Medvedev to deliver key economic speech

Russian President Dmitry Medvedev will give his first major speech on economic development today since coming to power. It comes amid concern over the future of a major foreign investment project in the booming oil sector. Medvedev to deliver key economic speech Medvedev's address to investors at the Saint Petersburg Economic Forum at 0630 GMT was to be closely watched for signs of his government's future economic strategy and its attitude towards foreign investors. Officials said the speech would set out a plan for achieving ambitious economic goals set out by Medvedev's predecessor and mentor Vladimir Putin, who switched to the prime minister's post last month after eight years in the Kremlin. Medvedev is seen as an economic liberal and since coming to power on May 7 he has launched a number of initiatives to boost the rule of law, cut down on corruption and ease conditions for small businesses in Russia. Russia's economy expanded steadily under Putin on the back of soaring energy export revenues, with GDP growth at 8.1 percent in 2007. But the economy has recently shown signs of overheating and there is growing concern about risks for foreign investors. The world's biggest energy power has, however, been cushioned from the global credit crisis by high oil prices and the forum in Saint Petersburg was expected to showcase Russia as a relatively stable economic player. A key issue on the sidelines of the forum will be the future of TNK-BP, a Russian-British oil company riven by infighting between BP and its Russian partners, and also facing tax probes by the Russian authorities. "The resolution of this dispute... will send a very strong signal, positive or negative, about the environment for investment in Russia," Andrew Somers, head of the American Chamber of Commerce in Moscow, said at the forum. Robert Dudley, the chief executive of TNK-BP, was due to address the forum on Sunday as part of a line-up of energy leaders, including the heads of BP, Chevron, ConocoPhillips, ExxonMobil, Shell and Russian gas giant Gazprom. Officials said contracts worth more than 12 billion dollars (EUR 7.7bn) would be signed at the meeting, where the new Saint Petersburg Commodity Exchange, due to start trading oil later this year, will also be showcased.

Medvedev to deliver key economic speech

Medvedev's address to investors at the Saint Petersburg Economic Forum at 0630 GMT was to be closely watched for signs of his government's future economic strategy and its attitude towards foreign investors.

Officials said the speech would set out a plan for achieving ambitious economic goals set out by Medvedev's predecessor and mentor Vladimir Putin, who switched to the prime minister's post last month after eight years in the Kremlin.

Medvedev is seen as an economic liberal and since coming to power on May 7 he has launched a number of initiatives to boost the rule of law, cut down on corruption and ease conditions for small businesses in Russia.

Russia's economy expanded steadily under Putin on the back of soaring energy export revenues, with GDP growth at 8.1 percent in 2007. But the economy has recently shown signs of overheating and there is growing concern about risks for foreign investors.

The world's biggest energy power has, however, been cushioned from the global credit crisis by high oil prices and the forum in Saint Petersburg was expected to showcase Russia as a relatively stable economic player.

A key issue on the sidelines of the forum will be the future of TNK-BP, a Russian-British oil company riven by infighting between BP and its Russian partners, and also facing tax probes by the Russian authorities.

"The resolution of this dispute... will send a very strong signal, positive or negative, about the environment for investment in Russia," Andrew Somers, head of the American Chamber of Commerce in Moscow, said at the forum.

Robert Dudley, the chief executive of TNK-BP, was due to address the forum on Sunday as part of a line-up of energy leaders, including the heads of BP, Chevron, ConocoPhillips, ExxonMobil, Shell and Russian gas giant Gazprom.

Officials said contracts worth more than 12 billion dollars (EUR 7.7bn) would be signed at the meeting, where the new Saint Petersburg Commodity Exchange, due to start trading oil later this year, will also be showcased.