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THE DAILY TELEGRAPH THURSDAY_NOVEMBER 15_2007
… and Minister Elvira Nabiullina confirms that market reforms and controlled growth Global Russia
are aimed at putting Russia into the premier league of the world’s countries
calendar
Find more events and contact details at
www.rbth.rg.ru/global calendar
to seed
The 12th Annual Adam Smith Conference
Pulp & Paper in Russia & the CIS
November 27-29, 2007, Marriott Hotel,
Vienna
The 12th “traditional Adam Smith Vienna meeting”
coincides with exciting developments in the Rus-
sian pulp and paper sector: the Forestry Code has
finally been adopted and, in effect, Russia has an-
nounced controversial plans to increase dramati-
cally duties on round wood exports
www.adamsmithconferences.com
14th International Adam Smith
Economic zones and WTO
Conferences’ Russian Banking Forum
December 3, 2007, Marriott Hotel
Grosvenor Square, London
Adam Smith Conferences’ London elite banking
gathering is well known to all the leading market
membership are key factors
players. There were a record number of attend-
ees at the Russian Banking Forum in 2006; the
event attracted more than 300 top bankers from
across Europe, Russia and the CIS.
www.adamsmithconferences.com
Global Investment and Finance Forum
In recent years the Russian and expenditures three December 10-11, 2007,
economy has developed at a years ahead (including Elvira Nabiullina, an econo- she was promoted to the Deputy The Ritz-Carlton, Moscow
high rate, registering 6-7pc 2010). mist, was appointed the Minis- Economics Minister. Markets are now experiencing a long awaited
growth every year, which is In November-December the ter of Economic Development and In 1998-1999 – deputy chairman credit crunch, after many years of exceptional
much higher than the government will consider Trade of Russia on September 24, of the board, Promtorgbank, and stability. However, another phenomenon has co-
average growth rate in the the Concept of Long-Term 2007. She is an ethnic Tartar and executive director, Eurasian Rat- incided with this rise and fall, perhaps even more
world. In terms of GDP Social and Economic Devel- was born in 1963 in Bashkorto- ings Service. significant than any fluctuations in stock prices
calculated in US dollars, it opment of the Russian Fed- stan. In 2000-2003 Nabiullina became and interest rates. We are witnessing a profound
has grown from $260bn in eration to 2020. In 1986 she graduated from the First Deputy Minister for Eco- shift in the centre of gravity of the global economy,
2000 to $985bn in 2006. The strategic documents al- Moscow State University faculty nomic Development and Trade. towards a new and ambitious set of increasingly
This year our GDP is set to ready adopted or to be ad- of economics, where she received In 2005-2007 she was the head influential emerging market economies. The
top the $1.2 trillion mark. opted shortly set a clear her PhD in economics. She studied of expert council on National world’s financial architecture is changing be-
course of economic policy for economics there along with many Projects. yond recognition.
ELVIRA NABIULLINA
the years to come. of the economists who formed the In May 2007 she was named Yale www.eventica.co.uk
FOR RBTH What is this course? The gov- intellectual backbone of liberal World Fellow. As a new Minister
ernment remains unreserv- economic reforms in Russia. of Economic Development and 4th Annual Russian Winter Festival
Per capita GDP at the cur- edly committed to market In 1992-1994 Nabiullina worked Trade of Russia Elvira Nabiullina January 13, 2008, Trafalgar Square,
rent exchange rate increased transformations. Improving as leading specialist and consul- replaced German Gref, who has London
from about $3,000 in 2003 to the investment climate and tant in economic policy, Russian been considered a progressive The Russian Winter Festival has now become
$7,000 in 2006, and to about bringing down the barriers Union of Industrialists and Entre- reformer for Russia’s economy an important annual fixture for the London public.
$12,000 according to pur- that impede free enterprise preneurs. In 1994-1997 she held with liberal views. Each year it has attracted record crowds, who
chasing power parity. remain the strategic areas of senior positions at the Depart- are treated to an extremely diverse look at Rus-
Industrial output increased the ministry’s activity. ment of Economic Reforms, Min- More about E.Nabiullina on sian culture, from modern pop stars and indie
by 6.6pc in January-Sep- There will be no sweeping istry of Economics. In 1997-1998 www.rbth.rg.ru rock, to folk groups, street theatre and military
tember 2007, with the pro- reforms like in the 1990s and marching bands.
cessing industry making the in the early 2000s. Neverthe- www.eventica.co.uk
biggest contribution to less, the targeted reforms
growth. The success of the currently underway in the name dozens of other indi- 2010. The Investment Fund
Did we leave out any
Russian economy does not area of corporate law, taxa- vidual problems on which we is a powerful catalyst for the
important events?
