putting oil becomes harder and affordability it's worse even if prices fall ok that right there where you just said is the reason why the inflation is so-called seem to not get what you're saying because they're looking at a relative price rise for stuff where the supply is shrinking and there's pointing to that and saying that's inflationary but they're missing the point that in the background is this huge credit collapse that is causing a net deflationary effect absolutely all right well that's all it's par for i got to cut her off there. thanks so much for the call fos from the automatic earth for being on the kaiser report and we'll have to have you on again hopefully as soon as possible because you're one of the few people that we've talked on the show that actually sees all the moving parts or thanks so much for being on the show thank you very much for having me it's been a pleasure already well that's all the time for we have on the step of start of the kaiser report with me and stacy herbert and i want to thank our guest nicole foster writes under the name stone lake over there at the automatic earth and if you want

to send me an e-mail please do so at kaiser report at r t t v dot ru until next time this is my guys were saying by all. sergeant of the israeli defense forces. during his service scorched a street fight. different from the colonel of the chilean armed forces participated in keeping down a military revolt. come the. sergeant of the u.s. army. trying to become an american by digging part in the. ranks and reasons differ but one thing. brings them together once they disobey. they faced it

this is not a provocation but warned. before it and we should see several already assured of support for trieste because they have no idea about the hardships to face. they wanted to says it is open to new things for any army to life ever using them is the most precious thing in the world. is of self-sacrifice and heroism with those who understand it fully but you have to live a. real life stories from world war two. victory nineteen forty five dot dot com.

broadcasting from our studios in central moscow this is our t.v. certainly glad to have you with us let's take a look at your headlines now a key committee on capitol hill approved at the start treaty to cut nuclear arms clearing the way for a full senate vote on ratification but despite being a top priority for the obama administration some republican senators say the treaty will hinder plans for u.s. missile defense system. is wanted by russia on terror charges is said to have a arrived in poland despite a warning he could face arrest if he sets foot in the country russia wants him extradited but he's been sheltered by political asylum in britain where the courts have rejected moscow's requests. the u.n. is to decide on a russian canadian territorial dispute in the arctic with ownership of the areas a rich resources at stake moscow says it has scientific evidence to back its claims

. and as the world's financial elite head for the investment forum our interview show spotlight asks the president of the institute for energy and finance. about what attracts investors in southern russia and how to end the financial crisis. culture is that so much if you're going to make it a lot of people a good idea but look at the politics of the sept moscow beijing and washington and the rise of the multilateral world. how welcome to spotlight the interview show on r.t.

and al good enough 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 sorts 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 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.

to go to 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. recovery of course i don't like i like the fair last year especially and the one before that what does it mean in terms of the number of potential investors. or are sure our trucks investment of two cards direct and portfolio and since we are coming out of crisis we are presented few things like in any forum a few levels of information few types of information for different investors first is political stability what does all of them display for any contravene inviting people and money second is the potential for making money in your country

and deferred a particular projects because vets vets are most important now scenes where if you hold war please invade a country but covered roads for problems so nobody would be investing short term no but we need to attract investors to invest in russia in go on ground. and start importing money to day and working the last few years ahead very very sweet difference now we are not. at the salvation stage we are not covered 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 of saatchi spotlights you know the deal has the details. organizers of last year's investment who are men so

what you see the a proud of the results on most 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 prove the investment climate in russia one of the main thing standing in the way is bureaucracy. 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 and it's called. developing the so-called russian silicon valley is also part of the firm's engender another ambitious project to be discussed is russia's prospects for hosting the two thousand and eighteen world cup preparation for the event is believed to be a good incentive for development of the russian cities which will be moved it is expected that host in large scales hands will give all one needed boost to tourism

and russia nowadays the country's share of global 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 foreign and best words. 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 can under our own decor creditor or form our own dear awful forums

antarctic investments so for us that would be very st peter will for all more of the far east for a mob i call for him so 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 if you hire for it yourself you can do 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 what is coming because it is here all of we have a special russia or do untranslatable in the english probably but its employees are very shrewd be brazen. to meet people and over first hand filling kaante so probably probably since crisis is mostly our work we don't experience any double dip or it least we don't expect too deep a second part of coverage we are hoping for he stated 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 and serious companies working to get it exactly one year ago prime's 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 in two falls and he made it. hazy. we were trying to do too much or. yourselves it's much more sorber situation we have sort of mani 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 and

programs so probably the are much more in mode where you least sixty of poisoning country carvery in development there. are reports or mention 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 worth every here it's it's a problem in the crisis time as well as before maybe of or even worse but i don't think it's pickable to be big investors from abroad the complaint but to be coming for big big coming big money going for big money in the much more

protected much bed to protect it from their midst of corruption so probably it's more our citizens problem and politicians program vengeful foreign investors complain but invest in russia stands sixty theory 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 is corruption receive the main reason for that and then that can russia move move move forward in this like of course if you could use corruption even all of all caernarfon i would say three corruption or all all all the whole bureaucrats ground. with all believe the street corruption of a policeman outside because. well well it is probably the most widespread topic for beer and talks in russian history and history it's official

