murder of russian journalist. and in the u.s. all charges are dropped against former international monetary fund chief dominique strauss kahn who had been accused of sexually assaulting a hotel maid. more headlines coming your way in less than half an hour but first our interview show spotlight here with r t don't go away. hello again you're welcome to spotlight the show on heart. today my guest in the studio is key to hear how the world economic forum in st petersburg president leaked e-mails a visit launched 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 cash flow to fulfill them vicious go the president sent one of the iconic figures of the best in the market to spearhead the project but where will the money be coming from here is the head of the russian direct investment fund. recently created russian direct investment plan bankrolled spross projects in a couple of months half a billion dollars will go towards medicine 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 at hand to make everyone believe their investment question you see. here 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 different from other

investment fund that are existing in the country because people have been investing into russian economy for a long time 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 bust month 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 pair 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 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 in this i can private equity and we've really been very successful in making investments in financial service sector in the just service sector in the sector 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 zones kinds of businesses in telecom sector in other sectors that have been successful in russia and that's why the president and the. bank supervisory board decided to pick me for this position you have 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 lead in business in russia will grow dramatically and if you look historically how much value has been created in russia in that it will see. 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 and private businesses that 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 growth this if you say that that leaders grow like more than twenty percent. and you want 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 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 physique on a minute 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 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 mation 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 supply and bring 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 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 is done it's impossible to talk about the potential targets because of best case it increases their valuation expectations and worst case it just leads to the transactional being done because typically all in the 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 today to these new friend are you dragging as some of the partners from these companies through that you've actually are trying to minimize people impact and actually we have very careful in selecting i would seem because a would want to take in all of the people from my previous fund we also don't want to go in the grass of a higher wait till 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 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 even private backwards or 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 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 to do well is well i think you know it's actually a great question because when people refuse to be a person's 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 death 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 in two thousand and five it's over thirty percent now so very few people know in this sort of think about a russian middle class tripled in the last five years and the final number for you in the russian reserves the third largest foreign reserves sons of the world so again in the very volatile economy when lots of changes to happen a lot of things that 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 use so so 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. for investments it's very important that international investors feels as a have a good partner in russia because when we traveled to the lead in the best person in the world they said yes we believe in russia it's possible to generate good trade so for turn but to do that we need to partner justice for example if you are investing 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 from russia so providing this capital to share risk is investors not give them any guarantees but be their partner and core invest along because there is a basic idea behind the fund says q deal with dimitri you have had the russian

direct investment spotlight would be back to us we will continue this interview after we take a break so stay with. hungry for the full story we've got it from. the biggest issues get a human voice ceased to face with the news makers. team was. where the gold rush still gets people like stop. this time margi goes to cure old rich. where the local government is giving power back to the people. where everyone will be. more local has turned their life into

a cursed paradise well come. close up on our. download the official anti allocation. i pod touch from the i.q. exams to. enjoy life on the go. video on demand. my gold color. an r.s.s. feeds now in the palm of your. question on the dot com. welcome back to spotlight i'm al gore knob and just to remind you that my guest on the show today is killed the myth that he and head of the russian direct investment fund we're talking about this new fund about about getting money to invest into

russian economy how hard is it well the easiest part of your job i guess is to get those those couple of billion dollars from the russian government you said an interesting thing just 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 a truck government activity in your friend in economy here is a true. active 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 says so where's the where's the limits and obvious limits for

for the government activities in economy but it's a very good question and as a key is a proper balance so for example we will all be a a font be able to take control and stakes was a company's 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 having control it's us having a minority position but to get us going vestment partners given the major position you will be getting you believe in the government many of this means you'll be under total government control he purged well yes and no because governance this very 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

allow foreign investors to get those good returns and invest more down the road so it's less 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 porson will use a fund to promote certain sectors of the economy to really do sort of government life things and he was very clear he wants a fund to generate good return. and it was a fun generated culture churn we know for sure it means girls businesses it means more employment opportunities it means innovation and there is a shift but your church comes first do you think that the government's come to be sure 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 this contradiction 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 do things so we either show good returns and we get more money or you have merits maybe out of the war with returns and you know we cannot raise any money never to crack ticket in my language is sydney is that you know the students we need to produce results and it's very important i think there is a sense if you produce results if it produces good returns that. can be managed and even now you know it's a ten billion dollar commitment the first portion we get in this year is only two billion dollars and i think prior to this birth saying you know in the next eight billion the government will block in what kind of deals we're doing i was successful i would bring in a good investor is at the positive story being cranky does it mean avoiding the long difficult projects no i think it means really being focused on projects

that generate good for turns and then lead to creation of employment and other things but very much focused on returns because examples of day investors do not like projects where 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 your possible partners can you tell me which industries are on the list of priorities way you going to wear. are you going to. put the money you get that i guess now not only in the oil and gas production there's no you don't 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 invested so really 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. that's true and that you know agriculture prices increasing dramatically so agribusiness is very important health care again health care can be much more efficient and can be improved dramatically with investments i was proper and the how energy efficiency we all know that we have so much dependent on energy prices and there are all sorts of new energy efficient technologies that produce very significant cost savings so it's not venture projects it's not very risky early start or early stage projects so there's a project where we can see sort of predictable cash flow and such as energy efficiency it will produce good results but also good for the country it just crossed my mind the creation of fewer front. trying to track more new or foreign investors promising good returns doesn't mean russia is looking at a new wave of massive privatization well privatization is definitely 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 below kind of privatization projects and i think it's very important that the main international investors main international funds are competing to participate in those projects because of the price goes up and that's good for the government you mentioned agriculture you mentioned health care and this of course that's a priority. trees 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 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 life as it has been managed in 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 offer of 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 going to his recent speeches 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 that had a very positive meeting with mr porter and they came very and there just and very much focused on specific sectors following that meeting so i think it was very him . porton 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 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 russia and keep computers 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 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 the key industry in russia and the young the i.p.o. which was one of the largest why it was successful high tech i.p.o. shows there is major promise in russia major promise in russia because very talented very sophisticated programmers and people russia is one of the most

educated countries in the world with the keyboard is we believe it's possible to make very good returns they're definitely going to be investing but we're not giving keen 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're sharing that risk and the trick turns at the part to interviews as investors so yes we believe that high tech is a great market to invest and it 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 are also that hundred percent of these to make investments coming through your fund from abroad will be guaranteed by the russian government is that true you know there are a lot bigger into it again we are coin vested with them so we believe we'll make good return and if i'm

a good return on mine it doubles in three four years if we don't make good return on the loose money we'll lose the money an international master sold photos of money but all this little do everything in our power and reputation 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 you that my guest today was killed let me put the head of the russian direct in the face and that's it for now from all of us if you want to have your say spot or have someone in mind for you think i might get into the next time you drop me a line and how they're not. on t.v. and let's keep spotlights interact we'll be back with more don't comment on what's going on in and outside russia until then stay on our t.v.

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breaking news from libya rebel forces have entered the compound of moammar gadhafi in tripoli the opposition claims to be in control of most of the gap at all however the whereabouts of the libyan leader remain unknown meanwhile gadhafi addressed the nation the old radio and says leaving his compound was a tactical move at present some rebels are on the square from where he used to give speeches. the u.n. steps up pressure on syria ordering an investigation into possible rights violations during the crackdown on anti-government protests and police arrest a man suspected of masterminding the murder of a russian journalist. and all charges are dropped against former international monetary fund chief dominique strauss kahn who had been accused of sexually assaulting a hotel maid. we will be.