April 19 (Bloomberg) -- Vladimir Dmitriev, chairman of Russia’s state development bank VEB, comments on the country’s planned sovereign investment vehicle, the Direct Investments Fund. Dmitriev spoke to reporters in Washington, where he participated in International Monetary Fund meetings on April 16 and April 17. Russia plans to complete registration of the fund as soon as May, he said.
“Co-investors will invest 5 rubles per ruble of investments from the fund. The sectors that matter for investors are those that are understandable, where they are able to secure good returns on their investment. We expect that won’t be below 15 percent. Overall, we’re talking about 20 percent. That’s what is attractive to the investors with whom we are in talks.”
On the size of the fund:
“This year, we’re talking about $2 billion. We plan that the Russian share of the fund will be formed at $10 billion over five years.
“We have to show a pipeline of projects and only then ask for money. It makes no sense to ask for $2 billion if we only have projects for $1 billion. We presume that this $1 billion will generate $5 billion in private investments.”
On sectors of the economy that the fund will invest into:
“Agriculture, food-processing industry, pharmaceutical industry, anything that has a good potential for growth in Russia.
To contact the reporter on this story: Halia Pavliva in New York at email@example.com