UPDATE2: Putin says Russia achieves macroeconomic stability

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ST. PETERSBURG, May 25 (PRIME) -- Russia has achieved macroeconomic stability despite external challenges, which is important for investors, President Vladimir Putin said Friday at the St. Petersburg International Economic Forum.

“Despite all turbulent processes, after all, everyone already knows it well, we achieved macroeconomic stability, which is important for investors,” Putin said.

Putin also said that Russia expects that French companies will develop in the country and receive profit.

The president called for fighting economic separatism in the world.

“It is absolutely clear that we have to work on the capacity of own markets, it is necessary to develop cooperation, integration, we need to resist the closure of markets, because any kind of economic separatism in this sense, does not lead to anything good,” Putin said.

Russia will continue to provide incentives and financial aid to projects which it believes to be important, Putin also said.

“And finally direct financial support and incentives to those projects which we believe to be nationally important. All this will be done,” he said.

The Russian government will reduce administrative pressure on business, Putin said.

“We will reduce administrative barriers and administrative pressure on business. We have what to work on, actually, this is not only our problem – in many countries of the world, I know, business faces it.”

The government is currently preparing some tax changes which will stay in force during six years once being introduced, Putin also said.

The new government should provide resources for Russia’s breakthrough in various spheres of life, Putin said.

“Advanced technologies, communications, which until very recently it was impossible to imagine - those who can effectively use these growth factors will be able to provide a breakthrough in the economy, social sphere, science and education, significantly improve the lives of citizens,” he said.

Keeping sovereignty and national identity is surely of value for Russia, Putin also said.

“Protection of state sovereignty and preservation of national identity is surely of value for us. At the same time, we need to make a powerful breakthrough in development, to join the ranks of advanced countries in terms of the longevity and quality of life of citizens, to become one of the global technological leaders,” he said.

Russia will efficiently integrate in global infrastructure and enhance its role in transport, digital and energy global systems, Putin said.

“The key principle of our development is the openness of the country, its focus on active participation in global processes and integration projects. And this also encompasses implementation of large-scale infrastructure projects. This is the most important part of our national agenda. We are developing the transport, energy, digital framework of Russia, intend to effectively integrate it into the global infrastructure.”

Russia plans to significantly raise construction volumes, the president said.

Russia will not halt gas transit through Ukraine if it is economically feasible, the president also said.

“I’ve already said and want to repeat once again: we do not plan to close transit through Ukraine if it is economically feasible. We are ready for talks with our Ukrainian partners,” Putin said.

Russian pipeline systems do not have competition on the European market in terms of gas price for consumers, Putin said.

“All our pipeline systems connected with main consumers in Europe almost do not have competitors. Of course, only if Europe seeks to remain competitive and does not want to buy from other producers at excessive prices.”

Russia is ready to expand the list of participants of the Nord Stream-2 gas pipeline project by adding more European companies.

“French company Engie participates in the Nord Stream-2. We will welcome other participants, including Total. We can expand this list by adding other European companies, because this project is in fact all-European,” Putin said.

Russia will think over liberalization of the current system of access to gas exports to Europe, Putin said.

“We will of course think over liberalization. At present, five European companies take part in the Nord Stream-2 project. If Total becomes the sixth – this is direct participation in transportation. But we can talk about it, discuss. This will be done sooner or later,” he said.

Speaking about global economy, Putin said that neglecting norms and the loss of confidence in the world economy can lead to a new crisis that the world has not faced yet.

Global lack of trust puts growth of the global economy at question, Putin said.

“Global distrust calls into question the prospect of global growth. The logic of economic egoism does not fit well with today’s specialization of countries and companies.”

There will always be rivalry and clash of interests in the global economy, but competition must be fair, Putin said.

Putin also called for the U.S., Asia and Europe to move together to stable development.

“Russia stands for freedom of trade and economic integration, for a constructive partnership dialogue and encourages our partners from Europe, the U.S., Asia and other regions of the world to move together towards sustainable development, to develop a growth model that will give the most adequate response to modern challenges,” he said.

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