Mubadala, RDIF to invest in $2.8bn pulp mill project in Russia's Vologda
Emirati-Russian collaboration to focus on advanced technologies, artificial intelligence, healthcare, transport, and logistics
As part of Russian President Vladimir Putin’s visit to the UAE, both Russia and the UAE’s sovereign wealth funds including, Russian Direct Investment Fund (RDIF), and Mubadala Investment Company (Mubadala), inked six memorandum of understandings (MoUs), with one of them aimed at the construction of an advanced new pulp mill in Vologda — with an investment of $2.8bn (AED10.3bn) in partnership with Sveza, a Russian woodworking firm.
In a statement on its website RDIF said that the facility will have a design capacity output of more than 1.2 million tonnes of wood pulp each year.
According to RDIF other MoUs were inked in the fields including advanced technologies, artificial intelligence (AI), healthcare, transport, and logistics.
The sovereign wealth funds will also invest in the construction of a multi-temperature distribution centre and related infrastructure in Moscow, with gross leasable area of more than 100,000m2.
Speaking about the agreements, group chief executive officer and managing director of Mubadala, Khaldoon Khalifa Al Mubarak, said: “The six collaboration agreements announced today demonstrate the strength of the multidimensional relationship that continues to flourish between RDIF and Mubadala as a symbol of the much deeper bond between our two nations.”
Meanwhile, CEO of RDIF, Kirill Dmitriev, said: “We are confident that together we will continue to make successful investments both for implementing Russia’s national projects and reaching technology development targets, particularly in AI.”