hello welcome to sophia cohen certainly shevardnadze what global economy is speaking the language of sanctions restrictions trade war poor own leaders are seeking a common ground at the g 20 summit. should a breakthrough be expected while i ask until on the 1st step of the prime minister and finance minister of russia. the process of integrating the world's economies is stalling a trade war is looming between china and the us a western countries are holding up sanctions on russia but in the atmosphere of distrust is there still room for a global trade come back what needs to be changed the system to prevent the global community for the part and will change with the wards for every nation's economy. i don't see one of those hello welcome hello we're always happy to have you on our

program last time running to reach you was about a year and a half ago and no fundamental shift seemed to have happened since then but still the world has changed it's just not the same. word and we hear it everywhere from davos to international forum. you i mean economists to find. common is becoming more terror actions and yes we see you know happening this is what globalization brink's 10 years ago everyone that was asian would try to. be united as one becoming economic states but actually the opposite happened people start pushing away from each other resolute in themselves cutting it will not off why do you think this. globalization and the push for a barrier free economic world. drives competition and

a more liberal trade. a good truly free competition but that any restrictions stimulates output growth and boosts global economic growth. diggler lies ation is about protecting your production capacities your manufacturers your companies she's the logic goes i'll make my companies competitive and my fellow citizens lives will improve. in the end the results will be just the opposite it's only a matter of time it's just impossible we were building a free economy with free movement of goods capital and labor force and now suddenly barry is a put up to trade barriers i mean at 1st glance this kind of policy could bring benefits but then you will lose your competitive edge and will have to pay a higher price for imported goods you know that's would be brought in anyway the

imports would just cost more in such an isolationist country. new to you the story of what though now everyone is unhappy about the existing walk trade regulations and there are a lot of disagreements there it seems that our government. there is a think as long as the devil you hear rules in someone's favor they're fine with it when it rules in favor of their opponent or competitor they're no longer friends with reforming the devil it seems to me and realistic after all you can have organization that everyone's happy with what they have that's what got us realize it's our well we'll just play by our rules because we're not ok with this or that we think. we have lost nothing will thrive. no. that's we were constantly very beautiful yes there are calls to reform the w.t.

oh. first as an organization the w. cio was established by a group of countries but decided to remove trade barriers 2nd the conditions for exporting goods to other markets should be predictable and understandable for the actors involved. and what do we have now. under the pretext of national security of countries simply ignore the w t o. there is in fact a provision that if a country feels that there is a national security threats they can choose to stray from the w t o principles. now some countries are taking advantage of that the u.s. for example sees all these regulations mainly as a national security threat. when the w c o was founded just

the spirits and the environment were different. today everyone is leaning towards protectionism safeguarding their own interests it may start with one country and then you have a group of countries or an alliance. that could be just one country with a large market that would say well if these states are pursuing an isolationist policy so we lie and so on. that's not good for the global economy. biggest. news story the trade war us and china and everyone's going crazy. worst case scenario we're going to plant trees. fail to reach an agreement they definitely want to cut all ties or impose mutual sanctions because it would be

their own so we can rule that out with their one the 2 separate economic zones and will one also friend of his who wish to trade with ours that's not the end of the world there's a reason you could use your. no of course it's not the end of the world then the but trade will be down capital flows will slow down including investment and there will be less demand for some goods. including russian exports you know shrinking exports will obviously a think russia's economy and drag down with our growth but the workers are russia the sponsor of the global economy so of course when 2 leading economies in the world have disagreements it definitely has an impact on all the

economies and leads to a decline in economic activity around the world that's for sure. here's where we can look for american rembrandt's president what's russia's place in all of this and he very diplomatically replied with a metaphor for russia was a cover monkey looking at this fight from the sidelines to see who wins this club or monkey keeps waiting until the point we're turning to and generally in conflict and watching from the sidelines that no longer be an option russia would have to make it yours with the with. what will it choose to do. we will act single line with our interests like any other country i magine. and our interests are as follows which is huge 1st we need to create an environment that would mitigate the effects of any trade wars storms or economic issues around the

world we have and russia. so we need to make sure we can rely on our own capacity which is the word 2nd would. because when we see that sanctions or restrictions are imposed on certain commodities we should try to come up with proposals of our own offering our products to the countries which is suffer from a less favorable trade climate. i think we need to cultivate closer ties with our chinese partners and that's exactly what we're doing. trade between russia and china is growing last year it reached $108000000000.00 us dollars an hour goal is to take it up to

