DAVOS/DUBAI/MOSCOW: January 21, 2016. DP World and the Russian Direct Investment Fund (RDIF) have launched a joint venture to develop Russia’s port, transportation and logistics infrastructure.
Ownership of the new company - called DP World Russia - will be split 80:20 between DP World and RDIF. They have earmarked US$2 billion to upgrade Russian port facilities and improve trade connectivity.
The RDIF is a US$10 billion fund set up in 2011 by Russia's president Vladimir Putin and prime minister Dmitry Medvedev to encourage equity investments in the country's economy. Since then, the RDIF says it has attracted over US$25 billion of foreign capital through long-term strategic partnerships.
DP World chairman Sultan Ahmed Bin Sulayem commented: “Russia has always been an attractive origin and destination market for us with huge long term growth prospects. This joint venture allows DP World and RDIF to build on each other’s strengths in bringing economic prosperity to Russia. It is also another great example of the strategic partnerships with government stakeholders, a model that has proven very successful for us over the years. Ports and logistics infrastructure are long term investments and this is why, when we invest, we prefer an approach that recognizes the benefits of sharing resources for a common purpose.
“RDIF has a proven track record of investing with other global companies and we are pleased to partner with them. This joint-venture will enable us to share with Russia our experience as a global port operator and trade enabler and to further enhance the already established strong relations between our countries,” he noted.
Kirill Dmitriev, CEO of RDIF added: “DP World’s global expertise and its proven and tested ability to drive trade growth and develop efficient infrastructure, make it the ideal choice to support the long-term goals for the development of Russia. We are glad to welcome DP World in Russia and look forward to creating an effective partnership which will benefit both Russia and [the] UAE.”