Investment Funds Bank on Travel Industry

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   On April 4th, the Russian travel bureau chain kuda.ru and the Direct Investments Fund UFG Private Equity Fund I officially announced a deal in which 25% plus one share of kuda.ru will be sold to the Fund for $13,600 000.
   News of the deal first appeared in the Russian media in February when the former Russian Minister of Finance Boris Fedorov gave details in an interview to the Vedomosti newspaper; Fedorov explained his expectations for the investment stating that ‘if after two or three years the value of our companies does not triple, I will consider it to be a loss.'
   The investment will allow the development of kuda.ru franchises, additional advertising - and the improvement of the company's information technology resources.
   In a similar move, The Neva Travel Company have announced a 25% share sale to the investment fund Quadriga Capital - with the money also being used to fund an extension of their retail chain, and improvements in company infrastructure.
   Industry experts point out that investing in the Russian travel industry is logical at the present time. Anatolyi Khodorovskyi is Analytics and Information Director of the Moscow Region State Committee; Khodorovskyi told BANKO that ‘at present, household income in Russia is increasing faster than GDP - therefore investors are interested in everything which involves currency in hand.'