The development of the transportation infrastructure, increasing direct investment in Russia, as well as improving the business climate will in the next one to two years lead to increasing the growth rate of the economy to the target level of five percent. This opinion was expressed in an interview with the business newspaper The Wall Street Journal by Russia’s First Deputy Prime Minister Igor Shuvalov.

According to Mr. Shuvalov, the amount of investment in the transportation sector will be around 500 billion roubles. The new program is aimed at developing weak infrastructure, such as roads in Moscow and the railroad connections between Siberia and the Pacific Ocean. The First Deputy Prime Minister said that the funds for the development of the transportation infrastructure will be raised from the sale of state assets. In particular, this year, the government intends to sell a stake in Rosneft, just as soon as the merger with TNK-BP is complete.

The support of economic growth also requires attracting foreign capital into the country and improving the environment for doing business. According to Igor Shuvalov, the rapid recovery of oil prices after the global financial crisis of 2008 made everyone relax and put the necessary reforms on hold. “It may sound harsh, but I think that another reduction would improve the economy in Russia, as it will cause serious thoughts regarding budget cuts and increasing productivity,” said the First Deputy Prime Minister.

According to Mr. Shuvalov, Russia, as the holder of one of the largest foreign exchange reserves, is concerned that the easing of monetary policy in the U.S. and Europe could adversely affect the value of the country’s assets, which is mostly calculated in dollars and euros. “How responsible is the policy of the U.S. government? We do not know. But we are all concerned that America’s astronomical debt can cause the U.S. to default on its obligations. The same thing we are seeing with the euro,” Igor Shuvalov said. Nevertheless, according to Mr. Shuvalov, Russia is not considering reducing the foreign currency assets in dollars and euros.

Replying to a question as to whether Cyprus will be granted loans, the First Deputy Prime Minister said that Russia will be pragmatic in relation to any new financial assistance to the island nation. The government’s goal is not to help the Russians who keep money in the banks of Cyprus, but to prevent the crisis from spreading to the rest of Europe, which is the largest trading partner of Russia.