VEB.RF, Tourism.RF, Interros and Vasta Discovery Agree to Cooperate in Creating New Mountain Resort in Sochi

During the St. Petersburg International Economic Forum, VEB.RF, Tourism.RF Corporation, Interros and Vasta Discovery agreed to cooperate in carrying out the project to create Dolina Vasta, an all-season mountain resort in Sochi.

The agreement was signed by Head of VEB.RF Real Property Projects and Asset Management and Member of the Board Alexander Tarabrin, CEO of Tourism.RF Sergei Sukhanov, CEO of Interros Sergey Batekhin, and CEO of Vasta Discovery Sergey Bachin. The signing ceremony took place in the presence of Deputy Prime Minister of the Russian Federation Dmitry Chernyshenko and VEB.RF Chairman Igor Shuvalov.

The agreement has initiated a new important stage of the project implementation. Project investors will approve technical and economic feasibility to encourage investment in the utility and transport infrastructure. A special purpose entity will be created to design and build the resort.

The agreement is aimed at developing post-Olympic Sochi and regional tourism and building the necessary infrastructure to increase the domestic and inbound tourist flow. Ultimately, this work will contribute to the socio-economic development of the Krasnodar Territory and the city of Sochi as a mountain resort as part of the Tourism and Hospitality national project.

It is intended that the Dolina Vasta project in Sochi will build the necessary tourist infrastructure for health and ski recreation in the next four years (2021–2025). A comfortable environment will be created in Sochi National Park for year-round recreational activities, with balneotherapy and ski centres. The balneotherapy centre will include a sanatorium, guest houses and spa hotels, and a hydropathic facility with mineral water pump-rooms. The skiing facilities will consist of 80 kilometres of slopes and several ski lifts with a total length of 13 kilometres.

The total project value including the utility and transport infrastructure is estimated at approximately RUB80bn.

The new high-class resort, such as Dolina Vasta, in the mountain cluster of Sochi will create 2,500 jobs (or, including related services, as many as 5,000), stimulate small and medium-sized enterprises, and contribute to the socio-economic and cultural development of the region. The resort will pay billions of roubles in taxes at various levels in the future. The tourist flow is estimated at 1,500,000 guests per year.

Tourism.RF will act as a co-investor and will arrange government support for the Dolina Vasta project in creating the utility and transport infrastructure as part of the Tourism and Hospitality national project jointly with the Russian Ministry of Construction as the responsible supervisor.

Pursuant to the agreement, VEB.RF is considering its participation in organising and conducting due diligence for the Dolina Vasta project, providing investment and financial advice during its implementation, and arranging a syndicated loan for the project (under the Project Financing Factory programme).

Interros acts as an investor to arrange financing for the project. The master plan for the Dolina Vasta project is being developed by Dolina Vasta, which is responsible for preparing design and estimate documents, obtaining ownership, operating the project’s facilities, as well as acting as a co-investor and raising funds.

Alexander Tarabrin, Head of Real Property Projects and Asset Management and Member of the Board, VEB.RF:

“Domestic tourism is an industry that can make a significant contribution to post-pandemic economic recovery. Its development produces numerous urban effects: creating new infrastructure, a comfortable living environment, new centres of attraction and, of course, opportunities for starting new businesses. That is why VEB.RF views the tourism and hospitality industries as one of the most promising areas of investment.”

Sergei Sukhanov, CEO, Tourism.RF Corporation:

“Our task is to make investments in tourism attractive and beneficial for businesses. The Corporation has developed support measures to reduce debt loads for investors. We are currently discussing the details of the Dolina Vasta project and planning to make an authorised capital contribution. Our first step will be developing a master plan of the resort territory together with the investor. This will allow us to determine the exact finance required. The Corporation will also facilitate inter-agency coordination to create the utility and auxiliary infrastructure.

Sergey Batekhin, CEO, Interros:

“This agreement is an important step towards implementing the Dolina Vasta project. The new year-round resort will make recreation more accessible to Russians, meet the growing demand and have a positive impact on the region. As the project’s investor, Interros intends to use its experience of creating the Rosa Khutor resort and will ensure that Dolina Vasta construction will meet highest engineering and environmental standards.”

Sergey Bachin, CEO, Vasta Discovery:

“We are ambitious to create a world-class resort. The Dolina Vasta resort will become part of the post-Olympic development of Rosa Khutor and will perfectly complement the existing infrastructure of the Sochi mountain cluster. This will substantially expand the tourism opportunities of the Krasnodar Territory as one of the most attractive places for recreation in this country. I would like to note that respect for the region’s unique natural environment has always been high on our list of priorities.”