let us keep cringing if skipping this medicine to say it's really convinced you might go to regency look you become scum for. now so. welcome back you're watching our genome is your live from moscow on breaking news this hour one of gadhafi sons considered by many as his father successor appears in tripoli and front of supporters despite rebel claims have been detained one of the still on the city a day information about his arrest was also confirmed by the international criminal court this has added to the confusion over who's in control of the capitalists both government and insurgent forces and says they have the upper hand. also doubts are cast over whether the rebel victory would actually leave the libyan people in control of their destiny as experts point to edge of where those who fought for the

revolution and it up with a government they didn't choose and. it's fighting in libya still rages on a western oil companies have already started circling around the violence foreign country once again sparks concern the so-called battle for the mocker seat was a war for black gold all along. well more updates on only getting conflict are coming your way in less than half an hour but first our wintry show spotlight so don't go away. it won't. bring you the latest in science technology from the realms. we've dumped the future however.

hello again you're welcome to spotlight the challenge part and i'll bring our friends today my guest in the studio is killed in the need to. have the world economic forum in st petersburg for president and he means visit a long time investment fund aimed at healing the country's economy with foreign money innovative businesses and high tech manufacturers stand among the main recipients of the promised cashflow to fulfill them precious girl the president sent to one of the iconic figures are russian best in the market to spur of the price but where will the money be coming from here is there a russian direct response from the. recently created russian direct investment club bankrolled sports projects in a couple of months a billion dollars will go towards medicine pharmacy agriculture an important place

managed to get your head of the russian central bank says much of this money will probably come from the middle east like the current still has much work ahead to make everyone believe their investments in washington d.c. . leave. home and when three a welcome to the show thank you for coming well first of all i want to call ask you what makes you or for the new fund you're having a different from other investment funds are existing in the country because. people have been investing into the russian economy for a long time i'm sure sure one of the key features is supporting best in the future so we will be able to invest any money in a need business unless there was italy's the same amount of investment coming from the leading 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 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 equities that trip what was so special about this company what was so special about the job you did there that made you fit there 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 it was 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 good ags it's so i've been lead into firms one is built 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 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 the 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 he invested in the business to over three billion right now because russian middle class grew and advertisement trade grew so it was investing zos kinds of businesses in telecom sector in other sectors that have been successful in russia and that's why the president in the mission on bank supervisory board decided to pick me for this position you have promised profitability of his investments in russia hockey. annual twenty percent but how is that possible if the growth of the russian economy is not more than ten percent is it isn't a contradiction now we believe that leaders of the russian business and leading business in russia will grow dramatically and if you look historically at how much value has been created in russia you know it was you know 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 leading segments of sons that live in businesses but will have thought principal types of investment will be in 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 and 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 very recently the russian state television channels showed an american movie pretty old movie called other people's money machine 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 growth this if you say that that leaders grow 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 will that we believe we will bring a lot 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 the how and management practice. it's us that will allow efficient businesses to prosper and be successful and i think what's very important is of competition is actually very good physicality me when businesses compete they become with fissions you because they bring more products so i think you know. it's very important to invest to build successful businesses and for a lot of businesses still strive to be as successful as businesses where people invest and you mentioned the value of your project so i knew that by september

you're writing to present a new projects which is couple of months from now what would be the value of the projects you're going to present again 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 closer to supplant bring up a job or so in the investment process typically takes five to six months so i think we will realistically be discussing was going best for us some projects in pharma industry some projects in. utility and infrastructure some projects and health care sector and we believe that by the end of the year we'll do with transactions of around five hundred million dollars but it 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 point vestment partners to analyze and really figure out so you so fishing but

pin you name as least a couple of companies that are already on your hook we can all and actually that's a good thing about private equity industry as a if was a deal is done it's impossible to talk about the potential targets because a best case it increases their valuation expectations and the worst case it just leads them to transactional being done because it's a particularly all in ones 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 introduce a new friend are you dragging some of your partners from these companies to the actual we're trying to minimize people impact and actually be very careful in selecting i would seem because a woodlands want to take in all of the people from the previous fund we also don't want to go in aggressive will hire a way for 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 sort of really offending them because we want them to be if i would call investment partners in the russian market we're also picking quite a few people was international backgrounds and we have one gentleman was fifteen year over experience and wouldn't private equity firm and the other one was ten years experience so we will not only have russian nationals will have a well rounded teams it will include international investment leaders as well you were quoted as saying a thing that the sound fairly free of foreigners you saying that the russian economy is more predictable than in 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 then then what's unpredictable that business but i think you know it's actually a great question because when people read us me person is all sorts of stories there is a basically country russia and certain way but those stories forget about some very

key statistics very fundamental things so i'll mention just a couple russian debt it's twelve percent of g.d.p. pass compared to one hundred percent a one 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 with another statistic russian middle class tripled in the last five years and if you look at household incomes of forward ten thousand year there was eleven percent of those households in two thousand and five and so with thirty percent now so very few people know and this sort of think about it is a russian middle class tripled in the last five years and the final number in the russian reserves are the third largest foreign reserves sons of the world so again

a very volatile economy with lots of changes to happen a lot of the things that happen in heaven that question of money and sexual a very safe and very positive 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 goodness you to they were one hundred bucks today three hundred so they tripled so so statistics that this thing sort of tricky maybe tricky and said i've heard that the government will be a first investor that you'll be getting ten billion us from throw from the russian state is that true and why do you need to have many u.s. . took an investment it's very important that international investors fields of that have a good partner in russia because when you 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 in china and india you could do it on

your own but probably would 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 and most reliable partners and this country and i think government is me in major initiatives to improve the investment climate and russia so providing this capital to share risk because investors not give them any given cease but be their partner and quot invest a lot is them is the basic idea behind the fund says q deal with dmitri have had to count their. direct investment spotlight would be back shows new interest and should be off though we'll take the great sales stay with. me as you know song was sixteen years old when he committed these murders that's

not to say that song so or should not be honest for his crimes so on is being punished no rational person can then i doubt sean has been punished is being honest and will be honest. as ours must be executed for the brutal crime he committed this is a punishment this is not vengeance. imagine. bandstand. causing. any mercy on your whatsoever. no i didn't come here to ask for justice. and heard the first. star of this man. ronald martin. and i that is now.

