recently tweeted russian direct investment plan will bankroll its first projects in a couple of months off a billion dollars will go towards medicine pharmacy tech culture and important placement to deputy head of the russian central bank says much of this money will probably come from the middle east but the fund still has much work ahead to make everyone believe their best question you see. him is the drinking of welcome to the show thank you for coming well a first of all i want to ask you what makes you or for the new fund you having that different from other investment fund that are existing in the country because people have been investing into russian economy for a long time i'm sure sure one of the key features is a coin investment future so we will be able to invest any money in any business unless there is at least the same amount of going vestment coming from lead in international investors so that's a very unique feature and it's very important because it always allows us to have

second pairs of eyes looking over investments we are doing that 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 that equities doctrine what was so special about this company what was so special about the job you did there that made you fit for the new position that made president pick 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 make good investments but to have good ags that's so i've been lead into firms one is dealt a private equity another in. private equity and we've really been very successful in making investments in financial service sector in the just service sector in other sectors since economy so i'll give you an example when i was a delta when by. in one of the you know small media companies of that time called c

g c media which is now one of the largest entertainment empires in russia and the value grew from fifty million when he invested in the business to over three billion right now because russian middle class grew and advertisement trade grew so it was investing in zones kinds of businesses in telecom sector in other sectors that have been successful in russia and that's why the president and the. bank supervisory board decided to pick me for this position you promised profitability of business investments in russia up to you and you 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 of the russian business and lead in business in russia will grow dramatically and if you look historically at how much value has been created in russia in the billions and billions of dollars of

value in leaders have been growing at thirty forty fifty percent in russia so we'll be focusing on those lead in segments on some of the lead in businesses which will have two principal types of investment there will be an infrastructure investment which will generate may depend to fifteen percent a year much more stable much more predictable sort of less exciting you know businesses will have twenty five thirty percent rates of return which we believe we can generate in private equity businesses and private businesses are growing very fast so in 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 but recently the russian state television channels showed an american movie pretty old movie called other people's money they should for a couple of times and this is this is like the iconic movie. for the united states

it's about it's about investing well speaking about average growth this if you say that that leaders grow to like more than twenty percent. and he won the average growth to go higher does that mean that you want less profitable businesses or unprofitable businesses to die and that will that will be good for your business you know we believe that it will improve the statistics with it we believe we will bring a lot so of efficiency into the russian economy so we will not only bring capital to invest which is very important but was our international partners will be know how in management practices that will allow efficient businesses to prosper and be successful and i think what's very important is it can petition is actually very good physical and i mean 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 lots of businesses to strive to be as

successful as businesses where people invest and you mentioned the value of your project so i know that by september you're planning to present a new projects which is a couple of months from now what will be the value of the projects you're going to present again we have to be very realistic we just basically finished for mission of the management company on june first and we in the process of hiring key people and we'll be able to hire them closer to september and october so in the investment process typically takes five to six months so i think we will realistically be discussing was co-investors some projects in pharma industry some projects in. utility infrastructure some projects in the health care sector and we believe that by cent 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 was going best with partners to analyze and really figure out so you still fishing but can you name us at least a couple of companies that are already on your hook but we cannot and actually that's a good thing about private equity industry before the deal is done it's impossible to talk about the potential targets because a best case increases their valuation expectations and at worst case it just leads to too transactional being done because typically we're all in the hands once the transaction is finished rolls of paper signed and that's very important lucrative to invest in companies before you came to you to do this new fund are you dragging as some of the partners from these companies through that you've actually are trying to minimize people impact and actually have very careful in selecting would seem because a would want to take you know all of the people from previous fond we also don't

want to go in aggressive a higher weight people from all of the lead in funds and russia so we've been actually quite successful in being very gentle in picking some key people from different firms was sort of really offending them because we want them to be investment partners in the russian market we also became quite a few people was international backgrounds and we have one gentleman was fifteen year over experience and in private backwards a firm another one was ten years experience so we will not only have russian nationals we'll have a well rounded teams that will include international investment leaders as well you were quoted as saying a thing that may sound funny for foreigners you saying that the russian economy is more predictable than in most of the 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 then then what's predictable to the world is well i think you know it's actually good. question because when people read newspapers and saw

all sorts of stories there's a basically betray russian certain weight 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. as compared to one hundred percent almost hundred percent in the united states and that's very important because we all know that countless was piedad such as greece and some other european countries are having major major problems because basically they spent 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 it was incomes of forward ten thousand a year the was eleven percent of those households into solvent and five it's over thirty percent now so very few people know in this sort of think about the russian middle class tripled in the last five years and the final number in the russian

