The economy of Russia is expected to return to its growth for a big opportunity is observed to attract foreign investment as early as the end of the year on Wednesday, said the chief executive of the Russian Direct Investment Fund (RDIF) told on CNBC.
Kirill Dmitriev told CNBC in Moscow that the Russian economy really has went through to difficult times yet as of the start of the year it really arrived to the floor and is coming up and we expect growth to resume at the end of this year or early next year.
RDIF are still producing positive returns in dollar, regardless of the ruble devaluation all of our investment partners produced positive returns in dollar. Thus, we certainly see a big opportunity for Russia and our stock market is up around 40 percent in terms of dollar from the beginning of the year, added Dmitriev.
As Russia's economy starts eventually to improve even if Russia's global political standing. Since it is at low point due to its unwavering support for the Syrian regime which was very controversial and its eastern Aleppo current bombardment, his comments come.
Last year, Russia's economy faced recession amid a global slump in the prices of oil and in sanctions of the western economy that were implemented on the country in early 2014 for its annexation and its role in pro-Russian uprising in Eastern Ukraine.
In October, in its latest World Economic Outlook,nternational Monetary Fund predicted that Russia's economy could return to growth in 2017. Moreover, it also anticipated that its recession had been shallower than expected. A GDP of 0.8 percent this year, yet growth of 1.1 percent in 2017 in Russia's contraction is forecasted.
For an economy to get back on the track, the essential key is the foreign investment. According to its website, RDIF is a government-run sovereign wealth fund with $10 billion of reserved capital under management.
The fund has looked to attract foreign investment into Russia's infrastructure and agriculture sectors since being founded five years ago. Along with its healthcare, retail and real estate, the country also looked for investors. Over $27 billion of foreign capital has been attracted into Russian economy through long-term strategic partnerships.
He added that RDIF was looking to invest in more infrastructure projects in 2017, both in Russia and beyond. Dmitriev pointed out that despite the geopolitical tensions, Russia was "open to cooperation with all of the major players in the world. He empathized that they continue to focus on large transactions, thus they will be investing in Pulkovo, which is a major airport in St. Petersberg, when he speak on the sidelines of VTB Bank's "Russia Calling" Investment Forum.
With the support of the major Middle Eastern investors, they will be focusing on infrastructure and other key areas that produce positive dollar results to our investors despite the ruble devaluation.
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