The following news release caught my eye: "St Petersburg, 7 June, 2008 – Vnesheconombank, The Eurasian Development Bank (EDB) and Kazyna Capital Management (KCM) confirm their intentions to invest in the Macquarie Renaissance Infrastructure Fund (MRIF, the Fund), the first major CIS infrastructure fund, it was announced today at the St Petersburg International Economic Forum…"
We are seeing the first substantial signs of institutional money heading towards Russian infrastructure projects – in this case through the Australian investment bank, Macquarie. The trend will be familiar to many investors who have backed the UAE's extraordinary modernisation over recent years. I would expect flows to Russia to become a deluge soon – such is the size of this "renaissance" task. But while the sums will be large, the projects will be difficult and the returns frighteningly unpredictable. In my humble opinion.