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
“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.”
“To join the world’s top 20 countries in terms of investment climate, we must cut the number of permits from 51 to 7 and the period during which businesses receive such permits from 423 to at least 35. I suggest that we use the best global practices to accelerate the coordination of design documents and to radically simplify all of the coordination procedures and the issue of construction permits.”
“Entrepreneurial talent is Russia’s most important resource. We must pave the way for a new generation of business by creating an optimal investment climate in Russia and the best corporate and anti-monopoly laws and by removing barriers to access to the market for new companies.”
“This year we have done much to improve our investment legislation. During the commission’s meetings, we approved several packages of amendments that are designed to streamline monitoring procedures and the process of reviewing applications from foreign investors. Proposals were made to simplify and expand access of foreign companies to the food and medical industries, the banking sector and subsurface resources. Now all these proposals are becoming law and next year business will be able to work in new, more comfortable conditions.”
“In their preliminary estimate, in the past 10 months of this year direct foreign investment in Russia reached $36 billion. <…> Our task now is to create favourable conditions for the flow of direct foreign investment into key branches of the Russian economy, including strategic ones.”
“The Central Bank of Russia estimates that the Russian economy has received about $31 billion worth of direct investment in January-September 2011. This is 20% more than in 2010. <…> Against the backdrop of today’s complicated global economic situation, our objective is to create the best investment climate we can to promote an influx of capital and its protection. This would allow investors to feel comfortable and to perceive our support and protection. This is the only way for us to win the competition in attracting capital.”
“For 17 years, the Foreign Investment Advisory Council has undoubtedly established itself as an effective and authoritative partnership between the government of the Russian Federation and our esteemed foreign colleagues and the foreign business community. The council has earned a reputation not only for collecting information about issues pertinent to the Russian economy, which is important by itself; it also plays a direct and active role in forming the business climate in the Russian Federation, conducts investigations and analysis, and formulates clear recommendations – first and foremost, recommendations to the Russian government agencies at various levels.”
“I would like to highlight that many foreign investors regard our council as a kind of gauge of the Russian business climate, and the opinion of the council members about working in Russia is often the deciding factor in the decisions of our partners on whether to launch a new business or invest in a particular project in the Russian Federation.”
“It is absolutely obvious that if we want to make our country attractive for investors, we must minimise the risks in terms of finances and administrative procedures. Political stability and predictable political decisions are as important as macroeconomic stability.”
“In general, we will assist our scientists, engineers and innovation business by providing them with orders from major government corporations. In other words, we will create a market for them. This year 46 state companies will launch innovation programmes worth a total of 700 billion roubles, and will double their funding after two years.”
“The Russian Direct Investment Fund was founded to support big programmes of both foreign and Russian businesses. Leading representatives of the global investment community have agreed to join its international expert council. The fund has already received over $2 billion; its capital is projected to reach $10 billion in five years.”
“Russia needs to create all the necessary conditions for smart investments both in manufacturing and in high-tech development, so we need to expand freedom for bona fide entrepreneurial activities and to support those with clear and useful initiatives, which seek not to make a one-time profit, but to improve the quality of life of individual towns, cities and entire regions, while at the same time making profit from their economic activities, of course.”
“According to preliminary estimates of the Bank of Russia, the Russian economy has received over $27 billion in foreign direct investment (FDI) in the first six months of 2011. <…>Our main task now is to maintain this positive trend, while focusing on the quality of long-term investment to ensure that it is accompanied by new technology and innovations and the creation of modern enterprises and well paid high-tech jobs. I am confident that we are capable of reaching $60-$70 billion a year in foreign direct investment – I repeat, $60 to $70 billion a year – and achieving a positive balance between capital inflow and outflow in general.”
“We intend to draw up a ranking of the most attractive regions from an investment standpoint every year. The ranking will be based on the number of jobs created, the number of new enterprises started, the amount of investments brought in. These objective figures ought to become one of the key criteria for assessing governors' performance. And I believe that we need to introduce such assessment criteria at the municipal level as well.”
“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.”
“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.”
“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.”
“I can add that we will also keep improving investment legislation, and so I ask the Federal Anti-Monopoly Service to expedite the submission to the government of the second package of amendments for simpler procedures with foreign investors in the strategic sectors. Our objective now is to encourage investment activity as much as we can, making it a key factor in re-establishing the national economy. Foreign direct investments will play a big role here, of course. Russia should be an attractive long-term strategic investment destination.”
“We need direct foreign investment. And not just capital but so-called smart investment that requires a technology transfer and the creation of new quality jobs. Russia is open to foreign investment. At the same time, investment in non-strategic sectors requires no coordination. As far as strategic sectors are concerned, the authorisation procedures will be simplified considerably, just like we had agreed.”
“Only large private investments will allow us to attain the strategic goals of modernising the country, and not only in those sectors where business has long been actively progressing but also in the sectors that the government dominated until recently, in particular in the social sphere, in infrastructure and in strategic industries. No government action, budget resources or administrative decisions can replace the painstaking daily work of private businesses. It is the work of businesses that is changing the nature of our economy day by day, giving it a new, innovative face. Hundreds and even thousands of projects are implemented every year, and investments have reached tens of billions of dollars.”
“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".