Natalie Pemberger, a spokeswoman for Strabag SE, said Basic Element will be the Austrian company's third strategic shareholder along with Raiffeisen Bank and the Haselsteiner family.
The purchase will be done through an increase in the equity capital of Strabag SE and, to a smaller extent, through the purchase of existing shares, BasEl said in a statement.
The deal will enable Strabag SE, one of Europe's leading construction groups, to receive extra investment of 1.05 billion euros (about $1.4 billion).
Pemberger said the deal is yet to be approved by relevant anti-trust bodies.
The Strabag SE spokeswoman said the market for infrastructure development in Russia is growing annually by 20%, especially in the company's core business involving the construction of bridges, roads, and tunnels.
Along with the construction segment of BasEl, Strabag SE will be able to expand more rapidly in Russia, the spokeswoman said.
Basic Element is controlled by Oleg Deripaska, ranked the world's 62nd richest man by Forbes Magazine in 2006, with estimated wealth of $7.2 billion.
BasEl holds combined assets of over $13 billion in energy, machinery, natural resources, financial services, and construction.
