time for look at the headlines now dotty e.u. leaders a baker in brussels on how to fund the continuing bailouts and debts epidemic gripping italy and spain where the strains on its last legs. and media mogul and political tide some come under huge public scrutiny raising doubts them insists on the fallout of the phone hacking scandal and restore public

trust. last remaining un indicted of war crimes suspect one hundred is awaiting extradition to the hague personally and some of the great uncertainty in the country closer to new membership. well excelled in all of us the bun in the russian direct investment to cuba the trip just where high tech and innovation of this to come from was part of president and its economic organization drawing our interview show spotlights his next. hungry for the full story we've got it from. the biggest issues get a human voice face to face with the news makers. for fifty. fifty

. hello again the walk in to spotlight the challenge part i'll bring up and today my guest in the studio is killed to hear how the world economic forum in st petersburg president's new commuter visit launched an investment fund aimed at fueling the country's economy with borrowed money in the wake of businesses and high tech manufacturers stand among the main recipients of the promised cash flow to fulfill their vicious god the president sensed one of the iconic figures crushing best in the market to spur had a profit but where will the money be coming from here is the russian direct

profound he'll meet the. recently created russian direct investment club was bankrolled spurs projects in a couple of months after a billion dollars will go towards medicine pharmacy tech or a culture an important place to deputy head of the russian sample bank says much of this money would probably come from the middle east but the fund still has much work to make everyone believe their investment should be so. many iraq into the show thank you for coming well first of all i want to ask you what makes you or for the new fund you're having different from other investment funds are existing in the country because people have been investing into the russian economy for a long time sure sure one of the key features is a core invest in the future so we will not be able to invest any money in any business unless there is at least the same amount of going best month coming from the leading international investors so that's

a very unique feature and it's very important because of always allows us to have second pair of eyes. looking over investments we are doing it allows us to bring foreign investment into the russian economy before you were appointed president of this new fund you were president of the i can promise the pac which is now true what was so special about this company what was so special about the job you did there that made you fit and for the new position that made president paid you personally for this new position i'm sure well we've been doing investments and i've been doing investments in russia for the last ten years and it's very important investment businesses to have a good track record so not only to me good investments but to have would have exerts so i've been leading two firms one is dealt a private equity another in. private equity and we've really been very successful in making investments in financial services sector in me just service sector in

other sectors of the economy so i'll give you an example when i was a delta we invested in one of the you know small media companies of that time called c.t.c. media which is now one of the largest entertainment empires in russia and their value grew from fifteen million when we invested in the business to over three billion right now because russian middle class grew in advertisement trade grew so it was investing as those kinds of businesses in telecom sector in other sectors that have been successful in russia and that's why the president and the michigan own bank supervisory board decided to pick me for this position you have promised profitability of business investments in russia and you were twenty percent but how is that possible if the growth of the russian economy is not more than ten percent is it isn't it a contradiction you know we believe that leaders was the russian business and lead

in business and russia will grow dramatically and if you look historically how much value has been created in russia in what was an. billions and billions of dollars of value and leaders have been growing at thirty forty fifty percent. in russia so will be four percent of those leading segments on some of that lead in businesses but will have two principal types of investment there will be an infrastructure investment which will generate need to ten to fifteen percent a year not from a stable much more predictable sort of less exciting you know doesn't source we'll have twenty five thirty percent rates of return which we believe we can generate in private equity businesses in private businesses that are growing very fast so health care in pharmaceuticals a little bit less predictable but definitely with high growth potential i don't know if this is somehow has something to do with your appointment that recently the russian state television channel showed and you could movie pretty old movie called

of the people's money machine for a couple of times and this is this is like a comic movie for the united states it's about it's about well speaking about average growth growth this if you say that that leaders grow like more than twenty percent. and hugh one the average growth to go higher this is there me that you want less profitable businesses and profitable businesses to die and that will that will be good for your business no we believe that it will improve the statistics wouldn't we believe we will bring a lot of efficiency into the russian economy so we will not always bring capital to invest which is very important but was our international partners will bring ohio and management practices that will allow efficient businesses to prosper and be successful and i think what's very important is of competition is actually very good for the economy when businesses compete they become more efficiency because they bring more products so i think you know. it's very important to invest to

