Arab sheikhs show interest in Russian roads

United Arab Emirates (UAE) plan to invest 5 milliard dollars in construction ofRussian Federation. Projects will include new roads, airports and technological advanced telecommunication. Gulf petrodollars are in search for stabile economic and political system, and Russian infrastructure requests reliably investors.

Loan for those important transactions goes via Kirill Dmitriev, former banker in Goldman Sachs. Agreement is made on meeting in Kremlin between crown prince Abu Dhabi Mohammed Zayed Al Nahyan and president of Russia Vladimir Putin.

“We have very good chances and good growth in trend. Big possibilities are opened in the area of investment cooperation. I am satisfied with the agreement on cooperation with Russian Direct Investment Fund, and eventual investments in the amount of up to 5 million dollars in joined business. I hope that this job will continue development in successful way, and we will of course support it in every way”, said Putin.

Prince, the vice president of general of armed forces of UAE, said that he had a trust in Russian market, so it was the reason why they choseRussia. He expressed his hope that joined projects will be done successfully and become bigger.

Financial department of UAE will invest in joined projects with Russian Direct Investment Fund (RDIF). The amount of possible Russian participation is not stated. A few months ago RDIF successfully signed the agreement on creation of investment funds with governments Abu Dhabi Mubadala Development Company. According to the terms of agreement, each side will invest 1 milliard dollars  in joined project, and Fund will invest in projects of RDIF. Traffic and other infrastructure has always been weak spot of Russian economy. For World championship in football in year 2018Russiawill have to build7.700 kmof roads and2000 kmof railway tracks. It will, according to the words of experts , cost 35 milliard dollars. This problem prevents modernization ofRussiaand attracting of foreign investments in industrial projects, so that the initiative of UAR can not be underestimated.

Experts are very positive about this, because it is  more just agreement on unclear intents, so it is expected that investment agreement will be finished in one month. First subject for investment can be Central Ring Road, Project of reconstruction of federal highway M11. as well as projects in area of telecommunication and electricity infrastructure.