Russia's Ivanov says foreign investment welcome if jobs provided

Other News Materials 12 October 2007 01:34

( RIA Novosti ) - Russia's first deputy premier said foreign capital should come into Russia, but only if it employs local resources and staff.

Sergei Ivanov made the statement at a time when Russian parliamentarians are working on a bill on foreign investment in commercial organizations of strategic importance, passed in its first reading September 14. The document limits foreigners' access to certain economic areas in Russia.

"I am for attracting foreign capital, but not [foreign] materials and workforce," Ivanov said. "I don't think an investor from Austria or Germany would bring his own workers or builders here."

The first deputy premier said the use of foreign resources and workforces would make projects more expensive.

The new bill restricts foreign investment in 39 economic areas, including the production of weapons, military, aviation and special equipment, nuclear materials, nuclear facilities and space industry. The limits also concern sectors which make up 2-3% of Russia's GDP. In energy, the bill will only target strategic deposits.

Ivanov said he expected the document to be passed by the end of the year, and added it was fairly liberal compared to similar legislation in Western countries.