Channel One (Vremya)
March 10, 2005

Meeting of President Putin with Minister of Economic Development and Trade German Gref

Eighty percent of foreign companies operating in Russia consider their business successful. The majority of them hope that the investment climate in Russia will improve. At today's meeting, Minister of Economic Development and Trade German Gref informed President Putin of the results of a survey among foreign investors. Negative aspects of the survey were also mentioned. Over 70 percent of the survey participants consider corruption the main barrier to investment in Russia.

German Gref (Minister of Economic Development and Trade): First I would like to show you the results of a survey conducted in cooperation with the Foreign Investment Advisory Council among 158 foreign companies that have been operating in Russia for a long time.

Vladimir Putin (RF President): When was the survey conducted?

German Gref: The survey was held in March 2005 and presented last week at the Foreign Investment Advisory Council permanent committee session.

President Putin: So, it is really up-to-date?

German Gref: Yes, it is the latest. According to foreign investors, the five main advantages of investment in Russia are the size of the market (88 percent), the high and stable rate of economic growth (77 percent), the high quality and low cost of labor (55 percent) and macroeconomic and political stability (46 percent). As for the main problems, corruption is the major one (71 percent), followed by administrative barriers (66 percent), selective interpretation and enforcement of laws (56 percent), inadequate and contradictory legislation (51 percent) and conflicts between government and business (29 percent).

The PBN Company
Unofficial Translation