Expert: Venture market in Russia exists

26 november 2014

Within the event overlay “Innovative technologies and advanced materials introduction in the Russian Fuel and Energy Complex” ratified by the decree of the Government of the Russian Federation up to 2018 the Analytical Center conducted the roundtable “Venture capital financing development in Russian Fuel and Energy Complex”.

During the roundtable experts considered possibilities of venture corporate funds creation and development in innovative development programs of state-owned corporations and publicly owned companies in the Russian Fuel and Energy Complex. Experts also discussed proposals on the venture corporate funds systems development program, elaborated by the Expert Council for the Government of the Russian Federation.

Russian Fuel and Energy Complex is in need of new proprietary technologies, as Russian external economic relations capabilities will be most likely limited, according to the Head of the Department for Strategic Studies in Energy Alexander Kurdin. “We are to put the most effort to provide stimulation and opportunities for innovative technologies development and innovations implementation in the Fuel and Energy Complex”, said the expert.

“Today innovative development in the Fuel and Energy Complex is a priority in the Russian Minenergo. This is determined by the acute situation in the foreign policy”, announced the Director of the Department of State Energy Policy of the RF Ministry of Energy Aleksey Kulapin. Russia is one of the leading fuel and energy resources exporters in the international market, noted the official. This business line is of essence for federal budget revenues formation, so it is necessary to keep obtained quantitative index. “At the same time, hydrocarbon extraction is becoming more and more complicated, due to hard-to-recover resources, exhaustion of traditional fields and development of new ones”, said Mr. Kulapin. All these factors necessitate the development of new proprietary innovative technologies, according to the expert. Apart from public funds, which were put in innovative development, it is necessary to attract market mechanisms of extrabudgetary financing. One of these mechanisms is venture financing development, added Mr. Kulapin.

The russian venture market has been created, according to the Deputy CEO, Director of Project Office, Member of board of the OJSC RVC Evgeny Kuznetsov. “Russia has made a huge step. 2007-2012 venture capital financing and investments made have grown 10 times. By this index in 2012 Russia was on the second place after Europe and on the fourth place in the world. Of course, for obvious reasons we cannot achieve that score this year. But the number of transactions will come up to the mark”, considers the expert. There are 2 main problems in this sphere: input and output. Number of qualitative ideas, incoming to investor from science, does not grow, all good projects are chosen, noted Mr. Kuznetsov. “On the other hand the output market is affected. The biggest part of Russian innovative companies focuses on the global output that is outgo to strategic investments from international funds. That is not exactly correct that our investments’ benefits are used by other companies, though we want to increase its relevance for Russian corporate system”.

During the discussion experts frequently repeated that low attractiveness of the Fuel and Energy Complex from private venture investors by virtue of specifics of its branches seeks for corporate venture funds development, and their work is widely spread abroad, and also for some governmental specific actions.