go unnoticed by foreign in- tion, and the judicial system are working and will contin- inflow of private invest-
vestors. are no less important be- ue to work. ment.
editor.uk@rg.ru
In the first half of 2007, the cause they are aimed at I would like to stress once Under the projects already
net flow of foreign invest- changing the institutional again that a favourable busi- approved, one rouble of gov-
ANTON TUSHIN_ITAR-TASS
ments into Russia exceeded environment in a qualitative ness environment is a neces- ernment investment is
$60bn, an increase of 150pc way. sary condition to ensure sus- matched by three to five rou-
compared to the first half of Some of the most important tained social and economic bles in private investments
last year. Foreign direct in- problems that call for seri- development. That is why as part of public-private
Brief news
vestments increased by 50pc ous institutional transfor- improvement of economic partnership.
to some $25bn in the first mations have to do, in our institutions has been and will The second is special eco-
half of the year. opinion, with the effective- remain our key task. nomic zones. Four types of
British investment soars
The performance of the stock ness of government control To achieve the goal of accel- zones are being created: British investment in Russia totalled $15bn in the
market is similarly impres- and regulation, and with so- erated development, it is nec- – technical innovation zones first half of this year, twice as much as in the whole
sive. Between 2000 and 2006 cial policy. essary to create special in- in Zelenograd, Dubna (Mos- of 2006. Accumulated British investment in the
the capitalisation of the Rus- Creating clear-cut and struments that stimulate the cow Region), St Petersburg Russian economy currently stands at $19bn, ac-
sian stock market increased transparent mechanisms of development of infrastruc- and Tomsk; counting for 10pc of all accrued foreign investment.
more than 12-fold equalling the interaction between the ture and high technology – industrial production Commodity turnover between the countries had
the annual GDP in 2006. In state and business, effective areas. Some such instru- zones in the Lipetsk Region increased 17pc year-on-year, to $10bn, in the first
terms of stock market capi- mechanisms of delivering ments, known as develop- and in Tatarstan (Yela- eight months of 2007. (RIA NOVOSTI)
talisation Russia ranks 18th public services, a transpar- ment institutions, have been buga);
in the world and eighth in ent mechanism of govern- created in Russia in recent – tourist and recreation
Europe. ment procurement and co- years. zones in the Kaliningrad
TNK-BP to explore oil in Venezuela
The IPOs of Russian compa- herent administrative regu- The first is the Investment Region, the Stavropol Ter- The TNK-BP company has concluded an agree-
nies have been growing: in lations are all key areas that Fund, which supports infra- ritory, the Krasnodar Ter- ment with Venezuela on oil exploration of the
the first half of 2007 the vol- contribute to a favourable structure projects as well as ritory, the Altai Territory, Ayacucho block of the Orinoco oil belt. The
ume of IPOs increased by business environment, in- projects of nationwide sig- the Republic of Altai, the Ir- signing was announced after a meeting of the
150pc compared to the same cluding the environment for nificance. The budget will kutsk Region and the Re- Russian-Venezuelan high-level inter-govern-
period of 2006. the development of small earmark more than 450bn public of Buryatia; ment commission. The contract provides for the
In this way, the stock market businesses. roubles ($18bn) for these – special port economic comprehensive evaluation and certification of the
is emerging as an instrument Also important is a trans- purposes in the period before zones. block’s deposits. (ITAR-TASS)
for attracting long-term in- parent and understandable
vestments into the real sec- mechanism of private capi-
tor of the Russian economy. tal investment, including
New uranium deposit in East Siberia
The balanced economic and foreign investment in stra-
Russia’s social and economic development
Concession agreements are A large uranium field will be developed in Yakutia
monetary policy of recent tegic sectors in the Russian another important develop- in East Siberia. Russia’s Federal Agency for Nu-
years has given the Russian economy. Combating cor-
until 2020
ment institution which offers clear Power says the country has 870,000 metric
economy a good “strength ruption is another goal of one of the most effective tons of natural uranium, the world’s third-largest
margin”. Huge gold and cur- institutional reforms. Iden- Russia will have a deficit-free as a proportion of the GDP, while scenarios, but only by 30pc. A models of interaction be- reserves. About 18bn roubles ($722m) in federal
rency reserves (more than tifying the powers of gov- budget in the next 12 years if the state investments will stay at slight drop in oil prices is fore- tween business and the state. budget funds has been allocated this year for the
$400bn), the growing Stabi- ernment bodies that gener- transfer of oil and gas is main- about the 2007 level. cast in 2009-2011, to $56 per Federal tenders have been development of the nuclear energy sector, and
