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Gold/Mining/Energy : LUKOY The largest oil company in the world LukOil unknown -- Ignore unavailable to you. Want to Upgrade?

To: Fred Levine who wrote (891)	11/10/2001 9:36:56 AM
From: Fred Levine	Read Replies (1) \| Respond to of 914

Luzhkov may be even more respected than Putin.... Luzhkov urges to change view of Russia MOSCOW - Moscow Mayor Yuri Luzhkov appealed Friday to American entrepreneurs to take advantage of warming U.S.-Russian relations and Russia's growing economic stability to re-enter a market that many fled in panic in 1998. "I say to you: 'Please get on the train now,"' Luzhkov told the American Chamber of Commerce in Russia during a luncheon meeting. "We are going ahead with our process of transformation and we are going at a great rate." Luzhkov's appeal for better economic cooperation between the former Cold War enemies came just days before next week's summit meeting between Russian President Vladimir Putin and U.S. President George W. Bush in Washington and at Bush's ranch in Texas. Putin's strong support for the U.S.-led coalition against terror has led to fresh talk about new trade links and greater U.S. investment in Russia. "I would certainly recommend Russia to American businesses," said Andrew Somers, chairman of the American Chamber of Commerce in Russia. "I would remind them to be careful, but I'd say to go ahead." Buoyed by high oil prices, Russia's economy has enjoyed a period of steady growth for the past two years, and it shows no sign of abating even as many global economies teeter on the brink of recession. Putin has also pledged to push his country further down the path of economic liberalization. He already passed a sweeping tax cut and a new land code. However, investors still complain about Russia's weak legal system making it hard to enforce contracts and settle disputes, along with excessive bureaucracy, corruption and organized crime. Luzhkov, the capital's gruff mayor, admitted that Russia still has work to do, but he said that investors who fear entering the Russian marketplace risk being left behind. "Economically, the city is quite healthy," he said, insisting that enough legislation is in place to provide a secure environment for foreign businesses operating in the capital. Moscow, a sprawling city of 9 million residents, was hit hard by the 1998 economic collapse, when Russia defaulted on most of its foreign loans and the ruble plunged against the dollar. Of the capital's 203,000 small businesses, some 30,000 were forced out of business. Foreign investment plunged and the number of unemployed skyrocketed. "It was a bad hit," Luzhkov said. "Such situations strike civilized systems the most. Moscow suffered very badly." But he said that in just two years, investment has risen 51 percent to reach pre-1998 levels, the number of small businesses continues to grow and the capital's official unemployment rate hovers below 0.6 percent. Galina S. Rubina, a vice president at Investment Banking Corporation, a large Russian bank, believes the turnaround is real. "I see a change in attitude, a change in mentality," she said. "The transformation the city has undergone in two years is, I think, unprecedented." But Russian officials admit American investors have been slow to return. U.S. investments comprise only dlrs 219 million out of dlrs 5 billion in foreign investments this year, Luzhkov said. He also said that Moscow businesses continue to export more to America than they are importing. He said numerous opportunities exist for foreign investors, in fields as diverse as tourism, retail, high technology and the securities market. Luzhkov said Moscow has a shortage of mid-price tourist hotels, Western-style supermarkets and businesses that specialize in information technology. He applauded a Turkish consortium, Ramenka, which runs nine so-called hypermarkets around the capital, but said he was puzzled that Western firms weren't rushing to enter this market. "The situation in Russia is certainly without a doubt getting more stable in economic and political terms," Luzhkov said. "Today, I can say we are always open to new business. We are always open to trade." fred