home is the main thing of welcome to the show thank you for coming well if first of all i wanted to ask you what makes you were for the new fund heading 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 quote investment feature so we will be able to invest any money in a need business unless there was 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 private equity is that true what was so special about this company what was so special about the job you did there that made you fit for the need and position that made president pick you personally for

this new position 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 and i can private equity and we've really been very successful in making investments in financial service sector in me just service sector in other sectors since 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 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 trades grew so it was investing in those kinds of businesses in telecom sector in other.

sectors that have been successful in russia and that's why the president in the. bank supervisory board decided to pick me for this position you promised profitability of the 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 lived 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 maybe ten 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 in private businesses that are growing very fast so healthcare 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 like more than twenty percent. and hugh one 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 no . we believe that it will improve the statistics with we believe we will bring

a lot so efficiency into the russian economy so we will not only bring capital to invest which is very important but was our international partners will bring know how and management practices that will allow efficient businesses to prosper and to successful and i think what's very important is it can petition is actually very good for as a con 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 alcoa investment 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 we can look and actually that's a good thing about private equity industry was before the deal was done it's impossible to talk about the potential targets because a best case. it increases their valuation expectations and worst case it just leads

to too transactional being done because typically we're all in months once the transaction is finished rolls of paper signed and that's very important to look at have to invest in companies before you came to the to do these new friend are you dragging some of the partners from these companies through the you've and actually we are trying to minimize people impact and actually be a very careful in selecting i would seem because a would want to take you know all of the people from a previous fund we also don't want to go in the aggressive a higher way 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 out sort of really offending them because we want them to be if was good queen vestment 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 equity firm and the other 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 unpredictable in the world is well i think you know it's actually a great question because when people read newspapers and saw all sorts of stories there's a basically a trader russia in certain ways 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 a hundred percent almost hundred percent in the united states and that's very important because we all know that countless 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 into solvent and five it's over thirty percent now so very few people know in this sort of think about the middle class tripled in the last five years and the final number for you in the russian reserves the third largest foreign reserves some 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 sad 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 have traveled to the lead in the best reasons 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 and india you could do it on your own but probably would be a good idea to get the local partners mean 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 core invest a lot is them is the basic idea behind the fund says keeley dimitri. we have had the russian direct investment spotlight will be back shortly we'll continue this interview also we'll take a break so stay with us don't. be observed nature and discover its beauty. and the lead. communicate with the wild and learn.

test yourself and become free and. see what nature can give you. forty two thousand americans die each year from car accidents only a thousand cuts first say seven hundred thousand people murdered and thirty two thousand will kill themselves cancer in all its forms kills five hundred sixty thousand of us a year apart disease is even more devastating it kills over eight hundred seventy thousand americans every day here. i am a. commission free critic ation free transport chargers free arrangement free risk free stooge free. the old free broadcast cloning

video for your media projects a free media old dog our teeth on tom you. tube . welcome back to support my damn al gore narbonne just a reminder that my guest on the show today is killed the myth that he had had 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 with 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 part 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 was a company's so we'll be taking small minority positions you know maybe a block in positions of twenty five percent now together with our core investment partners we would be able to help control but again it's not government having control it's us having a wing or to position but together is calling us from partners here in the major

position who will be getting the billions of government money and this means you'll 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 a key decision making body for the fund and it's the actual include quite a few foreigners and governments will actually be you know an 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 returns and allow foreign investors to get those good returns and invest more down the road so it's s. commercial and this return focused entity as possible was 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 pull trillion dollars from a present and zest a very specific and direct question mr puts and will use the funds to promote

