if you. see from steve. santagati dot com. it is a five thirty pm in moscow here on choose to you watching there you headlines breaking the deadlock russia says it's ready to back u.n. action on syria the peace plan put forward by the world body is the envoy to the country but moscow warns it will continue to oppose any draft that forces and also made on the syrian government. dozens of killed and over one hundred injured in the latest spate of violence across iraq just one day after the ninth anniversary of the start of the u.s.

led invasion it comes ahead of a key arab league summit to be held in baghdad the country's first since the american troop withdrawal in december. and thousands of construction workers in the u.k. struggling for employment demanded justice after learning they were placed on a secret blacklist supported by the police but they believe they were singled out for whistle blowing about safety issues on building sites. now as western nations struggle with problems russia's economy has managed to stay buoyant but next the deputy finance minister tells us what the russian secret watching arts. well again the welcome to spotlight the entry on out by palin are going to today

my guest who's city star trek. two thousand and eleven has become a landmark for russian economy inflation rate was the lowest from decades and other economic indicators were positive too despite the global economic downturn maura after decades of negotiations russia has finally been admitted to w.t.f. opening great investment opportunities both for russian and foreign business yet that's a serious problem of course and today we will discuss. what the latest trends and forecasts the russian economy are asking deputy prime as well as sense of good structural. investment is risky at the best of times it's even more challenging going to global economies so want to settle america's public that keeps rocketing day by day europe is being shaken by the long lost in the euro zone crisis even china the world's second largest economy is showing signs of slowing

down some economists call it a paper dragon and knowing it is just truce crisis at least frank this soon i mean all these turbulence in russia results in the investment climate improving people in the front pound guy didn't really know oil prices and inflation rate last year was the lowest in decades smiled seed in six percent. oh mr chalk and walk into the show thank you very much for being with us today here on the show and i would like to ask you with a question that i got when i when i was getting ready for that and. i read that in february alone the budget deficit in russia rolls nearly fourteen times now forty cents higher than they used to be and in january it reached nearly two hundred forty five million rubles and this really exceeds the forecast of your finance ministry what happened what's the reason for that after

a big job done during a couple of last years. we received what we wanted to receive more. scared you more. clearly divided this three year spending of the budget allocation money budget to look at money and where by. the door ministers. this deficit had something to do with the election campaign was it very hard not it has nothing to do with the election. it's. all what was spent you've been b.s. through and a half months all was agreed in advance during the budget process or your interest i've also read that russia is running a growing trade deficit well what changes shall we expect in regard to the strategy of state borrowing money at olin of broad knowledge be this where quite large here

feeling quite comfortable with a market country i'm sure we can use a little inside the contrary and now we announced our plan so bold come in to the external debt market in a couple weeks. why the market is comfortable i think i think there are a number of reasons. clearly after the central bank a few are up integration into the currency markets and find as well as one can then markets we have quite a huge liquidity taken by the european banks plus we have some. strange situation dealing with the investment strategies of a number of. entities and governments so in principle be the. rules of economy has long down meaning that the banks. face in bigger

difficulties with the they investment strategist so you know for us it's not. it's for us it's quite comfortable station when we try to go in terms which will be considered by the market and buy a. house fair for both sides. so. it's. it's not in. the mood linger story it's not. does not link could to be. your first question dealing with a budget deficit ok when talking about positive figures in any economy you speak about i mean the financials they speak about the excess oil revenues russia got last year can you give us the figures how much oil is really the excess all is.