build successful businesses and for our the businesses to. strive to be as successful as businesses were people invested you mentioned the value of your project so i knew the price of temporary planning to present a new projects which is couple of months from now what will be the value of the projects you're going to present you know we have to be very realistic we just basically finished from asia as a management company on june first and we in the process of hiring people and we'll be able to hire them closer to supply and bring october so in the investment process typically takes five to six months so i think we will realistically discuss and was quite investors some projects in pharma industry some projects in. utilities and infrastructure some projects in the health care sector and we believe that by example of the year we'll do transactions of around five hundred million dollars but that is by the end of the year in september we're just starting

discussions of some of the most interesting and exciting opportunities that we still need to evaluate and work together with our core investment part of to analyze and really figure out so you so fishing but can you name us at least a couple of companies that are already on your hook and we can look and actually that's a good thing about private equity industry as before the deal is done it's impossible to talk about the potential targets because of best case it increases their valuation expectations and at worst case it just leads to the transaction of being done because it's a pickle we're all in nonsense the transaction is finished as a people society and that's very important to look at have to invest in companies before you came to thin to introduce a new friend are you dragging some of your partners from these companies to to give actual we're trying to minimize people impact and actually we have very careful in selecting i would seem because

a wouldn't want that they can or all of the people from a previous fund we also don't want to go in aggressive a higher way. well people from all of the lead in funds in russia so we've been actually quite successful in being very gentle in pekin some key people from different firms was out for really offending them because we want them to be if i was good queen bess my partner some of the russian market we also became quite a few people was international backgrounds and we have one gentleman was fifteen year of experience and wouldn't private equity firm another one was ten years experience so we will not only have russian nationals we'll have a well rounded team that will include international investment leaders as well you were quoted as saying if things get a nice sound friendly for of foreigners you saying that russia economy is more predictable than most countries what makes you think so and what are the arguments because i'm sure that most of our viewers would say that if russian economy is

predictable going then what's unpredictable goodness well i think you know it's actually a great question because when people read you speak persons are all sorts of stories out there is a basically country russia in certain way but those stories forget about some very key statistics very fundamental things so i'll mention just a couple russian debt is twelve percent of g.d.p. task in perth with one hundred percent almost hundred percent in the united states and that's very important because we all know that count this was high debt such as greece and some other european countries are having major major problems because basically they spend more than they've accumulated and that creates tremendous amount of tension and i think we will see lots of this in the next coming months so that's very very good another statistic russian middle class tripled in the last five years if you look at households was incomes of forward ten thousand a year there was eleven percent of those households in two thousand and five and so with thirty percent now so very few people know in this sort of think about is

a russian middle class tripled in the last five years and finally. in the russian reserves are the third largest foreigners or some sort of world so again in a very volatile economy when lots of changes happen a lot of the things that happen in heaven that question of money and sexual a very safe and very important thing perhaps so i think on balance in a very volatile world if you look at the numbers if you look at statistics they actually speak pretty well about russia well my family's savings have tripled in the last year or two they were one hundred bucks today three hundred so they tripled so so statistics that this thing sir are tricky may be tricky so i've heard that the government will be your first investor that you'll be getting ten billion us from from from the russian state is that true and why do you need government money yes. investment it's very important international investors feels of that have a good partner in russia because when we travel to the lead in the best person in

the world they said yes we believe in russia it's possible to generate good rates of return but to do that we need a partner justice for example if you invest and then china and india you could do it on your own but probably would be a good idea to give the local partners that the government is deal he really reliable partner in this country well i think a government use one of the key and most reliable partners and this country and i think government is making major initiatives to improve investment climate and russia so providing this capital to share risk because investors not give them any guarantees but be their partner and coin vast along use them is the basic idea behind the fund says q deal with me true you have the russians direct investor the spotlight with you that you continue this interview after we take a break so stay with them.

