recently tweeted russian direct investment fund will bankroll its first project in a couple of months how five billion dollars will go towards medicine and pharmacy tech culture an important placement the 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 main thing of welcome to the show thank you for coming well the first of all i want to ask you what makes you or for the new fund you're having 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 core 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 the 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 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 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 and i can private equity and we've really been very successful in making investments in financial services sector in me just service sector in the sector since the economy so i'll give you an example when i was a delta we invested in. 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 the value grew from fifty million when we invested in the business to over three billion right now because russian middle class grew and advertisement trade 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 promise profitability of business investments in russia 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 who've 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 life 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 bet recently the russian state television channels showed another could movie pretty old movie called of the people's money they should for a couple of times and this is this is like a pretty iconic movie phone for. for the united states it's about it's about

investing 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 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 will that 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 bring know how and 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 a very good physical enemy 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. you know we have to be very realistic we just basically finished for me as a management company on june first and we in the process of hiring key people and will be able to hire them close at the 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 healthcare 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 was going vestment 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 is done it's impossible to talk about the potential targets because a best case increases their valuation expectations and the worst case it just leads to the transaction will be undone because typically we're all in the ones 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 today to these new friend are you dragging as some of the partners from these companies through that you've actually we're trying to minimize people impact and actually be a very careful in selecting i would seem because a would want to take in all of the people from a previous fund we also don't want to go in aggressive

a higher way 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 sort of really offending them because we want them to be in. 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 equity 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 but of foreigners you saying that the russian economy is more predictable than 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 odd predictable that it was 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 trade a russian 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. 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 it was incomes of forward ten thousand a year there was eleven percent of those households in two thousand and five it's over thirty percent now so very few people know in this sort of think about says that 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 with lots of changes to happen in lots of things to happen in heaven that question of money is actually a very safe and very. positive thing to how 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 triple to say so so statistics that says 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 as if 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 traits

of return but to do that we need to partner justice for example if you invest in in china or in india you could do it on your own but probably would be a good idea to get a local partner so you mean that the government is the only real reliable partner in this country well i think government is one of the key and most reliable partners in this country and i think government is making major initiatives to improve investment climate some russia so providing this capital to share risk is investors not give them any guarantees but be their partner and core invest along is there is a basic idea behind the fund says q deal with dmitri have had their russian direct investment spotlight would be vacuously will continue to simply be till we take the break so stay with them.

sure is that so much of it. i mean was it ever really a game in the campfire as the phone hacking scandal in the u.k. and also more victims and politicians look for cover all eyes are on the future.

welcome back to spotlight i'm al gore knob 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 were talking about this new fund about about getting money to invest into russian economy how hard 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 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 less government activity in the economy so says so where's the where's the limits and obvious limits for for the government activities in the economy and i think it's a very good question and as a key is appropriate balance so for example we will all be a a font be able to take control and stakes was a companies so will be taken small minority positions you know maybe a block in positions of twenty five percent now together was al queda vestment partners would be able to have control but again it's not government given control it's us having the minority position but to get us going vestment partners given the major position you would be getting to believe in the government many of this means you'll be under total government control. well yes and no because governance

this very important so we will have a supervisory board which will be you know we can 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 focus entity is 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 two trillion dollars for the present and zest a very specific and direct question this to put on will the use of funds to promote certain sectors of the economy to really do sort of government life things and he

was very clear it was a fund to generate a 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 what your church comes first do you think that the. governments come to be to you and make concrete 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 do with the credit wants to have to do things so we either show good returns and we get more money or you have merits marietta more we don't show which returns and you know we cannot raise any money there to crack ticket in my language is silly is that you know the demands we need to produce results and it's very important i think there was a sense it could produce results if it produces good returns than. 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 the next eight billion the government will be looking what kind of deals we're doing i was successful i would bring in a good investor is a positive story being cranky does it mean avoiding the long difficult projects no i think it means really being focused on projects to join the regular turns and then lead 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 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 your possible partners 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 just told you give us some examples we believe you know agriculture is really a great sector and russia is a grade. place for agriculture and you know has lots of agricultural businesses that are growing dramatically but that the on the invested so believe that agriculture is going to be very interesting to see today we understand it's in a circumstance that we should have our own cucumber is not exactly yes that's true and that you know agricultural 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 and 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 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 the 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 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 be looking at previous ization 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 are the priority

industries where russia wants investment to flow but. what are the what are the industries that. foreign investors the. selves 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 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 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 to live as it is being managed for example of would be investment authority

manage to manage just over six hundred billion create investment office managers over two hundred fifty billion and we'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 american funds is actually good for the russian economy in the one of his speeches one of his 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 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 poets 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 they can place and define 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 reach a dollar now and take 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 kid computers i'm sure for an investment and besides all that 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 again the i.p.o. which was one of the largest why it was successful high tech i.p.o. shows of 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 they're definitely going to be investing but we're not guaranteeing anything it's very important we share risks we're putting our money in projects we believe return is going to be good and we assuring that trees can that returns at the producer 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 viewers of us and that one hundred percent of these the investments coming through your fund from abroad will be. aren t. by the russian government is not true you know there are a lot bigger again we are quite invested with them so we believe we'll make good return and if i'm a good return on mine it doubles in three or four years if we don't make good return on the loose money will lose their money and international best result follows the money but all of us 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 promises to be fun thank you very much like to thank you for being with us and just to remind you that my guest today was killed me please had

probably russian direct in the past and that's it for now from all of us if you want to have your same spot or have someone in mind when you think i might get into the next time you drop me a line how they're not. on t.v. and let's keep spotlights interact we'll be back with more of her own comments on what's going on in and outside russia until then stay on our t.v. and take. pictures you're going to. work. with the penitentiary system transformer criminal into a law abiding citizen. prisoner slice behind bars on our.

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a human voice face to face with the news makers. european leaders hammer out a deal on a second bailout for greece worth one hundred nine billion euros at a french summit in a desperate bid to save the single currency private lenders will also be contributing for the first time to a state's rescue to the tune of thirty seven billion while the use of emergency funds for debt stricken nations will be increased. e.u. troubles however are a deterring other nations from seeking to join the group like serbia as it prepares to extradite its last war crimes suspect gore and his capture has been the final division for the opening of e.u. membership talks with e.u. but there is skepticism among some serbs that brussels won't shift the goalposts again. and fear over phone tapping continues unabated britain

engulfing the highest echelons of power in the country odds are shortening on prime minister david cameron becoming a casualty himself of the crisis due to links and friendships but murdoch's media empire executives who've been arrested. six am in moscow i met très a good to have you with us here on r t our top story the fate of the euro teetering on the edge of a knife e.u. leaders have hammered out a deal on a second bailout for greece that they hope will save the single currency private lenders will be contributing for the first time to a state's rescue well the emergency fund for debt stricken nations will be increased economic journalist patrick young though says it's far from the end of the crisis. but i think it's going to prolong the agony unfortunately

a load more money has been thrown at the greek economy in the hope that that can stop the contagion but really a lot of it just looks like hype and i'm very very concerned that we haven't actually find a cure we've just got another sticking plaster you know what really the european union are trying to do here is they're trying to staunch the blood that's flowing the money that's flowing out of the greek economy that can has been kicked down the road the danger of contagion still leaking to other countries such as ireland portugal even italy and spain are there and therefore we don't have a cure but what we've seen so far unfortunately looks like hollow words and hollow words do not inspire confidence in markets and that has got to be some degree of a problem for the euro in the longer term the sense of impending doom has been felt among european economists and politicians for some time with the continuing crisis surrounding the euro and death stricken nations that is daniel bushell looks at the latest to see.