Source: President of Russia – The Kremlin – English
President of Russia Vladimir Putin: Mr Dmitriev, let’s talk about the fund’s performance this year.
CEO of the Russian Direct Investment Fund Kirill Dmitriev: Thank you, Mr President.
I am very grateful to you for supporting the RDIF. I would like to report on our work in 2018 regarding national projects and interaction with Chinese investors.
For several years now, the RDIF and our partners have accounted for 90 percent of Russia’s direct investment market and about 60 percent of the venture capital market. This year, we have invested 350 billion rubles, of which 30 billion are RDIF-owned funds, and 320 are funds contributed by our partners, which translates into a good 1:10 mobilisation ratio.
This money went to 25 highly promising projects in Russia, including, for example, Rostec City, the largest technology park, which will allow us to implement a project worth $1.3 billion with $300 million invested by us and our partners. Thus, a major technology park will be created in Russia. This includes an investment in Transneft Telecom, where our Russian-Japanese fund will invest in a broadband cable between Japan and Russia; we will use 16,000 kilometres of existing Transneft broadband cable and create a bridge between Japan and Europe through Russia, a digital bridge of sorts.
Just yesterday, our partners and us approved investment in the pharmaceutical cluster being created together with Sistema which is an association of Obolensky and Binnopharm. The holding company will be a top-ten Russian pharmaceutical manufacturer. We believe in import substitution and our ability to support the holding company on Arab markets.
With regard to our portfolio companies’ profit, it grew by 17 percent last year, which is a very good number, with earnings up 12 percent. Other good news is that the Russian and Chinese parts of the first Russian-Chinese bridge have been connected, and we invite you to the opening ceremony for this bridge next year, if you have time for that. The bridge will cut the distance for cargo shipments from Russia to China by 700 kilometres.
To be continued.