Russian WTO membership will spur foreign investment surge in 2-3 yrs - Nabiullina
NOVO-OGAREVO. March 12 (Interfax) - Russia's accession to the World Trade Organization will lead to a substantial increase in foreign investments in two to three year's time, Economic Development Minister Elvira Nabiullina said during a meeting with Prime Minister and President-elect Vladimir Putin in Novo-Ogarevo.
"We expect that joining the WTO, firstly, will make it possible to grow exports and to lower barriers to exports, secondly, it will make more attractive the conditions for raising foreign investment. It could be that won't happen immediately, but we expect a trend like this in the next two or three years. Here the world financial situation will also have an influence - resources, investors evaluate risks depending on this situation," the minister said.
Against a backdrop of overall capital outflow in 2011, the inflow of foreign direct investment in Russia was $52 billion - having increased compared with 2010, when volume ran to $43 billion, Nabiullina said.
"In 2011 we returned to the 2007 level. In 2008 we had a rather big, record volume [$75 billion]. Oil prices were very high then, and there was a great deal of investment based on borrowing," she said.
The trend toward rising foreign direct investment will continue, Nabiullina said.