we'll. bring you the latest in science technology from the realm of russia. please dump the future coverage. welcome back to support and i now do not i'm just a reminder that my guest on the show today is the nuclear you have had of the russian direct investment fund we're talking about this new fund about about getting money to invest in the russian economy how hard is it well the easiest part of your job i guess is to get those those couple of billion dollars from the russian government you said an interesting thing just with before we took a pause you said that when the government becomes

a partner in russia this attracts foreign investors because the government is a reliable and rich partner but this is strange. you say that this attract government activity in your friend in economy here is attractive for foreigners but on the other hand they used to say the russian government is too active an economy the russian government doesn't let us do for free business on a free market we want less government attention and little less government activity in the economy so so so where is the where is the limits and are there limits for for the government activities in me but it's a very good question and as a key is a proper balance so for example we will lord be disciplined be able to pay controlling stakes was a compromise so will be taken small minority positions you know review board positions of twenty five percent now to gather with our core investment partners we

would be able to control but again it's not government having control it's our scale in a minority position but together is calling us from partners here in the major position you would be giving billions of government money this means you would be under total government control you well yes and no because the governance of very important so we will have a supervisory board which will be you know your decision making body for the fund and that the actual in court. if you foreigners and governments will actually be you know an important part but not the control and particles of supervisory board and that's again very unique because the whole idea behind the pomp and it's really fun generally turns to allow foreign investors to get those with their terms and invest more down the road so it's best commercial and the entity it's possible was government really providing help but in the what driving all of the decisions and it's very important because we had

a meeting was mr putin where investors manage and pull trillion dollars for the present and sassed a very specific and direct question is the puts and will use of funds to promote certain sectors of the economy the really do sort of government life things and he was very clear we once upon to generate good return and it was a fun generated which return will for sure it means girls businesses it means more employment opportunities it means innovation and with a new station but actually comes first do you think that it's the government's come to be key in for me it creates some people say to me why did you feel that union meetings between me made with the if it was could encourage the government to increase this contradiction well it's very important that our business is very new to craddick kind of business what do you do with a credit wants to have anything so we either show goods or turns and we get more money so you don't know it's maybe a few more we don't feel good for turns and you know we cannot raise any money to critique it my language is this that to the students we need to produce results and

it's very important i think there was a sense it would produce results if it produces good returns then no money can be managed and even now you know it's a ten billion dollar commitment the first portion we're getting this year is only two billion dollars and i think prior to disburse saying you know the next eight billion the government will be looking what kind of deals we're doing i was successful i would bring in a. because of the positive story. cracky doesn't mean avoiding long difficult projects no i think it means really be focused on projects that generate good returns and then lead to the creation of employment and other things but very much focused on returns because events of the day investors do not like projects with it was my view and the whole benefit of investments is actually uniting my knee and intelligent approach to businesses it can grow in the sort of solid

produce good profit so i think it's a win win for the companies for investors for the government if you don't want and they knew you were possible partners can you tell me which industries are on the list of your priorities what are you going to where are you going to. put the money you get that i just know not only in the with the gas production there's an old you know you do something samples we believe you know i grew culture it's really great sector and russia is a great place for agriculture and you know has lots of agricultural businesses that are growing dramatically but that on the investment so really that agriculture is going to be a very interesting question today we understand it isn't a circumstance that we should have our own cucumber easier because yes that's true and you know as agriculture prices increasing dramatically so agribusiness is very important health care again health care can be much more efficient and can be improved dramatically with proper investments i was proper in the how energy

efficiency we all know that we are so much dependent on energy prices and there are all sorts of new energy efficient technologies that produce very significant cost savings so it's not venture projects it's not very risky early start early stage projects so it was a project where we can see sort of predictable cash flow and such as energy efficiency it will produce good results but also good for the country it just crossed my mind the creation of fuel for. and. trying to attract more and were foreign investors promising good returns this isn't me russia is looking at a new wave of. privatization well privatization is definitely coming and it will be the largest firm it is a shock and refused three fresh actually and there are a number of businesses that are being poured out for sale and that's very positive because it shows that the government again wants to play a little for all in the economy and obviously we will also build kind of

