so the businessman welcomed the government's talk about reform but much of the economy is still frozen after the crisis companies are unwilling to borrow and innovation wait for the upturn my new question of business our. time to have a look at the markets now european equities are losing at this hour britain is of the red head of state and news that british retail sales fell in august for the first time since january shares are up two percent on the reports china's seen nuke made it ten billion dollars for assets. and in moscow the r.t.s. of the mice that's followed asia low of bucking the trend to all the shares of russia's biggest oil producer ross met through two and a half percent and of course the company may win an extension of tax breaks for its oil field. and finally the ruble has slipped thirty one two dollars for the first time since the beginning of july the russian currency also weakened against the

passage of classist will think you're also getting water copecks main factors for the slump or stronger demand for currency and slighting oil prices as well as a major sell off by japan. as the business for now join me next hour for more business news.

more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. trying to corporations are on the day.

a suspected terrorist has reportedly arrived in poland. to stand trial in russia but for the last two years he has had little asylum in the u.k. . canadian foreign ministers meeting to hammer out an agreement over the arctic the two countries have competing claims for the region to hold. defense spending is under attack in the u.k. and the country's elite special forces unit. could be caught in the crossfire some experts fear that the country's security. and up next i'll go off explores the two thousand and. four that's kicked off in the russian resource city of sochi and if you program.

the. hello again and welcome to spotlight the interview show on r.t. and al gore now and today my guest in the studio is lee i need to get. the world's financial elida have gathered at the two thousand and ten investment in the russian resort city of sochi to discuss investment projects and the road back to economic stability so what attracts investors here and how are they coping with the global crisis we will be asking mr gregorio who is the president of the institute for

energy and finance. investment forum sort of two thousand and ten will be looking at some of the issues facing investors in russia they'll be particularly looking at the role of the state in markets regulation one of the russian think tanks he's trying to promote the free a market within the country but some russian businessman argue that investors would profit from stronger state interference so the meeting in sochi will be exploring ways to square the circle. thank you very much for being with us thank you thank you for coming to the studio first first of all let's compare today's forum and the two previous forums the the two thousand and ten forum is taking place when the russian economy is showing signs of recovery unlike i like the firm last year especially and the one before

that what does it mean in terms of the number of potential investors around russia attracts investment of two kinds direct and portfolio and since we are coming out of crisis. few things. like in any forum are a few levels of information few types of information for different interests first is political stability what does all of them destroy for any country inviting people and money second is the potential for making money in your country and deferred a particular projects because vets vets are the most important and now seems well if you whole walkways invade a country but swarthy covered roads for problems so nobody would be investing short term now but we need to attract investors are ready to invest in russia involved. in starting putting money to day and working with us for

a few years ahead very very sweet difference now we are not. at the salvation stage we are not recovered if we are looking ahead for maybe not too fast but steady growth well attracting investment to the russian economy is something businessmen and politicians are going to discuss for the next three days saatchi spotlights you know the media or has the details. organizers of last year's investment for him and so to see the a proud of the results almost two hundred deals worth around twelve billion dollars we reached despite the global economic downturn this year that the disciplines will try to do better the discussion part of the firm will concentrate on how to improve the investment climate in russia one of the main thing standing in the way is bureaucracy the construction industry says it might take four years from formulation of a project to put in

a permission to build that soon as an acceptable now the country's trying to promote innovation which will start with building a high tech complex in school. developing the so-called russian silicon valley is also part of the firm's engender another ambitious prove. it to be discussed is russia's prospects for hosting the two thousand and eighteen world football cup preparation for the round is believed to be a good incentive for development of the russian cities which will be moved it is expected that host in march skills who ends will give a long needed boost to tourism and russia nowadays the country's share of google tourism is only one percent attracting investment to segments of the economy as diverse as agriculture and moviemaking will be discussed the dozens of round tables in sochi and the success will be measured in the number of deals done. to the russian authorities they like to. speak about such

a forum and in the best words i mean me like haley but how about you what do you think how useful really is this forum for attracting investors or is it more like a. case for a politician to speak and to to listen well normally each country it has kind of current under our own decor creditor of form our own we're in and are awful forums antarctic investments so for us that would give you st peter will for a lot of the far east for a mob i call for him so if he's different a little bit because it's too close to the residence of the president and prime minister so it's a place where people meet sometimes we need to view higher for it yourself in country so it has much more political staining and at the same time it's coming it's not political dialogue it's v presentation

a few country and most of comedy is calming because it's your all of you have a special russia or do untranslatable in the english probably but it's a place very shrewd be brazen. to meet people and have a first hand feeling to fit conti so probably probably since crisis is mostly our work we don't expect any double deep or it least we don't expect too deep a second part of coverage we are hoping for v. stay getting carvery in russia to the east so we are hoping the investors would join us and help us to recover for a russian or four it's important for and i would expect some serious deals in serious companies are working to get it exactly one year ago primes to putin said the crisis is changing russia's investment policy didn't really change this

