VTB Capital creates the world biggest fund to develop agriculture. The Agri Fund will invest up to $1 billion in agriculture. Russia and Kazakhstan will be the first locations where the fund will start buying all types of assets - from land to processing companies. "The initial $250 million will be ready in 1Q 2012", says Tim Demchenko, a head of direct investment management at VTB Capital, talking to Vedomosti. The fund will become one of the global leaders in agricultural investment, says Kirill Dmitriev, director of Russia`s fund for direct investment, adding that the sector in Russia really needs money. The investment need of Russia`s agriculture was estimated at around $70 billion for 2008 - 2013. Also, according to Aleksey Krivoshapko, director at Prosperity Capital Management, there is just a handful of successful managers and companies in the sector, which means there is huge growth potential. However, Dmitry Rylko, CEO at the Institute for Agricultural Market Studies, thinks it`s essential to have an efficient balance of centralised management and independent operations of each farm within the fund.