reserves the third largest foreign reserves sons of the world so again in the very volatile economy when lots of changes are happening lots of things that happen in heaven that question of money is actually a very safe and very positive thing to have 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 since they tripled it is so said statistics that there's thinks are are tricky may be tricky. i've heard that the government will be a first investor that you'll be getting ten billion us from from the russian state is that true and why do you need government money yes. investments it's very important that international investors feels of they have a good partner in russia because when we traveled to the lead in the best persons in world they said yes we believe in russia it's possible to generate good traits

of return but to do that we need to partner justice for example if you invest in china or in india you could do it on your own but probably will be a good idea to get the local partners they need that the government is the only really reliable partner in this country well i think government is one of the key in most reliable partners in this country and i think government is making major initiatives to improve investment climates and russia so providing this capital to share risk is investors not give them any gearing cheese but be their partner and co invest a lot and is them is a basic idea behind the fund says keeling didn't truly. we have had the russian direct investment spotlight will be back shortly we'll continue this interview so we'll take a break so stay with us. bringing

you the latest in science and technology from the realms of russia. we dump the future coverage. welcome back to spark my dime al gore novel in just a reminder that my guest on the show today is killed the myth that he and head of the russian direct investment fund we're talking about this new fund about about getting money to invest. into 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 before we took a pause you said that when the government becomes a partner in russia this attracts foreign investors because the part of the

government is a reliable and a rich party 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 less good 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 the economy but it's a very good question and as a kid it is a proper balance so for example we will all be a font be able to take control and stakes of the companies so we'll be taking small minority positions you know maybe blocking positions of twenty five percent now together with al queda vestment partners would be able to have control but again it's not government having control it's us having a minority position but there's

a risk when vestment partners given the major position you will be getting the billions of government money this means you will be under total government control . well yes and no because governance a story important so we will have a supervisory board which will be you know your decision making body for the fund and its actual include quite a few foreigners and governments will actually be you know in important part but not the control and part of that supervisory board and that's again very unique because the whole idea behind the fund is really to help fund generate good returns . allow foreign investors to get those good returns and invest more down the road so it's less commercial and this return focused entity is possible with government really providing help but in the what driving all of the decisions and it's very important because we had a big meeting with mr putin where investors manage and two trillion dollars from a present and zest

a very specific and direct question mr puts and will use of funds to promote certain sectors of the economy to really do sort of government like things and he was very clear we want to fund to generate good return and it was a fun generated culture churn will for sure it means girls businesses it means more employment opportunities it means innovation and with their new zation which are church comes first do you think that the government's come to be sure to you and make concrete some people see will be increased did you feel that union meetings with putin meeting medvedev and what could encourage the government to increase its contribution well it's very important that our business is very new to craddick kind of business what do you mean with the credit wants to have to be seen so we either show good returns and we get more money you have merits maybe just a few more we don't show which returns and you know we cannot raise any money in order to crack ticket in my language is city code is that you know the students we need to produce results and it's very important i think there was

a sense if you produce results if it produces good returns then. it can be managed and even now you know it's a ten billion dollar commitment the first portion we get in this year is only two billion dollars and i think prior to this birth saying you know in the next eight billion the government will block in what kind of deals we're doing i was successful i would bring in a good investor is at the positive story being cranky does it mean avoiding the long difficult projects no i think it means really being focused on projects that generate good for turns and then lead create to. ploy mint and other things but very much focused on returns because at the end of the day investors do not like projects was it was money and the whole benefit of investments is actually uniting my knee and intelligent approach to businesses that can grow and the saw result produce good a good profit so i think it's

a win win for the companies for investors for the government if you don't want to name you or possible partners can you tell me which industries are on the list of your priorities way going it where are you going to. put the money you get that i guess now not only in the with and gas production just told you give us some examples we believe you know agriculture is really a great sector and russia is a great place for agriculture and you know has lots of agricultural businesses it's a growing dramatically but that the on the invested so really that agriculture is going to be very interesting to see today we i'm done it's of a circumstance that we should have our own cucumber is not exactly yes that's true and you know agriculture prices increasing dramatically so agribusiness is very important health care again health care can be much more efficient and can be improved dramatically we sprawl pretty fast months i was four per and know how energy efficiency we all know that we have 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 or early stage projects so there's 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 fewer front. trying to entrap more new or foreign investors promising good returns doesn't mean russia is looking at a new wave of massive privatization well privatization is definitely come. and it will be the largest privatization in the houston area actually and there are a number of businesses that are being put up for sale and that's very positive because it shows that government again wants to play a lesson for all in the economy and obviously we will also below kind of privatization projects and i think it's very important that the main international investors main international funds are competing to participate in those projects

