Russia has attracted 112 billion dollars in foreign investment

Summing up his government's economic achievements, Putin said that capital inflow had exceeded capital flight in 2005 for the third straight year, and that Russia's gold and hard currency reserves this year could exceed state and private foreign debt combined.

Photo: Russia has attracted 112 billion dollars in foreign investment

Russia is the world's second-largest crude exporter after foreign investment Saudi Arabia, and surging global oil prices have driven its rapid economic growth during the past years. After relying heavily on loans from the International Monetary Fund and World Bank in the 1990s, Russia's coffers are now flush with cash, the AP reports.

Putin said the four biggest problems in the economy were high inflation - currently running around 9 percent annually - monopolies, bureaucratic barriers and corruption, and said no barriers to foreign investment should be erected under the guise of national security concerns.