Russian Direct Investment Fund CEO Kirill Dmitriev makes case for investing in Russia
Sochi, 16 September 2011 – Speaking at the Sochi International Investment Forum today, Chief Executive Officer of the Russian Direct Investment Fund (RDIF) Kirill Dmitriev outlined the case for investing in Russia and the role that RDIF will play as a catalyst for long-term investments into the country's growing economy. Mr. Dmitriev delivered his remarks at the plenary session of the Forum chaired by Russian Prime Minster Vladimir Putin.
In a world where most sovereign balance sheets are heavily indebted and growth in other developed economies has stalled, Russia stands out for its strong macroeconomic fundamentals and consistently high growth rates. Mr. Dmitriev said:
“The global economic system is facing a number of serious problems, most prominently high debt burdens and the inability of countries to grow their economies. In this context Russia, the sixth-largest economy in the world by purchasing power parity, has a number of distinct advantages: international reserves are the third-highest in the world; the ratio of government debt to GDP stands at only 9%, the lowest of any major economy globally; in the last five years the size of the middle class has tripled; and household incomes and consumer spending are higher than the other BRICS countries.”
Russia's economy is expected to grow 4-5% this year, according to various estimates. In order to accelerate that growth, Mr. Dmitriev said, the country needs to stimulate additional long-term investment that will drive improvements in the efficiency of its economy. RDIF is ideally positioned to act as a catalyst for those type of investments. Mr Dmitriev said:
“Long-term investment will lead to more competitive companies, create new jobs and help modernize technology. RDIF, as an investor and a facilitator of investments from leading international private equity and soveriegn wealth funds, is well-placed to spur this investment.”
Concluding his remarks, Mr. Dmitriev said:
“RDIF has already begun evaluating a pipeline of 20 potential transactions and, as of today, appointed an International Advisory Board consisting of the leaders of the most respected private equity and soveriegn wealth funds globally. All of the International Advisory Board members have noted the tremendous investment potential of Russia and the crucial role RDIF will play in encouraging more investment.”
About the Russian Direct Investment Fund (RDIF)
The Russian Direct Investment Fund was established in June 2011. RDIF will be capitalized with approximately USD 10 billion in Russian government funds over the next five years and is charged with making equity investments that generate strong returns, primarily in Russia. In each investment it makes, RDIF is required to secure co-investment that at minimum matches its commitment, thus acting as a catalyst for direct investment into the Russian economy. Additional information is available at www.rdif.ru.