- Title: UK: RUSSIAN ECONOMIC FORUM OPENS
- Date: 21st April 2004
- Summary: (EU) LONDON, UNITED KINGDOM (APRIL 19, 2004) (REUTERS) 1. SLV PAN QUEEN ELIZABETH II CONFERENCE CENTRE 0.16 2. MV ROLLS ROYCE PARKED BY ENTRANCE 0.23 3. MV POLICE OFFICERS ON DUTY ; MV RUSSIAN BUSINESSMAN ARRIVING 0.34 4. INTERIOR CONFERENCE HALL 0.41 5. RUSSIAN DEPUTY PRIME MINISTER ALEXANDER ZHUKOV ADDRESSING FORUM 6. (SOUNDBITE) (Russian) ZHUKOV SAYING "We need to decrease Russia's dependence on energy prices, and make the country more competitive in globalising world through effective market mechanisms, political and economic stability and educated, entrepreneurial population not suffering from poverty." 7. CLARA FURSE, CHIEF EXECUTIVE OF LONDON STOCK EXCHANGE, LISTENING 8. JOHN BROWNE, CEO, BP, LISTENING 9. (SOUNDBITE) (Russian) ZHUKOV, SAYING "I believe that the investors fully understand that the Russian government will make every effort to prove once again that there will be no de-privatization or re-nationalisation of the economy." 10. YUKOS STAND 11. (SOUNDBITE) (English) ERIC KRAUS, CHIEF STRATEGIST, SOVLINK INVESTMENT BANK, SAYING "I think international investors want the story to be over as soon as possible. I don't think they are that concerned with how it ends provided that it does end. I think that the final judgement is going to be that this was a necessary step by Mr. Putin to avoid a literal coup d'etat by an oil company with its own foreign policy which was attempting to put a squeeze on the Russian government and failed to do so. It's a messy deal." 12. VARIOUS PARTICIPANTS 13. (SOUNDBITE) (English) MAARTEN LEO PRONK, ACTING CHAIRMAN OF THE MANAGEMENT BOARD, NIKOIL INVESTMENT BANK, SAYING "The arguments are the availability of resources, excellently trained people and a well run infrastructure which altogether makes Russia an excellent opportunity today." 14. VARIOUS PARTICIPANTS 3.14 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 6th May 2004 13:00
- Keywords:
- Location: LONDON, ENGLAND, UNITED KINGDOM
- City:
- Country: United Kingdom
- Reuters ID: LVAB14F6PJWD7A8LHEDGNDA9K0HN
- Story Text: Russian economic forum opens in London.
The Russian economic forum, a three-day annual event
to which the Russian business community and government
officials come to promote foreign investments into Russia's
fast growing economy, has opened its doors on Monday (April
19, 2004).
Russia's economy continued to grow in 2003 with early
indicators showing a 7 percent increase in both GDP and industrial
growth. Inflation dropped from 15.1 percent in 2002 to 12 percent in 2003.
But despite impressive figures much of the Russian
economic growth is attributed to high oil prices,
country's main export commodity.
"We need to decrease Russia's dependence on energy
prices, and make the country more competitive in
globalising world through effective market mechanisms,
political and economic stability and educated,
entrepreneurial population not suffering from poverty,"
said Alexander Zhukov, Russia's deputy prime minister,
outlining the goals of his newly appointed government.
Zhukov said the government predicts an increase in
direct foreign investments in Russia up to 14 billion U.S. dollars by
2007 as compared to around six billion in 2003.
Asked what could be the implications of the
government's legal actions against oil giant YUKOS, accused
of tax evasion, the Russian deputy prime minister said the
legal case against YUKOS's ex-CEO Mikhail Khodorkovsky
should not shake confidence among investors in Russia. He
added the case does not give any signal that Russia may
review the results of privatisation of the economy in 1990s.
"I believe that the investors fully understand that
the Russian government will make every effort to prove once
again that there will be no de-privatization or
re-nationalisation of the economy," said Zhukov.
Analysts have said the arrest, and a broader attack on
YUKOS, was orchestrated by the Kremlin to punish the
billionaire for political activities. Eric Kraus from
Sovlink believes investors just want the case to be over.
"I think international investors want the story to be
over as soon as possible. I don't think they are that
concerned with how it ends provided that it does end. I
think that the final judgement is going to be that this was
a necessary step by Mr. Putin to avoid a literal coup
d'etat by an oil company with its own foreign policy which
was attempting to put a squeeze on the Russian government
and failed to do so. It's a messy deal," said Kraus, chief
strategist of Sovlink investment bank.
Russian and foreign investment banks operating in
Russia said interest among foreign investors has increased
significantly.
"The arguments are the availability of resources,
excellently trained people and a well-run infrastructure
which altogether makes Russia an excellent opportunity
today," said Maarten Leo Pronk, acting chairman of the
management board of Nikoil investment group.
Four hundred British-based companies are currently
active in Russia. Britain was last year's biggest overseas
economic investor in Russia. The last two years sent the
bilateral trade turnover up by 50 percent.
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