Arab investment funds withdrew from the capital of Russian Helicopters

Consortium of Middle Eastern sovereign wealth funds which owned 12% of Russian Helicopters Holding withdrew from the company’s capital. This was announced to journalists by the head of Russian Ministry of Industry and Trade Denis Manturov. “Arab Emirates funds have exited the capital of Russian Helicopters and invested in the VRT500 and VRT300 project. Arab investors went from minority shareholders in one project to majority shareholders in another,” Manturov said (quoted by Interfax). A consortium of Arab investors formed by the Russian Direct Investment Fund bought shares in Russian Helicopters in 2017. The value of its stake in the holding, whose largest shareholder is Rostec, was $300 million. In November this year, Russian Helicopters and the UAE Tawazun Defense and Security Development Fund concluded an agreement on the purchase of 50% of BP-Technology (the design bureau of Russian Helicopters, which develops the VRT 500 light passenger helicopter and the VRT 300 drone) by the Emirati holding. Another 50% is retained by the Russian side. Total investment in the project will amount to $450 million. Tawazun is expected to purchase 100 VRT 300 and VRT 500 for the needs of local organizations and the police.