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Alexey Likhachev: We should enhance our efforts towards growth on multilateral as well as national levels

09.07.16

Amid current unstable economic situation in the global economy, the G20 initiative to achieve 2% growth in addition to the previously forecasted by 2018 growth rate is of particular importance.

We should take common efforts to increase investment inflow in manufacturing. Besides, we support the idea, originated during the Chinese presidency, which concerns uniform rules to regulate international investments as well as incentives to attract investments in low-income countries.

We should enhance our efforts towards growth on multilateral as well as national levels and create incentives for fostering global growth.

World investments increased by 36% up to 1.7 trillion US dollars in 2015. However, according to UNCTAD, this surge in investment activity was determined by cross-border mergers and acquisitions, that is flow of financial resources, but not productive assets flow. Their structure has changed significantly; now developed countries have become the main recipients.

Despite the general trend of outflow of foreign direct investment, their inflow in the Russian economy from the most of the EU countries shows an upward trend. For instance, in 2015 the volume of inward direct investments in Russia from Germany amounted to more than 1.4 billion US dollars, from the United Kingdom – more than 1 billion US dollars , and from France –more than 1.6 billion US dollars.

We welcome the discussion of the investment regulation principles within the G20. As I have already mentioned during the previous session, the practical work could be conducted within the WTO.

Currently amid the absence of a detailed prescription of uniform international investment rules, measures being taken at the national level play a key role in stimulating investments.

We solve this problem in several dimensions. The core one is improvement of legislation for doing business. At the same time we use so-called "road maps" of the National business initiative. These "road maps" set targets to address specific administrative barriers to doing business in Russia.

In the ranking «Doing Business 2016»  Russia takes the 51st place compared to 54th in 2015 and 120th in 2012. Moreover, the World Bank in its report published on June 7, 2016, revised the forecast upwards: it is assumed that Russia's GDP will grow by 1.4% in 2017, and by 1.8% in 2018.

The elaboration of harmonized international rules in investments is on the top of the agenda and meets the interests of the countries, including non-members of the G20. It is crucial to continue joint work on this track, using all possible forums and platforms.

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