Announcement on the Launch of the Russian Direct Investment Fund

ST PETERSBURG, Russia, June 17, 2011 /PRNewswire/ --

Today at the St. Petersburg International Economic Forum Russian President Dmitry Medvedev officially announced the launch of the Russian Direct Investment Fund. The Fund's management committee has been registered, its leadership appointed and preliminary reactions from international investors have been positive.

Over the coming five years the $10 billion Russian government-backed fund will make direct investments in businesses and assets in high-growth sectors of Russia's economy. In every investment it makes, the fund is mandated to co-invest with leading institutional investors or corporates - thus acting as a catalyst for flows of direct investment, new technologies and talent into Russia.

The management company of the fund has been registered as a 100% subsidiary of state development bank Vnesheconombank (VEB).

The idea of establishing a Russian government direct investment fund was first proposed at last year's St. Petersburg International Economic Forum. At the request of the country's leadership, a delegation led by Vladimir Dmitriev, Chairman of VEB, held consultations with leading investment funds from Europe, the United States, Asia and the Middle East to listen to their views on investing in Russia and the structure of the fund.

On April 21, 2011 the Supervisory Board of VEB, chaired by Prime Minister Vladimir Putin, formally approved the creation of RDIF and appointed Kirill Dmitriev as Chief Executive Officer.

Senior management from many of the world's largest institutional investors, representing more than $2 trillion in assets under management, visited Moscow in May 2011 and met with senior officials including Prime Minister Putin to discuss the objectives and structure of the fund. The visit was unprecedented in the history of investing in Russia.

Kirill Dmitriev, Chief Executive Officer of the Russian Direct Investment Fund, said:

"The creation of the fund is the result of extensive consultations with many of the largest institutional investors globally. International investors like RDIF because it is focused on maximizing returns, because it will be managed by an experienced investment team and because it gives them an opportunity to co-invest alongside an agent of the state. For Russia, the fund will act as a catalyst for billions of dollars in new direct investment, and will spur the adoption of new technologies and international best practices in Russia."

The Russian Direct Investment Fund plans to make its first investment in the next six to nine months.