Empresas y finanzas

Russia's Medvedev says freedom and legal reform key

By Denis Dyomkin

KRASNOYARSK, Russia (Reuters) - Russian presidentialcandidate, First Deputy Prime Minister Dmitry Medvedev, onFriday said freedom, private property and an independentjudiciary would be the central platforms of his administration.

Speaking at an annual Krasnoyark Economic forum in Siberia,Medvedev, heavily favoured to win on March 2 to succeed hismentor Vladimir Putin, laid out his political priorities andcalled for tax reform to support economic growth.

"One of the key elements of our work in the next four yearswill be ensuring the independence of our legal system from theexecutive and legislative branches of power," he said.

Medvedev, 42, spoke more of the development of socialwelfare projects than international affairs or the resurrectionof Russian military power, themes Putin addresses regularly,and also of the need to fight endemic corruption.

"We must exclude law breaking from among the habits thatour citizens have in their activities. To make it so that it nolonger enriches some while demeaning others.

"What kind of equal opportunity and innovative thinking canthere be if everybody knows that rights only belong to thosewith the sharpest teeth, and not those who obey the law," hesaid.

MAKING RUSSIA EFFICIENT

Medvedev said the government should review its tax systemand cut the burden in some areas to ensure that the economy,which last year grew by 8.1 percent, can continue to grow.

"Our tax system must be competitive with tax systems ofother countries. The state should collect as much tax as neededto ensure that society functions effectively and our nationalbusinesses do not flee abroad, the economy doesn't fail.

He repeated Putin's line that Value Added Tax should be cutand called for a reduction of export duties on energy exportsto allow oil firms to invest in new facilities.

"In parallel, we should continue analysing whether toreplace VAT with a sales tax," he said.

Energy exporters will in turn need to pledge to switch tothe rouble in their dealings to help it become one of theworld's top currencies.

"Today the global economy is going through uneasy times.People are reviewing the roles of key reserve currencies. Andwe must take advantage of it... The rouble will de facto becomeone of regional reserve currencies," he said.

The banking system, which has experienced a liquiditycrisis last year in step with global markets, can also count onstate support, including inflows from the National Wealth Fundand the state pension fund.

But the role of state officials should simultaneouslydecrease when it comes to managing large government-ownedcorporates if Russia wants to remain competitive.

"I think there is no reason for the majority of stateofficials to sit on the boards of those firms. They should bereplaced by truly independent directors, which the state wouldhire to implement its plans."

(Reporting by Denis Dyomkin in Krasnoyarsk, DmitryZhdannikov and Chris Baldwin in Moscow, writing Chris Baldwinand Dmitry Zhdannikov; editing by Janet Lawrence)

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