Can $100 Billion Keep Russian Economy Running?

'To function properly, Russian economic infrastructure needs about $100 billion a year,' announced head of the Economic Ministry's Investment Department Sergey Baev at an international economic conference in Moscow today. He further elaborated that not only is the economic infrastructure in Russia underdeveloped, but it is also underfinanced, the $60 billion it receives yearly being not enough. '$100 billion would suffice only to keep the status quo, to encourage economic development we need about $130 billion of yearly investment. The situation is really difficult, most of the airports not even being equipped to service foreign aircrafts,' he added. In Mr. Baev's opinion, the necessary investments are possible only if the efforts to stabilise banking and tax policies are successful. 'In this case the capital kept in foreign banks or circulating on the grey market would start pouring in because the Russians know better than anybody how to do business in this country,' the Economic Ministry's official concluded.

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