By Andrei Skvarsky.
The Russian Direct Investment Fund (RDIF), a state-backed institution with the mission of supporting Russia’s private equity sector by co-investing with foreign companies, will continue to receive money from the state so it can achieve its capitalisation target of $10bn, President Vladimir Putin promised last week.
The state budget for the next three years makes provision for transfers to the RDIF, Putin told the Russia Calling! annual investment forum in Moscow hosted by VTB Capital, the investment arm of VTB, one of Russia’s largest banks and one of the Russian companies that are under Ukraine-related Western sanctions.
“I want to stress that the RDIF must attain its planned level of capitalisation, which would enable the fund to extend its project line,” Putin said in a speech in which he drew an upbeat picture of the Russian economy and played down the effects of the “stupid” Western sanctions, arguing they would, in fact, serve to boost domestic business.
Putin also said the state would put “at least” 30bn rubles ($751m) into Vnesheconombank (VEB), a state-owned development lender and one more entity on the Western sanctions list. The money would start arriving this year, the president said.