Members of the Russian delegation explained to the forum participants the main trends in the development of the Russian economy over the past few years and familiarized them with the plans for reforming the Russian energy sector and prospects for modernizing the automobile industry and developing the automobile market.
"The past year was a year of further economic growth in Russia: the country's GDP rose by 7.1%, labor productivity - by 5%, and real per capita incomes - by 9.8%," said Sergei Storchak, representative of the economic development and trade ministry and head of the Russian delegation.
In his words, the Russian government is confronted with new serious tasks now, i.e., the transition to large-scale reforms in the sphere of budget planning and taxation.
"The adopted decision to draft the state budget for three years instead of one will make the government's course more transparent and reliable and have a favorable effect on the investors," Sergei Storchak stressed.
Dmitry Akhanov, a RAO UES representative, said that "in two years' time, the Unified Energy Systems (RAO UES) of Russia will cease to exist in its present form being replaced by several companies competing with one another."
He stressed that a serious liberalization of the sector was expected by January 1, 2006. It will include free price formation, the conclusion of direct contracts between the producers and buyers, and the formation of well-grounded electricity tariffs with an investment constituent.
Warren Brown, General Motors' managing director for Russia, said that Russia is a huge growing market and it is worthwhile to invest capitals there. He also pointed out that the investment climate in Russia was improving with every passing year.
Victor Pastor, EBRD director for Russia, said that by now the EBRD had already invested $6 billion in projects which are being implemented in Russia. He added that this sum constituted 30% of the bank's total investments in all countries.
In Victor Pastor's opinion, good economic indicators demonstrated by the Russian economy in recent years should not reduce the Russian government's interest in reforms.
