Russia economic growth slowdown not related to YUKOS-expert
By Dmitry Zlodorev
ITAR-TASS News Agency
November 11, 2004 Thursday 4:19 AM Eastern Time
MOSCOW, November 11 — Russia’s economic growth retardation is
not linked to the developments around YUKOS, chief economist of the
European Bank for Reconstruction and Development (EBRD) Willem Buiter
is certain.
The expert said on Thursday that according to the EBRD forecast,
Russia’s economic growth rates in 2004 will reach 6.9 percent, as
against 7.3 percent in 2003. Buiter said it was not unexpected as
such periods are possible in the economic development of any country
and there is no alarming in that.
The main factor of economic growth in Russia, according to Buiter,
is structural reforms that have shown some progress recently.
First of all these reforms depend on effective regulation, ensuring
competition on the market and participation of the private sector
in the economy, Buiter said presenting the EBRD annual report at a
meeting with U.S. Chamber of Commerce officials in Moscow.
The EBRD chief economist stressed that out of 27 countries the
situation in which is reviewed in the document 17 have shown serious
improvement in the economic situation.
In particular, the expert noted, Armenia has recently doubled its
economic growth. According to Buiter, countries of southeast Europe
will show the greatest economic growth in the short run. In 2004 this
indicator will be 6.1 percent and in 2005 – 5.5 percent.
Officials of the EBRD mission in Russia who spoke at the meeting
stressed that in 2005-2007 the bank will give special attention
to financing interregional projects in Russia, in particular,
in the insurance and banking sectors, production, as well as in
infrastructural projects – construction of roads and ports.
EBRD mission officials said the bank would like to expand activities
outside Moscow and St. Petersburg.
According to them, last year the bank invested 1.1 billion euros
in the Russian economy and this year its capital investments will
account for about the same sum.