INTERVIEWER: Pleased to see you, Elvira Sahipzadovna. What is potentially interesting for foreign investors in Russian regions?

Elvira NABIULLINA, Minister of the Russian Federation for Economic Development and Trade: As to our projects that we are presenting in the real estate market, we certainly believe that they will be of interest to foreign investors as being based on the growth of Russia’s economy, which is the most significant thing. Our economy is growing, so do incomes of the population, together with investment and consumer demand, and these factors make investment projects in Russia a promising business. Additionally, at present projects in the Russian Federation feature a relatively high earning capacity, including those in the real estate market, as compared to other countries and big cities, capitals of other states.

Yet, I would not limit the scope of your question to why our projects are of interest to foreign investors. The point is why we have arrived here and why we are presenting our projects to foreign investors. The MIPIM Exhibition is one of the most prestigious exhibitions worldwide as far as investments in real estate are concerned. A lot of Russian regions have been participating in MIPIM events for a number of years and presenting their projects here. For what reason? Because the need of our regions and Russia as a whole for investments is immense, and today we have seen diverse projects at the exhibition: in the domains of residential real estate, construction of production sites, infrastructure, touristic zones. In other words, we need a lot of funds for implementation of these projects and therefore we place our stake on private investments. Our governmental investments may be spent solely for infrastructural and similar projects. Naturally, such projects will be financed also by both Russian and foreign investors. We are speaking about sizable projects, including national-scale ones, for instance, construction projects in Sochi within the framework of the preparation for Olympics-2014, construction of facilities in Vladivostok as part of the preparation for the Asia-Pacific Economic Cooperation (APEC) summit in 2012. Really large-scale projects and therefore, certainly, it would be interesting for us to outline our needs and present our projects.

I would like to stress also that the projects that are being demonstrated here by regions are well elaborated. You will be able to see it if you compare them against exhibition stands of other countries. In this aspect, we are no inferior to other participants and are very well prepared for the event.

INTERVIEWER: What amount of investments do you suppose to attract?

Elvira NABIULLINA: Here, we have a few displays and one Russia-wide display named “Discover Russia’s Regions”. More than 20 regions are presenting here 28 projects for a total of around €30 billion. We mean the investments the regions would like to attract. Additionally, ten regions have their own displays at the exhibition. They are rather sizable, a few projects per region. Such projects are also estimated at several billion euros, that is, the amounts in question are large enough. Also, the exhibition displays projects of specific companies, which allows saying that Russia’s participation in the event is quite active.

And such participation is getting more and more active year after year. Before 2006 five or six regions had taken part in the exhibition, then this figure rose to nine, and in 2007 eighteen regions sent their representatives here. This year, we see governors, vice governors, representatives of 38 regions, who have brought interesting projects to MIPIM, are looking for investors, which results in a very active participation. If the exhibition had been of no interest to the regions, certainly, their representation here would have been reducing, but we observe the ever increasing desire on the part of Russian regions to participate in the exhibition.

INTERVIEWER: And what projects, what directions are of interest to foreign investors?

ElviraNABIULLINA: Different projects. I think, a wide range of projects. A considerable share of projects presented by the regions is concentrated around comprehensive development of their territories, cities and towns, residential construction. Actually, we see a lot of projects that combine existing tenders, associated with economic growth and urban development, with, as a matter of fact, novelties. We may speak about new cities with a new image since such projects are representing utterly different requirements on the part of both population and business, and other qualitative level of such projects aimed, in point of fact, at a new image of Russia.

INTERVIEWER: And now, if allowed, a question in relation with the “topic of the day”: has the liquidity crisis affected Russian regions?

Elvira NABIULLINA: Our fundamental factors, that is, fundamental from the viewpoint of the development of Russian economy, are strong enough to oppose such factors as the liquidity crisis. Of course, from time to time we face certain difficulties in the lending market, yet our financial authorities, Russian banks have enough instruments to resolve short-term liquidity problems. Therefore, we do not see any serious difficulties in what concerns attraction of investments in the regions. The cardinal point is competitiveness of projects, their remunerativeness, and there are opportunities to attract investments, including private investments, from both Russian and foreign sources.

INTERVIEWER: What legislative acts are currently under development in order to add attractiveness to the investment environment in Russia?

Elvira NABIULLINA: In general, our policy is aimed at creation of an environment more and more favorable for all investments, for making business in Russia. In essence, the whole economic policy of ours, including the efforts to achieve macroeconomic stability, pursues the above purposes. Our proposals concerning taxation amendments should stimulate investments, investments in innovations. The purpose of proposals related with amending corporate legislation is to make business in Russia fully transparent and to provide remedies for protection of investors’ rights and rights of owners, including minority owners. Therefore, everything is being done to improve the investment climate in Russia. Moreover, it is being improved not only in megalopolises. We see that volumes of investments are rising throughout the territory of Russia, and it is owing to not only efforts on the part of federal authorities that are making legislative amendments, in their striving to improve the taxation regime, but also, in many ways, owing to the active position of many regions. As we see, a large group of governors have appeared here for presentation of their projects. Thus, they attach much importance to promotion of their investment projects and attraction of investments. In general, our country is open enough for such attraction.