it is a bonus if you live in the flood zone. expedition to the bottom of the earth. wealthy british soil in some rough spot on the money. market why not. find out what's really happening to the global economy with much stronger for a no holds barred look good but global financial headlines tune in to your report. is. just. to.

put them back to watching r t live from moscow here's a look at the top stories china's president comes to moscow to strengthen trade ties that are boasting two of the world's major emerging economies. the fate of colonel gadhafi is the focus of the talks between russia's envoy to leave yes and the government in tripoli a meeting comes as moscow tam's to negotiate an end to the country's civil war and . the greek pm promises a reshuffle of his cabinet after a violent and protest athens hundreds of vanda their anger plans for a new public in a deeply and data country. next hour naafa talks to russia's former deputy finance

minister who shares his opinion on which countries he thinks will dominate the world's economic markets in the future. hungry for the full story we've got it for us the biggest issues get a human voice face to face with the news make us. feel . 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 are gathering in st petersburg for the fifteenth international economic forum to discuss new ideas and current issues the motto of the inventors. the leadership for a new era but does it mean that old leaders are not the kings of the hills anymore plus hours for the former russian deputy finance minister. gordon to 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 patches that are eroding confidence among potential investors economic forum in st petersburg otherwise known as the russian gas is hoping to improve the country's financial reputation with two thousand foreign business people have turned up to find out about rescued 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 for a. businesses and the politicians to the events in russia to get to to russian market are russian economic forum in london a starter for four mostly discussion of russian ships.

some paperwork for which actually force. some point of view is. pretty new new form which is on the 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 they want it and we'll be doing water this time to. global issues of course russian issue also will be presented and the 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. let's see. contracts some agreements friends agreements all quite quite substantial amount but i think that this is not only practical result as a practical result is also maybe less much of a waste but it's 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 spotlights 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 petersburg for the international economic poor and for a short time russia says that he saw the north becomes the place to strike multi-million dollar deals and talk business when the forum was first organized fifteen years ago its goal was to restore 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 on to the credit crunch down the last minute here are the two thousand and nine form budget was cut by

a quarter and the number of contracts signed to win gold the upside was still apparent joe businessman and politicians from eighty three countries found the event to record. to me. last year's forum demonstrated russia's recovery with fifteen vast man deal signed with around fifteen b.n. you are part of the forum was the meeting of presidents medvedev and sarkozy to the leader of france expressing his hope the presence of french companies in the russian market will grow he sees top gast expected at the forum is the chinese president hu jintao one of the key took weeks to be discussed is the growing role of this week's economies come to be russia as a nation the focus of masti swarm is also you need to stay in the cities e.g. and. all our reporting mention 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 president of russia presence of other country's premier ministers countries 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 themself and maybe two or some first contacts maybe to sign contracts so i think it's obviously what are the main weakness is russia in the eyes for 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 to get to 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. for in the states to get this information it's very interesting to see that when with for investors which. has already in russia make an investment doing the business they usually. do that russia is a normal country. start to talk with companies which is not in the russian but

maybe going to do it and regarding this issue. usually more negative. and you get 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 that do business in russia you hear you mention the lack of information back people who have do you have enough information about russia the investors they probably know about the problem of corruption and 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 more what do you think of course. you. 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 or panelist and this is a company and this is a real fight against corruption. second i think it's a legislation and regulation. all corruption all types of corruption based on some lobos or some maybe not very well functioning relation 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. the relation on the level of ministers also there by steps that. anticorruption policy i think to me main issues it's a real fight against the deal slitting and second legislation tribulation should be more and more examined against 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 that i am a 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 digital i think it's a good result and a good start for the future direction of inflation and in another kind of. question here's a former deputy finance minister was better for russia a stronger ruble as the central bank wanted today or a weaker ruble as many of the businesses want it. for for. this current period of time the best policy is flexible change rates like maybe change 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 eland oil and gas and so on it means that for export this this policy sees negative neutral. for import of the goods yes in case of appreciation to be some. competition but you have to take into account that a lot of. consumer goods produced in russia based on the. or are zero materials some. imported from. abroad and from this point of companies which invested in russia in the consumer production consumer was production. we'll 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. motion would be soo much brighter than if you move on sundin from phones to impressions. from. stunts on t.v. don't come.

welcome back to spotlight now where a lot of and just a reminder that my guest in the studio today is i lack of you get the former russian deputy finance minister mr begin was 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 or do you think any time soon can we expect that to happen or are not yet i think of. has

a very good chances to be one of the currency which could this subject of reserve currency in the first even future yeah in the future why not bring today first of all because you. subject of control by the central when and the level froebel change it 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 then there is 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 and to make ruble. 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 our country of. course. from this point or point of your false or horrible is ready to be moralists. and of course the reason is a high inflation low inflation the 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 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 with the ruble to exchange ruble into the euro and you're into the rubles you mean you mean here you mean. cash flow but it's a first signal. present some interest in paris so you know it wasn't called the. so you cause a lot of russians as you can hear you can so cash rules there's a great point that's a good sign you have enough to base a business. that's not enough but actually i think the. truth are screwed bissell ok listen the russian political class 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 with seventy percent of the russian students studying in the united states for example. wants 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 view of computing. we are not in the first line among the countries which are doing a very good education. given the but unity for the young people to get education and of course from the point of of view. some supply of the good.

employment. and 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 start as a project. you know to look through a localized local is the. 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 society fix

a society and local. society for produce produce and you know new ideas innovation so on there's a way which russia has to for because to improve and. environment and quality of education and quality of regulation like innovative states where russian use a lot of day money also tend to to flee russia capital out firms according 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 this figure is not entirely wrong about it's a purely economic reasons. at this moment i mean the autumn of previous year. first half of this year we have very specific situation in the economy in russia we

have a. lack of clear expectation of businesses. the mystic demand and stability of. the mystic demand that'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 around in order to support business power and to support the business will you i think it's in it's not the start of that actually look at this russian business this is the you know one of the main economic news these days coming out of kremlin is the call of the record issue is one of 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 backings. 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 the presence of the state in the capital of biggest state owned by now was very helpful to develop his bent to make these banks big powerful and influential it's time to privatize and make from move from this state banks to the very powerful private banks which will be more opportunities. to develop not just in the country in sight of the country but

to develop in europe or maybe in asia to meigs international banks like. major banks in the world you know the question before the year two thousand. 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 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 crisis 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. this is 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 a 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 of 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 from 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 i leave you get the former deputy finance 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 if you think i should into the next time to drop their life at al green of ad party 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 our team and take it. as you.

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