Russia has “learned its lesson” about oil price volatility, the chief executive of the Russian Direct Investment Fund (RDIF) told CNBC Tuesday.
Speaking from the World Economic Forum in Davos, RDIF CEO Kirill Dmitriev emphasized the importance of diversification in 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 and tech still need to be important and I think Russia learned its lesson about oil price volatility, so diversification and investment in those areas is very key.”
RDIF is the $10 billion sovereign wealth fund created by Russia’s government to co-invest in the Russian economy alongside other countries. Dmitriev was made chief of the fund in 2011 to improve the foreign investment climate and investor confidence in the country.
Attracting foreign investment is a major priority for the Russian government. Russia’s economy plunged into recession between 2014 and 2017, when both the imposition of U.S. sanctions following Russia’s annexation of Crimea and a nearly 50 percent drop in global oil prices caused the ruble to collapse.
Financial bodies observed a moderate recovery for the Russian Federation at the end of 2017 thanks to higher commodity prices, strengthening global demand and lower interest rates.
Russia has 'learned its lesson' about oil price volatility, wealth fund chief says