Russia Does Not Need Increased Foreign Investments

Presidential economic adviser Andrei Illarionov believes that Russia does not have the 2003 problem, connected with the wear of its fixed assets. He expressed this view in an interview with journalists on Friday. Illarionov emphasised that Russia has no problem of wear of all fixed assets, as it is presented now, but has an annual problem of aging fixed assets, which happens in any country. He also believes that there is no need now for a considerable increase in the flow of investments into the country. As Illarionov explained, the level of investments should be optimum for every country, since exceeding it may entail an economic crisis. According to the adviser, in 2001 the volume of investments in Russia was 18 per cent of the GDP, compared with an economic growth of 7.7 per cent. Illarionov thinks that the most optimum investment level for Russia is an average of 15-18 per cent of the GDP.

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