03.02.2009 /Events
 Vnesheconombank Chairman V.A. Dmitriev’s Interview to TV Channel Vesti. (Davos, the World Economic Forum)
TV Channel Vesti-24
01.02.2009, 05:22
Host Marat Kashin HOST: And now our channel will continue on air Vnesheconombank Chairman Vladimir Dmitriev’s interview. My colleague, Vesti’s own correspondent in Western Europe, Vyacheslav Dukhin, asked him questions. Vyacheslav Dukhin’s footage CORR: Vladimir Alexandrovich, thank you for finding time for this interview. You are a frequenter of the World Economic Forum in Davos. What does it mean for Russia? Vladimir DMITRIEV, Vnesheconombank Chairman. Today, at a time when the crisis of global financial and economic markets hit actually almost all countries in the world, the theme of the crisis is crucial at all sessions, meetings and discussions including those I happened to participate in and also those I held with my colleagues in financial and corporate business. Countries of many continents are involved in this crisis including one country that has until recently tried to dictate economic and political conditions of the world order and the current crisis testifies to the fact that the world can’t rest and be based on a unipolar system. We are in need of multipolar efforts as well as efforts made by international political organizations, international financial institutions, regional organizations but these efforts should be synchronized with policies of the countries integrated into the global economy. And in this sense, speeches by leaders of Russia and China are, of course, key events of the first days of the World Economic Forum. CORR: Representatives of many rather large western companies and banks have not been invited to the Forum because Klaus Schwabb, the founder of the Forum, said that only successful business representatives should attend the Forum. Those, who showed negative results they can’t be proud of in the course of the latest developments on financial markets, were not invited to the Forum. Others were afraid to come to the Forum for image or some other reasons. Nevertheless, many Russian business representatives came to the Forum. Does this mean that things are somewhat better in our country than in the West? And in this respect, Prime Minister Putin said that the crisis was a chance, a historic chance for Russia and it shouldn’t miss it. Does the crisis give you such a chance? Vladimir DMITRIEV: Although Russian companies, at least those represented here, were affected, to a rather great extent, by the world financial crisis, which shows no signs of subsiding and I would say by the sectoral crisis. Nevertheless, these companies are among leaders of Russian business and are also among those corporate entities that are aware of their responsibility to their business, people working in their production facilities, regions where their factories are located and, on the whole, the country’s economy. They are keen together with state, together with the government and state financial institutions to search for a way out of the current situation. And I would say that for them our Prime Minister’s speech was a policy-making guidelines and, specifically, his words that the government would support Russian business and would also support those businessmen who pursue a responsible economic policy and that it does not intend to increase the state’s role and, in fact, take on functions of private business and replace market-oriented economy with a universal state-run mechanism that exerts an overwhelming influence on our country’s economic life. But nevertheless, the crisis is also a chance and a potential and, in my opinion, it is the current cooperation between the state and business that gives us a good chance to expand this cooperation and search for ways to overcome the crisis. CORR: If you are talking about the state’s financial support provided to institutions and companies that are going through difficult times because of the crisis, I wonder why they ask Russia too often, and at this Forum too, the following question; “why do you provide assistance in such great volumes?, although the same processes appear to be taking place in the West, and nobody asks questions, why is this difference in approaches and why do they ask Russia this question so often? Vladimir DMITRIEV: Nothing extraordinary is taking place in our country; the state is increasing its role not in the economy but in its efforts to overcome the crisis, which affects the state and all of us. We are using the same proven, time-tested and well-established methods employed in other economies, here I mean methods used by the state to stimulate the economy, improve the financial situation and minimize negative impacts of the current crisis. At present, we can say that the leadership of our country is taking massive but at the same time well-balanced steps to secure sustainable development of certain business enterprises and the banking system, provide the economy with sufficient credit resources and enable banks to fund business transactions. CORR: There is no doubt that each specific country should be responsible for stabilizing its national economy individually. It should stabilize its banking system and etc. But there are also global, institutional problems in the world economy. And they are thought to have brought about the current crisis. Our Prime Minister talked about them and proposed certain measures. For example, he offered to increase the number of reserve currencies. What measures in your opinion should be implemented and maybe you have discussed some of the measures proposed by Mr. Putin with your colleagues in Davos, I mean the measures to stabilize the world economy and prevent a repeat of the events of the past months and weeks? Vladimir DMITRIEV: We have to work out appropriate mechanisms for managing bad assets. Because they are heavy burdens on banks’ balance sheets. They worsen their financial position and prevent the development of the banking business and thus, make it impossible for it to finance the real sector of the economy. The problem is quite difficult and it deals with asset pricing either on the basis of balance sheet or fair price evaluation. This problem should be addressed by banks themselves, regulators and government authorities because these assets should be priced in a very cautious way for the banks’ and institutions’ efforts to re-price the assets to be in line with the country’s applicable legislation and prevent abuses. We are taking measures designed to promote progressive development of the economy and overcome the crisis as soon as possible, similar measures are also being taken by other states responsible for the future of both their economies and the global economy .
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