"With regard to the impact the verdict in the Khodorkovsky trial has made on the investment climate in Russia, I would call it zero because all economic players had foreseen the result and made proper adjustments," Sapir said (on May 30, Khodorkovsky was sentenced to 9-year imprisonment by Moscow's Meshchansky District Court).
"All econometric estimates reveal that the main factor adversely affecting the investment climate in Russia is a shift in Russia's exchange rate policy toward further strengthening of the ruble," he said.
"If you look at the statistics from the start of 2004 it becomes clear that the shifts in the country's exchange rate policy have accounted for 80% of the capital outflow registered over the period," the expert said, adding that "exchange rate fluctuations tended to make a much greater impact on the actions of investors, foreign as well as Russian, than any political developments".
Sapir cited "discrepancy" between the federal and regional legislation as another major factor adversely affecting the investment climate in Russia.
"Uniform rules are supposed to apply throughout the country. In practice, however, it is not so. Foreign investors find it hard to understand why the requirements brought forth by local or regional authorities frequently differ from those demanded by the federal Government," he said.
According to Sapir, his vast experience in dealing with investors operating in the Russian market clearly shows that the lack of coordination between the federal, regional and local authorities constitutes one of the major factors causing investors' concern and anxiety.
