Rossiyskaya Gazeta (Moscow) – April 18, 2008

Zurab Tsereteli’s Art Gallery hosted the annual awards ceremony for the national 2007 Finansovy Olimp prize.

The award is one of Russia’s oldest professional trophies, with its history dating back to 1995. The award honors the best managers, as well as the best companies, operating on Russia’s financial market.

Business people, bankers and politicians chose to sum up the financial results of 2007 and discuss their prospects for the future before the formal awards ceremony, however. First Deputy Chairman of the Bank of Russia Gennady Melikyan described 2007 as a “reasonably successful” year. “Our banking system has been piling up assets, and dynamically changing for the better,” Melikyan elaborated. “Were it not for the crisis shattering foreign countries, we could have described the year as completely successful,” he went on. “But the losses suffered by western banks have naturally affected us as well. In March alone, the foreign capital flight from Russia reached $2bn.”

Melikyan also drew attention to the financial pyramids that had recently resurged in Russia. In his words, the pyramid schemes are now often pursued by organizations seeking to attract private investment in housing construction. To tackle them, the first deputy chairman of the Bank of Russia suggested that such organizations be supervised. He specified, however, that the task was not the Bank of Russia’s duty.

In turn, Secretary of State and Deputy Finance Minister Sergei Shatalov clarified his ministry’s stance on tax novation. He stated that the Finance Ministry was tipped to consider cutting income tax as an alternative to VAT reduction in the near future. “This would be much more instrumental in providing an impetus for the Russian economy,” Shatalov observed. “Yet, specific proposals will not be ready until August,” he added.

Once the discussion of vital problems and plans was over, bankers and public officials proceeded to hand out awards. Finansovy Olimp’s organizer – media holding RosBusinessConsulting – says the award is primarily aimed at urging higher transparency and enhancing the investment attractiveness of Russian financial institutions. This year, the winners were selected from among Russian investment, asset management and insurance companies, banks and nongovernmental pension funds. An extra prize was also awarded in a special category honoring contributions to the development of Russia’s financial system.