Substantial changes have been made recently in the Russian government’s investment policy. For instance, a set of measures intended to improve the investment climate was implemented in 2000-2004. Mechanisms designed to stimulate investment and improve economic regulation are currently being created, and the volume of state capital investment is growing.
State investment in projects to develop market infrastructure, the public sector and the innovation sphere are expected to exert a positive effect on the Russian economy as conditions are created for effective allocation of financing resources and implementation of legislative principles.
Special economic zones (SEZ) of four types have been created: industrial and manufacturing zones, technical and implementation zones, tourist and recreational zones, and port zones.
Both financial and non-financial development institutions have been created. Their objective is to facilitate innovative activities in the Russian economy and implement long-term and capital-intensive investment projects.
In particular, such financial institutions include a Russian venture company, mortgage loan agency, Rosselkhozbank, Rosagroleasing, a Russian investment fund for information and communication technologies, and a fund for supporting utilities reform.
Non-financial institutions include special economic zones, technology parks, manufacturing parks, business incubators, centers for transferring technologies, etc.
In addition, there has recently been an increase in the number of state corporations created in different economic centers, in particular Rosatom, Rostekhnologii and the Russian Corporation of Nanotechnologies. The main objective of Rosatom is state policy and provision of management integrity in the area of nuclear energy use in the military and energy sector. Rostekhnologii was created to facilitate the development, manufacture and export of high-technology industrial products by supporting enterprises in foreign markets. The Russian Corporation of Nanotechnologies was set up to implement projects dealing with the creation of promising nanotechnologies and nanoindustry (including with the participation of foreign investors). The government of the Russian Federation regards state corporations as temporary forms of development institutions aimed at consolidating state assets in different sectors of economy. In the future, a number of state corporations will be made joint stock companies and wholly or partially privatized.
In the coming years, the state is planning to increase investment in the economy. In 2007, state capital investments out of the federal budget amounted to 1.8% of GDP; by 2009 they will have increased to 2.1%, in 2010 to 2.4%, and in 2011 to 2.3%. Forty percent of the funds of federal target programs will be invested in transport and social facilities. About 15% of budget investments will be directed to high-technology industries (aviation, space technologies, shipbuilding) and scientific and technological sectors.
In the longer term, the government is planning to increase state investment to 4% of GDP or more. It should be emphasized that the increase in the amount of state investment is aimed not at replacing private investment but at their promotion. The main objective of the state policy is to assist businesses in creating modern types of production which are competitive in the globalized world.