policy did and did it. change the the competitive ability of this country yes of course to high oil prices into falls and he made us. hey. we were trying to do too much or. yourselves it's much more sorber situation we have certain monny we have a stable oil prices medical worth of things to ourselves but we do need foreign investors and incorporation in joining to changes for major enterprises in program so probably a much more least sixty of. country carvery in development. our reporter mentioned bureaucracy which stands in the way of investment and cooperation with business abroad when we mention bureaucracy i mean the russians we actually don't mean bureaucracy itself we mean corruption the president the prime

minister talk a lot about fighting corruption is getting somewhere on the side of corruption well i would say domestic assessment of corruption for russia is not very good and what there we hear it's it's a problem in be crisis time as well as before maybe of or even worse but i don't think it's the big investors from abroad the complaint but to be calming for big big coming big money going for big money in the much more protected my bed to protect it from the midst of corruption so probably it's more our citizens problem and politicians program vend for foreign investors complain but invest in russia stands sixty third out of one hundred thirty three thirty nine countries in the global competitiveness report so right in the middle it's far behind the

most of the developed countries so it's corruption received the main reason for that and then that could russia move move move forward in this of course if you could use gone option even all of all caernarfon i would say three corruption or all all over the whole bureaucrats ground. with all believe the street corruption we will have a policeman outside because. well it is probably the most widespread topic for beer and talks in russian history and the streets of beijing well now russia of course must move out of his situation as soon as possible. the i.m.f. and the o.e.c.d. have warned about a major slowdown on the world economy by the and of the year do you but you believe your is that you do believe it's going to happen and russia how we're going to affect russia well reaks bank slowdown in terms of global groove but

it's still still not to live off the chorus it's a little soviet it's a slowing of recovery for russia affected by the slow we go forward export of metals not the oil revenue but momentos the chemicals so we may have slowed down there for export some office not too bad to go in the negative but probably. the two percent against the prediction so boys if but did talwar so ever since russia has started its market reforms the development of this country has been higher than the that directs the development of the developed country which is natural do you think this this high rate of development in russia will last long we are actually started more intense and grew for any bit of in modernization integration only into fall since years in ninety s.

we had minus forty forty percent g.d.p. minus forty is it's terrible so we are coming slowly from there very hard crisis and we're doing a little bit good to be are about to start a major enough ration in the disease in the next decade. well where when you say crisis. you mean you mean our own crisis i was russian prices fell so so so for for the russians and for the russian economy our own crises our own problems that we sometimes create more important than the world crisis of course the ninety's was the beautiful peter of of highgrove gold would it be had this crisis but this is now he joined to go we're going to development only into false sense and we are with domestic debates about how we modernize ourselves the next decades says president of the institute for energy and finance leoni the goody

goody spotlight will be back shortly right after a break so stay with us down the aisle with. wealthy british style. expert on. the. market why not. come to. find out what's really happening to the global economy with max cons are the no holds barred look at the global financial headlines tune into kaiser report on r t.

russia would be so much brighter if you knew about songs from fans to question this . please please start on t.v. dot com. the belief. to spotlight an album not even just a reminder that my guest in the studio today is the i need to get good enough the president of the institute for energy and finance we're talking about the investment forum that taking place in the russian resort of sochi where the the world financially has gathered to discuss the in the investor russia the situation

russian economy and also first of all the financial situation of russia well i in this respect wanted to ask you mr good about it how easy or how hard is it to borrow money in russia which means has the russian financial system glover big money. i'm sorry well both. small money is a problem but it's a global problem but after the crisis is in your recovery it's very hard for small business to get to be created so of course but we have now had a doctrine of freights and depositories and created three it's sort of the getting could be easy in inflation is not too high for big money it's a problem it's a victim suppression financial system because very weak one market and limited capacity of bank so most of project could require or project finance according to the national investor so big bro like north stream it's almost almost each

time a big group of banks in different investors so it's a combination of different instruments in this is the central bank going to continue to lower the interest rates well it's mostly depends on inflation the central bank is trying to keep cap on inflation we had a problem this summer it's unusual situation in august so it's in a not not easy but still behold one digit inflation what is it would be good for a show and as as information goes down central bank is always a rates as much is it can well dutschke. the investors have been thinking about the easy credit is not the easy thing america recruits would kill us for easy creative it's their own current time but it well i got a quote here is from the deputy prime minister sort of be anyone who recently said that the size of russia's public sector has reached a dangerous level this is

a direct quote from deputy prime minister and he said that nearly fifty percent of the workforce in this country the people work for the state and state owned. factories are organizations and so what is the government since he said that looking at reducing this level so are we looking at a new wave of privatization well if you don't have too many enterprises left for procedures that you fused ports or are not too many people it's more oh i can do is . didn't always ink me big kompany is it me behave do we need bureaucrats maybe we have some services reaches our states or is good could be privatized so it's a long way but differently in the recent five seven years we had substantial growth of government employment instead of roads where it's very it's a problem we do believe that government is not very efficient as private business

