Arun Sudhaman 05 Nov 2012 // 12:00AM GMT
MOSCOW--Russia has drafted in Hudson Sandler to support a $10bn fund that aims to make the country a more appealing investment destination.
The Russia Direct Investment Fund (RDIF) was launched last year to co-invest primarily in Russian projects and help improve the country's poor investment image.
Following a competitive review, the RDIF has appointed Hudson Sandler to provide international communications counsel. It is understood that RDIF has worked with Frontier PR in the past.
The appointment comes as Russia rethinks its lucrative global reputation assignment with Ketchum, as revealed by the Holmes Report earlier this year.
The fund aims to the act as a catalyst for bringing foreign direct investment, global best practices and new technologies to Russia.
Meanwhile, co-investors, such as major international funds, gain increased access to Russia’s growth opportunities, alongside the security of investing with a government-backed fund.
Last month, the FT called Russia's investment record "woeful", pointing out that 70 percent of all foreign direct investment is Russian capital returning home.
Co-investment deals that have been announced include a partnership with China Investment Corporation; and stakes in power generation company Enel OGK-5; the Moscow Exchange; and a Macquarie infrastructure fund.
RDIF is also partnering with BlackRock, Goldman Sachs, and Templeton Asset Management to provide pre-IPO support to Russian companies listing on the Moscow stock exchange.
The Hudson Sandler team will be led by CEO Andrew Hayes, supported by Maria Ignatova, who heads the firm's Russia practice. Other key executives are account manager Elena Kuza and managing director Andrew Leach.
RDIF is a subsidiary of Vnesheconombank, Russia's state development bank.