well frankly speaking and it's not my all part of the job i'm not responsible for. the response was i want to thank you. for this part of the calculation i understand that we. have the prices. of oil. just twenty percent higher than it was scheduled to within the margin so as a result we can say that really knows. how. to present high in in two months and it was. because of the big titties of our ministry is different from the federal ministers we have this phenom and of huge expenditures what about the year two thousand and twelve one of the oil prices on which you are planning your budget for this year and we. it was agreed

between the government the problem and the reference price for oil is one hundred. dollars per barrel this is as far as i understand when you're planning the bordering russia has always been planning more borrowing inside the country then abroad which turned out to be more expensive is a true one. well how we hell behavior is based on best international practices and this is for. us suppose. not only. budgets and government expenses you're supposed to think about the development of local financial markets as well local markets in particular. it's a matter of fact that the corporates boring. i mean after the

summer and boring so it means that the state. set ups so-called benchmarks for the price of i differ over the border of different maturities so even at the beginning of these change as a century when the mike in conditions was not so good as. now days for all of boring we were trying to remain on the debt markets just in order to have. a make my market develop it's very important. it is of the normal practices of all nations with the developed and total book bond markets as far as external ensconce know it's a matter of fact that we are supposed to present from it it's very important for a. possible time juncture in future. investors should

know all of the bore. if the board does not appeal on the market for a long period of time when he comes he will submit he will be supposed to pay some kind of premium but the longer you from the market the higher the payment these are so that's why we have a plane in each year we should. boards and we need it in international conferences on the loser chorus so these year we repeat the story as if you should be in normal conditions ok well i have read also that the finance ministry is not ruling out this zero deficit or even a surplus already this year so what are these positive expectations based on and. what will the fire was out depending on well i understand my

minister was looking for at least a couple of options grossest first option and i think it's the most important one just really cation the expenditure was within the existing budget i mean in that. in the process of consultations between federal bodies. expenditures would be eliminated other would appear but in principle we would remain in the same allocation at is what is planned and you can read between the state duma and the government and the second a lot on their external oil market conditions and the suspect we're thinking about the i have been seeing the tax policy wall all through the fed has looks quite promising in terms of. promoting our

plans sound. original expectations in this year. says syria here start chock deputy finance minister out of the russian federation spotlight will do back shortly after we take a break so stay where you are now. the to. play. well three british scientists are. present on the tires of the current. market finance scandal. 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 kaiser report

on r g. fewer chances book full of life. limited time. more optimistic. the theater or the ingenious open their hearts to the rest of us. are the real limits. on our teams. with the end of the boer war and the going away of the soviet union many people thought that nuclear weapons disappeared from. the risk is not zero love something might be going off by mistake especially the founders of the nuclear weapons on hair trigger alert. but most of the difference for you is that i did as a three it all as an extra bit but you know if you keep spending a trillion dollars a year on weapons of venture you're going to blow everybody up you've you know people are dying from these weapons but until we actually see it people don't wake

up to no food weapons or a bill. that represents all the firepower of the second world war and this second sound is the equivalence of firepower of the world's nuclear arsenal today. just for. welcome back to the spotlight i'm al green auburn just threw one to my guest on the show today is city state of shock deputy finance minister of russia who is the most famous they're pretty minister in the russian government as said in this book by the way congratulations this is the second book yes it's published what are you doing with it is it of any interest to our foreign the years ago and. while the

real course before the russian audiences are definitely it's not it's for the russians first of all. it's. a different story is dealing with different aspects of our job. juggling in the financial so called financial diplomacy or international financial relationship so there's really. financial thriller there's articles devoted to the international. assistance. but there really is a financial relationship within the former republic of the soviet union. big article they will try to rush through interest shared with the international financial institutions world bank. i.m.f. the liberal development banks and my beloved story about

the. g. twenty g. eight different other economic and financial collapse it is an existent in the world tell me about the g. twenty you personally took part in the g. twenty meeting of finance ministers in mexico right now so will the g twenty summit that we're there that will take place soon will it take some important steps in reforming world financial institutions later this year. you see each year. it's just happened each year g twenty. discuss a number of police shows were important one but a man and a number of issues all with one is the most important for these year the most important issue is the increase in the financial capacity

of our international monetary fund. this is. a decision need to be taken by the g. twenty nations the process of preparing right decisions and writing agreements but will all g twenty members ease going on it's not easy job but. even in mind with the recent developments in. these enormous job done by our european colleagues dealing with the greece financial crisis it's clear that we need to have their farm better prepared for comment financial. crisis if any of course it would bet they know crisis but. we all believe that a crisis prevention strategy need to be developed as much as possible so under the

