the russian president pledged drastic measures in a bid to create a better investment climate in the country. decentralizing power and stifling corruption goals voiced by its media made stated here at the international economic forum in st petersburg join me at least an hour for more details in just a moment. no consent no cash u.s. congress will say they'll cut funding for the libya campaign unless the president gets the proper constitutional go ahead for the ongoing war of bombers ninety days of action without sanction runs out this weekend. and palestinians are out of

pocket after israel holds back millions in tax leaving tens of thousands of people without their wages. international news and comment live from our studios here in central moscow this is . russia must modernize its economy in the next few years regardless of who's in charge present if it has been outlining the country's direction at the st petersburg forum of top business leaders he also wants that the government's large role in the economy along with corruption threaten developments and must be tackled and he said i reports now from st petersburg. quote there are certainly a lot of obstacles and president medvedev knows that became very clear and has for real with his hometown as president that he thinks modernization is the way to go

in the future with russia he clearly outlined all of the obstacles that the country is facing first let's take a listen i had to say about modernization of the whole process and it's called. it pursue your choices not only a major green you will of outdated elements in the economy the public institution these we need to hesitate to say sorry about many bad habits we can focus only on the step by step development question that would be a mistake to be which we should focus on the following treatment of the investment climate in russia to create new jobs in the regions a creation of police and other security forces this improvement of the effectiveness of a curious diction system and finally the modernization of government employment approaches and the centralizing power which of course one of those bad habits so to say as the president phrased it he was talking about was corruption it's no secret that corruption is widespread unless of course in many other emerging economies it's widespread as well the president clearly wants to fight it this is

a warning he have lost the souls that are. the noose around the neck of those who practice corruption should be coincident and the whole of russia agrees with this without exception which could go to corruption is very difficult to do with the government should be purged of corruption in a more decisive way but young for that purpose we should enhanced the way those suspected of corruption or dismissed from public service he. was running away now here is safe here for just a bit more about modernization and the challenges that process facing especially in terms of the economy his ten year old trees ranges from u.c.l.a. thanks for being with us i'd like to begin with the president's speech of course once again we heard the trend of monitors ation corruption decentralizing the government. a lot of the detail problems if you could tell us briefly that are temporary in this process that's why it's such on some very familiar. with a lot of help from. the chief of police reform if that's your story and so on.

that's fine but that's part of the trouble but the problem really is we can't come and take the many speeches and many programs that mailed so it's less clear ground level it's really changed the way that the sophists throughout the supply how do you think those hot steps to begin to be taken where does it need to start at the lowest level it sort of all of the sports in your sleep. i think everybody is supposed to take a fist fight off some play for the state that just it's your small political competition although. at the same time it's increasing freedom. for sometimes for it saturates west. the restraints on the press markets of saturated fat still to have was genuinely in defense of publication suttle the

trials will help tremendously the question is whether the breach if at this point it's fair to take more risks introduced elements of political competition. media freedom of course that all adds to the push for monetization as well tenuous susan thank you very much for being with us live here at the economic forum will continue our coverage for the rest of today and tomorrow as the world's modern innovators stop this executive from world leaders gather to face the challenges facing the modern world and of course the top. parties business team is also keeping track of what's coming out of the international economic forum that president is there for us. president medvedev announces. the government is planning to privatized more of it and move toward a more open economy more live from st petersburg coming up. china

may be the world's emerging powerhouse but its leaders still sees the global recovery is slow and fragile and more reform is needed he tells been speaking at the economic forum there in some petersburg after failing to agree on a major energy deal with russia talked about you q. is an expert in russia china relations and he's told us he's optimistic about the deal it'll just take a bit of time. there will be time there will be a lot of currents that need to be determined negotiated it takes time but i'm basically optimistic about finding and below ultimately because of the fundamental fact here this economy is highly complimentary tother so if even the way it's fine it will be a win win situation russia need to be more diversified in terms of market. a loss to all of that was a diversified supply of energy sources waste and it used to depend heavily on the middle east so we all know the reason disturbance there so so tiny of hunger for

new energy sources and suddenly this this period rich and china can buy a large. amount of gas from russia they have to again to stable and long term reliable resources. talked about e.q. there an expert in russia china relations at city university in hong kong speaking to. us congress members are threatening to cut funding for america's military campaign in libya which is wrecking up a bit of ten million dollars a day but the white house is refusing to ask for congressional approval of military action which is required by law the president is allowed ninety days before asking permission and runs out this weekend but he's going to check on explains. u.s. lawmakers are saying that president obama has to either stop waging war in libya or ask for congressional approval the lawmakers claim that the military action will violate the nine hundred seventy three powers resolution if it does not and by

