In order to gain a presence in the financial markets Russia is looking to invest in international companies shares using its billions of petrodollars. The finance minister of Russia has carved out this plan in order to split its stabilization fund which has oil tax revenues to the tune of $108 billion. A reserve fund will be maintained at ten percent of the GDP and the surplus left after could be used for a fund for long term projects.
The reserve fund would be used for investing in conservative portfolio of government bonds and other fund might be put to use in high risk assets for increasing the returns. Fund managers would be appointed for managing the funds. This signifies that Russia has a strong financial backing due to increase in energy prices and as a result the country has built the third largest reserves of gold and foreign exchange besides the petrodollar fund. The Russian government has already approved the splitting of stabilization fund and therefore we will see Russia making a mark in financial markets.
Via: ft
