UK Trade & Investment and Russian Direct Investment Fund Host Joint “Invest in Russia” Conference

Press release, 23.04.2012

Investors managing over ?1 trillion in attendance

 

Over 100 senior representatives from London’s leading international private equity funds and UK corporations are meeting today with the Russian Direct Investment Fund (RDIF), Russian corporations and Russian financial market practitioners at London’s Mansion House to discuss private equity and foreign direct investment opportunities into Russia. 

 

The conference, “Invest in Russia” is organised jointly by UK Trade & Investment and the RDIF.  Investors that manage in excess of ?1 trillion are participating in the event.

Today’s conference follows the signing of a memorandum of understanding between UK Trade & Investment and RDIF during the Prime Minister’s visit to Russia last year. Deals worth ?215 million were signed during the visit as well as agreements to co-operate between businesses, academia and governments.

 

The Russian Direct Investment Fund is a $10 billion private equity fund established in 2011 by the Russian government to make investments primarily in the Russian economy. The fund partners with co-investors in every transaction and today’s event is an opportunity for UK-based private equity funds and corporates to hear directly from the Russian companies MICEX-RTS and Enel OGK 5 which the RDIF has already invested in and from international private equity investors which the RDIF has worked with in its first two transactions totalling approximately USD 1 billion.

 

Russia is one of the UK’s fastest-growing major export markets and identified by UK Trade & Investment as one of the UK’s twenty priority high growth and emerging markets. UK goods exports to Russia in 2011 increased by 3 per cent from 2010, and totalled almost ?5billion.

 

The Minister for Trade & Investment, Lord Green, said:

 

"Russia is an important market for the UK and undoubtedly offers significant opportunities for UK businesses.  Last year UK exports grew by almost 40%, which exceeded our performance in other strong markets such as Japan and the UAE.  There are over 600 UK companies already established in Russia and I anticipate this figure will increase as Russia continues to seek expertise to develop its infrastructure and economy.  I warmly welcome today's event as an opportunity for British business to explore the opportunities presented by this fund and encourage more British firms to contact UK Trade & Investment to find out how they might explore opportunities in Russia and elsewhere."

 

 

Kirill Dmitriev, Chief Executive of RDIF added:

Russia is a very attractive investment destination for UK companies mainly because of its superior growth prospects and stable macroeconomic indicators.  This is demonstrated by the increase in foreign direct investment into Russia from USD 43 billion in 2010 to USD 52 billion in 2011.  Over the next few years we have ambitious plans to transform Moscow into a leading financial centre, diversify the economy, modernise the country’s infrastructure, and significantly develop the volume of international financial and strategic direct investments into Russia.  There is also a growing consumer class in Russia who appreciates the strength and appeal of UK brands.  Long-term investment is needed for Russia to continue its development and I am delighted by the strong support from UK Trade & Investment and the positive messages coming from British corporate and financial investors. I look forward to working with UK business to realise their investment goals in Russia.”

In addition to keynote speeches from Lord Green and Kirill Dmitriev, participants are hearing from companies that have received investment from RDIF, international funds co investing with RDIF, and British companies that have successfully invested in Russia. 

The full list of speakers are:

 

Ruben Aganbegyan, Chief Executive of MICEX-RTS

Dmitry Konov, Chief Executive of Sibur

Enrico Viale, Chief Executive of Enel OGK 5

Michael Calvey, Founder and Co Managing Partner of Baring Vostock Capital Partners

Peter Hambro, Executive Chairman of Petropavlovsk

Hans-Joerg Rudloff, Chairman of Barclays Capital

Alexey Mekhonoshin, Senior Vice President at PepsiCo Russia

Sergey Lykov, Deputy Chairman of Vnesheconombank

Natasha Tsukanova, Founder and Managing Director, Xenon Capital Partners

Damien Secen, CEO of Macquarie Renaissance Infrastructure Fund

Alexander Ikonnikov, Chairman of Russian Independent Directors Association

Evgeny Gavrilenkov, Chief Economist at Troika Dialog

Steve Varley, Managing Partner of Ernst & Young UK

Roger Gifford, Alderman of the City of London

 

RDIF’s full senior management team of 5 Directors are also taking part in the conference as is Russia’s ambassador to the UK, Alexander Yakovenko.   

 

Russian Direct Investment Fund (RDIF) was established in June 2011. The RDIF will be capitalized with USD 10 billion in Russian government funds over the next five years and is charged with making equity investments that generate strong returns, primarily in Russia. In each investment it makes, the RDIF is required to secure co-investment that at minimum matches its commitment, thus acting as a catalyst for direct investment into the Russian economy. Additional information is available at www.rdif.ru.

 

UK Trade & Investment (UKTI) is the government department that helps UK-based companies succeed in the global economy. We also help overseas companies bring their high quality investment to the UK’s economy – acknowledged as Europe’s best place from which to succeed in global business. UKTI offers expertise and contacts through its extensive network of specialists in the UK, and in British embassies and other diplomatic offices around the world. We provide companies with the tools they require to be competitive on the world stage. For more information on UKTI, visit www.ukti.gov.uk or telephone +44 (0)207 215 8000. For latest press releases, visit the online newsroom at www.ukti.gov.uk/media.

 

Russia Key facts:

 

·        Russia is the UK’s third-largest export market outside Europe and North America. Bilateral trade with Russia has grown from $8.6bn to over $12bn in the last year.

 

·        Goods exports to Russia increased by 39% from 2010-2011 – the biggest increase in the UK’s top 40 export markets. Russia moved up to 15th position as export market (from 18th), now ahead of Poland, UAE and Japan. UK exports have doubled between 2009 and 2011 from ?2.3bn to ?4.8bn

 

·        The main exports are in manufactured goods. Exports of road vehicles grew by 60% in 2011.  The second largest export is medical and pharmaceutical products and the third is specialised industrial machinery.

 

·        Many of the UK largest FTSE companies have longstanding investments into Russia including BP, Shell, Marks & Spencer, British Airways, Kingfisher, Rolls Royce, WPP, Inchcape, the Big 4 professional service firms, the City of London’s leading law firms, etc. 

 

Media contact

 

For more information from UK Trade & Investment, please contact Benno Hilton at on 020 7215 4218 or e-mail benno.hilton@ukti.gsi.gov.uk

 

For more information from the Russia Direct Investment Fund please contact Quinn Martin on Tel +7 495 797 3790 or email quinn@frontierpr.com.