RDIF announces joint investment with Fortum in Russia’s renewables sector

Press release, 31.12.2020

Moscow, December 31, 2020 - The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, announces investment in Russia’s renewable energy sector as part of its joint venture with Fortum, a leading Nordic power company and a pioneer in solar and wind generation.

RDIF and Fortum have established a joint venture aimed at investment in Russia’s renewable energy sector and announce the acquisition of wind farms in the Ulyanovsk and Rostov regions with a total capacity of over 350 MW. The wind farms were constructed in full compliance with localization requirements. Output of power plants is guaranteed under long-term power supply agreements, providing for stable and attractive return on investments.

Under the agreements reached, international co-investors of RDIF will join the deal soon.

RDIF and Fortum will continue working on other joint projects in wind and solar energy to create one of Russia’s largest players in renewables.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund, said:

“Investment in projects with secure long-term profitability is one of our priorities. Our partnership with Fortum for joint investments in the renewable energy sector is aimed at creating the largest player in the promising sector of the Russian economy and will contribute to the implementation of the “Ecology” national project. The development of renewable energy will ensure energy security in Russia’s regions in compliance with the highest environmental standards”.

Alexander Chuvayev, Executive Vice-President of Fortum, head of “Russia” division, said:

“The deal clearly demonstrates that investments in renewable energy projects are turning from a relatively rare instrument that can only be understood by industry professionals into an attractive mechanism for a sovereign wealth fund. This mechanism, on the one hand, has a secure guaranteed profitability, and, on the other hand, contributes to the development of an innovative and knowledge-based industry. We look forward to expanding our cooperation, as well as a successful and long-term partnership with RDIF”.

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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 80 projects with foreign partners totaling more than RUB1.8 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 rdif.ru

Fortum is a European energy company providing customers with electricity, heating and cooling as well as smart solutions to improve resource efficiency in more than 40 countries. The Company strives to encourage its customers and society to play their role in making the world cleaner. Together with its subsidiary, Uniper, Fortum ranks third company in Europe in energy production with zero CO2 emission. With over 19,000 professionals and combined assets of 69 bn euros Fortum is well placed to play a leading role in European energy transition. Fortum shares are traded at Nasdaq Helsinki, Uniper is traded at Frankfurt Stock Exchange. Further information can be found at www.fortum.com

For additional information contact:

Arseniy Palagin                                       Andrew Leach / Maria Shiryaevskaya
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