360° Coverage : Russia bets on transport investment to boost growth

Russia bets on transport investment to boost growth

Moscow, Feb 21 (IANS/RIA Novosti) Massive spending on transport infrastructure combined with measures to lure more foreign direct investment and improve the business climate could help boost Russia's flagging economic growth, First Deputy Prime Minister Igor Shuvalov said Thursday.

Feb 21 2013, 5:35am CST | by

Russia bets on transport investment to boost growth
Photo Credit: ROSLAN RAHMAN, Getty Images

Moscow, Feb 21 (IANS/RIA Novosti) Massive spending on transport infrastructure combined with measures to lure more foreign direct investment and improve the business climate could help boost Russia's flagging economic growth, First Deputy Prime Minister Igor Shuvalov said Thursday.

Russia is planning a 500 billion ruble ($17 billion) programme to clear bottlenecks from its overburdened road and rail networks to raise growth to the government's target of 5 percent, Shuvalov said in an interview with The Wall Street Journal.

"We need to move on this urgently," he said, adding the new programme would target key bottlenecks such as Moscow's roads and the limited railway links across Siberia to the Pacific Coast.

Russia's GDP grew only by 3.4 percent last year, the lowest since the deep recession of 2009, with weak demand for Russian exports in Europe and faltering investment.

Shuvalov called for more aggressive moves to sell off state assets to finance transport spending, saying the government could, for example, sell a small stake in Rosneft later this year once it completes its takeover of rival oil firm TNK-BP.

IMF chief for Russia Odd per Brekk said Wednesday the Russian growth model, which ensured the country's GDP growth by 5-5.5 percent a year before the global financial and economic crisis, had used up its potential and the country needed to boost investment to spur economic growth.

The government is pinning its hopes on an accelerated development plan prepared by the economics ministry for a period until 2030 to raise investment to 25 percent of GDP by 2015 and 27 percent by 2018, increase the share of hi-tech output in GDP and diversify away from raw materials production.

--IANS/RIA Novosti

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IANS

Source: IANS

 
 
 

<a href="/latest_stories/all/all/8" rel="author">Luigi Lugmayr</a>
Luigi is the founding Chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com. Luigi posts regularly on LuigiMe.com about his experience running I4U.

 

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