Russian Economy Minister on increased investment in Russia

Investment in the Russian economy over the nine months of the current year grew by over 60% against the same period of last year, Russian Economic Development and Trade Minister German Gref announced at the fifth roundtable session of Russian and EU industrialists on Monday.

"The most attractive spheres for investment are trade and public catering. Investment in these sectors made 43% of their total volume, industry is holding the second place with 36%. Among industries, mining (oil and gas) and food industries are dominating, while investment in communications equals merely 3%," he said.

The specified sectors are "most attractive due to both capital returns and creation of competitive conditions at today's Russian market", Gref pointed out.

"The financial market is at the moment the least developed. Investment there made less than 1%," he said.

The present capitalization of the Russian banking sector is 6% of the GDP, the minister said. Capitalization of the stock market equals approximately $200 billion, that is less than 30% of the GDP, he pointed out.

"The same is true about insurance and some other service markets. Thus, the problems that need solution are clear. The key tasks are to cease superfluous state intervention in the economy, to cut significantly transaction expenditures, to expand competitive market in order to offer a broader choice to the stock market agents," Gref believes.