Vladimir Putin’s introductory remarks:

Good afternoon,

Today, we are holding a regular meeting of the Government Commission on Monitoring Foreign Investment.  

First of all, I would like to say only a few words about a recent meeting under the auspices of the Foreign Investment Advisory Council. In this respect, I would like to note that our foreign partners are certainly interested in further cooperation with Russia, and they are ready to establish new production facilities. We have recently met with many top executives of major international companies who have reaffirmed their investment plans in Russia.

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. I would like to remind you that $26.8 billion worth of direct investment was received in January-September 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.

By the way, various international organisations have noted that a number of decisions, passed by the government in 2011 and 2010, will make it possible to raise Russia’s international ratings considerably next year. I’m talking about decisions which were adopted this year and in 2010.

Also, the World Bank estimates that Russia ranks among 25 countries that implemented the most successful reforms to improve the business environment in 2010. Let’s see the final practical results of this.

Practice is the criterion of the truth, as the classic saying goes. We will have to assess the short-term consequences of this. But it is our intention to act with this logic in the future. We must follow through on a consistent, predictable and responsible economic policy. We must improve the business environment and eliminate many restrictions and barriers, including those hindering operations inside the so-called strategic sectors. Consequently, we have proposed an entire package of amendments to make it easier for foreign investment in the food and medical industries, the banking sector and the “sensitive” minerals production sector. Overall, the procedures for reviewing foreign investment are being simplified appreciably. The relevant package has been submitted to the parliament and has already been examined by the State Duma in the second reading on October 19.

And now I would like to say a few words about the agenda of our meeting. We will have to consider a number of requests concerning transactions with strategic Russian assets.

I would like to single out a very interesting and promising project in the energy field. France’s Électricité de France S.A. company plans to establish a special company in Russia that will introduce innovation and state-of-the-art technology in management and organising the work of power-generating facilities. This new company will manage all the assets of the Tomsk Distribution
Company. Hopefully, this issue has been assessed and supported by the concerned departments. I would like to hear your opinion about this.

Certainly, we would like major foreign partners boasting advanced technology, modern managerial concepts, education and research programmes to invest in the domestic power industry, the housing/municipal utilities sector and other infrastructure sectors. Naturally, this implies a new level of competition and a new level of quality regarding the services being provided to Russian citizens. This is a serious incentive for domestic companies to boost their efficiency and to implement production-modernisation programmes. This will result in real modernisation which must benefit the Russian economy and every Russian citizen.

Let’s get down to work.