The Russian government should ditch its sovereign fund, which it is creating to lure foreign direct investment, in seven to eight years, President Dmitry Medvedev said on Wednesday.
"The state must not take part in the management of such a fund and must necessarily guarantee withdrawal from the company's capital in about seven or eight years... The fund will be managed by a team of investment market professionals," Medvedev said.
The fund's managing company will be assigned the task of ensuring an inflow of new investment at least five times the size of the fund, he said.
"This is an ambitious goal but I believe it is realistic, considering the scope of our economy," Medvedev said.
Russian authorities plan to create a direct investment fund with foreign participation to invest in hi-tech and modernization projects. The fund will be managed by state-owned Vnesheconombank.
The fund parameters including the level of its profitability, structure, terms of foreign participation and its size are currently under discussion.
Russia's Economic Development Ministry has suggested creating a $10-billion fund, whereas the Finance Ministry is prepared to allocate only $1 billion, but agrees to enlarge the fund gradually, using surplus budget revenues.
The fund will be presented to its foreign partners by June 1, the date of the St. Petersburg Economic Forum. It will not start investment before 2012.
MAGNITOGORSK, Russia, March 30 (RIA Novosti)
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