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
“Like in other countries, capital investment in Russia decreased in 2009. Investment shrank by more than 16%. This year we intend to reverse this situation, to buck this trend, and we have decided to act in several areas in order to accomplish this. We plan to improve the investment climate and abolish excessive bureaucratic restrictions, in particular by reviewing the regulatory framework governing foreign investment in strategic sectors of the Russian economy. We have continued to undertake major public investment programmes, including in housing and transport construction”.
"We therefore need to take additional steps to create an investment-friendly environment. It implies fine-tuning the taxation system to ensure that it encourages innovations by lifting administrative barriers, optimising the state monitoring procedures and developing up-to-date technical regulations."
"Last year was difficult for both Russia and our foreign partners. We all faced serious problems. This situation, however, didn't stop the inflow of direct foreign investments to Russia, which, as a preliminary evaluation shows, exceeded $40 billion in 2009."
"There is a problem with short-term investment. Russia currently offers favourable conditions for speculative capital, which eagerly flows in and works well, but soon flows out again, causing us problems in these straightened times. What we need to do is change the rules so as to make Russia a less attractive destination for short-term speculative investment, which flows in for a very short time and flees at the slightest sign of danger. On the other hand, we need to create a more favourable environment for long-term direct investment in Russia".
"According to recent reports, in the first quarter of this year, Russia had around $35 billion of accumulated foreign investment, probably less than last year by a small margin, but this is only natural given the market contraction due to the recession. Shrinking investment is normal in this situation, it is nothing special, and I repeat, 35 billion for three quarters is not bad".
"The Russian Government will continue to support any investment, but above all direct investment and especially investment in high technology, new ideas and innovation projects."
“It is important to realize that tense competition for investment will unfold during post-crisis recovery. Our task is to actively create the best possible environment for this investment in our economy.”
"My colleagues must have informed you that we have prepared a special computer programme to follow progress on each facility. The programme will also give an overall view of the whole project, enabling us, the International Olympic Committee, and you as its representative to monitor the general picture and particular activities daily and even hourly".
"We are interested in attracting foreign investments. I would like to say it openly and clearly. Of course we hope for reciprocity, for the western partners' equal interest in welcoming investors from Russia. We are perplexed to encounter purely political impediments that have no sound economic ground. We become more dependent on each other through mutual investments. But is there anything wrong with that? Apparently, it insures us against abrupt changes in the economic situation bringing together the business community in the whole world".
"Recently, the Russian Government has passed the law on foreign investments to the economy's strategic sector, which lists all the areas that require administrative procedures before investment is made. I should clarify that the law does not mean certain sectors will be closed for foreign investors, but implies administrative procedures which can be implemented, while other sectors will require no special coordination and permissions. In the next few months, we will launch the new procedure to see how it works and report the results".
"Starting in April, part of the temporarily available funds will be placed in bank deposits, which is a measure to support the national banking system today. We also know that the Finance Ministry has planned to increase these funds".
"In spite of some fluctuations of the so-called speculative capital, overall investments in basic assets in the first half of the year increased by 14.5-14.6%. That is a good record. In that sense the Russian economy is a "haven" for foreign capital and we will do everything to support that process".
"I would also like to stress a substantial growth of investment into the national economy. For the first time, we will spend more than a trillion roubles to this end. This will be 35% more than last year".
"And we should create a system that would regulate the situation in the market fairly and rationally based on current legislation.<…> It is necessary to think over the legislation in detail, and eliminate the weak points and loopholes revealed in it. It should be systemic decisions on the formation of more transparent, flexible and fair rules of competitive struggle maintaining steady economic growth, reducing inflationary pressures, and reducing the level of corruption".
"The investment potential of Vneshekonombank and other newly-created development institutions must be used more fully".
"The new law on foreign investments does not ban them. On the contrary, it creates procedures that are transparent and easy for investors to understand. This is in fact the main aim of the law. It contains a closed list of types of activities for which foreigners seeking to control enterprises will have to go through a special approvals procedure".
"The easing of the tax burden will greatly stimulate the creation of a favourable business climate in the country. We expect business to reciprocate by moving out of the "shadow sector". And let me repeat that in general we need broader entrepreneurial freedom. In this connection the Government will initiate large-scale work to remove administrative barriers in the economy. We are talking about reducing the inspection powers of supervisory bodies, replacing permits with notification in the setting up and conduct of business. We should dramatically cut the number of activities subject to licensing as well goods and services that require mandatory certification".
