President Vladimir Putin urged managers of leading Western companies on Saturday to seize investment opportunities in Russia and promised fair play in return. Putin, who will step down next year after presiding over eight years of strong economic growth, confidently reeled off investment figures to 100 Western CEOs at the St Petersburg International Economic Forum.
"There is altogether $150 billion of foreign investment in Russia," he said. "Data provided by international organisations puts Russian investment abroad at $138 billion. According to our estimates the figure is at least $140 billion.
"This shows that the Russian economy is gradually but confidently integrating into the world economy," he added. Putin said the growth in investment had been achieved despite the fact that Russia has so far failed to join the World Trade Organisation (WTO).
He urged investors to back Russia's admission to the WTO saying they had an interest in making this happening quickly. "Our partners are interested in Russia joining the WTO as much as we ourselves," he said. "The time gap when they can enjoy advantages is shrinking."
Speaking about Western concerns Putin said Russia had a free energy market and was not planning to monopolise the economy. "The openness of our energy market is much greater than that of other major world energy producers," he said, adding that in Opec countries everything was owned by the state.
Putin said the creation of major state holding companies in aviation and shipbuilding did not mean the re-creation of state capitalism. "We are only bringing together something which already belongs to the state but has so far worked ineffectively," he said.
"Our task is to clean up these enterprises, make them competitive," he added. "In the end, we intend to offer part of their shares on the market. They will become a lucrative stock."
Putin said Russia would remove differences between domestic and export prices for gas and cut electricity subsidies. Heavy subsidies for domestic users coupled with sharp price rises for export clients have raised concerns about fair play. "A government resolution has been adopted which contains a schedule of taking gas prices to European levels," Putin continued. "Russian consumers will pay the price calculated under the same formula as for foreign consumers."
Putin pointed to electricity generation and the high-tech sector as the most welcome spheres for foreign investment. "I am sure we and you have good prospects for the future," he said.