BBS Singapore firm to invest $2.7bn into infrastructure projects in Russia’s Far East

BBS Singapore: In a deal agreed at the  Krasnoyarsk Economic Forum on Sunday, Baoli Bitumina Singapore (BBS), a subsidiary of the UK-based firm Denimotech Holdings and part of the Bitumina Group, has pledged to invest RUB168bn ($2.7billion) in road building and associated projects in Russia’s Far East. $500m of the investment has been earmarkedfor the establishment of a construction company in Khabarovsk for Russian infrastructure projects through public-private partnerships and concession agreements; $50m for the construction of a new refinery to produce bitumen; and $200m for the modernisation of port facilities including a terminal for oil and gas exports, probably in Vladivostok. The new port facilities will serve both domestic and overseas markets, with a particular focus on exports to China, Japan and other countries in South-East Asia. 
“A portion of this investment will go to the acquisition of an existing or the construction of a new refinery that focuses on producing high quality straight-run bitumen from heavy crude oil, which other refineries don’t like to utilise as they focus on the production of light products and therefore neglect the quality of bitumen, which is one of the main raw materials for road construction,” a statement on BBS’s website confirmed. “Baoli Bitumina also intends to build three large hi-tech industrial units in the Moscow region, Khabarovsk and a third location yet to be disclosed, servicing the industry with the highest quality materials at affordable prices.”
The deal is one of the first to recognise the importance of the recently opened Northern Sea Route linking Asia to Europe via the waters of the Arctic, and could be the first of many.