This is confirmed by the 10-year existence of the Consultative Council, in Mr. Fradkov’s opinion. “The potential of this body has not been exhausted,” he stressed. The Prime Minister said the government would continue to support the Council, with a view to promoting economic development and improving the investment climate in Russia.

In Mr. Fradkov’s opinion, the Consultative Council could transmit positive trends of Russian economic development to the rest of the world. Jean Lemierre, President of the European Bank for Reconstruction and Development, agreed. He said the Russian government indeed seemed to listen to the EBRD.

He said the bank supported reforms implemented by the Russian government. Mr. Lemierre stressed that the oil and gas industry was the quickest-growing industry in Russia. At the same time, he admitted that the number of foreign investment projects in the agricultural sphere, banking and car making was rising not only in Moscow but in regions as well. The EBRD President said particular attention should be paid to the development of the transport infrastructure, ports and roads, with the help of the private sector. According to Mr. Lemierre, the number of contacts with foreign investors is rising, and the country could become more attractive to investors in the future. For his part, Ernst&Young CEO James Turley said Russia could double its contacts with foreign investors over the next five years.

According to Mr. Fradkov, the Russian government was trying to create favorable conditions for foreign investors by implementing economic reforms in the country. He said the administrative and tax reforms were aimed at attracting investment, while the technical regulation reform was aimed at bringing Russian standards in line with international standards.

The Prime Minister said special attention was being paid to the protection of intellectual property and related rights. He also said work was underway to improve the stock market in Russia. In particular, legislation related to stock market infrastructure, would be improved, and the bills on the central depositary, on clearing and on derivative financial instruments were being prepared.

Mr. Fradkov said the government would continue to remove administrative barriers hampering foreign investment. According to him, the tax burden dropped from 33.6 percent to 31 percent in the period from 2001 to 2003. The Prime Minister noted that “unjustified state interference in economic processes” should be reduced.

According to him, legislation on joint stock companies was being developed and improved, including in protecting the rights of investors and shareholders. Particular attention would be paid to the protection of minority shareholder rights, he stressed.

Mr. Fradkov said the inflow of foreign investment into Russia was rising. Foreign investments in the Russian economy amounted to $19bn in the first half of 2004, 1.5 times more than in the same period last year.

The Russian government will work on the creation of an “adequate banking system”, Mr. Fradkov said. According to him, the number of banks involved in joint investment projects, was rising, as well as the number of Russian banks with international ratings. In addition, large international banks are opening more subsidiaries in Russia. The Prime Minister said 33 foreign banks operated in Russia, and also 8 banks in which foreigners have more than 50 percent. “The percentage of mergers and acquisitions is rising. In the future, it will allow us to create a more adequate banking system in the country,” Mr. Fradkov said.

The Prime Minister said the government was planning to increase investments in the construction of market infrastructure, roads and ports. At the same time, the state should also support private business initiatives. “We are looking for new forms of partnership between private businesses and the state,” Mr. Fradkov added.