Russian Direct Investment Fund head Dmitriev proposes setting up fund for Arctic projects
MURMANSK. March 26 (Interfax) - The Russian Direct Investment Fund (RDIF) could create a separate investment fund jointly with development institutions, banks, pension funds and foreign partners to support the implementation of projects in the Arctic, RDIF head and Russian Special Representative for Investment and Economic Cooperation with Foreign Countries Kirill Dmitriev said.
"We see three main elements that are important to the Arctic region's development. These are infrastructure, technologies and financing mechanisms. [...] As regards infrastructure, it's clear that it includes both ports and key logistics hubs. They are in development. Beyond any doubt, infrastructure for deposits is also important. And, in principle, we would propose possibly creating an individual Arctic infrastructural fund or a separate Arctic investment fund to support such projects," Dmitriev said at a joint meeting of the Russian State Council's commissions as part of the Arctic: Territory of Dialogue international forum.
"In our opinion, a large number of them could also be implemented through concession mechanisms, because Russia has practically one of the best concession bases in the world, it has proven its efficiency as regards toll roads, other elements of infrastructure, in the Northern Sea Route concession principle and other infrastructure projects with our investment support. We believe that they can attract significant financing. Certainly, technologies are highly important. And we have a large number of breakthrough technologies including both in geological exploration, advanced processing of raw materials. And it seems to me that this Arctic investment fund could support technologies that are crucial to the region's development," he said.
Both Russian and foreign partners could contribute to this fund, he said.
"Investors will be both RDIF and, I believe, also other development institutions of ours, our banks. It seems to me that here it is possible to create lots of very interesting investment products for our pension funds. We invite leading pension funds to many projects. And their participation certainly allows them to offer our pensioners good investment products, which are safeguarded against inflation, and consequently makes it possible to raise funds for development. But it is also international partners, sovereign wealth funds of different countries, which are highly interested in the development of the Northern Sea Route and the Arctic. And everyone understands that due to global warming, which certainly needs to be addressed but which nonetheless continues, the prospects of the Northern Sea Route are becoming extremely interesting for all global investors," Dmitriev said.
"We believe that it is necessary to start with Russian co-investors. No doubt, Russian co-investors should have control. But our partners, such as sovereign wealth funds and other investors from other countries, may be invited to acquire non-controlling stakes or as debt financing," he said.
Dmitriev also said in his speech that he supports the idea of turning the Arctic development project into an individual national project.