Strategic principles and practical aspects regarding investment in the Russian economy

Doc. 10361
26 November 2004

Motion for a recommendation
presented by Mr Korobeynikov and others

This motion has not been discussed in the Assembly and commits only the members who have signed it

Russia – which aims for a continuous improvement of its market economy and for openness and integration into the world economy – should take into full consideration its technological, structural, organisational, educational and psychological readiness for this as regards its real economy, its social sphere and its productive forces.

The extent of this readiness – as well as the real state of its process of transition as regards legislation, production and structural reform – make it necessary to employ a flexible interface batween Russian and foreign standards in the implementation of specific programs and projects.

Concessions are one important interface mechanism of this kind, in that they allow for a balance of interests and for securing stable and long term co-operation in the area of investment. The richness and divesity of Russian natural resources make concessions an ideal instrument to tap the country's enormous investment potential (7-8 trillion dollars). Concessions are a tool for the rational development of investment strategies and operational plans, in that they permit various sectors of economy (raw materials, agriculture, chemistry, machine-building, etc.) to benefit from foreign technology, equipment and financial resources in a timely and geographically rational manner.

Every large-scale concession will have a legal basis reflecting the economic, social, organisational and legal aspects of joint activities, thereby ensuring stability over time of conditions for all sides and a pragmatic consideration of their interests.

Constituent Entities of the Russian Federation will be able to grant concessions on the basis of national legislation not only to countries but also to transnational corporations. Such an approach will reflect both the interests of Russia and those of transnational corporations, and permit the reconciliation  of the financial operations involved (which are often speculative in nature) with environmental, resource-related and general economic considerations. This will significantly reduce the likelihood of any crisis.

A step forward in this direction would be for Russia, together with international financial institutions:

The proposed recommendations could form part of a wider international strategy to make Russia an integral partner in global international projects. They could assist Russia significantly in its own development and make it an indispensable partner for developed countries in their search for solutions to such problemes as poverty and inequality at world level.

The Parliamentary Assembly is in a position not only to debate specific recommendations but also to initiate their implementation.

Signed [1]:
KOROBEYNIKOV, Anatoliy, Russia, SOC
CREMA, Giovanni, Italy, SOC
HOOPER, United Kingdom, EDG
JARAB, Josef, Czech Republic, LDR
KIRILOV, Evgeni, Bulgaria, SOC
KOCHARYAN, Shavarsh, Armenia, LDR
�HMAN, Conny, Sweden, SOC
PIROZHNIKOVA, Liudmila, Russia, EDG
RANDEGGER, Johannes, Switzerland, LDR
SASI, Kimmo, Finland, EPP/CD



Socialist Group
Group of the European People’s Party
European Democratic Group
Liberal, Democratic and Reformers’ Group
Group of the Unified European Left
Not registered in a group