Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature currently requires accessing the site using the built-in Safari browser.
Putin to U.S. Business: Invest in Russia
Saturday June 25, 12:36 PM EDT
By Denis Pinchuk
http://finance.myway.com/ht/nw/bus/20050625/hlm_bus-l25420596.html
ST PETERSBURG, Russia (Reuters) - Russian President Vladimir Putin sought to reassure the U.S. business elite on Saturday he was determined to turn Russia into a more investor- friendly country -- but made no mention of the word "YUKOS."
The Kremlin leader greeted top executives from U.S. corporate giants including Citigroup, ConocoPhillips, Alcoa and IBM at the baroque Konstantinovsky Palace near St Petersburg, Putin's political stronghold.
The meeting, proposed by Citigroup Chairman Sandy Weill, will be followed by a similar forum with business leaders from Germany on Sunday.
"We will continue work to improve Russia's investment climate," Putin told them at the 18-century palace built by Peter the Great in opening remarks attended by reporters.
"I hope that in a few years time Russia will turn into a net importer of capital from a net exporter." (This might happen when Putin stops putting successful businessmen and political rivals in jail.)
Putin's Kremlin has scared foreign investors by destroying one of the country's biggest oil firms, YUKOS , in what analysts say was punishment for its jailed founder Mikhail Khodorkovsky's political aspirations.
Economists say the break-up of YUKOS is a major cause of stagnation in the Russian oil industry and a wider economic slowdown in the world's No. 2 oil exporter.
But Citigroup's Weill, speaking to reporters after a closed-door meeting between the executives and Putin, said there was no mention of the YUKOS affair.
"I hope the solution to the YUKOS matter can be ... worked out," he said. "Today's meeting would be a very good start."
Investors are also concerned about Russia's high inflation rate and the Kremlin's growing role in the country's strategic sectors such as oil and gas.
The government's plan to bar foreign investors from bidding for some of Russia's most lucrative oil and metals deposits is another headache, analysts say.
Earlier this week the Paris-based OECD published a report on Russia, saying the economy was in dire need of reform and in danger of slipping backwards. The report said all branches of government were weak, inefficient and corrupt.
PUTIN'S PROMISES
Speaking to U.S. investors, Putin pledged to do his best to improve Russia's much-criticized judicial and banking sectors and make it easier for foreigners to enter the economy's most protected sectors.
"We will create well-defined rules for foreign partners who want to enter sectors where restrictions exists due to issues related to national security," he said.
Earlier this year Siemens's bid for a Russian engineering firm was blocked by the government over fears it could compromise sensitive military information.
"We will work to strengthen and protect property rights, including intellectual property rights," Putin said.
Another problem is Russia's inability to make the best use out of record-high oil prices: economists say that by failing to drive through desperately needed structural reforms, Russia has boxed itself into a corner where the wider economy cannot handle oil-fueled appreciation of the ruble.
"From the one hand, (high oil prices) lead to stable and relatively high budget revenues," Putin said.
"But on the other hand, it has led to certain difficulties. In particular it leads to inflation ... and excessive strengthening of the national currency, which is having a negative effect on Russian exporters."
On Sunday, Putin is due to meet leaders from E.ON-Ruhrgas, Siemens, Metro, ThyssenKrupp, SMS Demag and EADS.
onedomino said:Tell me Vladimir, should US business invest in Russia before or after you jail businessmen who are your political rivals, eliminate the democratic election of Russian governors, inhibit democratic elections in the Ukraine, perform military exercises with the Chinese, ship nuke fuel to Iranian Mullahs, sell missiles to the Syrians, or close down yet another media outlet? Well, I guess that would have to be after, since you have already done all those things.
I'm so sorry that you are victim of American television. You really believe that Russia attacked Georgia in 2008?If Russia was interested in trade, perhaps they should have avoided sabotaging the Georgian pipelines?
Great at rebuilding the Russian Empire.I'm so sorry that you are victim of American television. You really believe that Russia attacked Georgia in 2008?If Russia was interested in trade, perhaps they should have avoided sabotaging the Georgian pipelines?
I want to know what Americans think about Putin. He is great leader, isn't it?
I'm so sorry that you are victim of American television. You really believe that Russia attacked Georgia in 2008?If Russia was interested in trade, perhaps they should have avoided sabotaging the Georgian pipelines?
I want to know what Americans think about Putin. He is great leader, isn't it?
I want to know what Americans think about Putin. He is great leader, isn't it?
If you want to heard proof, please, write to my E-mail ( [email protected]). In that time I can tell to you that American television lie about Chechnya and Georgia. For example about Chechnya: USA attacked Afghanistan after attack of terrorists and Americans think that their government was right.He's a sort of semi-democratic dictator with blood on his hands (Chechnya, Georgia, etc.)
American government talks about law and democracy only when it's profitable for them. For example, when bandit's from Russian government beaten pensioners in 1993 during the meeting, they didn't talk about it. But when Putin imprisoned one Russian bandit they start to talk about democracy and law.Russia is a kleptocracy with rampant corruption and little respect for the rule of law.
I'm so sorry that you are victim of American television. You really believe that Russia attacked Georgia in 2008?If Russia was interested in trade, perhaps they should have avoided sabotaging the Georgian pipelines?
I want to know what Americans think about Putin. He is great leader, isn't it?
Putin is a tyrant intent on re=establishing the Soviet union. He has had journalists murdered, businessmen jailed, and pissed all over the rule of law in that country.
Why anyone would want to invest a penny there is beyond me.
About "bloody regime of Putin's" cry just morons or Mad Russophobe.
the ideal of trade and or investment agreements being based on any one countries ability to be a pristine democracy falls so hard on it's face here it's laughable....
