Status and prospects of creating a favourable investment climate in the agroindustrial comples of Russia

摘要

Substantial reduction of production potential of Russian agro-industrial complex(AIC) is one of the most negative consequences of the new agrarian policy in 1991-98. The main reason for that is the lack of investments, both foreign and domestic. Russian enterprises are not attractive for investors due to their low solvency and profitability, but it is impossible to gain profitability without modernisation of production. This vicious cycle is affected greatly by macroeconomic destabilisation with its high inflation and prohibitive interest rates, and the absence of land turnover. A set of measures should be implemented to overcome all these obstacles. Among them (1) to create the principles of investment policy in AIC at the govenmental level; (2) to restructure the debts of agricultural producers thus making them solvent; (3) to facilitate the introduction of a land market; (4) to allow agricultural producers to invest their profits into the modernisation of production via profit tax exemption; (5) to provide a guarantee system against political and other risks; (6) to stimulate Russian banks to invest; (7) to reduce import barries for agricultural machinery and equipment. The creation of such favourable conditions will promote the process of investment to Russian AIC.