Mubadala to contribute $1bn in new Russian investment fund

The strategic investment company owned by the Government of Abu Dhabi said it would invest in half of the $2bn venture with the Russian Direct Investment Fund.

ABU DHABI // Mubadala Development is to contribute half of a new $2 billion investment fund in Russia.

The strategic investment company owned by the Government of Abu Dhabi said it would invest US$1bn in the venture with the Russian Direct Investment Fund (RDIF).

The deal was announced at the St Petersburg International Economic Forum by the chief executive of RDIF, Kirill Dmitriev, and the chief executive of Mubadala, Khaldoon Al Mubarak.

"The fund will predominantly focus on long-term investment opportunities across a range of industry sectors, acting as a catalyst for direct investment in Russia," Mubadala said in a statement today.

Mubadala controls an investment portfolio valued at more than US$55 billion and aims to deliver sustainable profits and social returns to Abu Dhabi and the UAE.

The company has increased its footprint in emerging markets in recent years and last year took a US$2bn stake in Brazil's EBX Group conglomerate.