certain sectors of the economy to really do sort of government like things and he was very clear he wants a fund to generate good return and there is a fund generated which return will for sure it means girls businesses it means more employment opportunities it means innovation and when there is a ship but your church comes first do you think that the government's come to be to you and make concrete some people see will be these 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 do with the credit wants to have to do things so we either show good returns and we get more money there it's meant to be more turns and you know we cannot raise any money in order to crack ticket in my language is sydney is that's one of the domains 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 be a good investor is it the positive story being cranky does it mean avoiding the long difficult projects no i think it means really being focused on projects agenda or a good trip turns and then leads to creation of employment and other things but very much focused on returns because at the end of the day investors do not like projects with they lose 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 point is can you tell me which industries are on the list of your priorities way going to where are you going to. put the money you get i guess now not only in the oil and gas production to the old you give us some examples we believe you know agriculture is really great sector and russia is a great place for agriculture and you know has lots of agricultural businesses that are growing dramatically but at the on the invest it so really that agriculture is going to be very interesting today we understand it's in a circumstance that we should have our own cucumber is not exactly yes that's true and you know agricultural prices increasing dramatically so agribusiness is a very important health care again health care can be much more efficient and can be improved dramatically with proper investments i was proper 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 your firm and. trying to track more and more foreign investors promising good returns does that mean russia is looking at a new wave of massive privatization well privatization is definitely coming and it will be the largest privatization in the history of russia actually and there are a number of businesses that are being poured for sale and that's very positive because it shows the 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 many international investors meaning for national funds are competing to participate in those projects

because and surprise 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 flow but. what are the what are the industries that. foreign investors themselves are interested in 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 let's see if 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 light is that is being managed for example of would be investment authority manage to manage just over six hundred billion quid investment office managers over two hundred fifty billion and they've been in discussions with both of them and their. 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 american funds is actually good for the russian economy in the one of his speeches one of these recent speeches that as a matter of fact prime minister putin promised that he would be protecting foreign investors i think he even said personally taking care for investors is it enough to convince foreigners that the money in your hands are safe well i think once again

that had a very positive meeting with mr porter and they came very and they're just 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 are taken place and the fund 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 the message but the example of the day they will be happy once they reach 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'm 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 russian high tech industry because because it is growing because it is a government priority and we just talked about it but 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 murders. investors that this money going to work well we believe that high tech is really the key industry in russia and again the i.p.o. which was one of the largest was most 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 is we believe it's possible to make very good returns they're definitely going to be investing but we're not giving kenya think it's very important we share risks we have put in money in projects we believe return is going to be good and we assuring that trees can the true 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 there 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 views on this and that one hundred percent of these the investments coming through your fund from abroad will be guaranteed by the russian government is that true you know there are a lot bigger and cheat again we are quite investing 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 and will lose 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 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 that if my guest today was healed had probably russian direct investment and that's it for now from all of us if you want to have your same spot. perhaps someone of the mind to think that into the next time drop me a line that. are unique and let's get to interact we'll be back with more of her own comments on what's going on in and outside russia. stay on our team and take a look. at. the world live. bringing you the latest in science and technology from around the world. we've got those huge earth covered.

in india oldies available in the move go and enjoy the hotel room. the gateway

hotel the grand imperial troy the george west coast girl until you can go with her till the close of the show say don't need to go and. read this in the kernel was her job as a retreat. struggling to save the euro e.u. leaders are in brussels to how morale measures to tackle the green prices while many say with the debts academic spreading it's the very future of the single currency that is a state. meanwhile the e.u. troubles think tire aspiring states from wanting to join a serbia prepared to extradite war crime fugitive how jake to the hague and its latest attempt to become a member of the long. island investigations into the u.k.'s phone hacking scandal intensify with the more political it is coming on the scrutiny of public betting on here the case might bring down that.

very welcome seat this is the line from moscow e.u. leaders have gathered in brussels for an emergency summit on how to come up with the promise cash for a second greek bailout but the epidemic spreading with italy and spain now showing the first symptoms of serious debt a sense of impending doom fills the air marshal reports. the single currency will be big within two years warner list so that the european debt crisis there's a really cool or serious threat in. the year old boy to disintegrate. euro zone 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 start talking out of control but i could give you the analogy but they were like somebody with a gambling problem or a drinking problem the greek people are not prepared so it's a cultural thing so no 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 euro as they're not going to fit together with germany in one single your politicians the richest state's voters refused 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 that actually wants to contribute to the by lao countries like greece and italy and to contribute to the continued existence of the hero because i think it's a stupid idea to start with and it's just chucking money down the drain yet pulling the plug on those states could trigger a.