Alliance with DP World to provide Russia access to technology in addition to investment - Rosatom CEO Likhachev

ST. PETERSBURG. April 2 (Interfax) - The alliance with the United Arab Emirates' DP World should provide Russia access to technology in addition to investment, Rosatom CEO Alexei Likhachev said during an interview with Rossiya 24 TV at the International Transport and Logistics Forum.

"We are establishing a win-win principle by creating this alliance with DP World, namely that they receive the opportunity to participate in developing the NSR [Northern Sea Route], and now the Trans-Arctic Transport Corridor. This is a significant addition to their business. We receive not only investment, but also port technologies and the efficient operation of stevedores, which should allow us to reach a new level," Likhachev said.

RBC, citing documents filed with the Federal Anti-monopoly Service, reported in late March that Rosatom and DP World had agreed to establish a new joint venture, which would include the FESCO Transportation Group. Parties to the deal include Rosatom subsidiary Global Logistics LLC, DP World Russia FZE, and PJSC Far East Shipping Company (FESCO), FESCO's parent company.

A Rosatom representative confirmed to the publication that they had filed a petition with the FAS and agreed on the key parameters of the future agreement. The agreement envisages establishing a joint venture based on Global Logistics, in which the Russian side would hold a 51% stake. Rosatom's contribution will be FESCO - the state corporation owns 92.5% of the shares of the group's parent company, PJSC FESCO - while DP World's contribution will be in cash, the source said, without disclosing the investment amount. The government commission overseeing foreign investment must approve the deal.

Rosatom will offer its entire stake in FESCO as its contribution to the joint venture. "In its entirety," a representative of the state corporation explained to Interfax. The representative also confirmed the shareholding configuration of 51% for Rosatom and 49% for DP World.

"The amount [of DP World's contribution] will correspond to the market value of the FESCO shareholding, as determined by an independent appraiser," the representative added.

Owned by the UAE government, DP World is one of the world's largest port operators that manages over 60 terminals. The company manages major ports, terminals, industrial parks, and logistics and economic hubs with combined throughput capacity of over 90 million twenty-foot equivalent unit (TEU) containers.