because of the price goes up and that's good for the government you mentioned agriculture you mentioned health care and this of course that's priority industries where russia wants investment to flow but. what are they what are the industries that. foreign investors themselves are interested in russia see and that's again a very key question because we didn't define those priorities just by what russian government wants we actually went to leaders of 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. and the russian the russian deputy head of the central bank mentioned the necessity of the tracting the arab capital the capital from arab countries to russia why such special attention to this part of the world to arab money

well there is first of all quite a bit of line is that has been managed in for example of investment authority to manage money just over six hundred billion crewmate 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 awards 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 funds and. confines is actually good for the russian economy in the one of his speeches one of his 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 of for investors is it enough to convince foreigners that their money in your hands are safe well i

think once again they can a very positive meeting with mr porter and they came very energized and very much focused on specific sectors following 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 they can place and the fund this one of those efforts and given proper governance having success stories will contribute to the story so i think it's very important for them to here's a message but the example of the day they will be happy once they return a dollar now and takes three dollars you know four years from now that's basically what will make them you know really happy this side it's growing and helping to grow russian cucumbers i am sure for an investment in size zero and gas of course which is which is a special issue i'm sure of the foreign investors would like to invest into russia in the 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 that you have in russia enough specialists enough people to guarantee that these investors that this money going to work well we believe that high tech is really key industry in russia and on the i.p.o. which was one of the largest why it was successful high tech i.p.o. shows there is 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 with the keyboard as we believe it's possible to make very good returns there we're definitely going to be investing but we're not guaranteeing anything it's very important we share risks we have put in money in projects we believe return is going to be good and we assure that risk and the trade turns at the preacher interviews as investors so yes we believe that high

tech is a great market to invest in but we will not be providing any guarantees we believe that investors will know it's a good sector to invest and they will be invest in their ok and just just to conclude to conclude this interview. is it dry the impression i got from talking to you and i think the viewers also that hundred percent of these to make investments coming through your fund from abroad will be guaranteed by the russian government is that true you know there are a lot bigger into it again we have quite a bastion with them so we believe we'll make good return and if i'm a good return on mine it doubles in three four years if we don't make good return on the loose money we'll lose the money and international best results follows the money but all of us little do everything in our power and repudiation is very important to us and to the russian government that will be making successful in 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 promises to be fun thank you very much thank you thank you for being with us and just to remind you that my guest today was killed me had probably a russian direct investment and that's it for now from all of us if you want to have your say spot someone of the mind you think i might get into the next time you drop me a line and how they're not. on t.v. and that's good stuff like interact will be back with more don't comment on what's going on in and outside russia until then stay on our team and take care. hungry for the full story we've got it first hand the biggest issues get a human voice face to face with the news makers.

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the grand imperial truly told us to push you can. see don't need to go. run to the kennel was virtually a retreat. e.u. leaders are in brussels on how to fund continuing bailouts as a debt epidemic and spain further strains a year i want its last legs. as a media mogul and political titan come under huge public scrutiny we examine whether they'll be able to survive the fallout of the phone hacking scandal under store public trust. and the last remaining un indicted war crimes suspect. is now awaiting extradition to the hague being captured in serbia belgrade hopes the move will bring the country closer to even membership.

there you're watching r t well live from moscow welcome to the program e.u. leaders have gathered in brussels for an emergency summit on how to come up with a cash promised for a second the bailout to greece heads of state said to be considering a new bank tax to pay roll that ins and stave off default to italy and spain the first symptoms of a credit epidemic there are fresh tensions between the attendees squabbles have already broken out with jenny pessimistic about the summit in france quite sort of down to. reports that infighting is continuing you. future tense by threat. the single currency will be did within two years warn analysts within the european debt crisis there is a really very serious threat. to. disintegrate.

the eurozone might collapse it's already too late to save the greek economy according to a majority of leading economists and experts polled by l.t. greece is really going down the drain completely the depth is escalating the deficit is stark totally out of control but i could give you the analogy but they were like somebody with a gambling problem or a drink problem. but not prepared so it's a cultural thing so now we find ourselves with someone with a drinking problem but with a huge debt as well and the problem will only ever get worse until you actually confront reality and say look they don't fit in the or as not going to fit together with germany in one single your politicians the richest states their voters refuse to foot the bill well i don't think i've ever met any body in the united kingdom in london mark in speech and say the act.