Foreing investments to Russia grew 40%
Nov 12, 2001
During the first half of 2001 the amount of foreign investments into the Russian economy was 6.4 billion dollars, which is a 40% growth as compared to the corresponding period of the previous year. This was announced by the Minister of Economic Development and Trade German Gref in his speech at the investment symposium in Harvard.
Mr. Gref named priority directions of improvement of the investment climate in the country: creation of a single economic environment, tax reform and anti-corruption efforts. He noted that a set of laws will be passed before the end of the year on the pension reform, which provide for accumulative insurance. This would allow to generate an additional investment resource of 1 billion dollars by year 2003. After 2003 the Pension Fund of RF will be co-managed by management companies, including foreign. The same year the foreign capital participating in the Russian financial sector will be exempted from the sales tax and will pay a reduced VAT of 17%.
Among factors of economic growth in 2001 Mr. Gref indicated significant increase in the population's demand, as well as investment demand from enterprises. The Minister said that based on the results of the 9 months of the current year the GDP of the country grew 5,4% compared to the corresponding period of the previous year, while the industrial production grew 8%. At the same time the positive current account balance of Russia for this period was equal to 40 billion dollars.
In his speech Mr. Gref also noted that at present the Central Bank's reserves reached a record level for the newest history of the country - 38,6 billion dollars.
Mr. Gref named priority directions of improvement of the investment climate in the country: creation of a single economic environment, tax reform and anti-corruption efforts. He noted that a set of laws will be passed before the end of the year on the pension reform, which provide for accumulative insurance. This would allow to generate an additional investment resource of 1 billion dollars by year 2003. After 2003 the Pension Fund of RF will be co-managed by management companies, including foreign. The same year the foreign capital participating in the Russian financial sector will be exempted from the sales tax and will pay a reduced VAT of 17%.
Among factors of economic growth in 2001 Mr. Gref indicated significant increase in the population's demand, as well as investment demand from enterprises. The Minister said that based on the results of the 9 months of the current year the GDP of the country grew 5,4% compared to the corresponding period of the previous year, while the industrial production grew 8%. At the same time the positive current account balance of Russia for this period was equal to 40 billion dollars.
In his speech Mr. Gref also noted that at present the Central Bank's reserves reached a record level for the newest history of the country - 38,6 billion dollars.