Weekly brief N 67, June 14 - 20

• In 2002 direct investments to Russia will grow by 40% to $6 bln. Sergey Bayev, Head of Investment Policy Department at Ministry of Economic Development and Trade of Russian Federation, informed that during the last five months 2002 direct investments amounted to $2,4 bln. In particular, Bayev commented, significant funds will be invested to Russia by such corporations as Shell, Exxon, Volkswagen and Siemens for mobile communication development.



• According to Ilya Klebanov, Minister of Industry, Science and Technology of Russian Federation, the Investments Promotion Institute will be established at the Ministry. The Institute will give organizational support to investors in Russia and abroad depending on a scale of investment project.



• As of 1 January 2002, total amount of French investments to Russian economy reached $3.4 bln. which is 0.5% of the foreign investments accumulated in Russia. As was announced during the meeting between Ilya Klebanov, Minister of Industry, Science and Technology of Russian Federation, and representatives of MEDEF (French entrepreneurs Association), amount of direct French investments is still less - $256 mln.



• In Moscow MeadWestvaco, US the company, will bring into operation in a few months the new plant producing cigarette packages. As commented in “Vedomosti”, production from the new plant will cover 10% of the demand on the Russian market of cigarette packages and blocks.
  
  The plant was built in Moscow district Ochakovo. Production will be started by the end of summer or by the beginning of autumn. The company will invest about $10 mln. into the new plant the design annual output of which is estimated at 1.3 – 1.5 bln. cigarette packages.



• By the end of 2002, British company Bridgetown will invest $2.5 mln. to “Bridgetown – Snacks” subsidiary in the Russian city of Vladimir. British food producer purchased part of production facilities of uncompleted confectionary plant in Vladimir. The plant was owned by the Federal Government. It is supposed that production of chips, crisps and other snack foodstuff will be started by the end of 2002 – beginning of 2003.



• Lactalis, the French company, which produces diary products under the “President” trade mark, is about to bring the first production line of cheese-producing plant into operation in September 2002. The cost of the project is estimated at $13 mln. The annual output of this new plant built in Istra (Moscow region) will amount to 6,000 t of cheese.