friday and they mean this friday ninety days after the intervention began under the u.s. constitution to wage a long term war the president needs to get authorization from congress analysts say the obama administration will certainly find a way to get around the requirements by referring to his rights as commander in chief as well as certain legal speak in order to this day the administration has refused to say war when it comes to their actions in levy or they call it kinetic military action but it was as a result of that kinetic military action civilians are bombed every day a group of international observers is now in tripoli including a former u.s. congresswoman cynthia mckinney we spoke with her a few days ago she said be heard in the counted eighty nine blasts in just one day those are civilian neighborhoods eighty nine bombs dropped in just one day there is a lot of concern that the voices of those who are caught up in that war in tripoli go unnoticed in the national community but here in the uighurs it seems the voices

of the majority of americans those who oppose the u.s. military involvement in libya also go unnoticed by the white house the administration continues to stress the good cause that they pursuing leader but some analysts say the administration also seems to be in denial when it comes to the will of their own people regarding the issue as well as constitutional procedures legal experts say there is not much congressman can do to force the presidential comply at least with the u.s. constitution because there are ways to get around ways the obama administration seems to be using extensively most congressmen now criticize president obama for as they say ignoring congress but capitol hill observers say it's mostly political games that the lawmakers are playing to score points by snubbing. the president come the day to actually vote the majority of them will vote for more military spending as they always do but there is a small bipartisan group of congressmen ten people in it who went further than what we knew and they sued president obama on the grounds that he's violating the

constitution but everybody here knows that the lawsuit is certain to be dismissed on procedural grounds because the u.s. supreme court has that kermit that members of congress do not have standing to file such suit and this is where it hits a dead end and it makes me wonder whether or not u.s. lawmakers actually happened capacity to effectively represent the people. kind of reporting from washington an analyst dealt whether congress members really want the u.s. to pull out of libya washington what sure and voice of russia radio host called and russell so the chance he told r.t. that the hawks on capitol hill will only benefit if the military operation drags on the problem is that when there was a prior lawsuit during clinton's or for into the former yugoslavia then it's considered a group of other congressmen even at that time filed a very similar lawsuit saying that it was illegal and it went to a district court for the district courts the individual congressmen did not have

any sort of standing the reality is still a majority of congressmen are starr you know going to support the the actions in libya and afghanistan and so on congress is not going to. come and say we shouldn't be doing this and try to defund it and besides obama's currently using discretionary department of funds discretionary funds to get around it anyway so you know it's a question of how effective it would be but it works. to their benefit we do live in a military industrial complex type of world where they have they have the purse strings they have the power. there's a definite sense of urgency in europe right now france and germany insisted greek rescue needs to be sorted as soon as possible the virtually bankrupt nation now has a new finance minister he's an enviable task is to convince angry greeks to face more pain to get another lifeline bailout of billions well let's go to germany which is footing much of the bill for all of this years of your feet he's editor of the newspaper and joins me live in hamburg thanks very much indeed for being with

us here on r.t. of course saving greece saving greece is more than a vanity project for the eurozone there's a huge amount riding on it by all accounts but at what point will countries like yours say enough is enough. i don't think. this country because germany is the richest country in europe and b. is the country a province from the europe from the european construction if you're both very very interested so you're going to carry a very large. for a long time is that know what the german taxpayer wants could not german voters actually put up a stop to merkel saying yes we're going to help out greece not the german trucks clear such a bold accord but we will have an election in germany on troll twenty sort of team and i don't think that this issue is the kind of salience. true

true change or trouble or government. mrs merkel is good for at least eighteen months. what about the greek government then at the moment clearly in deep deep trouble what options does it face if it does indeed default. well. if if i were the me if i were asked to counsel the greeks a said don't do it too low to really do what we call an orderly default. dude incorporation with the rest. will keep monetary turmoil actually subject and that it would get your most certainly the corporation the whole of the over europeans so i don't think the greeks will do if it will be done and i think it has to be done because there's no way we can avoid it before it will have to be done. with it by the european community everybody together what about

the challenges of the greeks simply dropping the euro getting out of the euro zone is that a lot. of the treaty is the euro treaties do not have a clause that the laws. rest pick up greece or anybody else. if the greeks leave. that is like winning a lot stronger mind media read your weight into the system but if you want to be truly cool economic you know. you think like an economist i think us trust the best solution because. once you're out you can. devalue and once you can look once your value you can regain your competitiveness on the international market this after all is the example of argentina which broke out of the monetary union with the u.s. dollar as the beginning of last year but as

