MOSCOW, February 5 - RAPSI. Arendt & Medernach law firm has been chosen as the legal expert on a project to establish an international business support fund in Luxembourg.

Following an open tender, Russian development corporation Vnesheconombank (VEB) and German government-owned development bank KfW chose to consult Arendt & Medernach on the drafting of legal documents for the fund, the company said in a press released on Monday.

Max Kremer, head of the law firm's Moscow office, noted the importance of Luxembourg investment funds, which guarantee safety to international investors. This is why establishing a fund of this kind will help to attract more international investment, Mr. Kremer said.

The fund will support small and midsized businesses in Russia and is expected to attain $900 million over the course of the next four years. In addition to allocations from VEB and KfW, the fund will also attract money from commercial and non-commercial investors.

The fund will offer a comprehensive set of financing instruments, including loans, mezzanine financing and equity swaps.

Arendt & Medernach was formed in 1988 by the merger between the two Luxembourg law firms of Arendt & Harles and Mersch & Medernach. It operates offices in New York, Hong Kong, Dubai, London and Moscow.