g.'s mine old girls. and streets with the palm of your. question on the comb. it's now a five thirty am here in the russian capital you with us he reminded of our top story a multi-billion dollar head shake for two of the world's biggest emerging powerhouses russia and china closer together the libyan conflict mean time was also a key to a conversation with the leaders urging against an escalation of violence. no place for colonel gadhafi in libya is future the russian and voice message as he meets loyalist officials in tripoli to broker a peace all amid a rebel and nato assault supporters say he's not prepared to step down before cease fire is in place. the lawyers for alleged international arms the victim group

prepared to challenge a new york court on the legality of his extradition to america the russians been awaiting trial since his arrest in thailand over three years ago. i know those are the headlines here on r.t. and next spotlight asks a former russian deputy finance minister about where the smart money will be and topping the world's second economy league that's next right here on sci. fi. hello again of the welcome to spotlight the interview show on the tape and now we

know when 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 currently the motto of the event is an merging the leadership for a new era but does it mean that the old leaders of the kings of the hills anymore let's ask the former russian deputy finance minister. gordon to the u.s. department of state to be investing time in his russian has strengthened in recent years but corruption and unstable legal framework and economies dependence on natural resources are old patches that are only confidence monkey time from glasgow's economic forum in st petersburg otherwise known as the russian glamorous is hoping to improve the country's financial reputation into two thousand and four and business people have turned up find out about investment opportunities and

strike dozens of multi-million dollar deals. hell most of you can thank you very much for coming on the show. and there was a time when when the economic forum in st petersburg was overshadowed by the london economic reverie starting at the two taking taking place actually simultaneously now the russians are no longer envious. however of the london gathering why is it a sign of. maturity or does this reflect the and raising interest of foreign of foreign businesses in the politicians to the event to russia . to russian market. russian economic forum in london a starter for foremostly discussion of russian shares.

something terrible for which actually was. some point of view. pretty new new form which is the london forum was a predecessor. is local a global because the most for the main agenda of some pretty would form is a global agenda and a lot of for discussion was the waterfront real bit of what exists to all. global ships of course russian shore so you'll 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 russian framework of this problem are there any practical results at which the forum is a 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 for any agreements plus quite substantial amount not as in the this is not only practical result as a practical result is also maybe less not a waste but it's a result of the new contacts new relationship. new memorandum of understanding between the. 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 reaganomics forum now and a report by spotlights. well 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 st petersburg for the international economic poor and for a short time russia then you 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 restart bush economic relations between the former soviet republics the event quickly moved beyond the boundaries of the former u.s.s.r. as russia's regularly growing economy became a major attraction to foreign investors two thousand and five was the story to you for the form the opening ceremony was attended by the president and idea instantly raising the status of the event to new heights it's been dubbed the russian davos with 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 month. the two thousand and nine formed by

a quarter and the number of contracts signed. up signed while still apparently no businessman and politicians from eighty three countries found the event and we would. last year's form demonstrated russia's recovery with the investment deal signed it was around fifteen billing you were part of the forum was the meeting of presidents made that even sarkozy the leader of france expressed the least hope the presence of french companies in the russian market will grow he sees top gast expected before him is the chinese president hu jintao one of the people to be discussed his big role when wrong. greeks economies come to the russians and they should be the focus of masti swarm isn't to stay in the sleazy g.m. . but are 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. usefulness of this useful use for this. forum because. due to high level of presence and official officials present of russia presence of either the country's premier ministers or cancerous the biggest big business a syringe to participate and to take a part in discussion and to have a contact with russian companies. this is a good opportunity for the business and store to phone themselves until maybe two or some first wanted some able to sign contracts. obviously what are the main weaknesses russia in the eyes of for investors. is very well known but i would like to start with one of the weakness which maybe

not very often. repeated actually the. we have a lot of good information about the russian abroad because how we can get in let's see information about a country where in the press where the magazine's most media was the best way is to get true information is to catch the being conducted. and to clean the country and from this point of view we have a some lack of good advertisement and good but unity for. foreign ministers to give us information it's very interesting to see that when with when fighting with us which. has already in russia make an investment doing the business they usually. do that russia is a normal country if we start to talk with companies which is not in the russian but

maybe go into 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. and now i see. corruption translated into the 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 have enough information about russia the investors they probably know about the problem of corruption in question is acknowledged by everyone including the leaders who leadership are the russian federation so what the government is trying to do to

fight corruption is a suffices a working or something else and is needed so the should the russians do is something new or will you think of course russian government. knows no more but in the early to what we see actually first of all we see that there is a lot of actions against corrupt it officials and every day we can see in the newspapers and on the. information that. some people some officials which go involved in the corruption deals are arrested or penalized 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 the some loopholes or some maybe not. functioning.

from this point of view. all legislative facts which now always consider him by the parliament is a subject of some sort of special test against corruption. and the regulation on the level of ministers also step by step is that as a country corruption policy i think to me mean issues it's a real fight against the deals let's see. second. legislation the relation 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 the. world's inflation. i think expected inflation. lower from traditional percent it's

actually proved that i.m.f. report recently article for report. presented eight percent progressed for this year. i think it's. of course eight percent this is it's not a low inflation but it's at least in framework of two digital i think it's a good result and a good start for the future in addition for inflation and in other financial. questions feel as a former deputy finance minister was a bit of a stronger ruble as the central bank one thirty day or a weaker ruble is many of the business of what. you're looking for for russia. in this current period of time the best policy is flexible change rate life maybe change it if you appreciate it we'll be not so weak as

it is today but i think it's the best option in this situation because you know the . the major export of russia is wrong much you know and the oil and gas and so on it needs is for experts because this policy is negative neutral. for import of the goods yes in case of appreciation to. completion but you have to take into account that a lot of. consumer goods produced in russia based on some. or or or all materials some or all materials imported from. abroad and from this point of u.s. companies which invested in russia in the consumer production consumables production. will be more or less neutral again this policy says.

