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Moscow: Russia is the most promising market for foreign investment, surpassing China and India, even though corruption remains a "major concern", according to a survey of international companies for the Russian government.
The study by the Foreign Investment Advisory Council was presented today before the start of the St Petersburg International Economic Forum. BHP Billiton, BP, Coca- Cola, Exxon Mobil, Merrill Lynch & Co and 46 other companies polled account for 40 per cent of all foreign direct investment in Russia since the Soviet Union collapsed in 1991, the council said.
Executives are more optimistic on Russia than anyplace else because of the stability achieved under Vladimir Putin, according to the survey. Russia, the world's largest energy supplier, has enjoyed average annual economic growth of more than seven per cent since 2000, when Putin became president. He took over as prime minister last month after his successor, Dmitry Medvedev, was sworn in as head of state.
"Russia has an impressive track record in terms of macroeconomic stability," the Moscow-based council said.
"There are no signals that in the future the direction of policies may change."
Rule of law
Medvedev, 42, will give his first major speech to investors as president on June 7 at the forum in St Petersburg, which is both his and Putin's hometown.
Sixty-one per cent of respondents said Russia will become "more stable" in the coming years, while eight per cent expect the opposite.
"Some considerable doubts remain about the rule of law in Russia," with some executives saying that "corruption is taking on greater proportions," the council said.
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