please say they need to do all the i.a.e.a. and the sooner the better united nations security council is sure to stop engagement and these political in fact victoria just a man's bite here and there just company kate this situation and therefore my advice is lead to do his job and of course direct agenda should also do his professional work not to put pressure on iran based on united nations security council resolution and swore a suspension or additional protocol because it won't work mr. tawny the iranian envoy to the i.a.e.a. the international atomic energy agency it's been a pleasure talking to you live from vienna thank you families are talking to you thank you very much.

great to have you with the head of. the greek capital erupts and plans for yet more austerity measures the greek prime minister has pledged to do with new government in a bid to pause the deeply unpopular cuts if the government fails to reduce expenditure it will not be eligible for. the use. which could lead to the country defaulting on its debt. also nato's missile defense plans that dealt to see where is a blow as a frustrated czech republic dropsonde has been left and how the after bush era plans to build a radar system was crowned by president obama in favor of an early warning system

the white house changed course as part of a reset in relations with russia which strongly objected to. and iran confirms it has no plans to possess nuclear weapons at a key summit of asian leaders and i stand corrected on that announcement was made during the talks between the russian and arabian presidents on the sidelines of the shanghai cooperation organization meeting much of the focus of talks so far has been on security issues facing the continent including postwar ghana stand and takes trafficking. the rise of the bags full of the rest talks to russia's former deputy minister to find out which countries his fangs will dominate the walls economic markets and the future.

hello again and welcome to spotlight. on the tape i'm alvin of in today my guest is . view. political and business leaders from around the world i'm gathering in st petersburg for the fifteenth international economic forum to discuss new ideas and current issues the motto of the event is merging the leadership for a new era but does it mean that the old meters are not the kings of the hills anymore let's ask the former russian deputy finance minister. if you get. put into the u.s. department of state the investment climate of russia has strengthened in recent years but corruption and all stable legal framework and economies dependence on

natural resources are all clashes that have a role in confidence among potential investors economic forum in st petersburg otherwise known as the russian basses hoping to improve the country's financial reputation a good two thousand foreign business people have turned up to find out about best and opportunities and strike dozens of multi-million dollar deals. how most of you can thank you very much for coming a little shell miss if you can there was a time when the when the economic forum in st petersburg was was overshadowed by by the london economic from everyone is talking about the to take it taking place simultaneously now the russians are no longer envious and. the london eye gathering why is it a sign of. maturity or does this reflect the rising

interest are far enough foreign businesses and the politicians to the events in russia today. to russian markets. our russian economic forum in london has started for for mostly discussion of russian shoes. some put there before which actually force. some point of view is. pretty new new form which is a london form as a predecessor. is look like global because most of the main agenda of some patel will form is a global agenda and a lot of discussion was the water and we'll be do water this time to. global issues of course russian issue also will be presented and russian president is going to keep

a speech. but anyway i believe that the most part of his speech will be about the global problems and russia in the framework of this problem well are there any practical results at which the forum is a bit more it's mainly just. sharing vs. if you look at the previous events then of course as a result of this forum and contacts between. businesses have. contracts some agreements framework agreements where it was quite substantial amount. but i think the this is not only practical result a practical result is also maybe less much. but it's a result of the new contacts new relationship. new let's say memorandum of understanding between. companies and this is

a more significant practical issue for the business a let's take a look at the history of the st petersburg and on the forum now in a report by spotlight he learned to me that. while russia's business and finance is mostly concentrated in moscow there are several days every june when the capital city gets a break that's when the big money goes to sing it is work for the international economic poor and for short time russia many saw the north becomes the place to strike multi-million dollar they also and top business when the forum was first organized fifteen years ago its goal was to restart bush economic relations between the former soviet republics the event quickly moved beyond the boundaries of the former u.s.s.r. is russia's reputably growing economy became a major attraction to foreign investors two thousand and five was the historic year for reform bill put in ceremony was attended by the president from ideal putin

instantly raising the status of the event to new heights it's been dubbed the russian davos with world leaders becoming frequent guests each year has been a record breaking for the number of deals signed until the credit crunch down the last minute feed are the two thousand and nine form budget was cut by a quarter and the number of contracts signed to windowed the upside was still apparent no businessman and politicians from eighty three countries found the event to record and to miss last year's form demonstrated russia's recovery with fifteen vast man deal signed was around fifteen b.n. you are part of the food. room was the meeting of presidents medvedev in sarkozy the leader of france expressing his hope the presence of french companies in the russian market will grow this year's top gas expected at the forum is the chinese president hu jintao one of the key took weeks to be discussed the big role when

