Prime Minister agreed on application of the Russian Pension Fund for the financing of Innovation

Russian Vice President Dmitry Medvedev has given Russia’s Central Bank, the Ministry of Economic Development, the Ministry of Finance and various development institutions until Nov. 1 to submit proposals to the government on ways in which pension funds could be invested in the country’s high-tech sector, including venture capital funds, Vedomosti reported.

Pension funds are generally invested very conservatively and can only be placed into interest bearing savings accounts and stock market portfolios. Pension funds are cut off from the most promising yield objects, the report says. Government experts propose to allow the government to invest up to 1 percent of its pension reserves and deposits in the high-tech sector.

A recent report states that Russia’s pension fund was worth 3.3 trillion rubles ($91.4 billion) in 2013. As a result of the initiative, 33 billion rubles ($91.4 million) could be invested in innovation projects. RVC, the Russian government’s fund of funds for innovation, estimates this figure as being comparable to the total amount invested in Russia’s venture market in 2013.