Foreign investments increase totaled 23.4% for the first half of 2006, i.e. by 41.9% higher than in the first half of 2005, Russian Prime Minister Mikhail Fradkov said on October 16, opening the 20th session of the Foreign Investments Consultative Council (FICC).   

 

According to Fradkov, foreign investments will increase up to $27mln for nine months of 2006; at that, increase of direct investments will total 43.6%; portfolio investments will increase by three time. Also the prime minister stressed, by October 1, resources accumulated in the Stabilization Fund exceeded $70bln; GDP growth rate totaled 6.7% in January-August against 5.7% in 2005; at that, industrial growth totaled 4.7%. Investments into fixed capital totaled 11.1% against 9.6% last year. Collected foreign capital increased by 40.9%, totaling $128bln, for the first half of 2006.         

 

Also, Fradkov stressed positive tendency of foreign investments into small businesses increase. “It is important for us,” the prime minister stressed. Especially, he thanked the FICC member companies, which conducted poll among foreign companies, which are active in Russia. According to the poll, 84% of foreign investors consider their activity to be successful in Russia; 94% of companies are going to extend their businesses in Russia. 

 

Speaking at a session FICC, Economy and Development Minister German Gref proposed to establish a specials agency to attract foreign investments into Russia. Gref stressed that such an agency in future might assume a role of coordinator of the measures aimed at improving investment image of Russia. “There are such agencies in developed countries and they demonstrated high efficiency of their functioning. I believe we need such an instrument,” the minister stressed.  

 

Prime Minister Mikhail Fradkov stressed that government would consider possibility of such agency establishment. “However, I still believe it is expedient to carry out such work in frames of working group on improving Russia’s image, which belongs to the FICC,” he stressed. “Let’s take a time-out; everything should be thought over; it is important not to establish new bureaucratic obstacles here and not to worsen problems of corruption,” the prime minister stressed.