12 September 2012
Abu Dhabi plans to invest $5bn in Russian infrastructure over seven years to help modernise the country.
The venture is a partnership between Russia’s state-backed private equity fund, the Russian Direct Investment Fund (RDIF), and Abu Dhabi’s finance department.
Chief executive of the RDIF, Kirill Dmitriev, said: "We believe we can deliver attractive returns investing in Russian infrastructure.
Russia has big infrastructure ambitions (Victorgrigas/Wikimedia Commons)
"We see there is a huge (development) pipeline of toll roads, ports and airports. So it means investing in attractive cashflow businesses with significant government support."
Dmitriev expects investments in projects to start next year and that it will take five to seven years for the funds to be invested.
The money will be invested on a deal by deal basis and the RDIF expects other sovereign wealth funds and investors to join the venture at a later date.
In recent months, the RDIF set up a $2bn fund with Abu Dhabi-based Mubadala Development to fund projects in Russia across industry sectors and in June, president Putin unveiled a $13bn plan to build new roads and railways.