OREANDA-NEWS. September 21, 2007. A total of 365bln RUR will be budgeted for the development of power engineering in Russia in 2008, Acting First Vice Premier of Russia Sergey Ivanov said during the 6th International Investment Forum “Sochi 2007.”

The Federal Network Company will get 170bln RUR, Rosenergoatom – 120bln RUR, Hydro Energy Company – 75bln RUR.

Ivanov said that the Government is going to gradually increase the share of nuclear, water and coal energy and to develop its cooperation with private companies in the infrastructure complex.

Besides, the Government has drafted a concept of overall price level  for the products of natural monopolies. This concept sets an investment return standard equivalent to the yield in risky sectors.  

As regards macro-economics, Ivanov said that in the next two years the Government is planning to spend on economy a sum equivalent to 3.8% of GDP. By 2015 this figure will grow to 4.5%.

900bln RUR will be spent on investments in 2008 – 16% of the total expenses. Presently, the Goverment is creating drastically new business conditions in the infrastructure sector. From now on, the biggest companies of the sector will have to adjust their business plans to the priorities of the state investment policy. This will enhance the profitability of infrastructure development projects.

The Sochi forum will last till Sept 23.

During the forum President of Russian Vladimir Putin is expected to meet with the heads of the biggest Russian and foreign companies and to discuss with them possibilities of investment in infrastructure, particularly, in transport, energy and telecoms.