MOSCOW, April 15 (RIA Novosti) - Russia's Investment Fund should be used effectively before the Stabilization Fund, set up to harvest windfall revenues from high oil prices, was dipped into, the leader of a pro-presidential faction said Saturday.

The objective of the Investment Fund, set up in 2005, is to develop major investment projects of nationwide importance, to be implemented with joint public-private financing. About $2.5 billion will be earmarked for this purpose in 2006, and analysts expect that the fund will be expanded in the future.

"Under this year's budget, the Investment Fund was established at almost 70 billion rubles," Boris Gryzlov said addressing a session of the party's General Council. "But what is happening? The Investment Fund has yet to start working."

He said the reason for that was that the government did not have a coherent plan for the development of certain markets and branches of industry, including strategic sectors, e.g., aircraft making.

He said the Investment Fund could be used for early repayment of foreign debt, investment projects abroad, and the import of state-of-the-art technology and equipment through long-term currency loans on a competitive basis.