RUSSIA – Pension savings of Russian citizens are expected to total one trillion roubles (28.3 billion euros) by 2010, says deputy finance minister Bella Zlatkis.

The statement was made at a press conference earlier this week, according to the Russian press. She is also reported as saying that around 30-40% will be invested in rouble- and dollar-denominated state securities, and the rest will be invested in other unspecified fixed income instruments and on the stock market.

She also made reference to the state system pensions being handed out to private managers. She reportedly estimated that around 20% of people with pension savings in the state pension fund will choose a private company to manage the savings.

This week the state pension fund signed contracts with 54 private managing companies. Initially, 55 were chosen in a tender, but Finam Management will now be submitting its programme at a later date.

The savings in the state pension fund will be transferred to the private managers around March 1 next year. Originally the transfer was planned for January 1, but delays in the posting of letters to the Russian people asking them to choose a manager have resulted in the timetable being pushed back.