Funds from RDIF, the National Wealth Fund and private investors will be used to finance projects aimed at eliminating digital inequality and introducing “smart grids” across Russia’s regions.
Moscow, 30 December 2014 – The Russian Direct Investment Fund (RDIF) has started financing infrastructure projects with capital provided by the Russian National Wealth Fund (NWF). RDIF was granted NWF funding (4.05 billion roubles in the first tranche) following receipt of necessary approval and demonstration of compliance with regulatory procedures and will use it to finance an initiative to eliminate digital inequality across Russia’s regions in partnership with Rostelecom. Under the initiative, fibre-optic communication lines will be installed to give millions of Russians in small towns high-speed internet access.
RDIF will use additional funding (1.08 billion roubles in the first tranche) from the NWF to implement the second infrastructure project in collaboration with Russian Grids. The construction of “smart grids” will improve the energy efficiency of Russian Grids’ subsidiary and dependent companies. Kaliningrad, Yaroslavl and Tula have been chosen as pilot regions for the project.
RDIF has established special purpose vehicles (SPV) that have been partially funded by international co-investors to carry out the projects. Funding from the NWF is protected in the form of bonds at “the rate of inflation plus one percentage point”.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund, said:
“The provision of the first tranche of more than 5 billion roubles from the Russian National Wealth Fund will enable us, along with leading international co-investors, to further develop these two important infrastructure projects. We continue to work with our partners on other infrastructure projects. The combination of foreign capital, international expertise and funding from the Russian National Wealth Fund will positively impact the infrastructure projects, which will have a knock-on effect for the economy.”
* * *
The project to eliminate digital inequality is being carried out in accordance with a ten-year state contract signed on 13 May 2014 between the Russian Federal Communications Agency and Rostelecom on the provision of universal communication services. Under the contract, Rostelecom will provide data services with a minimum speed of 10 Mbit/s to 13,600 villages with 250 to 500 people. Approximately 200,000 new fibre-optic communication lines will be set up.
The smart grids project is designed to create an electricity metering system with remote data collection by installing “smart” meters and other necessary equipment for electricity consumers. The system will provide electricity market participants with reliable, immediate information on electricity output and electricity consumption by automating the process of electric metering and identifying sources of excessive electricity losses.
Russian Direct Investment Fund (RDIF) was established in June 2011 to make equity co-investments primarily in Russia alongside reputable international financial and strategic investors. Based in Moscow, RDIF’s management company is a 100% subsidiary of Vnesheconombank. Further information at www.rdif.ru
Director, Media Relations Department
Russian Direct Investment Fund
Tel: +7 495 644 34 14, ext. 2141
Mobile: +7 964 726 17 73
Andrew Hayes/ Elena Garside
Tel: +44 (0) 20 7796 4133