RDIF Plans Further Investment in the Far East
Press release, 25.04.2014
Khabarovsk, April 25, 2014 – Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), presented RDIF’s achievements to the end of 2013 and plans to attract further investment to the Russian Far East at a government commission meeting in Khabarovsk, chaired by the Russian Prime Minister, Dmitry Medvedev.
The meeting set out plans for large-scale investment projects in the Far East. Kirill Dmitriev also reported RDIF’s over 22.4 billion roubles of investment for the end of 2013 in similar projects in the Far East. Over 16.3 billion roubles of these funds came from RDIF’s international co-investors.
The Fund’s investment priorities fall in the following sectors: infrastructure and transport logistics; extraction and processing of high added-value natural resources; energy efficiency; mineral fertilizers and petrochemicals. This year, RDIF and leading international investors in the Far East have allocated over 40 billion roubles for high-potential projects in these sectors.
The Russia-China Investment Fund (RCIF), a JV of RDIF and the China Investment Corporation (CIC), will invest in constructing the first bridge to connect Russia and China across the Amur River. RDIF and its international partners are also negotiating investment in the development of three of the largest mineral projects in the Russian Far East: the Udokan and Baim copper deposits, and the Natalkino gold field.
RDIF is currently at the final stage of negotiations with Rostelecom over a joint project to improve digital services and infrastructure in small and mid-sized Russian towns and villages. The project is partially financed by the Russian National Wealth Fund and will be first implemented in the Far East of Russia.
Kirill Dmitriev, CEO of RDIF, said:
“We are seeing significant interest in these investment projects in the Russian Far East, particularly from our Asia-Pacific partners. RDIF’s investment platforms with China Investment Corporation, Japan Bank for International Cooperation and Korea Investment Corporation are considering a number of promising projects in various industries, and we hope to announce further details on several of these shortly.”
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RDIF is already involved in several projects in the region including: RFP Group, the Far East’s largest timber company; ALROSA, the Russian diamond mining company; and Tigers Realm Coal, which owns deposits of coking coal in Chukotka.
The Russia-China Investment Fund (RCIF), created by RDIF and the CIC, has a capital of $2 billion, and currently operates through offices in Moscow and Beijing. The partners have a pipeline of other joint projects.
Since its foundation, RDIF has invested $3.8 billion. Over $900 million of this sum has come from RDIF’s own funds, with the other $2.8 billion coming from co-investors. Overall, RDIF has signed 12 investment deals and launched international partnership projects with a total budget of over $10 billion with the sovereign wealth funds of the Middle East, China, Korea, Japan, France and Italy.
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Russian Direct Investment Fund (RDIF) was established in June 2011 to make equity co-investments primarily in Russia alongside reputable international financial and strategic investors. Based in Moscow, RDIF’s management company is a 100% subsidiary of Vnesheconombank. Further information at www.rdif.ru
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