GO
Loading...

Enter multiple symbols separated by commas

Russia’s economic growth is too slow: Minister

Russia's economy is growing too slowly, the country's deputy minister of economic development admitted to CNBC on Friday.

"This is a big challenge for us. Now is the first time Russian economic growth is too slow, and is much slower than in a lot of economies," said Sergey Belyakov.

Russia's economy is seen expanding by less than 2 percent in 2013. Concerns have been flagged about capital flight from the country, although Belyakov said foreign direct investment (FDI) rose to $87 billion last year, from $50 billion in 2012.

"It is business requirement not only to attract capital to the Russian economy, but to change living standards — that is why we need capital. Not only foreign capital, foreign investment, but Russian investment as well," he said.

He added that Russia was striving to improve its business environment in order to attract more capital.

Last year, professional services firm EY (previously Ernst & Young) rated the country the sixth-most attractive in the world for FDI.

(Read more: Russia's Putin acting out of weakness: Soros)

Belyakov has been deputy minister of economic development since August 2012, and previously served in the armed forces and the Federal Security Service. He spoke to CNBC from the annual World Economic Forum in Davos, Switzerland.

—By CNBC's Katy Barnato. Follow her on Twitter: @KatyBarnato

Davos: Top interviews and more

Videos

Latest Special Reports

  • Financial Advisor

    Featuring CNBC's Financial Advisor Council, this video series will aim to educate investors with straightforward financial advice.

  • Waitress tablet

    Trailblazers leveraging the power of technology and innovation to grow their business—and disrupt the competition.

  • Financial Advisor

    CNBC looks at how technology, product development, succession plans and client relations impact financial advisory firms.

World Economy

  • You have a week left to make up your mind about what to do with your money, if you're planning to "sell in May." But does the adage apply this year?

  • ISIS fighter, North American ISIS fighter, Islamic State

    Developed countries across Europe are becoming more vulnerable to terrorism, mostly due to the rising power of the Islamic State and other Islamist extremist groups.

  • Workers check the valves at the Taq Taq oil field in Arbil, Iraq, in this Aug. 16, 2014 photo.

    Iraq's Kurdistan region will sell its oil independently of Baghdad if the national government does not pay the money it owes, the president of the Kurdistan Regional Government told CNBC.