MOSCOW: March 24, 2016. The Russian Direct Investment Fund (RDIF) and GCC sovereign funds are behind two new logistics projects in Moscow.
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.
Putin and RDIF CEO Kirill Dmitriev recently met with with Abu Dhabi Crown Prince Mohammed Nahyan in Moscow to discuss the projects.
The new facilities will be located in the Dmitrov and Chekhov districts of Moscow close to the major highways A107, M11 (a new motorway connecting Moscow and St. Petersburg) and M2 (connecting Moscow with the South of Russia).
RDIF and its co-investors will partner with DG19, a leading developer, to manage the new sites on behalf of Russian and foreign companies' requirements for high quality logistics infrastructure.
Dmitriev commented: "We see the significant potential for investment and scale in logistics projects throughout the country. Companies operating in Russia require strategically located logistics complexes with efficient management and infrastructure in order to optimize their supply chains. This leads to a significant reduction in operating costs and boosts their competitiveness."
In January this year DP World and RDIF 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.