Agro Perspectiva

Putin: Russia – territory of investment

18.10.2011 09:27 "Agro Perspectiva" (Kyiv) — Foreign investments into the Russian economy have exceeded 100 bln dollars since the 2009 crisis and in 2011 rose by 20 percent. This was stated by Prime Minister Vladimir Putin at the Foreign Investment Advisory Council session in Moscow on Monday. The forum was held in Moscow’s Baltschug Kempinski luxury hotel that welcomed the crème de la crème of international business operating in Russia. Putin compared his interaction with the leading investors to a ministerial session as it was profound and extensive. The Prime Minister also noted that active cooperation between government and the Council has already born fruit namely new regulations for the Customs Union of Russia, Kazakhstan and Belarus opening way to the global market: «Recently we’ve simplified access for foreign business to strategic industries, thus an international businessman can now buy a 25% share in a subsurface resources facility without bureaucratic formalities.» Putin took foreign investments under his personal control as today an attractive investment climate means successful development of national economies. Half of the current investments go to rapidly developing countries with Russia among them. However, investment potential of the developed countries has significantly weakened in the post-crisis period. At this backdrop direct investments into Russia doubled for the last 6 years and accounted for 37 bln dollars in 2011. Now the country is ranked fourth in Europe. The government also did a lot to have 200 investment projects implemented, half of them in industry. Today Russian and foreign partners are speaking one language says the Chief of Ernst and Young Global James Turley: «We’ve reached significant progress since out first meeting in 1994. We’ll applaud to Russia’s government that tackled the crisis an thus gained more trust and support.» Putin illustrated successful cooperation by telling about the Siemens part in the construction of a railway cluster near Yekaterinburg and the 30th Nestle enterprise in Russia. Vladimir Putin also promised that political changes will not affect foreign business at all: «Investors want to know about the country’s further economic strategy in the run-up to any political event or elections. I assure out partners that we’ll not change our economic goals as we realize that stability and predictability matter. All modernization projects and projects on increasing state institutions’ efficiency will be carried on.» Putin also said that the government will work further to improve the business climate, legislation and increase investments into non-raw material sectors of the economy. This will not change the government’s social obligations as social stability is crucial for economic development. The PM also noted that the current unrest in the developed countries shows the importance of public support and a balanced social policy. Putin also touched upon the structure of the economy telling about plans to increase innovation production by 35 percent from the current 12%. Foreign business will gain from such projects as Russia gets access to brand new technology while foreign companies — to Russia’s profit — generating market. Experts believe that Russia’s growing market is the main lure for investors. It is hindered by administrative barriers and corruption but the government will remove them by all means to make the market even more attractive.