and more people into government six lissa fissions but still the main the main subject today in russia is modernization and the government is playing a crucial role the main role in the modernization process is that going to continue because if that is going to continue then we're we're not talking about reducing the level of the about modernization is not a marcher of government officials modernizing who can't when the only concern is it seems to change people don't want to know but institutions read stacks and it takes incentives it's different it's policy first of all not policy maybe. money maybe some takes my numerous but not bureaucrats coming in all american joke i am from the government i'm here to help you where it's not what we mean by but there musician ok well let's see what the russians themselves just christian people in the streets what they think is better for their own country

a government controlled economy or a free market economy spotlights. they have more on this let's take a listen there today i'll try to find out if brussels think that the economy in their country should be controlled by the government or the free market is better for the development of russia before birth but i think it should be controlled by the government because only government can manage it private companies only think about their own good or for the good of a problem it's obvious that a free market is better for our economy look at certain conditions first of all there should be a special legislation which regulates the market and secondly the fission state regulating bodies. i think the economy should be state controlled because those who understand that should be at the helm but if people get the reins it could cause another revolution of the. free market of course however states control is also necessary i think those two should co-exist. of cool story markets and that way

people would have control everything should be transparent and businessmen should pay twenty percent tax for example and that could be a good way for the development of our economy out i've got to leave here if you've got a question for our guest. when will the russian economy cease to be oil and gas dependent so what can you are going to do in a generation generational when you say generation to meet you mean a generation in the business or a generation in private life is it twenty years or is it fifty years and well mean years released because knowing the situation when most of your own. we have very limited number of people imported by the it's sometimes forty fifty percent of the government income so we're very much dependent on oil is partially due to government into government federal budget but had to be a problem so we could get rid of the easily but we may start modernizing crush of your modernizing in the juicer to reducing consumption of energy in producing more

sophisticated the products depending on the government it's still it will take years so so you say joe when you say it really generation is that because you mean that the the this oil dependence is not actually in the pockets but it's in the mines is in other troops not only in their minds if the problem had to be now into depended in the federal budget on oil and getting incomes and taxes so if you will develop service in manufacturing go pick up in some years but to be replaced by incomes i mean taxes from manufacturing and services that are placing them in comes from oil it's not easy let's get back to saatchi to investors and to the high tech kind of modernization that we've been talking about and of which president medvedev is talking for the last at least a year he started every week it says something about modernization are the

investors others people that get together such a today are they ready really to invest into russia's high tech well russia take exists we have about five industries you potential and be mystical in money so probably probably it's a problem of general investment climate evoluting corruption including access to create it's we were talking about including. the form of private don't cheap or intellectual property rights and water for issues reach visitors keep us at the sixty for. point in your global list. so i would see the more steps we will make on visit least bit investment going to be more investment if you can get insight to be aware of some people say that skolkovo this is a place where where russians are building their other silicon valley that it may become an isolated island of innovation special taxes of special attention from the

government but but that this this actually valley will actually be an island that will not be connected to the rest of the russian economy may that become a case well hold on there's really i'm not much fund of fun of. your know the critics to them i love the idea and escaped and skeptic and i believe it's goal call may be a good project in the good toys for the government but russia is still one hundred forty million people we have a few dozen the. view for a very old you created people and potential for post industrial innovation so i'm much more concerned about how to make people capable to develop innovation or on for granted not just not in the one voice but one of the reason i'm asking about is that i am particularly interested in that special tax rules that are being designed

for skulk of fire for those who are going to make business as culpable will and me these tax then these taxes be applied to industries outside the russian silica well i believe where did could be because in many cases people produce at home something from computers and there should maybe be would be assigned to skulk or and would enjoy the real world taxes. are i was always. i would save your property and afford taxes for the search and development of the kana takes research you say vs with thanks jeanne. food for say sink or distance we do need help the searchers and we have are huge gaping generations we are bridging between sixty is and if it is need to bridge fifty feet of cry for years of group and the will we'd vestments in the research and development so we need

help the sector if you take says israel another question about saatchi the economic and of such as denying taisha intention to to the regional regional development in russia do the russian regions need additional possibilities additional instruments of development is russia in general in need of correction of a situational policy well we believe i'll be mean a lot of experts on the region are some expert on the regional boards if the believe that most develop russian regions have our own. human cape though managerial keep israel is any european country. they have reacted in board some are or simply there would be c.d.'s can't. be can do poorly says an adjustment to post industrial rolled them selves be me have it be more free hands up ability or truck in the us and them selves we need some corrections in your

original policy thank you thank you very much and just a reminder that my guest in the studio today was president of the institute for energy and finance. and that's it for now from spotlight will be back with more until then stay in our team and take. them yes.