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 good to live off what he says 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. on the two percent against the prediction so boys if you but did to lower 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 really actually started more intense and grew for a new bit of in modernization innovation only to follow since years in one thousand three hundred 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 a never asian in the disease in the next decade. well well when you say crisis. you mean you mean our own crisis i was russian prices fell so so so for for for for the russians and for the russian economy our own crisis our own problems that we

sometimes create more important than the world crisis of course the ninety's was the beautiful peter of of really high growth globally we had this crisis but this is now the joint to go we're going to development only into fountains and we are all with domestic debates about how we modernize ourselves the next decades says president of the institute for energy and finance leo need to get it going here spotlight will be back shortly right after a break so stay with us down there with. discover abuses. communicate with the wind. and become.

give you. the. i love that we're going to. put it back on track. we'll have a rally we'll sell lots of beer will run around the face. will wear uniforms that will damage is in the black and them moving but very little damming the white. and they are the key to our problem are all right.

to spotlight our nabhan just to remind you that my guest in the studio today is no need of the president of the institute for energy and finance we're talking about the investment forum that taking place in the russian resort of saatchi where the the world financial lead 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 mr what if 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 in europe carvery it's very hard for small business to get to be created so of course but we have nobody doctrine of rates 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 has very weak one market and limited capacity of bank so most of project could require or project finance or go international investors so big bro like north stream and it's almost almost each time a big group of banks in different investor so it's a combination of different instruments is that this is the central bank going to continue to lower the interest rates or well it's mostly depends on inflation the central bank is trying to keep a camp on inflation we had a problem this summer and see unusual situation in august so it's a in

a not not easy but still behold the one digit inflation what this would be good for sure and is as information goes down central bank is always a rates as much is it can well that. the industries have been thinking about the easy credit is not the easy thing to make a record of these would kill us for easy creative it's their own current time but it well i'm going to quote here is from the deputy prime minister sort of be our new 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 we don't have too many enterprises left for

procedures if used to go to egypt ports or really not too many people it's more oh i do. know 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 definitely 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 deficient is 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 where we're not talking about reducing the level of the about modernisation is not a march of government officials modernizing to country when i think it is it is it

seems to change people don't want to say no but institutions very abstract since 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 given his age ok well let's see what the russians themselves just russian people in the streets what they think is better for their own country a government controlled economy or a free market economy spotlights cards. they have more on this let's take a listen to how they are today i'll try to find out if prices think but they clearly mean their country should be controlled by the government over the free market is better for the development of brescia 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 that big 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 markets 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 will get the reins it could cause another revolution of the. free markets of course however states control is also necessary i think those two should co-exist. cools free markets 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. i've got to leave here you've got a question for our guest. when will the russian economy cease to be oil and gas dependent so we can you're going to see where you are 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 i mean here is so nice because we are now in the situation when most of your own. we have very limited number of people important but it's sometimes forty fifty percent of the government income so we're very much dependent on oil is partially due to government. government federal budget bred to be a problem so we could get heated easily but we me start modernizing crush of your mother music in the g. scepter reducing consumption of energy in for as you see 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 it not our troops not only in their minds if we are probably read to be now into depended in

the federal budget on oil and getting of it incomes and taxes so if you will develop service in manufacturing pickup in some years but to be replaced by incomes i mean taxes from manufacturing in 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 you today are they ready really to invest into russia's high tech well russia take exists we have about five industries your potential and investing go on money so probably it probably is a problem of general investment climate evolution corruption including access to create it's we were talking about including

a form of private don't cheap or intellectual property rights and a lot of issues reach these issues keep us at the sixty for. point in your global leader. so i would see the more steps we will make on which is a least bit their 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 and 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 all with all this really i'm not much funder of fun of the school of skull called the right of the critics to ram i'm not a good 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 b. c d's view of are are very real as you creative 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 skolkovo 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 certain industries outside the russian silica well i believe where did could be because in many cases people produce at home some think on computers and i'm sure maybe we would be assigned to scald core and would enjoy the real world taxes we

are i was always. i would save your property and afford taxes for the search and development of the candid takes research you say vs with thanks. food processing or distance we do need help the searchers and we have are huge gaping generations we are bridging between sixty's and if it is the need to bridge fifty fifty five years of group and the will we vestments in the research and development so we need help the sector if you fix israel another question about saatchi the economic and the such as denying taisha intention to the 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 the situation policy well we believe in

a lot of experts on the region or some expert on the regional towards the we believe it must develop russian regions have our own. human cape though minna general keep the israel is any european country. where have we lived in war cost amaro simply there would these cities can't. be can do poorly says an adjustment to post industrial world themselves be me have it be more free hands more capability a truck invest in themselves 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 august the spotlight will be back with more until then stay in our team and take care. less about them yes.