17:07 GMT28 January 2020
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    Russia's Medvedev to decide on sovereign fund to modernize economy - paper

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    Russian President Dmitry Medvedev will decide on Monday on the size of a special sovereign direct investment fund for foreign investors willing to help Russia modernize its economy, the Vedomosti business daily reported, quoting an official from the presidential administration.

    Russian President Dmitry Medvedev will decide on Monday on the size of a special sovereign direct investment fund for foreign investors willing to help Russia modernize its economy, the Vedomosti business daily reported, quoting an official from the presidential administration.

    Russia's Economic Development Ministry has suggested setting aside $10 billion for the fund, whereas the Finance Ministry is prepared to allocate just $1 billion, with gradual additions from surplus budget revenues, the official told the paper.

    The fund's structure has not yet been determined and available options envisage the fund's operation as a joint stock company or a closed-end unit investment fund and the participation of international development institutions in its capital.

    Kremlin and Finance Ministry officials support the idea of the fund's operation under the auspices of Russia's national development bank Vnesheconombank (VEB), which has relevant experience, the paper said.

    Vnesheconombank head Vladimir Dmitriyev has said that the fund could participate in projects not only in Russia, but also in former Soviet republics, adding that the ratio of contributions by the Russian fund and co-investors should at least be one to five.

    Stanislav Voskresensky, deputy economic development minister, was quoted by Vedomosti as saying that the fund could invest only in Russian projects and should be fully controlled by the government.

    MOSCOW, March 21 (RIA Novosti)

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