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President of Russia Dmitry Medvedev: Third, investment activity. Active investment is one of the keys to achieving innovative development and successfully modernising our economy. Russia needs a real investment boom.
Offering a comfortable environment for investors is one of our biggest tasks and we have made this one of our top priorities today.
I recently changed the rules concerning law enforcement agencies’ work with regard to business. The law now limits possibilities for arresting businesspeople in connection with investigations into economic crimes. Clearer rules have been set for inspections of businesses, and they are subject to the prosecutors’ supervision. This does not mean, of course, that all problems have been solved, but we have anyway made specific and significant steps and we will continue our efforts in this direction. Further amendments will be needed to the criminal, criminal procedure and other laws, and I will propose them.
Active investment is one of the keys to achieving innovative development and successfully modernising our economy. Russia needs a real investment boom.
As far as improving the investment climate is concerned, I hope we are making progress here too. Since January 1 this year simplified procedures and increased possibilities have been in place for applying the zero rate to profit tax on dividends. I can announce now that starting next year Russia will completely abolish the capital gains tax for long-term direct investment. (Applause.) Thank you for your support.
This investment is absolutely essential for us to be able to modernise our economy, and we are ready to establish the institutions that will help to encourage this investment. I am hereby instructing the Government to examine the idea of setting up a special investment fund in which government funds will be complemented with private capital; say, we will try to attract 3 rubles of private investment for every one ruble of state money. The fund will work on finding strategic investors for projects and co-financing these projects. It will be completely transparent in its operation and work on the basis of market principles. I think we could carry this proposal out within a year.
In another area, we have simplified immigration rules for highly qualified foreign specialists. This decision has already been taken and I have already signed this law. These procedures will apply in particular to those taking part in big investment, scientific and high-technology projects. We are working on improving our visa procedures and I hope that many of the guests at this forum today will soon be able to make use of the new possibilities for pursuing their businesses and careers in Russia.
Fourth, we are acutely aware that one cannot build a modern economy by decree from above. No matter how many state-owned enterprises we might have modernisation will above all be achieved through the efforts of private business, and only in a competitive environment. The state’s job is to ensure a good business climate for Russian and foreign entrepreneurs, and a fair and honest competitive environment.
Our Nobel Prize-winning physicist Pyotr Kapitsa liked to say “People often think it’s he who picks the apple who’s done the main work, but in reality, it’s he who planted the apple tree who’s done the main work”. The state should not always try to pick the apples from the economy’s tree as there is always someone who would do that better and in a more efficient manner. The state should concentrate on its main job – helping to cultivate the apple orchard, creating the right soil and environment for the economy itself to grow and develop.
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