Russia’s Direct Investment Fund To Lure Investors?
At a meeting at the end of May, Vladimir Putin shook off his tough man image and embraced his inner businessman, in an attempt to promote the benefits of investing in Russia, a job usually reserved for i-pad touting ‘reformer’ Dmitry Medvedev. The lodestar of his efforts: the new $10 billion state-backed Russia Direct Investment Fund, designed to enliven the interest of suspicious foreign investors by yoking them to the Kremlin for protection. Reuters has a in-depth analysis of whether the Prime Minister’s efforts will pay off:
Experts say the fund, with its inbuilt political insurance, is designed to meet their needs. “It’s a very innovative and creative way to tap into long-term investors,” said Ashby Monk, co-director of Oxford University’s analytical Sovereign Wealth Fund Project. “If I were looking for a partner for private equity investments in Russia, the Kremlin would be top of my list.”