the former deputy finance minister regression spotlight will be back shortly after a break so stay with google. wealthy british scientists some time to. market finance scandals find out what's really happening to the global economy with much stronger for

a no holds barred look at the global financial headlines tune in to the reports on our feet. welcome back to spotlight logon just a reminder that my guest in the studio today is i lack of you get there from a russian there really finance minister mr putin we started talking about the russian currency world with a dream of the russian politicians has been has been the ruble becoming a world reserve currency will this happen in our lifetime do you think any time

soon can we expect that to happen or not yet i think of the ruble has a very good chance this could be one of the currency which could be a subject of reserve currency in the first even future yeah the future why it's not getting today first of all because you ruble is the subject of control by the central bank and the level for war change it depends on center when the policy 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 currency is flexible than those the market rules in this case private entities banks are ready to consider this currency market currency and operate as

a business currency is the reserve currency. and central banks also. and first let's say unless it's a necessary step in the maker of. one of the reserve currency the second. completion. of the formal point of view russian economy is 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 so that is how the country. goes. from this point of your fall so horrible is ready to be moralists. and of course the silt the reason is a. lot. still inflation is eight percent.

recently it's very difficult for investors to can see the ruble as a stable reserve currency we have to achieve a lot solution and see maybe in museums three four percentage points per year in this case we can see quite substantial changes just one example i've recently been in france and seen some went to the to operate. to exchange roebourne for the euro and you're into the rubles you mean you me you you mean. cash. you know. you present some interest in paris so you know it isn't called there's a. lot there's a sell you cause a lot of russians as you can hear you can so cash rules there's a fine that's a good sign you have enough to misunderstand not i was smart enough but actually i think the truth. ok listen the russian political sense

try to talk net innovations for the last couple of years but in the ocean is impossible without a qualified workforce meanwhile we women from asia in that the brain drain is still a great unsolved problem in russia that seventy percent of the russian students studying in the united states are exams. who 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 selling maybe maybe the skalkaho project may help . yes it's a very complicated problem of course from the point of your completion. we are not in the first line among the countries which are doing a very good education. given the opportunity 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 very well known that in so many countries. you know keep some brain and say to the country start of the project. you know to look at the localized look. at what you do for the brains and young brains or so it means that special interests like school was one of the option. maybe some ideas from which is not still developed but to create some. so yes small cities which based on the university education with professors nation and some in the nation i think it's the only opportunity to create

a local society local education society local sourcing to fix our society and local . society for produce produce and you know new ideas innovations on the way which russia has to fall because whom proof. environment and quality of education and quality of regulation like innovative states or russian youth a lot of the money also tend to to free russia caps for our friends according to to an estimate we reach fifty billion dollars this year according 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. this one by me in the autumn of previous year

first half of this year very specific situation in the economy in russia who have a. clear expectations of businesses. the midst of the month and stability of. the mystic and wanted me to go. well there's the same time they have russian companies a lot of. resources to invest financial resources and the drain just to diversify business of this moment because if you have if you work in these global the month is much easier to work with the local demand and the local are old and diverse there aren't in order to support the business or. to support the business will you i think it's in it's not it's not a better action because this russian business it's really you know one of the main economic news these days carrier of kremlin is the cause of the already there are

issues when 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 states diminish and throw in the russian ratings. yes definitely i think it's obvious truths and it's obvious that if commercial is a brit in an. environment completely different. the show business nor any special needs for the state to be in the capital has been especially taking into account the presence of the state in the capital of biggest state owned by no was very helpful to the world is to make this very big powerful and influential instead to privatize and to make from more from this very powerful providence which will be more opportunity. to develop

not just in the country in search of the country but to do open europe and made me a shit to me exist international banks like. major banks in the world. before the year two thousand. russian. comprised less than one third. less than half of russian exports now during the last ten years it's become two thirds just because prices so for oil and gas. is very very favorable do you see do you see the problem with it with the growth of the percentage of will and gas in in the russian it depends on the whole diminish vis a vis let's say favor. to get from this. economic situation. of course. it is very difficult to transfer or

revenue which is the so-called windfall revenue created by the high oil prices into the. private investment of the country it is easy to transfer this money was a state investment because state and reality it's a reality some significant part of this means for 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 the best and. i think the best ways to manage is to use this vince will ruin you. for some sort of. special fund as it was done to some extent to keep this money. this nine year old in order to keep william and the same. very

structural changes in the country without based on the private money result of the state state revenue but we are entering an election period right now so so we do have a chance that that's a fair deal of the money there and gas will go into as he said the social sector thank you thank you very much and just to remind us that our guest in syria today was a live view that 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 life you think question to relax time to drop your life at calgary not after our t.v. darts are you let's leave the show interact spotlight we'll be back with more christiane comments on what's going on in and outside russia until then stay on r.t. and take it as.

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