Maxim Oreshkin: It’s not too late to invest
Maxim Oreshkin, Russian Minister of Economic Development, held a meeting of the Executive Committee of the Foreign Investment Advisory Council (FIAC)
to sum up the year results of the Council WGs and discuss topical issues that would be reviewed at FIAC plenary session attended by Russian PM Dmitry Medvedev.
"The key indicators now demonstrate that the economy is already stable, while inflation rate is easing at 3.3%, the latest data say. In the next three years, economic growth rate is expected to be no less than 2%, with inflation rate being at the target level estimated by the Bank of Russia," he said.
Maxim Oreshkin compared the current situation in the Russian economy to that moment of the U.S. economy in the first half of the 1980s, when the country had had low and steady inflation rate, which opened the doors for a positive credit cycle that lasted 27 years. "The overall debt burden in the Russian economy is very low and the credit cycle can be expected to be long. The Government and the Central Bank of Russia are tasked to ensure that the credit cycle is supportive of economic growth. This suggests sharper focus on corporate and investment lending and developing financial instruments such as mortgage loans," he said.
Oreshkin said that Russian Government is already engaged in implementing a variety of measures aimed at facilitating investment development, including the new program for project financing, which helps accurately remove the problems faced by investors, and the infrastructure mortgage program aimed at increasing and supporting private investments in infrastructure. "The combination of the credit cycle, infrastructure investment support, higher stability and predictability in terms of both macroeconomics and microeconomics will enable to lay a solid foundation for sustained economic growth," added the head of Russian Ministry of Economic Development.
Maxim Oreshkin also noted that those companies that were investing in 2014-2015 are now in a favorable position in terms of future competition. "Their investments now end with specific industries and businesses and they are able to fully benefit from the situation of the economic growth that has started in Russia. However, it's not too late to invest," he stressed.
The Advisory Council on Foreign Investments in Russia (FIAC) has been operating since 1994 and unites 54 major international companies in 18 countries. The main task of the Council is to assist Russia in forging and promoting a favorable investment climate based on the global expertise, as well as on the experience of international companies operating in Russia.
The Council is chaired by the Russian Prime Minister and includes the heads of the following international companies: 3M Company, ABB Ltd., Abbott Laboratories, Alcoa Inc., AstraZeneca, BASF SE, Bayer AG, BP, BAT, Cargill, Inc., Carlsberg Breweries A/S, Danone, Deutsche Bank AG, The EBRD, ENEL S.p.A., eni S.p.A., EY, Exxon Mobil Corporation, Fortum Corporation, Henkel AG & Co. KGaA, Hyundai Heavy Industries Co., Ltd., International Paper, Kinross Gold Corporation, LafargeHolcim, Leonardo-Finmeccanica, Mars, Incorporated, METRO AG, Mitsubishi Corporation, Mitsui & Co., Ltd., Mondelez International, Inc., Nestle S.A., Novartis AG, Olam International Limited, PepsiCo, The Procter & Gamble Company, Royal Dutch Shell plc., Saint-Gobain, Samsung Electronics Co., Ltd., SANOFI, SCA, Schneider Electric SA, Siemens AG, Société Générale Group, SOLVAY Group, SUN Group, Takeda Pharmaceutical Company Limited, Tetra Pak, The Coca-Cola Company, Total S.A., UniCredit, Unilever, Uniper, and The World Bank.