mexican presidency is going to be the most important issue to be a grip on during the course of a presidency i think should lay of course that the g. twenty will have to take place quite early this year but well under circumstances in which we'll leave it there is no way out we will have to. and i wish my colleagues from mexican career success this is their check recently a couple months ago actually after raul with the president you are your boss and your friend mr who lost his job so we have a new finance minister you have though mr putin who had the election said that so that could really he is still in his team and everybody expects a major shuffle of the government after quickly comes to power in late do you should we expect rather and major reshuffle also inside the finance ministry what's

your feeling. well it's not failing but it's probably my we to have in our count three. station much alike in other developing nations when the establishment is being kept for a while at least and their positions in order. in order to have the new. leaders of the ministries ministers themselves to have enough time to accommodate to their positions to clear continuity and i and i who the moment we were on the level of deputies and especially on the level of. a general director. we would keep police traditions of developing nations and have these practices in place while as for the first numbers i console the privilege of the

president to decide who would be a in the in and the places as. the deputies i mean prime minister that is and the ministers. is there reason to believe for the russians personally for the russian businessman that there will be a tax cut especially the the social insurance tax doesn't talk about which. i am not a member of the stock frankly speaking with my colleague said you should all of a job to develop a policy in this field but you're right. internal dissent discussions within the ministry of finance within different departments are taking place and i as far as i understand the general feelings of my colleagues there is that in any case that the pressure of taxation should not be increased in any way

only because the large oil revenues are expect while yes partly. as a matter of fact pointed has promised big. government spending to the electorate during his election campaign in fact he promised everything to everybody. does the find find the finance ministry feel worried today that after that gratian meet he would be up to new good government spending if he if the new president would like to fulfill it is his obligations. i know my colleagues. already made. complete patient i would say. about the possible outcomes for all. the old promises i would like to say for the president elect. for for the. rebellions in all of the state economic policy and i understand that. there are

there is no water in with the minister of finance. i i know that my minister someone of. like to look at. to his former law minus two plus two meaning that. two percent of g.d.p. in terms of budget allocation should be rebalanced within the budget i mean in there is no additional boren no additional excitation on our cost so so for me this nation is minutes of bill. by my colleagues. does. russian financial system is it is it influence is it harmed by the general problem is that the troubles that

we have in the us do you feel this is in negative impulse or not really you see. him in mind that our european partners begin biggest markets for russian products it's absolutely clear that we cannot. stay side from the problems which is. now will develop and inside the zone so we already. completed our colleagues with the quiet professional i would like to say professional outcome of the talks with greece a public on their stay debt. do you know the reactions of the markets to depose even many experts still

quite skeptical about fusion of eurozone. but it's clear that step by step europeans found necessary means and ways to control the station's listen well a while ago everybody in the world especially your colleagues financial they seem to prey on the international ranking agencies now everybody seems to hate the business and he agencies and the financial stability board is going to work out some mechanism to rid use the dependency of the markets of the ranking agencies do you approve approve that and want me to just make a big jump is taken place in this field but i'd like to correct you would be. the the the groom is that those who made investments. rely not only on the credit page and since but their rule expertize of the of their

investments there's been a loss of a stand in the fees b. approach to the idea everyone understands that it is impossible to get rid of ratings because. so many different in west coast of different cultures on our work and on financial markets by unsettling. actions. boards other awful financial instruments i mean particularly david to us so clearly for those who i do not have big intellectual capacity or analytical compass into the job or. agencies are quite important but still at the same time it's clearly that in the process of all decision making and we should keep to be. political capital is an approach and you are supposed to

make your own judgment of credit for this and so the world thank you thank you very much and just a reminder that my guest on the show today was a sin against the chap deputy finance minister. and that's it for now from all of us here if you want to have your seals talk like dr scott life will be back with more first down comments on what's going on in and outside russia until then stay with heartache and take.

you know sometimes you see a story and it seems so for lengthly you think you understand it and then you glimpse something else and you hear or see some other part of it and realize everything you thought you knew you don't know i'm sorry welcome to the big picture .