Russia plans $10 bln fund to modernize economy

Russia plans to create a $10 billion direct investment fund with foreign participation to invest in hi-tech and modernization projects, Kommersant business daily said on Tuesday.

It quoted Economic Development Minister Elvira Nabiullina as saying that the government would contribute $1 billion to the fund in 2011 and its capitalization would increase to $10 billion in 2015-2016.

The fund will be managed by state-owned Vnesheconombank.

Other parameters of the fund – the level of its profitability, its investment declaration, structure, terms of operation and foreign participation in it – are yet to be determined.

Nabiullina said the fund would be financed from additional budget revenues this year, although additional revenues coming from sales of oil and gas cover budget deficit, while non-energy surplus revenues are used for social spending.

She said the fund was to be presented to its foreign partners by June 1, the date of the St. Petersburg Economic Forum. It will not start investment before 2012.

MOSCOW, March 22 (RIA Novosti)

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