Part three of Reuters interview with Medvedev

Following is the third part of translated excerpts from Reuters interview with Russian president Dmitry Medvedev, conducted earlier this week at the Kremlin:

REUTERS: As far as the state's involvement in the economy, particularly in the energy sector, is concerned, do you think it will grow or decrease and is it sufficient now?

MEDVEDEV: I do not think it is possible to identify a sufficient level. In the Soviet Union, most economists believed the state should control everything. This was a distinctive feature of the Soviet planned economy run by directives (from the Kremlin). There could be a totally different model when practically all companies are private and the state is nearly absent. Finally, there could be models in which both the state and private business are represented in the economy. The measure of the needed and sufficient state presence should be decided for every specific situation.

In my opinion, at the moment there are no grounds to speak about any expansion of the state's presence in the economy. The state is not interested in this. On the contrary, we are continuing our policy of privatising our assets, which started more than 10 years ago. A number of major companies, first and foremost energy firms, some defence companies, have returned to state hands. We believe this is important to guarantee the strategic interests of the economy in the years to come. But any additional strengthening of the role of the state, increasing its presence in the economy is not foreseen. On the contrary, we will take action to reduce the presence of the state in the economy.

REUTERS: I want to follow up on the question concerning fuel. High oil prices bring considerable revenues to the Russian economy. Similar revenues in some countries like the Gulf states are actively used to invest in economy of other countries, into buying assets, banks. Will Russia be more active in this area and what in your opinion are the aims of such investment, what are the aims of the state?

MEDVEDEV: Yes, this is an interesting topic. Of course, the top priority is investing additional revenues from energy sales is placing this money into our economy, promoting business inside the country, maintaining a normal situation in the social sector, in the pension system. All these processes have been established by law in this country and will continue.

At the same time, we believe it is necessary to invest these funds in foreign assets to make sure that Russia plays a proper role at the international markets, to support our opportunities in various countries and to build up our relationships with these states in a proper manner.

Not long ago, I chaired a meeting which ended with a decision that money from our national wealth fund, state funds, will be invested not only in foreign assets, but also in Russian assets.

As far as foreign assets are concerned, I can naturally say that they should be attractive, first class assets, protected assets which will bring a guaranteed income even in a conservative scenario.