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questions on the dot com. it's now a five thirty pm here in the russian capital he would see a reminder now of our top story a multibillion dollar handshake for two of the world's biggest emerging powerhouses springing russia and china closer together the libyan conflict i mean time was also key to their conversation with the leaders urging the escalation of violence. the place for colonel gadhafi in libya his future the russian envoys message as he meets loyalist officials in tripoli to broker a peace all in a rebel and nato are sold but could supporters say he's not prepared to step down before cease fire is in place. the lawyers for alleged international arms to the victim group prepare to challenge a new york court on the legality of this at. tradition to america the russian's

been awaiting trial since his arrest in thailand over three years ago. i know those are the headlines here in our next spotlight asks a former russian deputy finance minister about whether smart money will be in topping the world's economy league that's next right here out. hello again and welcome to spotlight they interview show on the tape i'm al green 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 inventors and merging the leadership for a new era but does it mean that old leaders are not the kings of the hills anymore let's ask the former russian deputy finance minister. brought into the u.s. department of state the investment climate russia has strengthened in recent years but corruption and all stable legal framework and economies dependence on natural resources are all packages that are eroding confidence among potential investors the economic forum in st petersburg otherwise known as the russian babbles is hoping to improve the country's financial reputation with two thousand foreign business people have turned up 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 overshadowed by by the london economic from ever he's 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 far enough for a. business is in the politicians to the event in russia to be catered to russian market our russian economic forum in london has started for for 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. looks like global because most of the main agenda of son peter will form is a global agenda and a lot of discussion was the water and we'll be do what is this time to. global issues of course russian issue also will be presented and russian president is going to keep a speech to 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. you 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 say. contracts some agreements framework agreements why it was quite substantial amount but i think the this is not only practical result the practical result is also maybe less money. but it's result of the new contacts new relationship. new memorandum of understanding between. companies and this is a more significant practical issue for the business. oh let's take a look at the history of the st petersburg a moment forum now in a report by spotlights 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 st petersburg for the international economic poor and for short time russia's very soft the north becomes the place to

strike multi-million dollar they all say 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. is russia's reputably growing economy became a major attraction to foreign investors two thousand and five was the historic year for the form the opening ceremony was attended by the president for my dinner putin instantly raising the status of the event to new heights it's been dubbed the russian davos with growing 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 win gold the upside was still apparent you know businessman and politicians from eighty three countries found the

event to record and to me. last year's form demonstrated russia's recovery with fifteen vestment deal signed was around fifteen b.n. you are part of the forum was the meeting of presidents medvedev and sarkozy the leader of france expressing his hope the presence of french companies in the russian market will grow the seas 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 the so-called greeks economies. to be russia's nation the focus of masti is for him. to stay in the sleazy. but our reporting mentioned foreign investment for investment is the word in the 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 the 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 find themselves and maybe two or some first contacts maybe to sign contracts i think it's obviously what are the main weakness is russia in the eyes for investors. weakness is 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 russian abroad because how we can get and let's say information about a country where the press where the magazines met most media but the best way is to get. true 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 investors 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 is a usually. treated russia as a normal country if we start to talk with companies which is not in the russian but maybe going to 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 it's. 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 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 garment. 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 locals 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 may 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. i think expected inflation. low often titian 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 digital i think it's a good result and a good start for the future direction of inflation and in another financial. 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 for russia. and this current period of time is the best policy is flexible change rates like maybe change rate 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 imported 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 a few companies which invested in russia in the consumer production because you know it 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. wealthy british style. markets. come to. find out what's really happening to the global economy with max concert for a no holds barred look at the global financial headlines tune in to conjure reports .

welcome back to spotlight now robin 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 do you think any time soon can we expect that to happen or not yet i think of the ruble has

a very good chances to be one of the currency which could this subject of reserve currency in the first evil future yeah in the future why not bring today first of all because you. subject of control by the central when and the level of robel 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 than those 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 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 until there is either country of. course. from this point or point of your fall so horrible is ready to be more or less. and of course the reason is a 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 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 when this bank is ready to operate. to exchange rubble into the euro and you're into the rubles you mean you me you know. cash in from oz it's the first signal. is present some interest in paris so you know it isn't quite as you. say you cross a lot of russians as you can hear you can so cash rules. really fine that's a good sign you have enough to base in business so. it's not enough but actually i think the. three thousand should be sold 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 that 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 competition. 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. this is 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. so you know to look at all localized localized. but you need you 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 c.d.'s which based on the university education research professors nation and some in the nation no i think it's only opportunity to create a local society local education society local society of excess a society and local. society for produce produce and you know new ideas innovation

and 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 in it is this russian use a lot of time money also tend to to flee russia capital outflows 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 these figures nothing is really wrong about it's a purely economic reasons. at this moment i mean the autumn of previous year. first of this year very specific situation in the economy in russia who have

a. lack of clear expectation of businesses. domestic 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 this 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 value i think it's in it's not it's not a bit 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 other kind of record issues in 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 banking sector. use definitely i think it's obvious truths 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 bank 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 more opportunity. to develop not just in the country inside of the country

but to develop in europe or maybe in asia to make 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 yeah because prices of 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 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 a lack of investment this money is not the answer that investment and i think the best ways to manage is to use this vince for a new. for some sort of. special fund it was done to some extent to give this money to 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 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 if you think i should into the next time to drop their life at al green of ad r.t. t.v. dot are you let's keep the show interactive spotlight we'll be back with more christiane comments on what's going on outside russia until then stay on r.t. don't take it. as.

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