SOCHI — President Dmitry Medvedev on Tuesday criticized Russia's slow progress in scrapping administrative barriers to foreign investment, pressing his fight to stem growing capital outflows.
"We have been fighting on and on against administrative barriers, but new ones keep cropping up again and again," Medvedev told a meeting of government officials tasked with aiding businesses at his Black Sea residence in Sochi.
Endemic corruption in Russia and red tape have scared off many foreign investors and the country's $1.5 trillion, oil- and gas-fueled economy attracted investments worth only $13.8 billion last year compared with China's record $105.7 billion.
The Central Bank says the country will see net capital outflows reaching $30 billion to $35 billion this year, fuelled by uncertainty before a March 2012 presidential vote.
"If we don't improve the investment climate, we will not be able to move forward," the president said.
Medvedev appointed investment ombudsmen for each of Russia's 83 regions last year to try to keep regional officials in check.
"Practice shows that two-thirds of these barriers exist in Russia's regions, not in Moscow," Medvedev said.
The newly appointed ombudsmen have so far received 76 complaints from investors, more than over half of them dealing with administrative barriers and discrimination experienced by foreign companies, according to a government handout.
Among those companies that have resolved disputes with regional authorities thanks to the mediation of government ombudsmen were Nestle, Metro and IKEA, First Deputy Prime Minister Igor Shuvalov told reporters.
Both Putin and Medvedev have criticized administrative red tape, heavy bureaucracy and official corruption for acting as brakes on economic development.
But analysts say the country has so far made little headway in scrapping such obstacles to doing business in Russia, which is ranked as the world's most corrupt major economy by anti-graft watchdog Transparency International.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
