2 may, 2012 18:07  
 
 

Prime Minister Vladimir Putin chairs a meeting of the Russian government’s Foreign Investment Oversight Commission

 
 
 

“As a mater of fact, a new mechanism has been created and tested for attracting foreign investment and granting foreign companies access to operate in strategic sectors of the Russian economy. Since it was formed four years ago, the commission has considered more than 140 applications from foreign companies and investors. An overwhelming majority of those applications has been approved.”

Vladimir Putin At a meeting of the Russian government’s Foreign Investment Oversight Commission

Vladimir Putin's opening remarks:

Ladies and gentlemen, we've got a good reason today to review the commission's performance over the last four years. Well, as a matter of fact, a new mechanism has been created and tested for attracting foreign investment and granting foreign companies access to operate in strategic sectors of the Russian economy. Since it was formed four years ago, the commission has considered more than 140 applications from foreign companies and investors. An overwhelming majority of those applications (94%) has been approved. Only in eight cases have the applications been turned down, and always for good reason. None of the rejections has been disputed or appealed against.

More than $33 billion in foreign investment has been attracted into strategic sectors as part of the projects approved.

Specifically, an ambitious technological modernisation programme for the Tver Train Building Plant and the Bryansk Machinery Building Plant has got off to a good start here, and is making good progress. Another project I'd like to mention is the development of pharmaceutical production with foreign partners in the Orel Region. And there is a whole number of other successful launches.

We've dramatically changed the very procedure for considering investor applications. Many of the formalities have been simplified and excessive approval requirements have been removed. Thanks to the adoption of a whole number of amendments, foreign companies have now gained wider access to the food, medical and mining industries, as well as to the banking sector.

Investor deals with international financial organisations no longer have to be approved by the commission. They now only need a stamp of approval from the Federal Anti-Monopoly Service.

I think we should continue our efforts to facilitate investment in strategic sectors, without losing sight of the national interest. The Federal Anti-Monopoly Service is now preparing a whole package of amendments aimed at easing the related formalities and reducing the review period for foreign investors' bids. I hope Mr Artemyev will report on this later today.

The idea behind all those changes is to encourage foreign entrepreneurs to implement new projects in strategic sectors of the Russian economy. In doing so, we should bear in mind the specifics related to the launch of the Common Economic Space of Russia, Kazakhstan and Belarus, as well as Russia's accession to the World Trade Organisation as a full-fledged member.

As we know, large projects continue to be implemented. The oil and gas sector has recently seen the signing of deals with Exxon and Eni. These deals involve billions of dollars in long-term investment.

Let me remind you in this regard that more than $52 billion in direct investment came into the Russian economy from abroad in 2011. In terms of dynamics, we got close to the pre-crisis level. In 2007, the figure was $55 billion.

We have a rather busy schedule these days, with concrete proposals from investors. One proposal I'd like to single out here is from Italy's Agusta Westland. It proposes setting up a joint venture for manufacturing commercial helicopters, with a high proportion of local production and with personnel training centres. In my view, this is a good example of financial investment coming in alongside modern technology, efficient managerial and organisation schemes, and engineering personnel training.

Let's now get down to work.