Qatar SWF commits US$2 billion to co-investment in Russia

26 May 2014   Category: News, Global, Middle East   By Daniel Shane

Qatar Investment Authority (QIA), the resource-rich Gulf state’s sovereign wealth fund (SWF) with an estimated US$170 billion in AUM, has committed to $2 billion worth of investments in Russia alongside a state-backed private equity firm in the country, which stretches over a vast expanse of eastern Europe and northern Asia.

Following a meeting between Russian President Vladimir Putin and overseas investors, Russian Direct Investment Fund (RDIF) Chief Executive Officer Kirill Dmitriev announced the deal with QIA, along with two other new partnerships with foreign countries, Reuters reported.

"We are announcing three new partnerships, including one with the sovereign fund of Qatar which is allocating... $2 billion to invest jointly with the RDIF, and also two other new partnerships," Mr. Dmitriev said.

"We are pleased that we are actively working with investors from around the world, but we are also particularly focused on investors from Asia, the Middle East, as 90% of all our funds involve these investors," he added.

Mr. Dmitriev did not specify how the QIA investment would be allocated, but RDIF has previously partnered with foreign investors for infrastructure projects including energy installations and telecommunications networks.

In 2013, it partnered with two other Gulf SWFs, the Kuwait Investment Authority and the UAE’s Mubadala Development, alongside Deutsche Bank, to invest more than 7.67 billion roubles (US$225 million) into telecommunications firm Rostelecom.

Founded in 2011, the RDIF is a $10 billion private equity fund which partners with foreign investors in order to encourage co-investment into the Russian economy.