Russian Economy Minister Urges Improvement of Investment Conditions
Russian Economy Minister German Gref said that at the present time there are too few investment projects in Russia that are really attractive and interesting for investors
Sep 16, 2005
Russian Economy Minister German Gref said on Wednesday, Sept. 14, that at the present time there are too few investment projects in Russia that are really attractive and interesting for investors.
Speaking in the State Duma, the lower house of the Russian parliament, within the framework of the "meet the government hour", the head of the Economy Ministry noted that "there is lack of demand for investment resources" in Russia. He also pointed out that capital outflow, which is currently estimated at $20 billion, is also connected with this problem.
German Gref said that Russia is interested in attracting investments, especially in the hi-tech sector. But he pointed out that it is "necessary [to implement] legislation that would protect the rights of the owner, of the investor". In addition to this it is necessary to develop innovative infrastructure, Gref was quoted by RIA Novosti.
The minister reminded members of the parliament, that the government has already made a decision regarding the development of hi-tech zones. "But if we create no institutions that support them, there will be no effect," he stressed. Gref also spoke in favor of investing in the country’s overall infrastructure — construction of railroads and highways, sea ports, pipelines, and a power grid.
The minister also noted that in the first seven months of 2005 Russia’s stock market grew by 52 percent. "We are the world’s absolute leader in terms of this figure," he noted. At the same time Gref reiterated that capital outflow from Russia will continue until the state solves four key problems: immaturity of public institutions, protection of property rights, corruption, and the underdevelopment of infrastructure.
Speaking in the State Duma, the lower house of the Russian parliament, within the framework of the "meet the government hour", the head of the Economy Ministry noted that "there is lack of demand for investment resources" in Russia. He also pointed out that capital outflow, which is currently estimated at $20 billion, is also connected with this problem.
German Gref said that Russia is interested in attracting investments, especially in the hi-tech sector. But he pointed out that it is "necessary [to implement] legislation that would protect the rights of the owner, of the investor". In addition to this it is necessary to develop innovative infrastructure, Gref was quoted by RIA Novosti.
The minister reminded members of the parliament, that the government has already made a decision regarding the development of hi-tech zones. "But if we create no institutions that support them, there will be no effect," he stressed. Gref also spoke in favor of investing in the country’s overall infrastructure — construction of railroads and highways, sea ports, pipelines, and a power grid.
The minister also noted that in the first seven months of 2005 Russia’s stock market grew by 52 percent. "We are the world’s absolute leader in terms of this figure," he noted. At the same time Gref reiterated that capital outflow from Russia will continue until the state solves four key problems: immaturity of public institutions, protection of property rights, corruption, and the underdevelopment of infrastructure.