The minister said that the law will make it possible to attract private businesses into traditionally state sectors, including housing and communal services and municipal industry, which Mr. Gref noted are today loss-making and ineffective.
"We are not yet ready to privatize artificial and natural monopolies, but are prepared to award concessions for them," he said. "A whole number of facilities, starting with transport infrastructure and ending with social services, can be given over under concession."
Mr. Gref also said that the government plans to take measures for actively involving businesses in research work and other traditional state sectors.
He said that bills on special economic zones and transformation of budget institutions into non-commercial organizations will be submitted to the State Duma before the end of the year.
"This form will make it possible to attract small businesses into the sector of state services on outsourcing terms," the minister remarked.
Still unresolved, according to Mr. Gref, is the problem of revoking what he termed as "unlawful powers of regional and federal authorities".
"The powers illegally arrogated by authorities are hampering the development of business in the country," Gherman Gref said, noting that sometimes authorities hide behind rhetoric about state interests, although this has nothing to do with state interests.
"The aim of the Russian government is to take the state as far as possible away from commercial and entrepreneurial activity. The state should focus on creating constitutional possibilities for business development," the minister emphasized.
He also said that the 2005 budget would allocate funds for large projects involving a state and private partnership.
"Next year's budget will include funds to develop large-scale projects which need state participation," the minister said.
He said that not only state structures, but also private businesses may take the initiative for such projects.
"For the first time in 15 years the state is prepared to earmark huge funds for such projects, which will also be open to business," Mr. Gref remarked.
He said that the government would help develop "as a priority" the infrastructure of the Krasnodar Territory, including Black Sea health resorts.
"Helped by the federal government, we will commission a project for the recreation development of the entire coast," the minister said. "We need a uniform and single concept for the development of the entire shore. It is an important competitive component of the territory."
Sberbank CEO Andrei Kazmin in his turn pointed to the positive dynamics of Russia's banking sector over the past four years. He said that the annual growth of the banking sector is more than 30%.
"This is indeed a firm earnest that the country can double GDP by 2010," Mr. Kazmin said. At the same time the Sberbank chief pointed out that the Russian banking sector is beset with some problems, particularly the problem of returning the value-added tax.
"There are problems in recovering value-added tax when borrowers refinance investment costs, which ultimately may lead to a lowering of the competitive ability of Russian enterprises," he noted.
