Government fund of funds
Development institute of the Russian Federation

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Gazprom Neft, Gazprombank, RVC and VEB Innovations create a Venture Fund To Support the Development of Innovative Energy Technologies

16.04.2019

Gazprom Neft, Gazprombank, the Russian Venture Company (RVC) and VEB Innovations have established the New Industry Ventures Fund. It will focus on investments in technology companies specializing in the development of new materials, technologies, products and services for the oil and gas industry, petrochemicals and energy industry, including alternative energy sources.

The New Industry Ventures is established to spur the promotion of high-tech products in the Russian market and to support innovative companies and startups that are crucial for the development of Russia’s oil and gas, fuel and energy sectors and industry. The Fund’s activities will prioritize development of technologies for the exploration, production, processing, transportation, distribution and utilisation of hydrocarbons, energy transmission and storage, the implementation of innovative solutions for industrial infrastructure construction projects, management of large-scale projects, etc. Its investment focus will also include resource and energy saving technologies as well as digital products, including Industry 4.0 technologies.

New Industry Ventures has an initial funding target of RUB4 billion, which may be increased in the future upon agreement of the partners. Its initial period of activity has been confirmed at seven years, again subject to potential extension upon agreement of the participants. The Fund will be managed by a specially created investment partnership executive company, with an independent team of professional market players having experience in venture capital investments and technological expertise.

“This venture fund established at the initiative of Gazprom Neft focuses on supporting innovative companies. We are waiting for solutions with the capacity to change not just the oil and gas industry, but other industries. As part of the project, we join resources, technological, financial and managerial expertise with our partners Gazprombank, RVC and VEB Innovations. Products created with the fund’s support will be deployed in pursuing strategies for the technological development of our company, and will be made available to all market players,” commented Vadim Yakovlev, First Deputy CEO of Gazprom Neft.

“Gazprombank has, traditionally, paid great attention to the development of high-tech companies as well as being one of the recognized leaders in working with oil and gas enterprises and industrial assets, both as a financial partner and creditor,” commented Alexander Stepanov, Deputy Chairman of the Management Board at Gazprombank. “I am sure that by combining these components, the new fund will allow us and our partners to create a pool of promising companies and ensure their dynamic development for the benefit of industries of strategic importance to the country.”

The New Industry Ventures Fund is a unique example of a venture fund created through the joint efforts of an industrial partner, a state bank and two development institutions. It is also the first corporate Fund established under the investment strategy updated by the RVC in summer. We are ready to further scale this experience by offering corporate partners financial leverage and expertise in structuring and managing funds,” said Alexey Basov, Deputy General Director and Investment Director of RVC.

“The involvement of such major industry partners as Gazprom Neft and Gazprombank will ensure a high level of expertise in the oil and gas industry for the fund established. The new entity’s activities will be directed at financing new technologies with commercial applications both in the oil industry and other sectors — that is, in acting as end-to-end technologies as well as digitalization in one of the most important industries. The Fund will also help reduce dependence on foreign technologies as well as promoting exports of Russian solutions, since this is a global industry. We hope that our partnership within the New Industry Ventures Fund will allow us to test the format in collaborating with major industrial players and financial institutions and use this experience successfully in the future in developing venture capital investments in other industries,” said Oleg Teplov, CEO of VEB Innovations.



Information

Gazprom Neft is a vertically integrated oil company, primarily involved in oil and gas exploration and production, refining, and the production and sale of petroleum products. Gazprom Neft’s corporate structure comprises more than 70 production, refining and sales enterprises in Russia, the countries of near and far abroad.
Gazprom Neft is among the world’s Top-10 public companies in terms of proven liquid hydrocarbon reserves, and a global leader in terms of their replenishment rates. In terms of production and refining, Gazprom Neft stands among the top three companies in Russia. In 2018, the company produced 92.9 million tonnes of oil equivalent (mtoe), with refining volumes of 42.9 million tonnes.
At the end of 2018, Gazprom Neft’s net profit reached RUB 376.7 billion, a 49-percent increase on 2017. The company is among the industry leaders in terms of both financial growth and such complex efficiency indicator as internal rate of return (IRR).
www.gazprom-neft.ru

Gazprombank (Joint-Stock Company) is one of the largest universal financial institutions in Russia, providing a wide range of banking, financial, investment products and services to corporate and private customers, financial institutions, and institutional and private investors. The bank is one of the three largest banks in Russia by all major indicators and ranks third in the list of banks in Central and Eastern Europe in terms of equity.
The Bank provides services to enterprises and companies in key sectors of the Russian economy, with retail business being a strategically important area of activity for the Bank, the scale of which continues to increase consistently. Gazprombank holds strong positions in the domestic and international financial markets, being one of the leading Russian banks for arranging and underwriting corporate bond issues as well as in asset management, private banking, corporate financing and other areas of investment banking.
www.gazprombank.ru

The Russian Venture Company (RVC JSC) is a state fund of funds and a development institution in the Russian venture capital market. The main objectives of the RVC are to stimulate the development of the private venture capital industry in Russia and take on the role of the project office for the National Technology Initiative (NTI). The RVC’s authorized capital amounts to more than RUB 30 billion. RVC is fully owned by the Russian Federation, represented by the Federal Agency for State Property Management of the Russian Federation (Rosimushchestvo). The RVC now has 27 funds under management, with a total value of RUB 48.6 billion, of which RVC’s share is RUB 26.5 billion. The RVC currently has funds in 225 portfolio companies. The total amount of approved investment is RUB 18.6 billion.
www.rvc.ru

VEB Innovations, established in 2017, is the center of competence at VEB.RF in terms of venture and direct investments in capital. VEB Innovations’ priorities include financing projects under the National Technology Initiative, the Digital Economy Programme of the Russian Federation, assistance to Russian innovative companies in entering international markets. The company offers Russian startups not just venture investments, but also the opportunity to access financial products from VEB.RF Group on special terms. This enables to put in place schemes supporting Russian innovative companies in line with their individual needs, including in facilitating access to international markets.
http://vebinnovation.ru

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