Abu Dhabi sovereign investor Mubadala Investment Company said it acquired a 2.6 per cent stake in En+, a low-carbon aluminium and hydropower producer.
Following the deal, Mubadala's total ownership in En+ stands at 2.86 per cent, the company said in a statement on Wednesday. It did not disclose the value of the deal.
The company is a "market leader in the clean energy and aluminium sectors" and will add value to the Abu Dhabi company's portfolio in Russia, Faris Al Mazrui, head of Mubadala’s Russia & CIS Investment Programme, said.
Mubadala, which has an asset base of Dh894 billion ($243.6bn), has significant stakes in clean energy company Masdar and Emirates Global Aluminium, one of the biggest aluminium producers in the world.
En+, which is listed on the Moscow Stock Exchange with global depository receipts also listed on the London Stock Exchange, has a controlling interest in Rusal, the world's third-biggest aluminium producer behind China's Chinalco and Hongqiao Group.
The shares were sold by Polina Yumasheva, whose stake in the company decreased to 2.58 per cent, from 5.19 per cent previously, the company said in a filing to the LSE.
En+, which declared a net profit of $1.02bn in 2020 on revenue of $10.36bn, said that demand for primary aluminium is estimated to grow by 5 to 6 per cent this year as economic activity gradually resumes.
In the longer term, it expects the acceleration of green technology trends to help drive aluminium demand over the coming years.
"Mubadala, which is committed to investments with positive and lasting impact, provides a further vote of confidence in the group’s ambitious strategy to lead our sector into the low-carbon economy,” Lord Barker of Battle, executive chairman of the En+ Group, said.
Mubadala has a number of investments in Russia and has previously announced a partnership with the Russian Direct Investment Fund to form a $7bn co-investment platform.