The Russian Direct Investment Fund (RDIF) and the State Company Russian Highways, Avtodor, have agreed to develop and implement joint transport infrastructure investments in the country.

The two parties plan to co-invest in the projects at early development stages under state control and subsequently attract leading infrastructure investors. The partnership will allow for a significant increase in new road construction in Russia.

According to the agreement, RDIF and its international partners will provide at least 25% of the equity financing for the projects along with the necessary expertise to ensure effective implementation. The partnership will focus on attracting foreign investments into joint projects through various mechanisms, including co-investment of National Wealth Fund (NWF) resources.

RDIF and Avtodor's first project could be the refurbishment of the M-4 Don Highway (1091-1319km) for subsequent operation as a toll road.

Kirill Dmitriev, CEO of the RDIF, said:

"Demand for equity investments into state-sponsored transport projects over the next five years will exceed 200 billion roubles, which requires participation of foreign investors. This partnership will enable us to efficiently implement transport infrastructure projects, while making them considerably more attractive to RDIF's partners. This will subsequently accelerate the rate of road construction in Russia."

Sergei Kelbakh, Chairman of the Management Board of State Company Avtodor, said:

"Our cooperation with RDIF will provide an additional impulse to new investments into the sector and will bring on board a partner that facilitates development of a local market for investment, construction, and operation of a network of high-speed highways, which Avtodor has been developing over the last five years."