a sort of this is the nuclear weapon it will be used for all because very very use a nuclear bomb and if that what you're saying is that this would lead to the ultimate collapse of the year i don't know it could be done and we don't know that but i mean what will happen is. if you can keep just secret so you have to start printing the money everybody will know it will unleash a new numerous capital flight from greece. it will cause an enormous the really rich which means the greeks have to pay back their debt with that many more drop. so it's hard to draw that means that the greeks would suffer even less austerity measures in fact life would be even a lot worse for them if they were to do it look just like in the case of argentina there's a lot of the sudden drop of the standard of living there be you're going to actually export more and the argentineans of coal recovered very quickly but we shouldn't.

because that is. almost in the galaxy that's a greece will just ask you finally reshuffling appointing a new finance minister this change in the the in. government is this musical chairs or would it really have some sort of effect i don't know enough about it. or the way the way the situations are told with turmoil strikes that. i don't think a cabinet reshuffle will change the particular. particular problem. what will course i would like to ask you just your thoughts about many people are keen to see the euro collapse do you what are your thoughts so going on the europe well we talked to many analysts so many people who would say that this is that for example the u.k. independent party in britain saying that you know this is your absolutely but i'd like to see the collapse of the euro and that's a really good reason for the britain to get out of the european union in

a way of seeing this the euro in such big trouble what sort of effect could this happen have on the european union and indeed could the euro eventually collapse just just finally look i mean if you're a brick you'll be very happy not to join the euro and so will the over the e.u. countries well that's. certainly true but that's just new and you've got it's right mind wants to europe to collapse. and shows the kind of peoples and the monetary system the ranking system to just will this. which will fall so i'm going to go with the. certificate for it. i think what i want to. those european nations that are not in the euro will no be much room for much more because there's the right thing trying to do. very interesting here we have to say

thanks for time years if you have the editor of these our newspaper joining us live there in hamburg thank you pleasure and this is our teacups you live from the russian capital still to come this hour a woman's world at the bottom of the earth we join a russian woman. during that month research expedition in antarctica to hear why she's drawn to work in icy isolation. that story story can but first israel has been holding back millions of dollars of palestinians money leaving felons of people without any wages it's tax revenue that's supposed to be passed back to the palestinian people but since the political groups hamas and fattah reconciled the payment stocks has been meeting some of those who are suffering at the sharp end. i look we are gods the palestinian ministry of finance his job is to check everything that comes into this building but he has no control over what goes out least of all his salary which is paid by the ministry and sometimes comes a long overdue you get my salary comes later it's like my life starts i simply

cannot do anything i have a wife and four children to feed and when i don't get paid on time it makes lots of problems for me and my family. ironically the ministry gets its money from the israeli government it comes in the form of customs and tax treaties their tell of it was been collecting on goods arriving at israeli ports and destined for palestinians the arrangements in one thousand nine hundred three as part of the oslo accord giving television control of the international borders between israel and the palestinian territories with the money transferred each month to the palestinian ministry of finance which uses it to pay wages except now we're talking about seven hundred million. pounds. of him and they were freed the situation itself. palestinians fear they tell of of could again choose to withhold tax money like it did last month israelis argue they have every right to do so if they suspect that money could be used for buying

weapons the salaries of hamas carries aid from this cult. idled world to finance these terrorist. palestinians insist the monies for ordinary workers it is. sore because of one hand it's a punishment but on the other it's a punishment it's a collective punishment that would mainly weaken the moderate elements within the palestinian society and play to the herd of the extremists the relationship between hamas and fattah is a turbulent one proposed groups are trying hard to work together ahead of september's planned to ration of statehood no doubt is wrong will be working even harder to thwart them should it feel its interests are threatened closely r.t. . to work in some of the world's harshest conditions you need to man up. all in the case of one thought it work or it's bringing an essential governs touched

a tough life the sean thomas has been saying meter. as a filmmaker oldest if an overt likes the penguins and seals but for her and article is about something much greater. even though it seems like this is a naked land naked stone and eclipse nothing special snow like anna snow but what happens inside of you when you are here for the whole year and they're removed from all other external factors is a pair of valuable experience. seeing through in antarctica winter is serious business and so every member of a winter team has a specific purpose and they rely on each other to make it through olga is one of only a few women to have ever been allowed to be a part of this experience. the fact of olga ended up on our team was a big bonus for us as the first time such an intelligent young woman with such high professional objectives has been on the winter team definitely made her existence heck last year of course there were some difficulties and attractive girls with

