RDIF updates on Far East Russia activities

Press release, 15.01.2014

Moscow, January 15, 2014 - The Russian Direct Investment Fund (RDIF) announced its upcoming plans and recent activities in the Russian Far East and Baikal region at the Gaidar Forum in Moscow.

Having begun work identifying priority investment projects which promote development in the regions in January 2013, RDIF has made a range of investments totaling RUB 6.1 billion of its own funds, while securing RUB 16.3 million from co-investment partners.

The list of investment projects in the region that RDIF is involved in includes: RFP Group, the largest Far Eastern timber company; ALROSA, the Russian diamond mining company whose main assets are located in the Far East; and Tigers Realm Coal that owns deposits of coking coal in Chukotka.

A pipeline of other projects, including new ventures as well as additional investments into companies already owned by RDIF have advanced beyond the first stages of its internal assessment procedures.

In 2014 RDIF plans to invest approximately RUB 20 billion - in particular focusing on regional projects, such as the construction of a railway bridge across the Amur river at the section of the Russian-Chinese border, a bridge across the Lena river, a motorway at Vladivostok - Nakhodka - Vostochny Port, and investments to develop international airports in Vladivostok and Khabarovsk.

RDIF have developed a range of investment platforms designed to channel investment into Russia (in particular into the Russian Far East), committing RUB 66 billion of its own funds. Partnerships have been established with leading sovereign wealth funds from the Asia Pacific region, such as the China Investment Corporation, Japan Bank for International Cooperation and Korea Investment Corporation, who have collectively pledged more than RUB 66 billion of long-term foreign capital.

In addition, RDIF has secured RUB 264 billion from international investors by establishing a number of other investment funds and platforms. This includes RUB 165 billion from Department of Finance of Abu Dhabi to invest in the Russian infrastructure sector, part of which may be invested in Far East territory projects.

Kirill Dmitriev, CEO of RDIF, said,

“Despite the slowdown in the global and domestic economy, the Russian Far East and Baikal regions offer significant opportunities for international investors. The advanced state of the economy in the regions means local projects offer highly profitable returns alongside relatively low risk – some of which is borne by the Russian Government. The most promising could be the projects which are structured on the basis of a concession mechanism that allows investors to clearly understand the investment yield.”

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The Russian Direct Investment Fund (RDIF) was established in June 2011 to make equity co-investments primarily in Russia alongside reputable international and strategic investors. Based in Moscow, RDIF’s management company is a 100% subsidiary of Vnesheconombank. Further information at www.rdif.ru

For more information please contact:

Russian Direct Investment Fund
Maria Medvedeva
Director of Media Relations
М: +7 964 726 1773
E: mm@rdif.ru