Russia's infrastructure investment fund to accumulate $1 bln

An infrastructure investment fund which Russia plans to establish with the participation of international financial institutions and Kazakhstan will accumulate up to $1 billion, the Vnesheconombank CEO said on Tuesday.

MOSCOW, July 7 (RIA Novosti) - An infrastructure investment fund which Russia plans to establish with the participation of international financial institutions and Kazakhstan will accumulate up to $1 billion, the Vnesheconombank CEO said on Tuesday.

Vnesheconombank announced on Tuesday it would establish the fund jointly with Renaissance Capital Group, the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation, which is part of the World Bank, the Development Bank of Kazakhstan and international investment company the Macquarie Group.

Vladimir Dmitriyev said that half of the capital would be channeled into the development of Russia's port, utility and energy infrastructure.

Vnesheconombank, which is Russia's national development bank, will invest up to $200 million in the fund and the EBRD and the International Finance Corporation will contribute the same amount, Dmitriyev said.

"The fund is being established on condition that at least 50% of investment must be spent in Russia," Dmitriyev said, adding that the remaining capital would be used to implement infrastructure projects in other former Soviet republics, in particular, in Kazakhstan and Ukraine.

At the initial stage, the infrastructure investment fund will accumulate $500 million, Dmitriyev said.