Russia has ‘learned its lesson’ about oil cost volatility, wealth fund chief says

Kirill Dmitriev, CEO of the Russian Direct Investment Fund at the APEC CEO forum in Beijing, China, on Nov. 10, 2014.

Tomohiro Ohsumi | Bloomberg | Getty Images

Kirill Dmitriev, CEO of the Russian Direct Investment Fund at the APEC CEO forum in Beijing, China, on Nov. 10, 2014.

Russia has “learned its lesson” about oil cost volatility, the chief executive of the Russian Direct Investment Fund (RDIF) told CNBC Tuesday.

Speaking through the planet Economic Forum in Davos, RDIF CEO Kirill Dmitriev emphasized the importance of diversification inside the Russian economy.

“For the Russian economy we continue to focus on diversification. We expect technology to make up 25 percent of our portfolio,” Dmitriev said. “Infrastructure in addition to tech still need to be important in addition to I think Russia learned its lesson about oil cost volatility, so diversification in addition to investment in those areas is actually very key.”

RDIF is actually the $10 billion sovereign wealth fund created by Russia’s government to co-invest inside the Russian economy alongside different countries. Dmitriev was made chief of the fund in 2011 to improve foreign investment flows in addition to investor confidence inside the country.

The head of the Kremlin’s investment vehicle was positive about the country’s growth forecast, despite the pressure of U.S. sanctions issued in both 2014 in addition to 2016 over Russia’s annexation of Crimea peninsula in addition to alleged Russian interference inside the latest U.S. election.

“Russia saw major increases of FDI (foreign direct investment) last year of 25 percent, which is actually one of the highest levels of FDI in (our) history, in addition to This specific’s related to Russia resuming growth,” Dmitriev said. “We had almost 2 percent GDP growth last year, we’ll have more than 2 percent next year.”

the planet Bank reported Russia’s 2017 GDP growth at 1.7 percent for 2017, in addition to forecasts the same for 2018.

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