fifteen men for eleven months so there was some difficulties but people are to manage them as experience and wintering of going house and gave her a true rare opportunity to experience and document life here in antarctica now she's working through expand on her project and find an audience for her work. that right now i am putting the finishing touches to the second part of the film the first one is already finished it's cold weather in the winter the second part will probably be called this season and it will feature of the antarctic summer i want. to debut her documentary olga invited some special guests the same antarctic winter team who are the subject of her film a fact that makes her slightly nervous you know you are that i love and respect them their close and dear to me and they have such huge background knowledge they know people in the film they know their winter season firsthand they have been through this themselves i get that you cannot as for the thoughts of those. sure

see little. girl still makes a big impression on you there may be some shows that expose on professional americans by a couple of members of our team which showed that the way it was showed the way she saw it was spectacular. but a unique look into a world that is inaccessible to most in antarctica sean thomas or jean. temperance up to date for the moment turn from the noose just thirty three minutes past the hour here in russian capital no ortiz business bulletin wraps up the highlights of day two the top level form in st petersburg that's next with quick. hello and welcome top business sports and here on our team thanks for joining me and we start with one of russia's most important financial advance of the year the st petersburg international economic forum.

this city of st petersburg has always been called russia's window to europe will be comic forum in full swing it's become the window to the whole world's artie's mattress or has the main details from the second. highlight of today indisputably president medvedev keynote address to the assembly here talking about modernization and innovation as the main the main focuses of the event and the main focus for the russian economy in the years to come he pointed out beyond x.m.l. doubt rule has a shining examples of home grown business is out of the well before the market examples others can follow also talked about the ten billion dollars state backed private equity fund something that he believes will bring more innovation and spur growth here in russia also expanding the thirty billion dollar assets sale program of state assets into private hands something that he thinks is also

going to be a good deal for the russian economy. such loans amounts to pity. you fool privatization of major companies is the theme of these plans is necessary to leave the very modest government whose into the first of all is to just the scale of throwing the toys they should in order to his old lease i'm sure we'll be able to dig through with it in a movie transfer money to attract effective trying to invest is continually sufficient for the russian budget medvedev also said that state capitalism is not something that's going to work for russia but that the role of the government should instead be doing what it can to help foster innovation and foster for investment in the country and come up with a good atmosphere of that environment for businesses to thrive in russia that's what he said is a way to move the economy forward along those lines he believes that the country needs less regulation less red tape to get business is hopping off the ground in

russia and also in pleasing to be more efficient developments in the country now along those lines we have had lots of business go on here at the economic forum on the side of just the keynote speeches from the president medvedev and chinese leaders out there i've also been some of the. russia's energy deals with foreign companies gazprom nafta and american shell have agreed to jointly develop new poil resources and some of the hard to get areas of russia and even russia at a broad this is a deal that could help gazprom the f.b.i. released its presence in europe countries also planning to jointly develop in the arctic but the deal. there's been a bunch of news about a major deal that could become the agreement of the decade the failed arctic tie up between ross nafta and b.p. the other countries were planning to jointly develop the article about the deal collapsed is b.p. and although it is rather the russian partner they are opposed to the agreement despite his b.p. says that it is off to

a mistake about prospects we were not successful in reaching a set of commercial conditions that were acceptable to all of the companies and i think the concept of a strategic partnership through this was good for russia good for. the energy markets. good for all of the companies and for. us now it says it is still looking for a partner to help develop the arctic and assume is this as soon as this year possibly and energy ship and minister sergei shrugs radko highlights the nonetheless it triggered investor investor interest in the russian shelf and b.p.'s chief is also positive about this so it all lot of important economic news going on here in russia and being highlighted at day two of the st petersburg international economic forum. now is take a look at how the markets are falling prices continue to fall the un sanctions and weak markets not kids and every flight action of investors fears that greece's debt

troubles fall from over european stocks back from earlier losses but the markets unstable due to some of the fears about greece that the crisis would spread across the eurozone and continue to rattle the bestest confidence in the. x. climbed a two point zero was potent percent and the footsie was a point three percent u.s. stock started strong out of the gate friday on track to end the week higher for the first in seven after talks between france and germany on arranging a solution to a great status crisis points and. russian markets closed in the red on friday sinking the most in two weeks as oil drops to near four months low the us has at that point seven percent lower than isaac's finished over eight percent in the red for producer gas kong f.-l. point three percent of burbank fell one and a half percent. so for now i'll be back with more in about forty five minutes turn it.

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