Investment Breakthrough: Infrastructure and Technology of the Future
KEY CONCLUSIONS
The tools needed for an investment breakthrough in Russia have been created
“Today, the RDIF is a unique tool for making an investment breakthrough in infrastructure and technology. <...> We believe the co-investment model that we are proposing is a golden key to investment in infrastructure.” – Kirill Dmitriev, Chief Executive Officer, Russian Direct Investment Fund (RDIF)
“Thirty-five per cent of people surveyed in this hall believe that a breakthrough for the Russian economy is not evident. <...> Almost 50% believe that such a breakthrough is possible, but now is the time when everything depends on the work of companies and development institutions.” – Evelina Zakamskaya, Anchor, Russia 24
The priority areas for investment are innovation and infrastructure
“The priorities are infrastructure, accounting for 40%, and technology, accounting for 25%. Our approach to everything is very systemic. With regards technology, for example, we have built seven partnerships with the world’s leading countries. This enables us to look at technology in Russia, and immediately be able to say whether it is a globally competitive product or not.” – Kirill Dmitriev
“We have become leaders in the genetically engineered insulin market, and plan to become the leader in the entire diabetes market in the next few years. This will provide an enormous opportunity to make all medications, treatments, and diagnoses of diabetes <...> far more accessible, with production based entirely in Russia.” – Petr Rodionov, General Director, Geropharm
“We made our deal with the RDIF last year. <...> Thanks to that organization and partners, six sovereign wealth funds became company shareholders. <...> We moved to a free float of 25%, and improved our index weight. <...> Turnover on our shares increased five-fold on the Moscow Exchange.” – Andrey Guryev, Chief Executive Officer, Chairman of the Management Board, PhosAgro
“Our objective <...> is to create a new technological wave. <...> We must develop our technologies, and then take them to the global market.” – Andrey Kuzyaev, President, ER-Telecom Holding
“In order to make a breakthrough in the future, we hope that sooner or later the city of St. Petersburg will obtain free port status. <...> I would like to see an expansion of the practice of visa-free regimes.” – Vladimir Yakushev, Chief Executive Officer, Northern Capital Gateway
Trust and reputation are the advantages of the RDIF
“One of the RDIF’s biggest achievements over the past six years <...> is its excellent reputation, both in Russia, and <...> abroad. <...> Foreign investors are showing enthusiasm, and are satisfied with the returns.” – Sergei Ivanov, Special Presidential Representative for Environmental Protection, Ecology and Transport
“Today, the RDIF is <...> a stamp of quality of sorts.” – Andrey Guryev
“[The RDIF] clearly understands how projects need to be structured, and what the shortest trajectory is for these projects to reach the implementation stage.” Aleksey Vinogradov, General Director, Nord Hydro – Beliy Porog
“We needed a reliable guide which emanated the concept of trust. <...> Our biggest orders within Russia come from the state. <...> The fact that the company has sovereign money makes it more attractive.” – Alexander Utkin, General Director, Cotton Way
Tools offered by the stock exchange are becoming more in-demand among investors
“A great deal of work has been done over the past few years. <...> We’ve made headway, and are now seeing a huge influx of retail demand. In the past year, 250,000 brokerage accounts for individuals were opened. This is the biggest number that has ever been observed.” – Alexander Afanasiev, Chairman of the Executive Board, Moscow Exchange
“I want to dispel the myth that the exchange is a place exclusively for major corporations. <...> This has not been the case for a long time. <...> We have established a ‘growth sector’ <...> so that medium-sized companies can enter the stock exchange.” – Alexander Afanasiev
PROBLEMS
Investment in innovation carries a high degree of risk
“More leads to lower quality. <...> If we see any shortcomings or risks that we cannot hedge against <...> then we will stay away. We are a fairly conservative fund.” – Sergei Ivanov
“For the time being we are very conservative, and even in technology companies we sometimes request that our minimum return is covered.” – Kirill Dmitriev
SOLUTIONS
Not to be afraid of investing in innovation
“We need to be more inclined to take risks. The success that has been achieved could absolutely have been far greater still.” – Vladimir Evtushenkov, Chairman of the Board, Sistema
“There needs to be more aggression and more willingness to take risks from the political side. <...> Only after we had launched an entire range of large concession projects, and had positive results to show for them, did the RDIF come on board.” – Sergei Kelbakh, Chairman of the Board, Russian Highways State Company
Transfer the best achievements to the regions and exchange experience
“Today, our objective, which we have already fulfilled in part <...> is to provide on the-ground local healthcare at the same level, using high-tech solutions.” Mark Kurtser, Chief Executive Officer, Member of the Board of Directors, MD Medical Group Investments
“Twenty-seven new clinics have been opened, and the number of regions where the group operates has grown from three to nineteen. <...> Following the pilot phase, Mother and Child has become the largest private medical network in Russia.” – Kirill Dmitriev
Entering global markets
“I see the key role of the direct investment fund as providing access to new markets. We consider this to be one of the most important strategic objectives.” – Petr Rodionov.
More detailed information is available on the website of the Roscongress Foundation information and analytical system.
