for this edition of the kaiser report with me max kaiser and stacy herbert i would thank my guests say for dana most of 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 backscatter saying by. near the mall. in one of the most extreme environments on the planet this is and people have to be aware that they are far away from civilization. as discoverers what makes antarctica so special and attractive for many wildlife in

and starts ago is both you and the sons of. the. expedition to the bottom of the earth. you're watching on t.v. great to have you with this the headline. no bond for days to watch the presidents of russia and china signed multi billion dollar trade deals with even more in the pipeline the two of finalizing its h.t.m.l. to binghamton the gas station as well as discussing the international issues but countries say nato must honor and not exceed the terms of the un resolution on military intervention in india. also there is no place for gadhafi in post-war that's the message russia's peace and told me that while meeting officials in tripoli. had previously met with opposition leaders in as part of

a push by moscow to mediate a peace deal the talks took place amid fresh nato and the strikes on than even a counter top and rebel offensives are long to close. on a noise for alleged on the steve to bid for pride to challenge the legality of his extradition to the u.s. from time on the russian businessman has been awaiting trial since being arrested in the us and sting operation over three years ago time the charges against him include conspiring to aid terrorists kill americans and for old. right now the rise of the best in the fall of the rest going to russia's former deputy minister to find out which countries he thinks will dominate the world economic markets in the future. hello again and welcome to spotlight they interview show on the tape i'm alvin of

in today my guest is. view. political and business leaders from around the world 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 closeouts for the former russian deputy finance minister. if you get. put into the u.s. department of state investing time and russia has strengthened in recent years but corruption and unstable legal framework and economies dependence on natural resources are all patches that are eroding confidence among potential investors the 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 find out about vested opportunities and strike dozens of multi-million dollar deals. how mr putin 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 front 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 the gate to to russian market 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. looks like global because most of the main agenda of some pretty well form is a global agenda and a lot of discussion was the water and we'll be doing water 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. 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 where it was quite substantial amount but i think that 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. well let's take a look at the history of the st petersburg and on the forum now and it reported by spotlights to me that. while russia's business and finance is mostly concentrated in moscow there are several days every tune 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 many so far north becomes the place to strike multi-million dollar they also and for 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 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 in order to meet. last year's form demonstrated russia's recovery with fifteen vast man 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. top gast expected at the forum is the chinese president hu jintao one of the key top weeks to be discussed is the growing role of the so-called greeks economies. to be russia's a nation the focus of musty storeroom is a steamy sleazy. full report in mention 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 either the country's premier ministers or 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 of foreign investors. weaknesses 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 magazines must media buy 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. ford in the us 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 if we start to talk with companies which is not in russia but maybe going to do it and regarding this issue. usually more negative. information about the russian and of course 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 the sometimes action course and difficulties for the companies to do business in russia you you mentioned 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 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's a lot of actions against corrupted officials and every day we can see in the newspapers internet information that. some people some officials which were involved in the corruption deals are arrested organized and this 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 low balls 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 and the relation 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 deal slitting and second legislation through lation should be more and more examined against the corruption the world bank recently has a lowered its forecast for russian consume a price growth would you agree with such a pessimistic for. inflation.

i think expected inflation. low often titian about it percent it's 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 rate like

maybe exchange rate view 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 that. the major export of russia is wrong 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. competition but we have to take into account that a lot of consumer goods produced in russia based on the. or are or are all materials some or all materials imported from. its abroad and from this point of content companies which invested and in the

consumer protection consumer was production. will be moralists neutral again this policy says. the former deputy finance minister of russia spotlight will be back shortly after a break so stay with us. one stream cascading from mommy slopes the view is mesmerizing the eve of this beauty brings deaths at a speed of more than two hundred kilometers per. step in the long run on. culture is that so much about the taxpayers' money minting is a chinese people putting people at area b. you're always in crisis would be with us ten years from.

welcome back to spotlight now where nabhan just a reminder that my guest in the studio today is i lack of you get there 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 who 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 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 for 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. and 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 as we talk about recently it's very difficult for investors to go and see the ruble as a stable reserve currency we have to achieve a loan solution let's see maybe three or 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 with the rubble to exchange rubble into the euro and you're into the rubles you mean you me you know. cash in for what 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 really fine that's a good sign you have enough to base and there's. not enough actually i think the. truth are screwed bissell ok listen the russian political class sent 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. 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 to be settled maybe maybe the skulk of a project may help. yes it's a very heavy and 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 the but unity for the young people to get education and of course from the point of view of. 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. you know to look to a localized localized. opportunity for the brains and young brain cells so it means that special interests likes cocoa 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 best professors nation and some in the nation no i think it's the only opportunity to create some local society local education society local society fix our society and local. society for produce produce new ideas innovations on the way which russia has to for because to improve and. environment and quality of education and

quality of regulation like innovative states where russian is a lot of day money also tend to to flee russia capital allophones according 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 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 will you i think it's in its start up that actually look at this russian business this of you know one of the main economic news these days coming out of kremlin is the call of the or kind of 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 states diminish its role in the russian backings. use definitely i think it's obvious truth it's obvious is 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 to 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 search of the country but to develop in europe or maybe in the. 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 the lack of investment this money is not transferred that investment and i think the best ways to manage is to use this event for a new. for some sort of. special fund it was done to some extent to keep this money. this money abroad in order to keep value and the same. very tough structural changes in the country with the old waste 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 intervene next time to drop their life at al green of avatar t.v. dot are you let's keep the show interact 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.