$200000000000.00 it has nothing to do with any restrictions or the trade war between the u.s. and china that's because we need to promote our goods trade wars or no trade wars. there is this catch phrase now that china eyes are key economic partner for the thinkers share that we do not have jim we would have trade chairman i agree about 100000000000 it's a lot of money but what we do simply wrong materials while china exports consumer. china's economy is way more diversified than ours tourney by our timber and their resources so this is all well and gas and they don't really want to printing asked . all the money to invest locally russia accounts for only 2 percent which is very little isn't worth that close economic cooperation with china everyone is talking about i mean the feeling i get is that we are nothing like

a real material colony to china the question is to post the same work as a. musician look. at that it's not an entirely accurate depiction of the situation evan though you're absolutely right about the trade structure. the good news is good we have agreed with out chinese partners to ramp up operate in investments man chinese businessmen showed genuine interest in russian projects or infrastructure and industries this year. and there is also the belts and road initiative. which is not to mention our cooperation in energy from nuclear power plant construction. now i'm straight. defense and others but you know this cooperation yields competitive top

quality high to goods and services. and that is exactly the kind of cooperation weak specs from our partners are also following the restrictions imposed on chinese hard to come. anees such as your way we often are icy products to china man suggested developing 5 g. networks to give a. way invited china to take a closer look at what russia has to offer in our chinese partners agreed with. good news i think we have laid a very good groundwork for cooperation with china and natural resources by far not the only area to be with you these all the areas we focus all collaboration with china. includes the ones on the ground with bows so when we rattle control talking to london someone those precious 1st deputy prime minister

and finance minister. s. .

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and very well might continue watching on since last. join me every 1st week on the all excitement show and i'll be speaking to get a feel of the world of politics sports business i'm show business i'll see you then . and we're back with under once and run those questions for a step in the prime minister and minister of finance and then i'm going to talk of the problem and we're we have an insurer who right after the package of sanctions was and has russia some one a half years ago and then the general actually was like yes that's bad but we'll

manage these sanctions will only help us mobilize there are cells keep us on our toes so everything's going to be great and today government officials and large businesses keep up the same narrative and believe me i am an extremely optimistic person i always keep a positive asked you to let people and all that happen to live but generally try to find the bright side of everything but here honestly i can't see any silver lining and people who i know personally don't see anything in where we are right now there is no reason to think we have become stronger or a feeling i get is that there is stagnation do you really think there are still opportunities we can tap into smartly going. to change being one of the hoff or even 2 years since we met last time. indeed we hoped that these sanctions rhetoric would have subsided but it's all different now. to die we no longer expect

sanctions to be eased or lifted. as i said already 1st and foremost. we need to rely only on ourselves. to ask for your feeling of stagnation i can't really agree with you. we have adopted a completely different strategy. we have outlined the so-called national development goals and so forth a number of national projects. we've completely changed our governance. in addition to that we haven't bought on a number of critical projects. we didn't have proper infrastructure so we set up programs and allocated funds to develop transport and digital infrastructure. bits and this is what we really need to try to boost economic

growth. the visa all the reasons why i cannot agree with you that growth has stalled. quite on the contrary things are moving very fast with the white people. again. night don't think you're right saying people can see that we move 1st this year we've made a number of improvements in health care that now people are provided with a wide range of services. and their quality has also gone up. second. we have started investing in most heavily in transport infrastructure but. at the end only 6 months since the beginning of the year and probably in some places the changes are not yet visible. but really do invest

a lot of good with this year and we will be allocating if you want to point 7 trillion roubles for national projects while the. overall state budgets i was 18 to 19 trillion. 10 percent of all the money will be spent on national projects. store you will see the changes people will certainly notice the improvements in all these areas we have focused on these matters i think so the national projects should be implemented by that year 2024 so i do realize that if implemented this national process will improve the quality of life of russian citizens will have greatly economic growth here we have been hoping for but every time we journalists ask if there is enough money we have a standard answer which is yes what i don't quite understand is that who paying for his national projects who are super ambitious will it be the government tax payers

or private capital. government is certainly the main driving force. but we will also tracked private funds was considered the overall of the 6 year budget for national projects. 25.7 trillion rubles. 13 trillion will come from the state budget both at the federal and regional levels regards to the woman there asked dres to be covered by private capital. by different fons and foundations including government funds the worst of times when the servos the governments and businesses will be contributing to this you just been ordered to motivate businesses to invest in new projects we're working hard to provide

a better business climate through from as we said russia is now under pressure internationally what can we do to alleviate this pressure we can offer more favorable conditions to domestic investors. one example is the so-called regulatory regime that is to come into force in 2021 years and will help get rid of outdated business regulations away from. the intervention that overseas investors are so strong is the question because it is actually profitable market and they aren't they're not secured our sanctions or their red tape you know what i mean problems are predictability of the courts and excessive and moment of the worst lesions in. lack of stability cancerous it's already been discussed at length and i would like

to refer to the impact that this has made on the overall environment the problem is how the court room. how the law was used in dealing with were major foreign investors that is not even 100 ventures and the only other there is profound walk of trust there were several risk assessment works and the other question what exactly we really don't want to believe the answer other than the procedural investors are after him. and i don't buy it and predictability i certainly much more than about international sanctions. so western or agree that investors do have such concerns yes i was against them then i do agree with you that our laws and regulations should perhaps be made more predictable. and let's say more investor friendly was due.

