Last month, on October 2-4, VTB Capital hosted its 4th annual “RUSSIA CALLING!” Investment Forum in Moscow. The event brought together 1,800 delegates including 61 representatives from international and Russian corporations as well as key government officials and over 400 investors.
“RUSSIA CALLING!” is a key event focused on investing in Russia in the international investment calendar. Held annually in Moscow and London, the forum has been promoting constructive dialogues between Russian businesses and international investors since 2009. This year, participants discussed pressing topics related to Russian and global economic stability including the Eurozone debt crisis, global economic slowdown and the outlook for Russia’s continued economic development.
President Putin gave the keynote address in which he outlined his six-year plan for Russia’s economic development, emphasizing the need to improve the country’s investment climate. Other priorities mentioned included the need to control inflation, reduce the economy’s sensitivity to external shocks and continue the drive for privatization across industries. Putin also highlighted Russia’s need to make “evolutionary” changes rather than “large disturbances,” adding that the country will continue to develop and strengthen the fundamentals of its political system.
International panelists including China Investment Corporation Chairman Jin Liquin and Alcoa CEO Klaus Kleinfeld expressed bullish outlooks on Russia’s economic development. Jin highlighted opportunities for further Sino-Russian cooperation, noting that energy, and particularly non-oil resources, would continue to be an important sector of opportunity for both countries. Kleinfeld commented on Russia’s human capital advantages, noting that the country has an established pool of industrial know-how and a historical legacy of making great scientific and technological achievements.
Panelists also commented on the challenges of investing in Russia, citing weaknesses in infrastructure, corporate governance and intellectual property rights as key concerns. Investors, according to Forum’s speakers, are ready to invest in Russia but need to be confident in the safety and productivity of their investments. In a separate session, Russia’s Minister for Open Government Mikhail Abyzov discussed Russia’s “Open Government” initiative, which would help investors develop stronger relationships with regional and national authorities by setting new standards for transparency.
Rusnano CEO Anatoly Chubais discussed Russia’s potential to become an innovative economy, noting that the government would need to address key challenges to investment and insure favorable macroeconomic fundamentals such as low inflation to do so. Chubais also said he saw no insurmountable barriers to making the Russian economy more innovation-driven.
Infrastructure was also a key topic at the forum, with many speakers, particularly international investors, highlighting it as a key challenge to Russia’s economic development. Deputy Prime Minister Arkady Dvorkovich said that improving the framework for public-private partnerships would encourage infrastructure development.
Other high-level panelists included Russian Central Bank Deputy Chairman Alexei Ulyukaev, UBS Bank Chairman of the Board Axel Weber and former Finance Minister Alexei Kudrin.
The final day of the Forum was devoted to one-on-one meetings between representatives from Russian companies and international investors. Overall, participating investors showed greater confidence in Russia’s macroeconomic stability as compared to last year but had concerns about uncertainty surrounding the country’s long-term fiscal policies. Investors who engaged in one-on-one meetings with key companies, however, were pleased to see Russian companies becoming more transparent and open to engagement.
Overall, participants hailed the forum as a success, with VTB Bank CEO Andrey Kostin saying, “I am very pleased that today – when investors all over the world feel uncertain and hesitant about the situation on stock and financial markets – the interest in the “RUSSIA CALLING!” Investment Forum is so high.”
Detailed notes from the forum can also be accessed here.
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