Putin: Russia needs to help rich people to invest in economy devt

ST. PETERSBURG, Jun 2 (PRIME) -- It is necessary to help rich people to invest in economic development rather than in consumption, Russia’s President Vladimir Putin said at a plenary session of the St. Petersburg International Economic Forum on Friday.

“We must raise this targeted aid, so we, on the one hand, must help the people who fairly, I emphasize this, earned their wealth fairly, help them to invest in the development of the economy, not in consumption by the way,” Putin said, adding that on the other hand, targeted aid to people needing help is also a must.

Foreign investors have noted high quality of the Russian macroeconomic policy, he said. “It is a big argument for them in favor of work on the Russian market.”

The growth of investments in Russia is exceeding the rise of gross domestic product (GDP). “In general, investments grew 2.3% in the first quarter. This way, I would like to note, emphasize that there is a situation today when the investment growth exceeds the GDP rise. This is one more evidence of what I said already. The economy is entering a new growth phase; a word for its future development is being spelt,” he said.

“A new phase of increase has started in the economy: Russia’s GDP is rising for a third quarter in a row, in April, the increase was already 1.4%. Car sales, mortgage lending are increasing… experts think that these figures are important signs of the revival of the economy and surge in consumer demand,” Putin said.

Russian development projects need syndicated loans, and amendments regulating the sphere must be adopted as soon as possible, Putin said and asked the central bank and the government to expedite their procedures of consideration.

The term of special investment contracts should grow to 20 years from the current 10 years and such deals must be able to envisage participation of development institutes, banks and natural monopolies in them.

Putin also offered to introduce an infrastructure mortgage: “when an infrastructure project is in fact leased on money from private investors, and the user of a facility redeems this loan gradually.”

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