Russia’s non-state pension funds may miss out on 500 billion rubles ($16 billion) of new money in the next two years while the government seeks to clean up the system, eroding demand for some corporate ruble bonds, according to the Finance Ministry.
Vladimir Dmitriev , chairman of Russia’s state development bank VEB, comments on the country’s planned sovereign investment vehicle, the Direct Investments Fund. Dmitriev spoke to reporters in Washington, where he participated in International Monetary Fund meetings on April 16 and April 17. Russia plans to complete registration of the fund as soon as May, he said.
Russian Eurobond issuers face “serious losses” if they are taxed on coupon payments made through offshore vehicles, given the weak domestic market for long-term borrowing, said VEB Chairman Vladimir Dmitriev.
Russia is among the biggest losers of the crisis in Cyprus and may use its development bank to aid companies with funds trapped behind capital controls in place on the cash-strapped island, the head of the state lender said.