Transport Corridor.
Under the agreement, in Q3 2020, RDIF, Russia's Ministry of Transport and Avtodor plan to select projects that will be implemented with the assistance of RDIF and its international partners.
Russian and foreign construction companies, including those from Turkey and China, have indicated their readiness to invest in the development of Russia's transport infrastructure. The parties have also discussed plans to involve ANAS, Italy's leading road management company, in the operation of the new roads.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund, said:
“The development of the road network provides a powerful impetus to the growth of the flow of goods, supporting the national economy. One of RDIF’s key priorities is the support for the construction of a developed road network under the Comprehensive Plan for Upgrading and Expanding Core Infrastructure. RDIF has extensive experience in implementing similar projects, including the federal M-4 Don highway and startup facilities No. 3 and No. 4 of the Central Ring Road. Alongside the Ministry of Transport and Avtodor, we plan to look for new investment opportunities in road construction, involve RDIF’s leading partners and use all available mechanisms to increase the investment attractiveness of the Russian transport infrastructure.”
Evgeny Ditrich, Minister of Transport of the Russian Federation, noted that the agreement will help implement the Comprehensive Plan for Upgrading and Expanding Core Infrastructure. “The implementation of the Comprehensive Plan will strengthen the infrastructure base of Russia's economy and significantly increase its territorial cohesion,” he said.
Vyacheslav Petushenko, Chairman of the Board of State Company Russian Highways (Avtodor), noted that the state-owned company is actively working in the investment and credit markets, both domestic and international. “Cooperation with key investors has already enabled us to raise more than RUB200 bn for the road industry. We expect the development of our dialogue with RDIF to help us further intensify the attraction of investments in Russia’s road infrastructure,” he said.
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 80 projects with foreign partners totaling more than RUB1.7 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 has 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
For additional information contact:
Russian Direct Investment Fund
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
Andrew Leach / Maria Shiryaevskaya
Tel: +44 (0) 20 7796 4133