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 killed in the need to hear how the world economic forum in st petersburg president need the midfield to launch an investment fund aimed at fueling the country's economy with foreign money innovative businesses and high tech manufacturers stand among the main recipients of the promised contract to fulfill them vicious gold the president sent one of the iconic figures are dressed in the best in the market to spur the project but where will the money be coming from

here's the head of the russian direct investment fund killed in the. recently created russian direct investment plan will bankroll its first project in a couple of months off a billion dollars will go towards madison pharmacy agriculture 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 at hand to make everyone believe their investment i sure will be so. welcome to the show thank you for coming well 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 sure sure one of the key features is a question of us from the future so we will be able to invest any money in any business unless there is at least the same amount of going best 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 think 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 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 one of the you know small media companies of that time called c g c media which is now one of the largest entertainment empires in russia and the value grew from fifty million when he invested in the business to over three billion right now because russian middle class grew an advertisement trade grew so it was invested in those 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 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 in how much value has been created in russia you know it was a. 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 our i don't know if this is somehow has something to do with your appointment but recently the russian state television channels showed an american movie pretty old movie called

other people's money they should for a couple of times and this is this is like the iconic movie for the united states it's about it's about investing well speaking about average growth this if you say that that leaders grow like more than twenty percent. and you 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 with it 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 be know how in 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 very good physically on i mean when businesses compete they become more efficiency because they bring more products so i think you know. it's very important to invest

to build successful businesses and for lots of businesses to. strive to be as successful as businesses where people invest and you mentioned the value of your project so i know that by september you're planning to present a new projects which is couple of months from now what will be the value of the projects you're going to present its 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 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 health care sector and we believe that by example of the year we'll do transactions over around five hundred million

dollars but that is by the employees a 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 that we can all out and actually that's a good thing about private equity industry as before the deal is done it's impossible to talk about the potential targets because a best case increases their valuation expectations and it's worst case it just leads to the transaction will be undone because typically we're all in and swan's the transaction is finished rolls of paper signed and that's very important to look at of 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 the give and actually we're trying to minimize people impact and actually be a very careful in selecting 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 legion funds in russia so we've been actually quite successful in being very gentle in picking some key people from different firms was sort of really offending them because we wanted them to be if was good queen vestment partners in the russian market we also became quite a few people was international backgrounds and we have one gentleman was fifteen year over experience and in private equity firm and the other one was ten years experience so we will not only have russian nationals we'll have a well rounded teams that will include international investment leaders as well you were quoted as saying a thing that may sound funny for foreigners you saying that the russian economy is more predictable than in most of the countries what makes you think so and what are the arguments because i'm sure that most of our viewers would say that if russian

economy is predictable that 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 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 was incomes of forward ten thousand a year the was eleven percent of those households in two selves 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 when lots of changes are happening lots of things that happen in heaven that question of money is actually a very safe and very positive thing to have so i think on balance in a very volatile world if you look at the numbers if you look at statistics they actually speak pretty well about russia well my family's savings have tripled in the last year or two they were one hundred bucks today three hundred so they triple 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. investment it's very important international investors feels of that have a good partner in russia because when we have traveled to the lead in the best

person in the world they said yes we believe in russia it's possible to generate good trades 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 really 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 climates and russia so provide in this capital to share risk as investors not give them any gearing cheese but be their partner and core invest a long was there is a basic idea behind the fund says q deal with dimitri. we have had the russian direct investment the spotlight will be back shows we will continue this interview so we'll take a break so stay with. hungary

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stereotypes free. download free broadcast videos for your media projects a free video down to r.t. dot com. would be so much brighter if you remove the song from steve kruschen. style totty dot com. 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 is it well the easiest part of your job i guess is to get those those couple of billion dollars from the russian government you said an interesting thing just with before we took a pause you said that when the government becomes a partner in russia this attracts foreign investors because the part of the government is a reliable and a rich part but this is strange. you say that this attract government activity in your friend an economy here is attractive for foreigners but on the other hand they used to say the russian government has to act. of an economy the russian government doesn't let us do for 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 ave 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 of the companies so we'll be taking 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 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 keep 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 a 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 less commercial and this return focused entity is possible with the government really providing help but know what driving all of the decisions and it's very important because we had a big meeting with mr putin where investors manage and put trillion dollars for the present and zest a very specific and direct question this deposits and we'll use of funds 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 there is a fund generates churn will for sure it means girls businesses it. more employment opportunities in his innovation and within his asian but your church comes first do you think that the government's come to be to you and make concrete some people see

will be 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 need it to khorat it wants to have to do things so we either show good returns and we get more money or you have merits maybe out of more we don't show which returns and you know we cannot raise any money in order 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 if you 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 block and 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 join the regular trip turns and then lead to creation of employment and other things but very much focused on returns because event of the day investors do not like projects where there 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 gun and where are you going to. put the money you get that i guess now not only in. when gas production is the old you give us some examples we believe you know agriculture is really a 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 invest it 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 isn't exactly yes that's true and 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 we sprawl pretty vast months i was proper and know how energy efficiency we all know that we have so much dependent on energy prices under 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 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 below can improve its ization projects and i think it's very important that may need international investors meaning for national funds are competing to participate in those projects because as a 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 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 attracting 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 is being managed for example of would be investment authority to manage and 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 going to 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 for investors is it 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 to 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 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 science 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 they foreign investors would like to invest into aggression 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 young dicks i.p.o.

which was one of the largest noise most successful high tech i.p.o. shows as 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 a keyboard as we believe it's possible to make very good returns they're definitely going to be investing but we're not going to seen 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 that returns at the preacher interviews as investors so yes we believe that the 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 thing. the viewers also know 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 and cheap again we are quite invested with them so we believe we'll make a good return and if i'm a good return i'll mine it doubles in three or four years if we don't make good return on the last minute we'll lose the 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 thank you thank you for being with us and just to remind you that my guest today was killed me had probably russian direct in the face and that's it for now from all of us if you want to have your say so or have someone in mind when you think i might get into the next time you drop me a line and held it up. on t.v.

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and broadcasting live direct from the heart of moscow this is r t with breaking news from the libya let's get right to the rebel forces have entered the compound of moammar gadhafi in tripoli the opposition claims to be in control of most of the capital however the whereabouts of the libyan leader remain unknown meanwhile gadhafi addressed the nation via radio and says he's a leaving the compound was a tactical move at present some bubbles on that very square from where he used to give his speeches. and the u.n. stepped up pressure on syria ordering an investigation into possible rights violations and during the crackdown on anti-government protests. police arrested a man suspected of masterminding the murder of renowned russian journalist on our quiz.