Putin Praises Establishment of Pre-IPO Fund

ST. PETERSBURG, June 21 (RIA Novosti) – Russian President Vladimir Putin on Thursday praised the establishment of a consortium between the Russian Direct Investment Fund (RDIF) and a number of international investment funds to inject money into Russian companies planning IPOs.

The RDIF, BlackRock, Goldman Sachs and Templeton on Thursday signed a Memorandum of Understanding launching a program of joint investment in leading Russian companies preparing for IPOs in Moscow. The aggregate volume of assets managed by the companies exceeds $5 trillion.

“I would like to pay special attention to another decision. I am talking about the establishment of a consortium between the RDIF and a number of international investment funds,” Putin told the St. Petersburg Economic Forum.

“The consortium will invest in Russian companies planning stock placement on the merged MICEX-RTS exchange,” he told investors.

“This will certainly give a new impetus to the development of Russia’s stock market and will increase its liquidity. I believe this is a very good and timely decision,” Putin said. “We will promote Russian companies’ placement, including IPOs, on the Russian stock exchange.”

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