Korean state fund wants to invest in Russian oil refineries and roads (Korea Investment Corporation became interested in Russian projects)

Korean sovereign wealth fund Korea Investment Corporation (KIC) is considering investing in the construction of a refinery and high-speed rail in Russia. About it, “News” said deputy director of the Fund for Investment Kiihong Dr. Rea.

- We consider the 2-3 project in Russia, which has offered us Russian Direct Investment Fund (RDIF). These include investments in high-speed railway in the south of Russia, as well as the construction of the refinery, - said Mr. Kiihong. - While calculate return on these projects, working on different options.

Discusses options for construction of a refinery in several regions of Russia, says Kiihong. Strange, but, as noted by the source, Russian Direct Investment Fund to fund the Korean did not specify options for the planned refinery locations, though they offered the project. In RFPI “News”, as well as interested investors also did not disclose the details, though, and confirmed that negotiations on a joint investment projects carried out with the Koreans. Presumably in financing the construction of oil refineries in addition to Korean and Russian Direct Investment Fund will participate.

Among the other options considered construction of a refinery in Primorye. According Kiihonga Koreans know about this project and will consider investing in it. As previously reported, “Izvestia”, in September, investors from Japan talked about the intention in the medium term to build near Vladivostok Russia’s first oil refinery with foreign control. Preliminary agreement on the construction of a refinery with authorities in the region have already been achieved. Investment in the project, according to experts, could be $ 3 billion.

Interest from Japan and South Korea in the first place due to the need to diversify energy flows, in particular oil, which today is mainly from the Middle East, experts say. In addition, the Korean media emphasize that the country is now a surplus of oil, so Korean companies are forced to look for new growth drivers in other countries.

- Oil and gas market has always been interesting to foreign investors, but memorandums signed with everyone. However, when it comes to the actual contracts signed by only half of all memoranda, planned for the year - says CEO of the Energy Development Andrew Liszt. - Both Japan and South Korea - the absolute importers of petroleum products. As importing powers are competing for a resource for raw materials. Therefore, they have expressed a strong interest in the project, it can bring one of them a steady supply of petroleum products.

According to the Federal Customs Service, in 2013 the export of Korean exports to Russia amounted to $ 25 billion, for the I half of 2014 it reached $ 18.5 billion (16% more than in January-June of 2013) ……

14 October 2014

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