Putin Courts Japanese Investment, Pledges Reform
September 6, 2000 - 0:0
TOKYO Russian President Vladimir Putin courted Japanese business leaders on Tuesday, urging them to invest more in Russia and pledging to reform the domestic hurdles that keep them from doing so.
The energetic Russian leader told Japan's elite corporate Lobby, Keidanren, that under his leadership Russia is not only a better investment target but a chance too good to pass up.
"Russia holds many business opportunities," he said, citing Russia's vast natural resources and a steadily improving economy.
"If Japan misses out on this, it would be a great pity." Japanese companies are wary of boosting investment in Russia, citing rampant corruption, a shaky legal framework and heavy, often contradictory tax rules.
Annual bilateral trade has slipped below $5 billion, against $60 billion between Japan and China.
Putin and Mori spent much of their energy trying unsuccessfully to resolve a territorial row that is blocking a two-way peace treaty formally ending World War II hostilities.
Putin has sought to shift attention to economic ties and away from the thorny dispute over four Russian-held islands that Japan wants back as a condition for a peace pact.
But the two leaders also devoted a whole session to economic issues and signed a parcel of documents pledging closer economic cooperation in a variety of areas.
Mori, who raised corporate Japan's concerns in his talks with Putin on Monday, told a joint news conference that Tokyo would support Russia's efforts at economic reform.
"We have hopes that this will lead to a better investment environment," the Japanese leader said.
The roomful of mostly staid and stolid Japanese executives listened in polite silence to the pitch from the youthful, 47-year-old Russian leader as he spoke of Russian's rebound from its financial crash two years ago.
That rebound has seen the economy achieve an annual growth rate of more than three percent.
Putin also cited steps taken since his election in March, including reducing the tax burden for business and clamping down on regional violations of Russian federal laws.
"Russia's economy is improving, and this trend is becoming clearer," he said. "We have agreed in the Russian government to create an environment in which investment can take place." "On Japan's side, we hope people will stop viewing us according to stereotypes," he added.
(Reuter)
The energetic Russian leader told Japan's elite corporate Lobby, Keidanren, that under his leadership Russia is not only a better investment target but a chance too good to pass up.
"Russia holds many business opportunities," he said, citing Russia's vast natural resources and a steadily improving economy.
"If Japan misses out on this, it would be a great pity." Japanese companies are wary of boosting investment in Russia, citing rampant corruption, a shaky legal framework and heavy, often contradictory tax rules.
Annual bilateral trade has slipped below $5 billion, against $60 billion between Japan and China.
Putin and Mori spent much of their energy trying unsuccessfully to resolve a territorial row that is blocking a two-way peace treaty formally ending World War II hostilities.
Putin has sought to shift attention to economic ties and away from the thorny dispute over four Russian-held islands that Japan wants back as a condition for a peace pact.
But the two leaders also devoted a whole session to economic issues and signed a parcel of documents pledging closer economic cooperation in a variety of areas.
Mori, who raised corporate Japan's concerns in his talks with Putin on Monday, told a joint news conference that Tokyo would support Russia's efforts at economic reform.
"We have hopes that this will lead to a better investment environment," the Japanese leader said.
The roomful of mostly staid and stolid Japanese executives listened in polite silence to the pitch from the youthful, 47-year-old Russian leader as he spoke of Russian's rebound from its financial crash two years ago.
That rebound has seen the economy achieve an annual growth rate of more than three percent.
Putin also cited steps taken since his election in March, including reducing the tax burden for business and clamping down on regional violations of Russian federal laws.
"Russia's economy is improving, and this trend is becoming clearer," he said. "We have agreed in the Russian government to create an environment in which investment can take place." "On Japan's side, we hope people will stop viewing us according to stereotypes," he added.
(Reuter)