privatization projects and i think it's very important that mean international best for us meaning for national parks are competing to participate in source projects because and the price goes up and that's good for the government you mentioned agriculture you mentioned health care this of course are the priority industries where russia wants investment to follow but. what are the what are the industries that. foreign investors themselves are interested in in russia and that's again a very key question because we didn't define those preorders just by what russian government wants we actually went to leaders or investment funds in the world and they asked for example people in the arab world what kind of industries would you consider attractive in russia and they actually did mention agricultural health care i did see from the russian the russian deputy head of the central bank mentioned the necessity of attracting the arab capital the capital from arab

countries to russia why such special attention to this part of the world and to arab money well there is a first of all quite a bit of light as it has been managed for example abu dhabi investors authority manage to manage just over six hundred billion create investment office managers over two hundred fifty billion and they've been in discussions with both of them and they're very much interested was what russia has to offer and we believe that russia offers. what's sort of interesting investment opportunities to arab investors but they were just not so much focused on the region they preferred to invest in other parts of the world so being able to attract them as well as china and european finance and american france is actually good for the russian economy in the one of his speeches going to visit recent speeches as a matter of fact prime minister putin promised that he would be protecting foreign investors and i think he even said personally taking care for investors is enough

to convince foreigners that their money in your hands are safe well i think once again because a very positive meeting with mr porter and became very energized and very much for course all specific sectors fall in that meeting so i think it was very important for them to hear that message because that's a very important message for them to hear but in addition there are all sorts of institutional efforts that have taken place and the fun of this one of those efforts and given proper governance have been success stories will contribute to the story so i think it's very important for them to hear their message but example of the day they will be happy once the a dollar now and pick three dollars you know four years from now that's basically what it will mean you know really happy. this science growing and helping to grow russian cucumber resign sure for an investment in size or gas of course which is which is a special issue i'm sure the foreign investors would like to invest into the

russian high tech industry because because it is growing because it is a government priority and we just talked about it that if you get those investments if people will be ready to give you the many can you guarantee there hugh have in russia enough specialists enough people to guarantee that these investors get this money going to work well we believe that high tech is really. the key industry in russia and beyond because i p o which was one of the largest was more successful hype i feel shows that there was major promise in russia major promise in russia because very talented very sophisticated programmers and people russia is one of the most educated countries in the world but the key word is we believe it's possible to make very good returns their government are going to be investing but we're not giving kenya think it's very important we share risks we're putting our money in projects we believe the return is going to be good and we're sharing that

tree is going to trade terms of departure in terms of investor so yes we believe that it's a great market for investment but we will not be providing any guarantees and we believe that investors will know it's a good sector of investment and they will be investing back ok and just just to conclude and to conclude this interview. is it right the impression i got from talking to you and i think the views on this and that one hundred percent of these three investments coming through your fund from abroad will be guaranteed by the russian government is that true you know there's a lot bigger and see it again we are quite investing with them so we believe will be a good return and if i'm a good return on mine it doubles in with three or four years if we don't make good return and we'll lose money we'll lose them i mean an international best resource for those of mine but all this little do everything in our power and repudiation is very important to us until the russian government that will be making successful investments but it's very important that they make independent decisions we make

independent decisions and together we make very good profitable investments in russia so you promise and to be for thank you thank you thank you for being with us and just to remind that my guest today was healed head of the russian tire invested and that's it for now from all of us if you want to have your same spot or someone in mind when you think type it into the next time it's up to me a line and housing are. r.c.t. dots are unique in that skit interact only back to more because they're common for what's going on in and outside russia unfold then stay on our team and take it. to. hungry for the full story we've got it for. the biggest issues get a human voice face to face with the news makers.

in india all she's afraid of the.