Russian State Duma Council for Investments approves RDIF-led initiatives to bolster infrastructure project financing
Moscow, November 21, 2013 - Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF) took part in a meeting of the Council for Investments under the Chairman of the State Duma of the Russian Federation at 12:00 on November 21 in Moscow at the State Duma building. The event was chaired by the speaker of the Russian State Duma, Sergey Naryshkin and focused on the securitization of financial assets and development of public and private partnerships in the Russian Federation.
During the meeting members of the Council emphasized the contribution of the Working Group for project financing - which headed by RDIF – towards implementation of the proposals for legislative support of project financing and drafting the law “on the securitization of financial assets”. In particular, the document includes provisions on establishing insolvency business units, opening nominee accounts and escrow accounts, the pledging of future revenues from infrastructure projects and subordinating the claims of obligation owners.
Kirill Dmitriev, CEO of RDIF, said:
“We are pleased that much of our extensive work on formulating this legislation by the Council for Investments under the Chairman of the State Duma is reflected in the current version of the draft law. Although these amendments were approved at today’s meeting and sent to the Russian Government members, the Council are unanimous in agreement that the work on amendments to the existing concession law must go on to successfully develop infrastructure in Russia.”
The proposed amendments include:
- Extension of the “life cycle contract” to all other concessions, not just to road infrastructure;
- Optional typical concession agreement (in order to take in the specific requirements of different projects)
- Providing a plot of land to a concessionaire within the single tendering procedure framework while drawing up the concession agreement.
The Council also noted the importance of adopting the draft law on public-private partnerships to expand the number of ways infrastructure projects can be implemented.
* * *
Russian Direct Investment Fund (RDIF) was established in June 2011 to make equity investments primarily in the Russian Federation. RDIF’s management company is a 100% subsidiary of Vnesheconombank. In each investment it makes, RDIF is mandated to secure co-investment that as a minimum matches its commitment, thus acting as a catalyst for direct investment into the Russian economy. Additional information is available at www.rdif.ru.
For more information please contact:
Russian Direct Investment Fund
Media Relations Department
Phone: +7 495 644 34 14, ext. 2302
Mobile phone: +7 903 018 71 40