during the recent q. and a session with president putin someone said for that our inspection authorities need to change their optics a machine can be used when they come and inspect companies all they do so far is point out violations for fines and collect any tax serious road is that they need to have a different approach to what they're doing michoud rather be helping businesses for instance by pointing out risks suggesting what needs to be improved. their mission must change this somewhere and i think that's what the business community expects from us but it's not so much about predictability because you will more sensitive or they suppress a change in the attitudes of the authorities towards businesses or the country.

leaving anything specific to. that afternoon recognizes it including the president and when talks about making things people friends everyone understand that it's a real problem but. whether he thinks there well we're working on a bill requiring or completed soon how this usually takes a year or 2 you can we afford this thing you know the year or 2 just talking about the changes well investors still stunned the prospect of messing with russia let's look at the federal tax service or the federal customs service. both services have dramatically changed the way they handle taxpayers would this change required about 5 years for the customs service and even less just 3 years for the tax service. here's another point of the you know the number of court

trials on tax cases has dropped significantly. because the tax agency now use the so-called pretrial elite's a geisha. was rather than going to court which is a lengthy and costly process tax inspectors settle their issues with companies by referring them to a supervisory checks agency in and a lot of issues get resolved that level. i believe that all the supervisory authorities should adjust and rethink the way they operate. when i talk to my colleagues at the federal customs service on the tax service i tell them what they should do is warn assist and advise businesses in order to help them fix things in case of errors or violations were allowed in law enforcement because you

know this is the key issue and someone who is in charge of the flying's is an economy in this enormous country want to have an international investors out there whose robbery concern is with the will question. we commission press the premier i believe it is necessary to send business people to jail straight away not necessarily for financial and economic crimes. well for house arrest would suffice and steps like this would help creates a different business climate reasons here and help build trust. i gave your colleague i did speak with recently mentioned and presidential commission or his rights to do a figure read with him that 80 percent of small and medium sized businesses in russia are afraid to do business because they don't trust him and fear the existing laws and just dish and system in the country with international sanctions in place

that our economy is not ready under great pressure and fact the economic growth in russia has never been is that since the ninety's so small and medium sized businesses and its development is exactly what our country needs right now it could give our economy that push that it needs so badly could jump started and yet when we have won her hands is the situation where the business is fear their own government why is it so that way can't we give this enterprises what they need to just do their jobs and fear free in their own countries. who pushed the idea of doing things the fear of the law enforcement system and by the way the federal tax service is really soft on the danes specs less than one percent of the total number of small and medium sized enterprises in the country also the state runs

a massive program in support of small and medium sized businesses but office tax cuts facilitates access to bank loans gives new education opportunities and introduces special tax regimes because and we all understand that without the private sector we won't have enough money for our budget which we won't get the chances that are needed to provide health care and education services for our people ultimately all the money is generated by interpreters of the richest so what the government needs to do. to provide a comfortable environment for the private sector and that's exactly what our government's doing we'll talk about this new year's time when all of this reports we're talking about now and that you're seeing are being discussed names and speed

in the family so the real change is because that is what matters those let's talk about the g. 20 summit to be honest i mean such events at g. 20 are quite normal and don't make a lot of real headlines except this chit chat about that in this manner who trump shook hands where it's not where serious decisions and. what i like to ask is that given the current situation with lots of steam having accumulated under the lid there is a lot of hansen among the leaders themselves and many of them just want things to change anything there can be real at this summit. it's possible that there won't be any major breakthroughs but i do expect some changes following a number of bilateral meetings including the meeting between the presidents of russia and the united states. thank you very much for your time.

thank you. you know world big partisan group lot and conspiracy it's time to wake up to dig deeper to hit the stories that mainstream media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the bad and shouting past each other it's time for critical thinking it's time to fight for the middle for the truth the time is now we're watching closely watching the

hawks. world leaders that meet at the g. 20 summit in osaka seeking breakthroughs on trade tensions and political standoffs . are a. little disappointed. with what seems to be working together they gave us great opportunities to follow up on the. european union launches a new payment system called instax to help firms bypass u.s. sanctions against iran. and a video showing danish schoolchildren being taught how to perform muslim.