culture is that so much of the experience i mean to make me think i'm people are curious and. think this is the stated goal. but liberty and justice and. i.

have that welcome to business president vladimir putin pledged to strengthen the russian economy and day in his state of the nation address he highlighted the importance of fighting corruption and investing into russia negative our rising taxes on the rich all correspondent the task sky has the details. putin's main idea for russia's development in the twenty first century is basically good looking eastward meaning of course india and china and judging by the market's reaction investors really liked what they heard the r.t.s. jumped to the psychologically important level of one thousand five hundred points its highest since mid october and putin's address to the federal assembly his first by the way since coming back to office in may had

a number of important economic messages but perhaps the one that traders liked the most had to do with putin's ideas for russia's so-called stabilize ation fun he suggested investing about one hundred billion a rubles annually that's about three solid billion u.s. dollars into the russian stock market. warda by the end of the year the stabilization fund will reach about nine percent of the g.d.p. that means that we already have a certain safety cushion starting in twenty thirteen i suggest investing part of the fund into the russian equities and the president also mentioned that the much anticipated privatization program of russia's state owned giants should be done all locally meaning that companies like russia's second largest bank d t v the railways monopoly russian of railways and the diamond mining giant all grosser should

all hold their i.p.o. those here in russia that's of course a very good news as well for the russian markets as part of his effort to fight corruption which many say is so rampant and russia that it's hurting not only a local businesses but also foreign investments into russia who just suggested that companies should not have offshore bank accounts and that state officials should not be allowed to own the real estate or. braude investing all their savings into the russian economy. can we trust a politician or a state official who talks up a storm but at the first opportunity takes his money out of the country and many local businesses as well as residents of course watched closely one talked about taxes and so far many of them can't read the sign of relief as such they suggested that russia's current thirteen percent of tots is here to stay but many wealthy

russians will have to dish out some extra cash to the tots man as it putin suggested introducing these so-called a luxury tax as early as the first of next year. this was the russian market's reaction that on wednesday as you can see investors demonstrated that enthusiasm for reasons intentions with one and a quarter on the asset yes one the one that the touch was telling us on the bus and cart to them the ruble finished up against both the u.s. dollar and the euro that meanwhile the euro is higher again continuing to gain against the u.s. dollar now he's saying a six day high meanwhile european stocks managed to maintain that we rally that has investors bet that the u.s. federal reserve will unveil a new round of bond buying in a bid to support the economy u.s. stocks are now mixed up some of the constant speculation that the federal reserve

when its bond stimulus measures. mike has continued talks on the budget right now much as you can see investors seem rather on convincing us that one basis point. and a new life begins for us is a lot of causes or not the son has signed to do a vast ross technomage is corporations take control of the russian call micah the companies are creating a joint venture where we're not the sound will get. fifty is that one said by twenty fourteen while providing another seven hundred fifty made dollars of investments all teased me to my bank and caught up with had i not the son assaulted by asking how much money the conglomerate's has already spent on the troubled person brown's. direct investment is going to be at these two billion dollars so for at least two billion dollars i'm counting on the direct without the direct there's going to continue is going to continue and frankly for an only son makes a lot of sense you know what we need to understand here is he really win when

strategy between up to was from one side bernie son from the other side and russia from a third side obviously every government is interested in to promoting employment into promoting working conditions into making sure that the corporate social responsibility be as much as possible so when are you expecting a return on investment what i think the return on investment should be within three years i would say something reasonable you start to see a good return on investment obviously the return on investment depends on the quality of the job which would be done by our teams obviously the out of us team but also the renault team underneath some team in russia have you personally driven a lot of car i did so what do you think what i think the car of the car help you understand you know what the russian consumers want and what russian consumers do

not want and that's why i think it's very important to still strengthen the brand because i think russian consumers want russian brand but they want modern products offer by russia and we think that by driving the previous generation of flood the cars we understood what are the enhanced months which are needed to make new cars for the like the larger. or like disgruntle we should say i'm very pleased to see that very lot of orders for these cars that of the of us is struggling to supply so you don't think a lot of brand carries a negative reputation absolutely not i think in the law the brand as a brand is an asset the fact that it has a very strong russian identity it's an asset for the for the alliance as much as nissan is without the discussion in japanese brand as long as renault is without

a discussion the french brand we want to be a russian brand so in the alliance we have a lot of brands with a very strong identity and you want to keep it this way but the brand strong guy that he should be should pointed with the product which is attractive and really responding to the needs of the consumer and we've just recently launched an assembly line for the nice unknown mary at the tell us a plant are you planning to launch a move what you know the auction of after of us is going to go above one million then on top of these. and then you have you just filled with two hundred twenty thousand capacity today per year moving up to three hundred and sixty seldom so when you add. do you end up with something which is around one point four million to one point five million so there is plenty of room for a lot of plenty of room for another as a priority on these capacity. after recently coming second in

