Medvedev urges global companies to boost Russia’s development

June 8th, 2008 - 3:41 pm ICT by IANS  

RIA Novosti
St. Petersburg, June 8 (RIA Novosti) Russian president Dmitry Medvedev has called on global firms to come in a big way to help the country’s development of “innovative economy”. “I think that global companies can play a crucial role in helping (Russia) to achieve the ambitious goals in IT, communications - everything that we refer to as innovative economy,” Medvedev said, adding that Russia hopes for broad cooperation with such global players.

He said small and medium sized companies were unable to make a significant impact in this sphere.

He also said that the level of foreign direct investment in the national economy was insufficient to ensure its diversification.

Medvedev said Russia needs more long-term investment to ensure its transition to an innovative development model and join the group of the world’s five largest economies.

He said foreign direct investment (FDI) in the country is just about five percent of the gross domestic product - mostly in the retail, construction and raw material sectors.

Russia’s economics minister said Friday foreign direct investment in the country this year could hit about $60 billion compared with $45 billion in 2007 and $30 billion in 2006.

The economics ministry has forecast an increase in net capital inflow into the country from $52 billion in 2009 to $105 billion in 2011.

The country’s trade balance is expected to reach $82 billion, with the average annual oil price at $78 per barrel in 2009.
RIA Novosti

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