VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Vladimir Putin's opening address:
Good afternoon, ladies and gentlemen,
Today we are holding the year's first meeting of the Government Commission on Monitoring Foreign Investment. I believe it is time we took stock and discussed plans to attract new investors. We need to bear in mind that above all Russia needs high quality investment for development and modernisation so that we can attract the most advanced technology and efficient management systems along with the money.
The year 2010 was a difficult one for both the Russian and global economy, but companies continued to carry out their business plans and move forward. The global competition for investment has become tougher.
At the same time, foreign investors are clearly interested in the Russian market and the opportunities it offers. Moreover, Russia's key economic indicators are showing good progress. The country's GDP grew 4% last year and industrial production increased by 8.2%. The Russian stock market has become a leader in terms of the growth of stock indexes and showed the best performance among BRIC countries and even among major developed economies.
It is especially important that foreign partners come to us with their long-term projects and invest money in Russian businesses and new facilities. According to preliminary data, foreign direct investment in Russia totalled more than $40 billion in 2010. Comparing this amount with 2009, we see a certain increase.
I would also like to mention that substantial investment capacity was created for the future. The Pepsi-Cola Company and the Sanofi-Aventis pharmaceutical company are only two examples of huge investors that came to Russia in 2010.
At our meeting today we will also need to discuss another promising deal. I'm referring to the extension of cooperation between France's Alstom and the Russian company Transmashholding, which are considering a programme to develop and reequip the Tver Carriage Building Plant and the Bryansk Engineering Plant.
Alstom is one of the three world leaders in transport engineering. This company is well-known in Russia as it supplied high-speed trains for the railway between St Petersburg and Helsinki in 2010.
Alstom is already taking part in the production of new passenger electric locomotives within its strategic partnership agreement with Transmashholding.
The Russian market definitely needs high-tech products like this. In May 2010, Russian Railways signed a contract for 200 locomotives like this to be supplied in 2012-2020. These locomotives will also be running between Moscow and Sochi during the 2014 Sochi Olympics and the preparations for it. The French company will also be involved in the serial production of brand-new carriages, including bi-level ones. There are also plans to manufacture carriages for the metro.
I would like to add that we are establishing several large clusters in transport engineering at the same time. For example, the Ural Railway Engineering Plant is starting to manufacture cargo electric locomotives and electric trains in partnership with the German company Siemens. Right from the get-go, we have pursued a high level of localisation and made sure that the entire production cycle is carried out in Russia, including R&D, the manufacture of components and the serial production of carriages, locomotives and other railway equipment.
I would like to point out that this is our general take on investment and technological cooperation with our foreign partners in all spheres, including machine engineering, the automotive industry, shipbuilding, pharmaceuticals and other areas. All these programmes are designed to make sure that new professional and well-paid jobs are created in Russia and that highly qualified workers and engineers are in demand.
Ladies and gentlemen, at the government meeting yesterday we discussed our plans to bring down bureaucratic barriers and to improve government services for citizens and businesses. This also relates to streamlining the regulations for foreign investors in the strategic sectors of Russia's economy. We need to get rid of inefficient or obviously excessive procedures and create the most favourable environment for companies that want to invest and put their expertise and resources in our economy.
I would like to remind you that following a recommendation by this commission the government has approved a package of amendments to the legislation on foreign investment. These amendments are now being considered by the State Duma.
These amendments will simplify the work of foreign investors in food and healthcare sectors, in banking and in the sphere of natural resources. Certain measures to further liberalise the regulations have been planned.
As agreed, we will continue moving in this direction. The Federal Antimonopoly Service has drafted another package of legislation amendments on this issue. For example, further simplifications are in store for the sphere of natural resources. Purchasing up to a 25% stake in a company that is engaged in the sphere of natural resources will not require the permission of the Federal Antimonopoly Service or of the government. Currently, the limit stands at 10%.
The procedure for processing foreign investors' applications is also being significantly simplified. For example, as you know, our commission can require the investor to fulfil certain obligations, above all, those related to the preservation of production facilities which are necessary and important for the country. According to the regulations currently in place, a second decision by the commission is necessary. We discussed it with you last time and agreed that these decisions can be made at the level of the Federal Antimonopoly Service outside the commission.
In conclusion, I would like to emphasise that we need to step up efforts to attract foreign investment to Russia's economy. This is a task both for federal and regional authorities. And as soon as possible we need to reach the pre-crisis level of foreign direct investment per year – between $60 and $70 billion. Having done this, we will have to continue to build on our efforts and raise this bar even higher.
Let's get down to work.