a dream's job of a ross nafta russia's largest state oil company now has in the vice president of personnel rosneft employees will want to be on their best behavior from now on because it's the former head of the federal prison service eureka lynn wall and now around the human resources department the oil giants of anyone steps out of lie he certainly has experience to do with trouble wake is a discipline is needed i'm sure he'll know exactly what to do. and that's all the business of course a day off to the right there british trade and investment minister lord stephen green tells us while the games by breaking down barriers between member states that in just a couple of minutes. which

is slow often enough and knows that to ride a horse you've got to catch it first. for him it's a daily routine that you're soft as a horse breeder on the island of a horn at the heart of. his life on an isolated farm is about blue sky green grass and horses what sometimes it gets lonely here but horses have become part of me now i've fallen off so many times sometimes that bites as well it's part of my every day life. i home suburban home to it make brats like me just laugh for centuries most still live off the land of cattle and fish every evening local villagers place their nets and in the morning the catch is always good. we always have enough here.

if by call is often called the pearl of siberia and horn i said to be the pearl of by call it's all end of fake forests. and vast staps. it's also a place of ancient traditions respected by locals and travelers alike. an economist turned adventurer has crisscrossed by called shores and learned its customs well. you see pillars like this and thought to have supernatural powers every traveler who comes here asks. spirits to make the journey easier give them strength and fulfill their dearest wishes i knew virtually undiscovered by tourists until some twenty years ago i don't want to squid can become

a magnet for nature lovers and you will see cars but those used to five star pampering and maybe even for a surprise the island's infrastructure has yet to catch up with the growing demand here quite some way from civilization here accommodation on the island is very basic so you can forget about a t.v. or even running water for most people a tent is the only real option but for those who come here it's exactly what they're looking for. you feel like you need to buy coal can be unique trip of a lifetime and the local say once you've seen it you'll be coming back again and again.

that's. good. bottom of the league.

from fears to tears europe is in the midst of a depression officially the latest data shows that the seventeen member eurozone will end the year in a recession its second since two thousand and eight the second and third quarter g.d.p. was below the line and the massive social unrest that swept across europe in recent months underscores the point a europe needs a savior and leading economists say that could be britain goldman sachs estimates that it will be europe's biggest economy within four decades with one of the world's wealthiest populations the health of the so-called single market already largely depends on the u.k. and vice versa but at the moment britain itself is feeling the pinch of the downturn our own we live with a decade of debt and the failure to great britain to compete in the modern world

while britain is actually not a member of the eurozone it should try and play an increasingly important economic pool in the world's most integrated market of five hundred million people that's according to lord green the u.k. minister for trade and investment britain is in the process of rebalancing its economy one of the things we learned from the financial and economic crisis was that we have been growing too much on the basis of concealment feel by debt and now our task is to encourage more companies to get into the international markets and i was to find a growth formula that's based more on trade and stronger investment what price is the u.k. paying for what some call to close of a relationship with the rest of the european union. i don't think we pay a price for that actually i think the benefits of the single market are very considerable it's very important for us to recognize that the single market is a market of five hundred million people it's a relatively prosperous market it's the world's most integrated market and

a great deal has already been achieved which enables companies to trade seamlessly across borders but it's not perfect yet and indeed one of the key preoccupations of the british government will be to press for full implementation of the single market in the coming years what are the downsides are there there must be some downsides as well we don't think drawing down sides of a single market because we do believe in open trade we believe that. the market is genuinely borderless and more companies can trade across different markets access different pools of demand and we believe that's beneficial to the economy we believe that we don't look significant growth within the european union these so-called euro skeptics they would of course argue that. the brussels strips the e.u. countries not only of their economic independence but also their political sovereignty what's your what's your take on that well i think it is a very very intense debate of course now because of the moment we just had the the

the summit on the budget but actually the from my point of view this is looking at trade and investment and what creates jobs we need to focus on the five european union is a large single market five hundred million people it is the biggest one in the world and the opportunities within it are enormous which is why i encourage british companies to look at the opportunities there it's why is trade minister spend time in brussels for a fuller implementation of the single market as also by the way for free trade agreements around the world with european union part of the markets can the u.k. opt out of the european union are politically while staying very closely integrated economically or it's not part of this government policy it walked out of the repeating union we're not a member of the european the euro zone that's clear and. we believe we have a good and sound reason for not being a member of the euro zone we are of course affected by what happens in the euro zone because something like forty five our exports over forty five percent of our exports go to the euro zone for the european union as a whole is

a large single market and we believe there are many benefits from it and yet david cameron is rejecting the so-called e.u. fiscal pact what's going to be the consequence of that rejection how do you see that developing the fiscal part has to do with the euro zone and we're not a member of the euro zone do not intend to become a member of the euro zone so i think it's important to distinguish between what needs to be done by the eurozone members to stabilize the euro zone and find its way through some of its difficulties and the wider objectives of the european union as a whole which focus very strongly from an economic point of view on the single market and what do you think needs to be done by the e.u. members to to tackle the issues that they're dealing with now in the top of the single market or about the reserve it is very important distinguish between these two i am talking about the eurozone and the problems that that is currently facing throughout the euro zone and this is the euro zone is seventeen member countries and we would believe that it is important to increase the degree of fiscal

