Ruble walked down today? Something positive about Russia.
From clari.world.europe.russia
MOSCOW, Oct 7 (AFP) - US billionaire financier George Soros gave
Russia the thumbs-up for investment Tuesday, saying he was convinced
that President Boris Yeltsin's promotion of young reformers marked a
shift "from robber capitalism to legitimacy."
Soros said his attitude toward investing in Russia changed when
Yeltsin appointed leading market reformist Boris Nemtsov, 37, as
first deputy prime minister in March, to work alongside Anatoly
Chubais, the architect of Russia's mass privatisation.
"For me, the Nemtsov appointment was a signal for investing,"
the Hungarian-born financier told some 300 guests invited to
celebrate the 10th anniversary of his foundation's philanthropic
work in Russia.
Nemtsov's appointment was "a sign that the government was
determined to move from robber capitalism and establish legitimacy,"
Soros said, but he cautioned that "there is still a very long way to
go."
"A financial oligarchy has emerged which is highly unhealthy and
only an inflow of foreign investment will keep the economy moving,"
he added, in his speech at the House of Unions in central Moscow.
The Soros Foundation, or Open Society Institute, finances
projects in health care, education and other fields, with the
overall aim of consolidating democratic reforms in eastern Europe.
In July, Soros became a high-profile player in the emerging
Russian market, investing 980 million dollars in the controversial
privatisation of the telecommunications giant Svyazinvest.
Soros' investment was part of a winning offer of 1.87 billion
dollars for a 25-percent stake in Svyazinvest. He joined a
consortium of financiers led by Oneximbank for the controversial
purchase -- the biggest in Russia's privatisation process.
Rival bidders bitterly criticised the way the auction was
handled, charging that Oneximbank was specially favoured by the
government.
However, Soros defended the Svyazinvest sale Tuesday, saying it
was "a giant step forward in establishing legitimate auctions."
His statement echoed earlier comments by Nemtsov and other
senior government officials, who described the sale as transparent
and fair.
"I deliberately exposed myself because I believed that by
participating in such auctions I would hasten the transition from
robber capitalism to legitimate capitalism," Soros said.
Soros said that after the Svyazinvest deal, "it will be very
difficult to resort to inside deals, and ironically the losers have
reinforced that process by complaining so loudly."
In an interview on NTV television, Soros said he was planning
further investments in Russia, but added that it was "very unlikely"
he would bid for a stake in the Rosneft oil company.
Rosneft is considered the most profitable of the large Russian
oil companies still in state hands, and the government hopes the
sale of 96 percent of it will bring in one billion dollars. |
