Novaar Announces Joint Venture With Key Russian Federation Development Initiative
Management SPC (“Novaar”) today announced the creation of a Joint Venture
with JSC Ural Industrial-Ural Polar (“Ural Polar”) an entity owned by state
institutions of the
Investment (“FDI”) in the natural resource-rich Urals region of the country.
Novaar, a Saudi-led investment concern, in cooperation with preferred
strategic partners, will invest through the newly-formed Joint Venture, in
designated infrastructure projects throughout the Urals Federal District.
The Ural Federal District, described by some as “
materials,” represents 92% of all Russian gas production, 66% of all oil
production and 45% of all ferrous and 42% of all non-ferrous metals. However,
most of these assets remain “in the ground” awaiting the development of
specialized regional infrastructure to best allow for the efficient
exploitation, processing and transportation of these precious resources.
To this end, Ural Polar has been tasked to transform the industrial and
economic infrastructure of the Urals region – a part of
11 million people and accounts for 19% of its current industrial output – by
modernizing its economy, increasing its power generation capacity, and
transforming its inter and intra-regional transportation links.
This announcement follows the recent meeting between the Founder of
Novaar, His Royal Highness Prince
and the Presidential Envoy to the Urals Federal District, Mr.
Memorandum of Understanding was signed.
“Novaar is delighted to support the development of the Urals Federal District
by providing investment capital and its team’s expertise to the Ural Polar
mega-project. We look forward to working together with the Ural Polar team to
implement their vision and demonstrate how private capital from the GCC can
work with Russian State organizations to the benefit of all.”
Initially, the Joint Venture will concentrate on developing the
transportation and power generation infrastructure of the region, including
the 354 kilometre Salekhard-Nadym railway line, which should enable the more
efficient conduct of freight movements from
construction of the railways, associated power generation facilities and
electricity transmission will provide further impetus to the development of
the region’s natural resources and energy sectors.
The Presidential Envoy to the Urals Federal District, Mr.
well known to Gulf investors, we believe this partnership reinforces the fact
that there are meaningful investment opportunities available, not only within
the Urals Federal District, but more broadly within the Russian economy at
large.” Mr. Vinnichenko continued: “The continued development of the Urals
Region is a high priority for the Federation, and as such, this Project and
its successful realization is being custodied by our country’s most Senior
In total, the Ural Polar projects are estimated to require investment of
three-quarters expected from private investment sources. The Russian
Investment Fund has already committed
to Ural Polar. As such, the project is one of the largest public-private
partnerships in the world, with many of
TNK-BP, LUKOIL and SIBUR expected to participate as both operating and
Novaar is a sovereign-affiliated private investment office commissioned
by members of the Royal Family of the
specifically designed to service the unique investment requirements of
politically exposed families, institutions and related operating concerns.
Led by a management team drawn from across the globe, and strategically
connectivity within the global financial community to seek out and develop
unique investment opportunities for its principals.
About Ural Polar
The JSC Ural Industrial – Ural Polar Company has been established to
fulfill the objectives of the “Ural Industrial – Ural Polar “Project.” The
purpose of the Project is to develop the transportation accessibility to the
major reserves of natural resources in the Ural Polar and Pre-Polar Region by
means of earlier development of transportation and energy infrastructure.
Main Shareholders of the Corporation are: Tyumen Region, Khanty-Mansiyskiy
Autonomous Area, Cheljabinskaya Region and Yamalo-Nenetskiy Autonomous Area.
SOURCE Novaar Capital Management