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President of Russia Vladimir Putin: Mr Dmitriev, let's talk about the fund’s performance this year.

CEO of the Russian Direct Investment Fund Kirill Dmitriev: Thank you, Mr President.

I am very grateful to you for supporting the RDIF. I would like to report on our work in 2018 regarding national projects and interaction with Chinese investors.

For several years now, the RDIF and our partners have accounted for 90 percent of Russia’s direct investment market and about 60 percent of the venture capital market. This year, we have invested 350 billion rubles, of which 30 billion are RDIF-owned funds, and 320 are funds contributed by our partners, which translates into a good 1:10 mobilisation ratio.

This money went to 25 highly promising projects in Russia, including, for example, Rostec City, the largest technology park, which will allow us to implement a project worth $1.3 billion with $300 million invested by us and our partners. Thus, a major technology park will be created in Russia. This includes an investment in Transneft Telecom, where our Russian-Japanese fund will invest in a broadband cable between Japan and Russia; we will use 16,000 kilometres of existing Transneft broadband cable and create a bridge between Japan and Europe through Russia, a digital bridge of sorts.

Just yesterday, our partners and us approved investment in the pharmaceutical cluster being created together with Sistema which is an association of Obolensky and Binnopharm. The holding company will be a top-ten Russian pharmaceutical manufacturer. We believe in import substitution and our ability to support the holding company on Arab markets.

With regard to our portfolio companies’ profit, it grew by 17 percent last year, which is a very good number, with earnings up 12 percent. Other good news is that the Russian and Chinese parts of the first Russian-Chinese bridge have been connected, and we invite you to the opening ceremony for this bridge next year, if you have time for that. The bridge will cut the distance for cargo shipments from Russia to China by 700 kilometres.

The Mother and Child medical group opened seven new clinics. Vladivostok Airport recorded a 45 percent increase in passenger traffic. This is a very important example of Singaporean investment, and during your visit to Singapore they allocated another billion dollars of investment with us following the success of Vladivostok Airport.

As for national projects, we are actively involved. You have described our role as an investment filter on many infrastructure projects. We have analysed over 200 projects and have identified opportunities to reduce budget funding to 30 percent and replace it with private money, investments from our partners. And as I reported to you, we consider it possible to attract 7 trillion from our co-investors and partners per 3 trillion in government funds.

In conclusion, a few words about China. We understand that this is a very important area. In addition to the Russia-China Investment Fund (RCIF), which you supported and which has already made 30 Russian-Chinese investments, we have begun our first Russia-China Venture Fund (RCVF). As you know, according to our deal with Alibaba, it is committed to localized production and software in Russia and will use all data in Russia. We are also carrying out many other technological projects with our Chinese partners.

We have established the Russia-China RMB Fund. Our partners very much value this cooperation between Russia and China. Thus, Saudi Arabia allocated another $500 million for the creation of an additional fund with Russia, China and Saudi Arabia. This is why we are actively working with co-investors from both China and the Middle East.

Vladimir Putin: I hope that next year you will not reduce your activity and will work with the same results. Indeed, our – your sovereign fund is performing a very important function in attracting investment. On the whole, you are meeting all the objectives that you were given. I would like to thank you for the good job.

Kirill Dmitriev: Thank you, Mr President.

Our partners (20 major sovereign funds) asked us, if there was an opportunity, to congratulate you on the New Year, wish you all the best in the New Year and thank you for supporting their investments in the outgoing year and in previous years.

Vladimir Putin: This is also how it will be in the future.

Kirill Dmitriev: Thank you very much.

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