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President of Russia

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ECONOMIC GROWTH |

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May 26 2004

To turn Russia’s geographical peculiarities to its advantage, the economic centres of the country need to be united, and economic subjects should be given unhindered access to regional and international markets, and a world level of infrastructure services should be ensured, the President announced in his Address to the Federal Assembly.

The Government should find effective control mechanisms of quality and expenses in the construction of new objects. The state must continue to control the development of the country’s infrastructure for some time to come.

The creation of a competitive environment may fundamentally change the situation.

Private investment may make a significant contribution to creating a branched transport infrastructure, and the flow of these investments depends on the certainty of the state’s plans.

| Address to the Federal Assembly of the Russian Federation

May 26 2004

In his Address to the Federal Assembly, President Vladimir Putin announced the necessity of diversifying oil supplies.

The capacity of the Baltic pipeline system needs to be increased and the West Siberia-Barents Sea pipeline needs to be opened. Routes from oilfields in East Siberia should be determined, the Bosporus and Dardanelles Straits should be bypassed, and the Druzhba and Adriya oil pipelines should be integrated.

The guideline for this should be the realization of national tasks, and not the interests of individual companies.

| Address to the Federal Assembly of the Russian Federation

| Previous events

<i>«This country needs to make real economic progress, and so we need an economic agenda that will ensure this progress. We need a new growth dynamic. But even the most ambitious goals must be based on precise calculations, realistic forecasts and on carefully and professionally planned action». </i><br><br>
From a speech at a joint meeting of the Finance Ministry and Economic Development and Trade Ministry colleges<br>
March 19, 2004

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