Leonid Reiman, Chairman of Russian Industrial Leaders Index and Michael Oxley, Vice-Chairman...

Leonid Reiman, Chairman of Russian Industrial Leaders Index and Michael Oxley, Vice-Chairman of NASDAQ: Russia's Investment Attractiveness Will Increase Once Anti-Corruption Legislation is Passed by Russian Government as Discussed in Recent Meeting

MOSCOW--(Business Wire)--
Leonid Reiman, advisor to Russian President Dmitry Medvedev and
former information technology minister, met in Moscow with Michael
Oxley, vice-chairman of NASDAQ and co-author of the Sarbanes-Oxley
Act, to discuss the Russian climate for foreign investment. Reiman
briefed Oxley on the anti-corruption legislation President Medvedev
has introduced and discussed the need to increase corporate
transparency in the Russian telecommunications sector.

"Russian companies often try to conceal their true size and
profitability in order to minimize tax payments, but this hurts their
chances of attracting foreign investment," Reiman said. "It's
important to create conditions that make it profitable for companies
to show their real capitalization and attract foreign capital. This is
key in the Russian telecom sector, where the tax burden is especially
high given that wage expenses, which are subject to additional taxes,
comprise up to 80 percent of overall expenses, compared with the
average of 10 to 20 percent in other industries," he added.

Oxley said that Medvedev's anti-corruption legislation "gives a
strong signal to investors that Russia is in fact interested in
foreign capital. The benefits of this effort are irrefutable and the
timing is perfect given that many developing countries compete for
U.S. and European capital."

The NASDAQ vice-chairman believes anti-corruption efforts should
go along with stronger corporate governance and financial transparency
requirements. "Russia's challenge is to improve corporate transparency
and to move up in the Transparency International ratings. Investment
will follow immediately. Many Russian corporations are planning IPOs
in the near future, and stronger financial transparency requirements
will ensure maximum attention from U.S. investors," Oxley said.

Leonid Reiman is Advisor to Russian President Dmitry Medvedev and
Chairman of Russian Industrial Leaders Index Advisory Board. He was
Information Minister of Russian Federation till 2008. Michael Oxley
served in US Congress from 1981 to 2007. He is now the vice-chairman
of NASDAQ.

Press Release Group
Ilya Merenzon, 646-257-2003
Merenzon@prgroup.info

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