Russian Direct Investment Fund


The Russian Direct Investment Fund is Russia's sovereign wealth fund established in 2011 by the Russian government to make investments in leading companies of high-growth sectors of the Russian economy. Its mandate is to co-invest alongside the world’s largest institutional investors — direct investment funds, sovereign wealth funds and leading companies.
RDIF therefore acts as a catalyst for direct investment in Russia.
RDIF’s reserved capital under management equals $10 billion. RDIF has invested and committed for this purpose 1.7 trillion rubles, of which RDIF alone invested 170 billion rubles and 1.6 trillion rubles came from co-investors, partners and banks. RDIF also attracted over $40 billion of foreign capital into the Russian economy through long-term strategic partnerships.
CEO of the Russian Direct Investment Fund - Kirill Dmitriev.

History

RDIF was founded in June 2011 under the leadership of both Russian President Dmitry Medvedev and Prime Minister Vladimir Putin.
In the first year of its operation, RDIF acquired shares of Moscow Exchange MICEX-RTS and Enel Russia.
In June 2012, RDIF and China Investment Corporation established the Russian-Chinese Investment Fund.
On 2 June 2016, President of the Russian Federation Vladimir Putin signed Federal Law on the Russian Direct Investment Fund changing the status of RDIF. According to the law, RDIF became the sovereign wealth fund of the Russian Federation.

RDIF Management

RDIF Management structure includes Supervisory board with the government representatives, and International Advisory Board.
The International Advisory Board of RDIF is an advisory body that plays no part in the fund’s operational or strategic activities but it is a platform for informal communication and discussion of current issues. The International Advisory Board consists of heads of the world's leading investment and sovereign wealth funds. The Board meets once a year and its membership changes on a regular basis.

Strategic Partnerships and Investment Platforms

The Russia-China Investment Fund

Together with China Investment Corporation RDIF created a $2 billion Russia-China Investment Fund, 70% of which will be invested in Russia. Up to $2 billion is expected to be raised from international investors.

RDIF and Mubadala co-investment fund

RDIF and Mubadala Development company, the Abu Dhabi-based investment and development company, agreed to launch a $2 billion co-investment fund to pursue opportunities in Russia. The fund will predominantly focus on long-term investment projects across a range of industry sectors. Additionally Mubadala manages $5 billion commitment from Abu Dhabi Department of Finance to invest in Russian infrastructure projects.

The Russia-Saudi Investment Fund

RDIF and Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, have created a partnership to invest in attractive projects in Russia, in areas including infrastructure and agriculture. PIF invested $10bn in the partnership, the Russia-Saudi Investment Fund was established.

The Russia-France Investment Platform

RDIF and Caisse des Dépôts International have launched the Russia-France Investment Platform, which will seek attractive investments across a broad range of sectors and asset classes, including equity and debt securities, infrastructure and real estate in Russia and France with strong focus on opportunities promoting economic co-operation between the two countries.

RDIF and Qatar Holding co-investment fund

RDIF and Qatar Holding, the Qatar sovereign wealth fund, announced the launch of co-investment fund. The fund will predominantly focus on longterm investment opportunities across a range of industry sectors, mainly in Russia.

The Russian-Italian investment platform

RDIF and Fondo Strategico Italiano agreed to establish a €1 billion Russian-Italian investment platform. The two financial institutions will invest in companies and projects promoting the development of foreign trade and increase of FDI between Italy and Russia.

The Russia-Japan Investment Fund

RDIF and Japan Bank for International Cooperation established a Russia-Japan Investment Fund. RJIF will seek and realise attractive investment projects to promote economic, trade and investment cooperation between Japan and Russia. Under the MoU, RDIF and JBIC have agreed that each of them will invest $500 million for the joint investments through RJIF and a joint investment framework.

Collaboration with Kuwait Investment Authority

RDIF launched an automatic co-investment mechanism, with the first $500 million from Kuwait Investment Authority. Later KIA doubled its investment with RDIF to $1 billion. This vehicle allows international investors to automatically participate in every RDIF transaction on a pro-rata basis.

Memorandum of Understanding between RDIF and Mumtalakat

RDIF and Mumtalakat, the investment arm of the Kingdom of Bahrain, signed an MoU to promote investment cooperation between Russia and Bahrain. The partnership promotes the exchange of information and expertise in the sectors and areas of common interest and identification of investment opportunities in Russia and Bahrain.

Collaboration with Rönesans Holding

RDIF and Rönesans Holding, the leading construction, real estate development and investment company, have reached an agreement to expand the scope of their joint investment activities. The parties are focused on attractive investment opportunities within the Russian Federation; and have identified healthcare, construction, infrastructure and commercial real estate as priority sectors.

The Russia-China Venture Fund

RDIF and Chinese company Tus-Holdings agreed to establish a joint Russia-China Venture Fund. The fund will promote the development of trade and economic, investment, scientific and technological cooperation between Russia and China.

RDIF Investments

RDIF investments are focused on 6 areas:

Improving quality of life

RDIF has launched the Centre for Investment Promotion in the Russian regions INVEST IN RUSSIA. Using the best international practices as well as RDIF’s extensive experience of working with international investors, the Center will contribute to the promotion of promising investment projects and the search for foreign investors.

Other RDIF initiatives

RDIF supports the development program for young professionals and leaders in Russia, and acts as a mentor for Leaders of Russia, a competition for next generation of Russian leaders. It also maintains an employment and internship program for the competition’s finalists.
RDIF develops relationships and maintains an intercultural dialogue with partner countries. It has implemented a number of landmark projects jointly with Russia’s leading cultural institutions including the Mariinsky Theatre, the State Hermitage Museum and the State Russian Museum.