A document form the Russian Finance Ministry shows that the Russian state pension fund is planning to invest 40 per cent of its funds in corporate bonds.

The document also showed that money will be invested in foreign currency deposits and mortgage bonds.

As of 1 March, the 447 billion rouble pension fund covered 38.7 million pensioners who live in Russia with an average monthly income of less than 4,741 roubles ($150).

However, under the new proposals from the Finance Ministry, the pension will be able to invest in corporate bonds from firms whose credit rating is not more than one notch below the sovereign rating.

The fund will also be able to invest in bonds from companies whose debts are state guaranteed, mortgage bonds whose collateral is worth 1.5 times as much as its value, or which has a credit rating above a minimum level.

The money-raising plans are intended to help double the average pension in four years time at a cost of $30 billion each year.