lisation Fund (more than ate corruption and screen- tained at 3.7pc of the coun- barrel. This will reduce Russia’s announced for the first four 51bn roubles ($2bn) and 90bn roubles ($3.6bn)
$140bn as of October 1), the ing legislation for corrup- try’s GDP. Despite the budget’s Russia’s Ministry of Economic trade surplus to zero and lead concession projects worth a will be spent in 2008 and 2009 respectively. Rus-
low level of the government tion is the basis of the strong dependence on petro- Development and Trade says to rouble devaluation. Then oil total of 203.8bn roubles sia is expected to double electricity generation
debt, and the budget surplus programmes that will be ad- dollars, VAT will provide the bulk the inflow of petrodollars will prices are expected to go up ($8bn). at nuclear power plants by 2020. (RIA NOVOSTI)
(7.4pc of GDP in 2006 and opted and implemented in of the budget revenues. run dry by 2017. The reserve again. The average oil price this It should be noted that we
4.8pc of GDP in 2007) pro- each government body and fund will no longer be replen- year is projected at $62 per see Russia’s membership in
vide a safety net that will en- each region of the Russian The investment boom in Rus- ished, therefore it will be used barrel. It is expected to fall next the WTO as one of the most
Carmaker GAZ opens bus plant
sure sustained development Federation. sia will continue for the next 12 up. By 2020, it will account for year and rise to the 2007 level effective instruments of con- Russia’s GAZ Group will make medium-sized
of the Russian economy even The social sphere is another years. Investments will grow 4.1pc of the GDP (its size is cur- by 2017; in 2030, a barrel of oil solidating the positions of buses with Brazilian bus manufacturer Marco-
in the event of external up- major area in need of serious from 6.2 trillion roubles in 2007 rently fixed at 10pc of the GDP). (Urals brand) will cost $75. European and American ex- polo from November. The plant, in which $3m has
heavals, such as a drop in oil institutional transforma- to 50.2 trillion roubles in 2020. porters in the Russian mar- been invested, will produce 1,000 vehicles a year
prices or the currently ob- tions. Reforms are needed By 2020, oil output will remain There will be a big increase in ket. Because of the interna- and will be in Pavlovo, in the Nizhny Novgorod Re-
served worldwide decline of across a whole spectrum of State investments in the econ- at 2007 levels under the worst- social spending and invest- tional obligations, Russia gion. Production of buses under the Real brand
liquidity. issues, including education, omy (primarily infrastructure) case scenario; it will grow from ments in the social sphere. As a will assume, in the frame- will top 100 by the end of the year, GAZ said. GAZ
To be sure, the performance public health and social se- will increase by about five the present 490m metric tons result, the Pension Fund’s bud- work of the WTO, that the supplies vehicles to 29 countries and makes
of the Russian economy is curity. times, and private investments to 540m metric tons under the get deficit will reach 50pc by instrument will also guaran- around 200,000 vehicles a year. (RIA NOVOSTI)
not attributable only to the In addition to the above will increase nine times. Private most optimistic one. Only gas 2020, with the gap to be cov- tee a transparent and pre-
favourable situation in the mentioned areas of institu- sector investments will double production will grow under both ered by federal budget funds. dictable legal environment
world markets but above all tional reform, one could for the activities of foreign
to the economic policy pur- companies, an environment
sued in recent times, which that meets international
ensured political and eco- standards.
nomic stability and strength- Gold and foreign currency reserves ($bn) Stabilisation Fund (trillion roubles) Let me cite an example of
ened the market institu- how the mere prospect of
tions. Russia’s accession into the
I would like to stress the im- WTO improves the situation
portance of the continuity of in the Russian market.
economic policy, which em- The negotiating process has
phasises institutional given a powerful impetus to
change, market transforma- the fight against violations of
tions as well as the formation intellectual property rights.
of a system of development Illegal production facilities
institutions, which provide are being shut down, controls
a catalyst for attracting are tightened and legislation
long-term private invest- Trade surplus ($bn) Money supply (trillion roubles) is improved.
ments to the real sector of the We estimate that about 90pc
Russian economy. of the work of accession has
Among the more tangible been done in the course of
proof of the continuity of the negotiations. As usual,
the economic course is the the final steps require the
adoption of some long-term most effort. For our part we
strategic documents. This are doing all we can to bring
year the federal budget for the negotiations to a suc-
the first time determined cessful conclusion at an
the government revenues
SOURCE: KOMMERSANT
early date.
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