Medvedev Backs Riskier Strategy

President Dmitry Medvedev gave his blessing to a riskier investment strategy for the country's first sovereign wealth fund at a meeting with top officials in the Kremlin on Tuesday.

The stabilization fund was split this year into a $129 billion Reserve Fund, to cushion the budget from a fall in oil prices, and a $33 billion National Welfare Fund, for riskier investments.

Both funds are currently invested in top-rated bonds.

"There is a need to think about expanding the list of instruments for [the National Welfare Fund's] investment to include securities of both Russian and foreign issuers," Medvedev said, according to a transcript published on the Kremlin web site.

The Finance Ministry, which runs both funds, and the Central Bank, which acts as the government's asset manager, have to draft proposals on the fund's investment strategy by Oct. 1.