World Bank: ruble devaluation insufficient for attracting foreign investment; reforms needed
MOSCOW. April 6 (Interfax) - The lower costs resulting from the ruble devaluation are not enough by themselves to enable Russian companies to strengthen their positions on the global market outside Russia's traditional export territory: investment in new technologies and quality improvements are also needed, the World Bank said in its Russia Economic Report published on Wednesday.
"In order for firms to capitalize on their current relative price advantage in international markets they would need to expand and change their output capacity and invest in both their products and production processes. Efforts to boost output, improve quality, introduce innovative technologies and/or comply with international standards will require a large and sustained influx of new capital," the report says.
"But attracting international investors will require more than a price advantage: in order to become competitive as an exporter and as a destination for global FDI, Russia would need to establish a more hospitable investment climate," it says.