Russia's Putin Promises Better Deal For Foreign Investors-AFP

Russias Putin Promises Better Deal For Foreign Investors-AFP
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Τετ, 2 Απριλίου 2008 - 09:14
NOVO-OGARYOVO, Russia (AFP)--Russian President Vladimir Putin on Wednesday promised better conditions for foreign investors, despite the approval earlier in the day of a law limiting business in strategic sectors of the economy.
NOVO-OGARYOVO, Russia (AFP)--Russian President Vladimir Putin on Wednesday promised better conditions for foreign investors, despite the approval earlier in the day of a law limiting business in strategic sectors of the economy.

"We intend to improve the climate for foreign investors, including in administrative regulation and investment laws," Putin said at the start of talks with Italian investors including the heads of energy giants Eni SpA (E) and Enel SpA (ENSTY).

Earlier Wednesday, Russia's parliament adopted a law limiting access for foreign investors to "strategic" sectors of the economy, including the oil and gas industries, and imposing checks by economic and security officials.

Foreign investors regularly complain about bureaucratic obstacles, corruption and poor enforcement of legislation in Russia but many have been attracted by Russia's booming economy in recent years.

Putin said that foreign investment into Russia last year totaled $121 billion - more than twice as much as in the preceding year.

After the meeting, Eni chief executive Paolo Scaroni told reporters that his company and its Russian partner, gas giant OAO Gazprom (GAZP.RS), were close to sealing an asset swap deal in a third country.

Putin also gave his backing to a proposal by Italian bank chiefs to set up a joint Russian-Italian investment bank to fund major projects in the two countries, a Kremlin official said.

Putin in addition met the CEO of German industrial group Siemens AG (SI), Peter Loescher.

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