The UAE will invest up to $5 billion in Russian infrastructure projects in a deal between the Russian Direct Investment Fund (RDIF) and the Abu Dhabi Department of Finance, marking the highest investment to Russia from the Emirates.
RDIF head Kirill Dmitriev and Mohamed bin Zayed Al Nahyan, the
commander of the UAE’s army, signed a memorandum of cooperation
"We are very pleased with your arrangement with the Russian Direct Investment Fund to invest up to $5 billion in Russian projects," said President Putin.
Moscow and Abu-Dhabi agreed on a joint venture investment
platform to develop Russian roads, ports and bridges.
While RDIF has been cooperating with Arab investors for a long
time, the latest deal marks one the world’s biggest
infrastructure projects, according to Dmitriev, cited by
The investment, which will span the next 7 years, and will put
money into Russian infrastructure on a deal-by-deal basis. It
will include an overhaul of the Trans-Siberian railway, a
fast-speed train line connecting Moscow and Kazan, and
construction on the ring road on Moscow’s city limits.
The deal is expected to be official by the end of 2013.
Along with the memorandum, Putin and Nahyan discussed the
expansion of bilateral trade, economic ties, energy, and
The deal highlights Russia’s drive to attract sovereign wealth
money to fund domestic projects.
Mubadala, a separate Abu Dhabi-based wealth fund, pledged $1
billion for Russian businesses with the RDIF last June.
Russia and Japan launched a joint $1 billion investment vehicle aimed at
boosting development of Russia’s Far East and Siberia, which
offer highly profitable infrastructure opportunities.
In April 2012, Russia and the China Investment Corp created a joint $4 billion investment fund that focuses on agriculture, machinery, and logistics.
The Kuwait Investment Authority invested $500 million in Russia in June 2012.
The $10 billion RDIF was launched two years ago by then President
Dmitry Medvedev at the St. Petersburg Economic Forum to pump
foreign money into Russia’s economy.
Krill Dmitriev a former Goldman Sachs banker,
was selected to spearhead the fund and tap into the deep pockets
of interested foreign parties. Dmitriev is a strong advocate of
infrastructure, which he sees as a key element in bolstering