By Michael Stott
MOSCOW (Reuters) - Russia needs to guarantee the rule of law and keep government out of business in order to guarantee future prosperity, a leading Moscow-based financier said at the Reuters Russia Investment Summit.
Boris Jordan, who helped advise on the country's first privatizations in the 1990s and now runs a $2 billion private equity and advisory firm named the Sputnik Group, said Russia had made huge progress since the rocky first days of capitalism.
The rouble was not fully convertible and currency controls had virtually gone -- but much remained to be done.
"The economic reform process, particularly over the last four years, in my opinion, has come to a grinding halt," Jordan told the Summit, held at Reuters' offices in Moscow.
"The big question is the rule of law ... probably the single biggest thing business in Russia today suffers from is that you can't really expect to get a proper court hearing," he said.
Jordan also mentioned the dispute between the government and one of the country's top 10 firms Russneft as an example of state interference which concerned investors.
Russia has charged Russneft owner Mikhail Gutseriyev with tax evasion and ordered his arrest and the confiscation of his Russneft shares. Gutseriyev has left the country proclaiming his innocence. His supporters say the whole affair was prompted by the Kremlin's wish to take over Russneft.
"I would say however that there is a level of anxiety over arbitrary political decisions that are made vis a vis business," Jordan said. Continued...
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