According to Alexander Ivlev, a coordinator of the Consultative Council for Foreign Investment and partner of Ernst & Young, the businessmen provided recommendations regarding reforms for civil service and administration systems, the re-introduction of the office of ombudsman (a government representative responsible for the protection of investor rights) and the establishment of a government agency for work with large investors. They also suggested setting up a working group to improve Russia’s image abroad.

“Foreign investors confirmed their readiness to cooperate with the government in settling the remaining problems with the aim of improving Russia’s image abroad,” Mr. Ivlev said. During the discussion, investors raised the issues of tax inspections and taxation in the fuel and energy sector.

Investors also suggested setting up new groups in the Consultative Council for Foreign Investment to improve its structure. In particular, they proposed creating groups for natural resources, the food industry, agriculture and the automobile industry.

For his part, Mr. Fradkov said that the “administrative and tax reforms and the coming reform of the banking sector should be aimed at creating a favorable investment climate in Russia.”

The meeting was attended by top managers of large foreign companies operating in Russia, including Jean Lemierre, President of the European Bank for Reconstruction and Development, Tetra Pak CEO Nick Schreiber and Exxon Mobil President Rex Tillerson. The next plenary meeting of the Council is scheduled for September 2004.