As reported by Kommersant, Russian Financial Alliance's (RFA) $10m mutual fund, Kinofond, has been put on hold.

RFA has refused to comment at this stage as to why Kinofond's operations have been suspended.

The RFA bank established, the $10m Kinofond in 2007 through a sister company, the RFA investment agency.

In the Russian business publication RBC Daily in 2007, Jacob Reznik, CEO of RFA's investment arm described the fund as a very timely venture.

Despite an annual growth rate of 30% in the Russian film market, Russian investors were wary given a historical lack of investment in this area and the tricky nature of investment mechanisms in Russia in general.

The fund provided a more transparent mechanism as well as opportunities for smaller investors to spread their risk across a number of projects.