wrong of this cyclone in these county rushes a nation the focus of masti storm is a need to stay in the sleazy g m. l r reporting mentioned foreign investment for investment is the word in russian foreign policy for the last couple of years how useful is the forum for attracting foreign investment to russia. it's obvious reason. and obvious. usefulness of this useful use for this. forum because. due to high level of presence on the official officials present of russia presence of other country's premier ministers for the country is the biggest big businesses are ready to participate and to take a part in discussion and to have a contact with russian companies and this is a good opportunity for the businesses to or to find themselves and maybe to our

allies some first contacts maybe to sign contracts i think it's obviously what are the main weakness is russia in the eyes of foreign investors. weakness is very well known but i would like to start with one of the weakness which may be not very often. repeated actually that. we have a lot of good information about the russia abroad because how we can get and let's say information about a country where you in the press where magazines must media by the best way is to get through information is to touch to be contact. and to be in the country and from this point of view we have a some lack of good advertisement and good opportunity for.

ford in the states to get this information it's very interesting to see that when with when for investors which. has already in russia make an investment doing the business they usually. treated russia as a normal country. start to talk with companies which is not in the russian but maybe go into do it and regarding this issue have usually more negative. information about the russian and of course there is a some obvious reasons which is could be treated as weaknesses. corruption which is actually there in russia it's very well known and the russian president. is talking about this and fighting with this issue with this problem. now and i think it's. corruption translated into

sometimes action course and difficulties for the companies do business in russia you hear you mention the lack of information back people who have do have enough information about russia the investors they they they probably know about the problem of corruption corruption is acknowledged by everyone including the leaders the leadership of the russian federation so what the government is trying to do to fight corruption is a suffice is it working or something else and is needed so the should the russians do do something new or what do you think of course russian government. must do more but in the early to what we see actually first of all we see that there is a lot of actions against corrupted officials and every day we can see in the newspapers internet. information that. some people some officials which involved in the corruption deals are arrested organized and this

company and this is a real fight against corruption. second i think it's the legislation and regulation. all corruption all types of corruption based on some loopholes or some maybe not very well functioning relations and from this point of view. all legislative facts which now is considered in parliament is a subject of some sort of special test against corruption. and the regulation on the level of ministers also there by steps that. anti corruption policy i think to me mean issues it's a real fight against the deals let's say and second legislation tribulation should be more and more examined against the corruption the world bank recently has

a lowered its forecast for russian consumer price growth would you agree with such a pessimistic for. inflation. expected inflation. low often station about eight percent it is actually proved by the i.m.f. report recently for report. presented eight percent forecast for this year. i think it's. of course eight percent this is it's not low inflation but it's at least in framework of the digital i think it's a good result and a good start for the future direction of inflation and in other financial. questions here's a former deputy finance minister was better for

a stronger ruble as the central bank wanted today or a weaker ruble as many of the businesses want it. and this current period of time is the best policy is flexible exchange rate like maybe exchange rates of you appreciate we'll be not so weak as is it is today but i think it's the best option in this situation because you know the . the major export of russia is role much israel and oil and gas and so on it means that for export this this policy is negative neutral. for import of the goods yes in case of appreciation to. competition but you have to take into account that a lot of. consumer goods produced in russia based on.

are or are zero materials some or all materials imported from. abroad and from this point a few can take companies which invested in russia in the consumer protection consumer was production. will be more or less neutral again this policy says. the former deputy finance minister of russia spotlight will be back shortly after a break so stay with. mission free credit take should free in-store charge is free to make amends

free risk free studio types free. download free broadcast quality video for your media projects free media oh don the r t dot com. welcome back to spotlight now where love and just a reminder that my guest in the studio today is i lack of you get the former

russian deputy finance minister mr buell started talking about the russian currency well the daydream of the russian politicians has been has been the ruble becoming a world reserve currency will this happen in our lifetime who do you think any time soon can we expect that to happen or not yet i think of a has a very good chance is to be one of the currency which could be a subject of reserve currency in the first even future yeah in the future why it's not getting today first of all because you. subject of control by the central bank and the level of depends on central bank policy and intentions in this case just quite small investors or banks are ready to consider a currency reserve currency because they don't understand the rules if

currencies flexibles and there's a market rules in this case private entities banks are ready to consider this currency market currency and operate as a business currency as a reserve currency. and central banks also. first. it's a necessary necessary step in order to make. one of the reserve currency the second . completion. for my point of view russian economy now always more or less competitive and can produce products which is the subject of stable international demand so you want more competition on the international more yes and that is like a country of. course. and from this point or point of your false or horrible is

