Medvedev: Russia is “very poor” investment climate

BBC Russia

President Dmitry Medvedev said Russia’s investment climate is “very bad”. In the crisis year of 2009 the flow of foreign direct investments in the Russian economy fell by almost half compared with the previous one.

“An important theme is the investment climate, these must be dealt with in the first place” – the president said, speaking Wednesday at a meeting to establish an international financial center in Moscow.

Last year was tough, but “next year will be challenging,” he added.

According to Medvedev, 11 months of 2010, their share in Russia deployed 14 companies. “That’s nothing, we understand it, there is nothing to be proud of here” – said Medvedev, adding that “of course, this is due not only to the legislation, it is related to our investment climate.”

Earlier about the need to attract foreign investment to Russia Vladimir Putin said. “We need foreign direct investment, not just capital, and a smart investment, job creation, new quality and technology transfer” – the Prime Minister said the government commission on investments.

According to preliminary estimates, the inflow of foreign capital into the Russian economy this year will remain at the same level as in the past.

Some experts have previously pointed out that one of the factors to improve the investment climate in Russia could become a not-guilty verdict in the case Press Ex-Yukos head Mikhail Khodorkovsky.

On the problems of investment climate in Russia, Western politicians and businessmen have also said in connection with the lawyer fund Hermitage Capital Press Sergei Magnitsky, Who died in the Moscow jail.

The struggle for investment after the crisis

In February this year, Dmitry Medvedev noted that in 2009 foreign direct investment in Russia declined by 41% compared with 2008.

Then, in the reference materials for the meeting, Medvedev presents an evaluation of direct foreign investment, with reference to the study of the UN Conference on Trade and Development (UNCTAD) – 41,4 billion dollars in 2009.

According to Putin, this year’s investment will remain at about the same level. The Premier does not rule out that in the near future “inflows of foreign direct investment will increase. According to him, “when all the existing problems of our partners maintain their commitment to investment in Russia.”

Putin said that a problem has in mind the factors associated with exit from the crisis. “In the new post-crisis conditions in the world turns serious competition for investment and technology,” – he stated. “Creating a fair and clear rules, not burdening the bureaucratic obstacles – our challenge” – said Putin.

According to Dmitry Medvedev to solve this problem requires systematic work on many different levels, from the president and ending with law enforcement agencies.

Meanwhile, experts also point to more narrowly focused. Thus, according to Vice-President of the Russian Union of Industrialists and Entrepreneurs Igor Jurgens, improve the investment climate in Russia might acquit Mikhail Khodorkovsky.

“This verdict will satisfy even the business community, and the West in the extended sense of the word, and potential investors in Russia”, – said earlier in an interview with Kommersant Jurgens, who is also chairman of the Institute of Contemporary Development. The Board of Trustees of the research center headed by President Medvedev.

Farewell, resource dependence?

In 2010, Russia’s economy there have been two trends, observers say.

First – the oil and gas sector has become less attractive to foreign companies – first American ConocoPhilips decided to get rid of the shares of LUKOIL, later its share in Gazprom sold Concerns Italian Eni; the second – has increased interest of foreign companies not to commodity sectors such as food and banking .

This year, Russia has been made the biggest deal outside the commodity sector: the company PepsiCo has agreed to acquire 66% stake in Russian company Wimm-Bill-Dann “for 3.8 billion dollars.

In addition, the Italian bank UniCredit said that plans to open hundreds of new branches throughout Russia. A British travel company Thomas Cook Group entered the Russian market by establishing a joint venture with Intourist.

Moreover, among the BRIC countries, Russia lags behind other parties to attract foreign investors.

So, according to research firm EPFR Global, for the past six months, Chinese foundations involved in the placement of funds on the stock exchange in the country, were able to attract 3.3 billion dollars from foreign investors. Slightly worse than the funds have worked in Brazil and India – 1.9 billion dollars and 1.3 billion dollars respectively.

On Russia had only 637 million, the study said.

At the same time, the Russian stock market was the second in the BRIC countries in terms of growth in 2010 – the year it grew by 20%. payday loan payday loan https://www.zp-pdl.com www.zp-pdl.com hairy woman