Russia to Move $10 Billion Wealth Fund Out of Sanctions' Reach
By Jason Corcoran and Daniele Lepido Sep 1, 2014 9:57 AM ET
Russia is preparing to transfer the ownership of a $10 billion sovereign wealth fund to the central bank from a sanctioned state-development lender, according to two people with knowledge of the plan.
Russian Direct Investment Fund’s co-investors, which include sovereign funds in Europe and Asia, are concerned that sanctions may affect their investments in Russia if the state lender controls the assets, according to one of the people, who asked not to be identified because the information is private.
The fund, created in 2011 to stimulate investments in privately held businesses and wean the state off its dependence on commodities, has secured the backing of funds including France’s Caisse des Depots et Consignations and Japan Bank for International Cooperation and last year hired Goldman Sachs Group Inc. (GS) as an adviser. Penalties over Ukraine have led Russia to invest in state-owned lenders VTB Group and Russian Agricultural Bank, whose access to international funds has been curbed, and the measures may also impede co-investors from dealing with RDIF.
RDIF said a decision on the transfer to the central bank has “not been made,” according to an e-mailed statement. A discussion about “possible separation” started two years ago, the fund also said.
The central bank’s press service in Moscow didn’t respond to calls and an e-mailed request for comment. Ekaterina Grishkovets, a spokeswoman for Vnesheconombank, the state development bank known as VEB, didn’t answer calls or an e-mail seeking comment.
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http://www.bloomberg.com/news/2014-09-01/russia-said-to-plan-sovereign-fund-move-over-sanctions.html