coordination to move towards banking union and to generally stabilize the markets within the euro zone but we're not a member of it and it is for the eurozone members to address the problems we are clearly interested to keep that should happen because as i say we are part of a trading block which includes the euro zone forty five percent of our exports go to the euro zone but in your opinion is the exit of so my eurozone members and habitable at this point no certainly not so you don't believe that greece is going to leave the euro zone in the near future but no i don't i think the euro's or will find its way through to a stable resolution in which the financial system is robust which the which growth will slowly build up but this does require addressing some particular issues about competitive or. of different markets and how do you think that should be addressed i think it will be a matter of slow. adjustment of a number of different economic regions and it's important that those issues are

addressed so what do you think would be the specific solution how do you think that should be tackled specifically with greece you know the issue that's on everyone's agenda right now what do you think is the best solution in that particular case it does seem like somebody would have to take the loss who do you think it should be clearly the very significant problems in the greek economy and a lot of progress has been made there are a number of adjustments that have to be made i think it's also worth for greece is pretty small part of the group in terms of its economic significance. but it's important actually whether it's greece or any other country that the that the market is internationally competitive most importantly so you could do is constantly benchmarking its competitiveness against the wider world because we live in a globalizing. market where you can as it were opt out of looking out whether you are competitive or not on a global scene where you're seeing the rise of faster growing markets including

russia which is why i'm here because the opportunities for british businesses i mentioned before the five percent of exports at the moment to go to the euro zone we need to diversify that in the years to come not least because the fast growth is going to be outside of the european union in places like russia as well as india china brazil indonesia and so on so how do you see your relationship with russia developing well are extremely encouraged by the way in which the trade and investment relationship with russia is developing we've seen british exports grow rather rapidly both in twenty eleven and continued into this year twenty twelve i think there's more to come one of my reasons for being here is that i brought with me a delegation of british businesses and these are medium sized businesses they're not large household names and they're not very small businesses they're medium sized businesses who are in the context of the british economy economy. create so much of the growth the employment. and are so central to the sustainable growth strategy and it's important that we encourage them to be looking at opportunities in

international markets and i believe russia is a very exciting prospect for all it does seem some are like some of the russian businessman are already looking at some opportunities in the u.k. and in particular of course a lot of the russian you know the super rich the so-called tycoons they're taking advantage of the british court system as we know too oftentimes to their benefit they seem to be resolving their disputes and just recently the london mayor boris johnson in fact encouraged these russian oligarchs to come to london to resolve their legal matters what's your take on that whole thing i believe that russian investment interest in britain is growing i think it's good that it's growing from the body of the british economy we welcome foreign direct investment from whatever source and it is clearly the case that the bill a number of russian investments made in the london real estate market football clubs of course famously i'd like to see more russian investment in other sectors

of the economy too and what do you think about british direct investment in russia how do you see about growing well i would like to see that grow now britain is already a very significant investor in russia we import the third largest foreign director of investor in russia much of that has to do with the oil and gas sector i'd like to see that melt again part of the reason for having businesses with me on this visit is to encourage them to look at the opportunities just the presentation for example skulk about where i think there are potential areas of interest a whole number of british companies and also educational institutions or speaking of the oil and gas sector there's been a lot of talk about b.p. potentially teaming up with gazprom to build a pipeline from russia to the u.k. to deliver russian gals that will be. very significant deal in the oil and gas outright years which is a commercial. discussion between b.p. and gas problem from the point of a bridge energy policy what we care about is diversity of sources of energy

generation and we're paying a lot of attention to renewables energy. nuclear power to gas we want to make sure the sources of supply are good and diversify because we think that's what makes sense for the long term interests of the british economy i know you have a lot of experience in banking one of the issues that we hear more and more about is the fact that it's the banking sector that's to blame or partially to blame for the current state of the of the global economy and in fact some of the people say that it's the lack of regulations that's really to blame what do you have to say to to about well i think the banking sector was partly to blame for. the financial economic crisis. the very complex background to it was no doubt the banking activity trading activity played a significant part of the long welcome part in the way in which the excesses were

generated and i do think there are many lessons to be one of which is about regulation there was probably too little regulation. over the last four years regulatory hansoms to be very significant was much more attention paid to the amount of capital banks have to hold the amount of liquidity that they have to hold in the case of britain we have segregated or in the process of segregating retail banking activity from investment banking activity because we believe that leads to a more robust system is very important we learn the lessons it is of course also important to know that no economy in the world can do without profitable robust banks providing credit to the real economy here just recently i spoke to a famous rogue trader who brought brought down the bearings in the ninety's and he said that actually the regulators are just as bad now as they were twenty years ago for example what you have to say to that and i don't agree with that at all thank you very much sir thanks for your time thank you.

he is under siege for. destruction without mercy. what could have been just ruins. saved by a great sacrifice. and restored by human justice. a remarkable reminder of courage and selflessness. beauty is of. the russian the sun i.

live. live.

lead. lives.