Russia's Putin woos investors at investment forum

(Xinhua)

15:14, October 07, 2011

MOSCOW, Oct. 6 (Xinhua) -- Russia needs "evolutionary" economic and political changes and would be ready to withstand any global economic troubles, said Russian Prime Minister Vladimir Putin at an investment forum here on Thursday.

Addressing the third "Russia Calling" investment forum, Putin said it is essential for Russia to minimize risks, both economic and administrative, to attract investment.

He said Russia's political system would be changing "gradually and cautiously." "It will be an evolutionary way. We need no upheavals -- we need a great Russia," he said.

He stressed that the state should "help a businessman wherever necessary and remove obstacles in his way," giving private businesses more room to maneuver.

Meanwhile, he said the Russian government understands the risks existing in the global financial system and would take steps to prevent any new crisis.

"We fully understand the risks stemming not only from the eurozone but also from the global economic system. It's time now to undertake precise and thoughtful measures to prevent the so-called second wave of crisis," Putin said.

The Russian prime minister admitted that the investors' nervousness has been tangible in the Russian stock markets and that the Russian economy remains vulnerable due to its reliance on energy exports.

Still, "Russia has obtained serious experience... in economy and the credit-financial sector," he said, promising that Russia's inflation rate would not exceed 7 percent in 2011 while the state debt would remain within 10 percent of gross domestic product.

"Our strategic goal is to diversify the economy... We intend to carry out large projects in bio-technologies, communications, energy and space, and to create in Russia a network of powerful high-tech companies," he said.

"For this we need investment. Both direct and portfolio," he stressed.

According to Putin, the Russian government would not finance any new large-scale construction projects, but to focus on those already under way.

Currently, the Russian government and private businesses are co-financing the preparations for the APEC summit in Vladivostok, the Winter Olympics in Sochi and the 2018 FIFA World Cup in Kazan among other events.

Putin also mentioned the possibility of liberalizing gas exports in the future. "We do not rule out that in the future we shall liberalize export of gas," he said, adding that this was not to be done right away in order to prevent a market collapse.

Meanwhile, Putin also urged Russia's economic partners not to use Georgia's refusal to back Russia's bid to join the World Trade Organization (WTO) as an excuse for keeping Russia out of the trade club.

He repeated that after 17 years of negotiations Western nations and Russia were finally making significant progress on key issues of Russia's WTO accession.

Putin also welcomed the announcement made during the forum that one of the largest Russian banks would start providing deposit services in the Chinese currency from next Monday.

The Chinese currency has already been traded in Russian banks since Dec. 15, 2010.

The first deputy chairman of the Central Bank of Russia, Alexei Ulyukayev, also told the forum that Russia was discussing with Brazil, Turkey and Vietnam about the usage of local currencies in bilateral trade.

"Russia Calling" is a key platform aimed at attracting investments into Russia. Over 2,000 businessmen and politicians from all over the world are expected to attend this year's three-day session. 

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