MOSCOW, July 15 (RIA Novosti) - Increased investment by Russian companies in America is not capital flight, Russian Industry and Energy Minister Viktor Khristenko said Friday.
Khristenko was speaking at a meeting with the outgoing U.S. ambassador Alexander Vershbow. The officials focused on Russian-American cooperation in industry.
The minister said he was convinced that Russian investment in America was a very positive process in terms of improving the competitiveness of the Russian economy.
He said this process allowed Russian companies to improve their positions on global markets.
"This will benefit our country," he said. "The investments of Russian metal and oil producers in American markets are legitimate and transparent and should not be seen as capital flight." He said that the process promoted more effective production and sales networks for high quality products.
He said that, equally, Russian markets would welcome American producers and investors.
Khristenko said that the advent of new investors should be accompanied by technological development.
"It is important that companies are able to operate effectively in existing and future markets. It is important to preserve and create jobs, increase incomes and consumer choice," he said.
Speaking about Russia's car industry, Khristenko said that recent government decisions would shape the industry for at least the next 10 years.
"We have rejected the prohibitive schemes that proved ineffective. We have retained the existing regulations on imported finished cars and we plan to offer more incentives to promote car manufacturing within Russia," the minister said.
"Sales on the Russian car market are impressive, almost equivalent to domestic gas consumption volumes," Khristenko said. "I think it is entirely possible for the market to achieve an annual turnover of $30 billion."
