Speaking at parliament's lower house, the State Duma, German Gref said there was no "demand for investment resources" in Russia, one of the factors encouraging $20-billion loss to capital flight.
Gref said Russia was interested in attracting investment in the high tech sphere and urged legislation "to ensure property rights [and] investors' rights." Encouraging innovations was also crucial, he said.
Gref said the government had made a decision to develop high tech industrial zones in Russia.
Russia's stock market has grown 52% from January to August 2005.
"Russia is an absolute leader as far as stock market indices are concerned," Gref said.
However, he warned capital flight would continue until Russia had tackled immature democratic institutions, property rights, corruption and its undeveloped infrastructure.
