Prime Minister Dmitry Medvedev has signed amendments to Government Decree 379 of 30 June 2003, limiting options for pension savings investment in several asset types.

Lifting limitations for investment in IPOs for certain investor types, including the Pension Fund, was discussed at a stock market development session in late January, held by President Putin.

“We certainly must support the internal investor. I think that citizens who are only starting to form their pension options today, need an opportunity to invest their savings in top tier Russian shares”, said the President.

He added that IPOs are part of the privatization plan.

“However, a number of Russian investors, including the Pension Fund, are currently unable to take part in IPOs. In this regard, I propose to lift the limitations”, said Putin.

The President stressed the importance of long-term money along with the infrastructure and the legislative base. He stated that major foreign investors are often willing to take part in a long-term project only if local investors are also involved, indicating a need for additional domestic investment drivers.

According to the President, the total amount of pension savings as of January 2013 amounted to some 4.5% GDP, including private pension funds reserves and savings taking up 2% GDP.

The tentative Russian Railways privatization plan is split into 2 stages: 5% of the stock to be sold in 2013-2014, and 20% floated through IPO in 2015-2016. Minister for Economic Development Andrey Belousov has announced that the Government may use Pension Fund resources to acquire the 5% stock.

The draft Decree also introduces technical amendments to harmonize the terms used in the 2003 Government Decree with the Securities Trading Act.

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