In his opinion, dynamic and accelerated growth shown by the Russian economy over the past few years, proves that there is an opportunity for achieving the ambitious goal set by President Vladimir Putin.

Not only high oil prices and the country’s improved reputation on the international scene, but also the trust of foreign investors, whose money “works for our economy”, could help double the GDP, according to Mr. Katrenko.

Though Russia’s economy relies on raw material exports, he said there were also other factors that could have “a positive impact on the normal development of economic process in the country, in the light of programs announced by the President”.

Over the past 15 years, Russia has been the second largest exporter of weapons and high tech equipment in the world. “If Russia manages to keep economic growth at 8 percent a year, we will be in 7th place by world standards in seven years, and in 30 years will we be able to catch up with Western Europe,” Mr. Katrenko said.

Russia’s GDP grew 8 percent in January-April 2004 compared to the same period last year. In April, the GDP growth was 7.8 percent, according to the Economy Ministry’s social and economic survey.

The GDP is expected to grow 6.5 percent in 2004 (down from 7.3 percent in 2003), and industrial production is expected to increase 6.1 percent (down from 7 percent last year). Lower expectations for economic growth in the second half of 2004 are due to the fact that the Russian economy grew more rapidly in the second half of 2003.

According to the Economy Ministry, inflation will be 0.5 percent in Russia in May 2004, and 5.1 percent – in January-May 2004. In the estimation of the Statistics Service, inflation was 4.6 percent in January-April.