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tv   [untitled]    August 23, 2011 1:31am-2:01am EDT

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around the violence torn country once again sparks concern the so-called battle for democracy was a war for black gold all along. well more updates on the even conflict are coming your way in less than half an hour but first our interviews show spotlight so don't go away. well let's. bring you the latest in science technology from around the world. we've got the future covered. hello again you're walking to spotlight the challenge part. today my guest in the
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studio is killed in the media at the world economic forum in st petersburg president dmitry means a visit along an investment fund aimed at healing the country's economy with borrowed money innovative businesses and high tech manufacturers stand among the main recipients of the promised cashflow to fulfill them vicious gold the president sent one of the iconic figures are rushing to best buy the market to spur the profit but where will the money be coming from here is the head of the russian direct investment fund killed in the. recently created russian direct investment plan bankroll its first project in a couple of months a billion dollars will go towards medicine and pharmacy agriculture an important place and 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 investment question will be so. leave.
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must admit their welcome to the show thank you for coming well first of all i want to ask you what makes your front the new front you're heading different from other investment funds 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 future so we will be able to invest any money in any 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 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 true what was so special about this company what was so special about the job you did there
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that made you fit and for the need and 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 it'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 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
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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 promise profitability of the investments in russia up to. annual twenty percent but how is that possible if the growth of the russian economy is no more than ten percent is it isn't it a contradiction now 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 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 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
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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 shoot 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 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
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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 be know how in management practice. so 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 physique on a meet 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 still 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
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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 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 with 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 that we can all that 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
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a best case it increases their valuation expectations and it's worst case it just leads to the transaction will be undone because typically we're all in the ones that 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 add to this new friend are you dragging as some of the partners from these companies through the actual we're trying to minimize people impact and actually a very careful in selecting would seem because a would want to take in all of the people from previous fund we also don't want to go in aggressive a higher way people from all of the lead in fonts 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 was good queen vestment partners in the russian market we also became quite
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a few people was international backgrounds and we have one gentleman was fifteen year over experience and in private backwards a 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 the 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 there was this 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 betray 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 one hundred percent almost hundred percent in the united states and
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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 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 this at 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
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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 that have a good partner in russia because when we have traveled to the lead investors 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 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 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
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initiatives to improve investment climates and russia so providing this capital to share risk is investors not give them any guarantees but be their partner and core invest a long was them is a basic idea behind the fund says keeley dimitri you have had their. direct investment spotlight would be back shortly we'll continue this interview off the would take to great stay with first. 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 song is being honest no rational person in the ny that saw has been punished is being honest and will be punished. by sours must be executed for the brutal crime he committed this is
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a punishment this is not. a mention. that it's to do. because he's. been immersed know me whatsoever. how i didn't come here just for justice. and heard the rumors. as congressman. trial martin. and my that is now.
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twenty years ago the largest country in the world to certain diseases of. what had been chained men to ditch began to jerk. where did it take them. welcome back to spotlight i'm al gore knob and 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
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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 little 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 there's a proper balance so for example we will all be a font be able to take control and stakes as a company is so we'll be taking small minority positions you know maybe
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a block in positions of twenty five percent now together was all quite investment partners would be able to have control but again it's not government having control it's us having a minority position but the guy was calling us from partners here in the major position you will be getting the billions of government money this means you'll be under total government control you well. yes and no because governance a story important so we will have a supervisory board which will be you know a kid 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 the what driving all of the decisions and it's very important because we
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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 good return and it was a fun generates churn will for sure it means girls businesses it means more employment opportunities it means innovation and with their musicians but your 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 there it may be more with turns
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and you know we cannot raise any money in order to crack ticket in my language is city code is that you know the demands 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 low mining can be managed and even now you know it's a ten billion dollars committed. and 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 be looking 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 long difficult projects no i think it means really being focused on projects that join the raid which returns and then leads to creation of employment and other things but very much focused on returns because it's end of the day investors do not like projects was it was money and the whole benefit of investments is actually uniting
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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 priorities way you got it where are you going to. put the money you get that i guess now not only in the with the 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 that the on the investment so really that agriculture is going to be very interesting today we understand it's a circumstance that we should have our own keep is not exactly yes that's true and that you know agriculture 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 propane vast months i was proper in the how energy
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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 stages. objects 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 track more and were foreign investors promising good returns doesn't 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 that government again wants to play a lesson for all in the economy and obviously we will also below kind of
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privatization projects and i think it's very important that many international investors main international 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 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 mentions the necessity of the tracting the arab capital the capital from arab
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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 live as it is being managed for example of would be investment authority manage to manage just over six hundred billion. in kuwait 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 a lot of interesting investment opportunities to arab investors but they would 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 promise that he will be protecting foreign investors i think he even said personally taking care of foreign investors is it
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enough to convince foreigners that their money in your hands are safe well i think once again they 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 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 event 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'm sure for an investment in size zero and gas of course
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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 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 that's i.p.o. which was one of the largest noise most successful high tech i.p.o. shows there is major promise in russia major promise in russia because very telling to very sophisticated programmers and people russia is one of the most educated countries in the world with a 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
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good and we're sharing that risk and the trichomes at the printer interviews as investors so yes we believe that high tech is a great market to invest and that will 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 guaranteed by the russian government is that true you know there are a lot bigger into it 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 four years if we don't make good return and will lose money we'll lose the money an international vessel solo's of 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
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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 he'll probably had. probably russian direct investment and that's it for now from all of us here if you want to have your say spot or have someone in mind for you think i could interview next time you drop me a line and i'll bring up. our leave and let's get interactive who will be back with more of her own comments on the what's going on in and outside russia until then stay on our team and take care. of.
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breaking news on r t one of good obvious songs considered by many as his father's successor appears in tripoli in front of supporters despite claims to have been detained when they stormed a city a day ago it's added to the confusion over who is in control of the capital as both government and insurgent forces says they have the upper hand. also doubts are cast over whether a rebel victory would actually leave them leaving people in control of their destiny as experts point to egypt where those who fought for the revolution ended up with a government they didn't choose and. even before the fate of tripoli is sealed stick great gravity is already beginning with the oil companies start circling around the violence torn country concerns resurface the so-called battle for democracy was of war for blab gold all along.

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