ready to be moralists. and of course the so the reason is high inflation low inflation still inflation is eight percent. recently it's very difficult for investors to can see the rubble as a stable reserve currency we have to achieve a loan solution let's see maybe three four percentage points be in this case we can see quite substantial changes just one example i've recently been in france and seen some when this bank is ready to operate. to exchange rubble into the euro and the euro into the rubles you mean you me you know. cash flow was it's a first signal. present some interest in paris so you know it isn't quite as you. say you cause a lot of russians as you can hear you can so cash. really fine

that's a good sign you have enough to base a business. that's not enough but actually i think the. three thousand should be sold ok listen the russian political class sense started talking about innovations for the last couple of years but in the nation is impossible without a qualified workforce meanwhile we were information that the brain drain is still a great problem in russia that seventy percent of the russian students studying in the united states for example. i want to stay and find a job in the united states not coming back to moscow do you see any preconditions for this for this problem. to be cells maybe maybe the skulk of a project may help. yes it's a very complicated problem of course from the point of your computer.

we are not in the first line among the countries which are doing a very good education. given that but unity for the young people to get education and of course from the point of view of. some supply of the good. employment. that's a big problem and it is impossible to solve this problem. in short period of time but it's very well known that in. many countries. you know to keep some brain inside of the country started the project. you know to look to a localized localized. opportunity for the brains and young brain cells so it means that special entities like school was one of the option. maybe some ideas which is not still developed but to create some. say yes small

cities which based on the university education research professors nation and some in the nation no i think it's only opportunity to create some local society local education society local say to fix our society and local. society for produce produce and you know new ideas innovations on the way which russia has to for because to improve. environment and quality of education and quality of regulation like innovative states or i should use a lot of thing money also tend to to flee russia capital allophones according to to to an estimate may reach fifty billion dollars this year according to to to an analysis what do you see as a fundamental reasons for this i think it's

a purely economic reasons i wouldn't like to actually make any. conclusions based on these figures nothing is really wrong about it's a purely economic reasons. at this moment i mean the autumn of previous year first half of this year very specific situation in the economy in russia we have a lack of clear expectations of businesses. the mystic demand and stability of. the mystic demand it's very significant. but there's the same time they have russian companies a whole lot of. resources to invest financial resources and just to diversify business at this moment because if you haven't if you work in these global the month is much easier than to work with local demand and they're looking around and to invest around in order to support business power and to

support the business will you i think it's in its start up that actually look at this russian business this is you know one of the main economic news these days carrier of kremlin is the call of the other kind of record issue isn't the main presidential aides for further privatization for a new wave of privatization do you think that this new wave may affect the banking sector should should the state diminish its role in the russian that exact. use definitely i think it is obvious truth it's obvious that if commercial bank is appropriate in an. environment competitive environment. purely commercial business there are no special needs for the state to be in the capital has been especially taken into account that the presence of the state in the capital of biggest state owned by now was very helpful to develop this bent to

make these banks big powerful and influential it's time to privatize and to make from more from the state banks to the very powerful private banks which will be have a more opportunity. to develop not just in the country in sight of the country but to develop in europe or maybe in asia. international banks like. major banks in the world you know the question before the year two thousand and. russian oil and gas comprised less than one third. less than half of russian exports now during the last ten years it's become two thirds yet because prices for oil and gas. is very very favorable do you see do you see the problem with that with the growth of the percentage of well in gas in in the

russian income it depends on how to manage this. favor russia get from this. economic situation. of course. it is very difficult to transfer or revenue which is. so-called windfall revenue which created by the prices in the. private investment of the country it is easy to transfer this money into the state investment because state can take and it's reality it's. reality some significant part of this means for revenue into the budget through the special taxes but what to do is this money spent for social programs maybe it's not an issue it's a good issue but anyway it's the lack of investment this money is not the answer that investment and i think the best ways to manage is to use this vin for a new. for some sort of. special fund it was done

to some extent to keep this money doing this my neighbor old in order to keep value and the same. very tough structural changes in the country with the old west on the private money results the state state revenue but we are entering an election period right now so we do have a chance that that's a fair deal of the money for oil and gas will go into as you said the social sector thank you thank you very much and just to remind us that our guest in the studio today was a live view the former deputy finance minister and that's it for now from all of us here if you want to have your say on spotlight or if you have maybe someone in mind you think i should intervene next time to drop their life at al green of add power to t.v. dot are you let's keep the show interactive spotlight we'll be back with more first

and comment on what's going on in and outside russia until then stay on r.t. and take it. as a. you . tube.