twenty years ago the largest country in the distance races first of. all if. one had been chosen. to teach began a journey. where did it take the. welcome back to support of i'm al gore not in just a reminder that my guest on the show today is cute the new people you have had are 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 upon as 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 rich partner but this is strange. you say that this attract government activity in your friend in the 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 a little less government activity in the economy so so where is the where is the limits and are there limits for for the government activities in a company but it's a very good question and as a key here's

a proper balance so for example we will not be a suppliant be able to control and sticks was a compass so well because you can small minority positions you know we would walk in positions of twenty five percent now to get the result quote investment partners would be able to have control but again it's not government having control it's ask even a minority position but together it's going best partners having a major position you would be getting billions of government money this means you would be under so-called government control person 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 the actual in called. if you 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 of being behind the pump use really to help on general terms and allow foreign investors to get those returns and

invest more down the road so it's best commercial and this return focus and it's possible was government really providing help but then the what driving all of the decisions and it's very important because we can meet it was missed the point and where investors manage and put trillion dollars for present and zest a very specific and direct question just the puts and will use of funds to promote certain sectors of the economy really do sort of government like things and he was very clear he wants a fun project or a good return and if the fund generates which return we know for sure it means girls businesses it means more employment opportunities it means innovation and with their position but it surely comes first do you think that the government's contribution to you and for me can create some people say to me why did you feel that union meetings would put in bed with the if it was to encourage the government to increase its contribution well it's very important that our business is very new

to craddick kind of business what you do with the credit wants to have anything so we either show good returns and we get more money or you don't there it's maybe more we don't trip turns and you know we cannot raise any money little to critique it in my language because this is that's one of the standards when you produce results and it's very important i think there was a sense if you 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 is this year's only two billion dollars and i think prior to this birth saying you know in the next eight billion the government will be looking at what kind of deals we're doing i was successful i would bring in. investor is it the positive story. cratty does it mean avoiding a long difficult transition it's no i think it means really be focused on projects that generate good for turns and then lead to the creation of employment and other

things but very much focused on returns because at the end of the day investor is the north like projects with hills money and the whole benefit of investments is actually uniting my knee and intelligent approach to businesses it can grow in a series of produce good profits so i think it's a win win for the companies for investors for the government if you don't want to name to your principal partners can you tell me which industries are under a list of your priorities way 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 no you can give us some examples we believe you know i grew cultures 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 at the end invested so it really is a good culture is going to be a very interesting question and today we understand it isn't a circumstance that we should have our own cucumber z.

because yes that's true and you know as agriculture prices increasing dramatically sort agribusinesses 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 are so much dependent on energy prices and for all sorts of new energy efficient technologies that produce very significant course savings so it's not venture projects it's not very scary early start this 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 massive privatization privatization is definitely coming and it

will be the largest for it was a shock and refused three russian actually and there are a number of businesses that are being pulled up for sale and that's very positive because it shows that government again wants to play a little for role in the economy a lot this will also below going to privatization projects and i think it's very important that mean international investors meaning international ponds 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 this of course are the priority industries where russia wants investment in full but. what are the what are the industries that. foreign investors themselves are interested in gosh see and that's again a very key question because we didn't define those preorders just by what russian government once we actually went to leaders or investment funds in the world and that's the 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 a first of all quite a bit of light as it has been managed for example of the drug universe plethora to manage and manage just over six hundred billion who gave 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 just offer and we believe that russia offer us. what's so interesting investment opportunity 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 fans from

american france 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 for 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 them just important and it came very energized and very much for course all 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 have taken place and the pontus 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 hear the message but the example of the day they will be happy once the dollar now and pay three dollars you know four years

from now that's basically what will make you know really happy this science growing and helping to grow russian cucumber resigned sure foreign investments and size of gas of course which is which is a special issue i'm sure of the foreign versus would like to invest in 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. key industry in russia and again 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 aged people countries in the world but the key word is we believe it's

possible to make very good returns there we're definitely going to be investing but we're not gearing keening you 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 their tree is going to trade terms of a preacher and he was an investor so yes we believe that high tech is a great market to invest and so it will be provided any guarantees we believe that investors will know it's a good sector to invest and they will be invested ok and just just to conclude it 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 the 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 cheaper but again we have coined best in with them so we believe we'll make good return and if are made with return our money doubles in with three four years if we don't make good return and will lose money we'll lose the money

and international best results a little 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 can make very good profitable investments in russia so you promise and to be for thank you thank you thank you for being with us in just a reminder that my guest today was healed had how the russian tire had invested and that's it for now from all of us if you want to have your same spot have someone in mind for you think i could into the next time you drop me a line and housing are. r.c.t. darts are unique and let's get light interact only back to the more clear don't comment on what was going on in and outside russia until then stay on target in and take it. in to.

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