Russia-Japan Investment Fund announces first transactions

Press release, 06.12.2017

Moscow, 06 December 2017 – The Russia-Japan Investment Fund (RJIF, launched by the Russian Direct Investment Fund (RDIF), and Japan Bank for International Cooperation (JBIC), and advised by RDIF and JBIC IG Partners, a subsidiary of JBIC) announces its first investment deals. Investments are made in the field of energy infrastructure and industrial production. The total amount of co-investment by RJIF and RDIF in these transactions is over RUB 10bn.

RJIF invested in the Russian pipeline operator, Transneft, the infrastructure through which up to 85% of the oil produced in Russia, and 26% of oil products, are transported. Previously RDIF, its leading Middle Eastern partners, and the Russia-China Investment Fund (established by RDIF and the China Investment Corporation) became the company's shareholders. Transneft adopts pipeline related equipment and technology from Japanese enterprises and the procurement of crude oil from Russia through the pipeline operated by Transneft is important for Japan.

Together with RDIF and leading funds of the Middle East, RJIF participated in the IPO of the EN+ Group, a global vertically integrated aluminum and power producer, in November 2017. The group exports a considerable amount of metal to Japan.

RJIF is currently in the process of closing a deal to invest in a leading Russian high-tech pharmaceutical company, producer and distributor of pharmaceuticals. Investments are carried out jointly with a leading Japanese corporation. The transaction is expected to close by the end of 2017.