Deputy Prime Minister Zhukov,
Excellencies,
Ladies and Gentlemen,

This is the eighth time that the Russian Economic and Financial Forum has chosen Switzerland as a platform for its stimulating, informative and fruitful discussions. The Forum has indeed become a tradition that is a must in many people’s diaries. Once again, I would like to welcome you all to Switzerland, and to pass on best wishes from the Swiss federal parliament.

When you gathered here in Zurich a year ago for the 7th Forum, the world looked very different. The economy was booming, many countries – including Russia – could boast incredible rates of growth, large sums were being invested and employees were not worrying about their jobs. And even if, at the time, there were probably indications of an economic slow-down no-one imagined the extent and suddenness of the present financial and economic crisis. It is a challenge to us all: from the lowliest worker to the most senior bosses, from local councils to national governments. And every one is doing what they can to prevent the economic motor grinding to a complete halt while taking into account the socio-political aspects of the crisis.

Over the past few weeks and months, the Swiss government has introduced a number of new measures. In October, the Confederation and the Swiss National Bank bailed out the UBS with a 67 billion franc aid package. This meant that the UBS could hand over doubtful securities of up to 62 billion francs to the SNB, and at the same time it would receive an injection of 6 billion francs from the Confederation. In the meantime, the first amount has been reduced. Thanks to new accounting regulations that necessitate fewer value adjustments, the National Bank has been able to reduce the fund for non-liquid assets from 62 to 46 billion francs.

Moreover, last October the Swiss government raised the deposit holders’ guarantee from 30,000 to 100,000 francs. In November it announced an economic programme for supporting the Swiss economy. The government approved an emergency aid package of 340 million francs. A second start-up programme of 700 million francs, that was approved last month, should lead to investment of around one billion francs. In addition, the Swiss government has decided to extend compensation for reduced working hours from the present 12 to 18 months.

Naturally, being very much dependent on exports, our country cannot withdraw into itself. We have to look beyond our borders and find opportunities abroad. As I’m sure you know, Switzerland’s position as a financial hub is at present under pressure. It would have been extremely important for us to be present at the G-20 summit, particularly in view of the fact that Switzerland is the seventh most important financial centre in the world. Unfortunately we shall not be represented on 2 April. This means that we have to safeguard our interests through other channels with regard to defining the rules of play for international financial markets. In order to ensure greater acceptance worldwide, Switzerland has to act. In concrete terms, with regard to the banking secret. And the Swiss Government acted: the Cabinet decided last Friday to relax Swiss banking secrecy laws to fall into line with regulations set by the OECD. The decision will permit the exchange of customer information with other countries in individual cases where a specific and justified request has been made.

Ladies and Gentlemen, in difficult times forums such as this are extremely important. On the one hand, because they provide an opportunity for the direct exchange of ideas. In other words, information can be obtained straight from the horse’s mouth, so to speak. And on the other hand, direct contact breeds trust. And to my mind, trust is the keystone for good collaboration between two countries, at all levels and in all areas.

As I’m sure you are aware, Switzerland has announced its interest in negotiating a free-trade agreement with Russia. From the Swiss point of view, a trade agreement with such a large economy would offer attractive possibilities. In 2007 the value of our exports to Russia was almost 3 billion francs while imports from Russia were around 1.5 billion francs. Unfortunately I don’t have any figures yet for last year. But in view of the current economic climate, they are expected to be lower. One thing we can be sure of, however, is that they will increase again in the future.

Apart from easier access to markets, a free-trade agreement would also help to provide better guarantees for investments. According to the Swiss National Bank, direct Swiss investments in Russia totalled 5,155 million francs at the end of 2006. This money has helped to create 97,000 jobs in Russia, representing almost double the figure for the previous year. Some 150 Swiss companies that operate in Russia are registered with the Swiss Embassy in Moscow. According to Russian sources there are some 600 companies whose share capital is partly in Swiss hands. A free-trade agreement would provide an additional impulse for our bilateral economic relations – which, in this time of economic crisis, would be of great advantage to both sides.

Innovation, ladies and gentlemen, is another key aspect that I should like to talk about today. Innovation is an important driving force for the economy. If I think of innovation, I automatically connect it with research and science. Scientific policy has become an important part of Swiss foreign policy. It is in Switzerland’s interest to publicise its competence as an internationally viable centre for scientific research and technological development, and to promote worldwide collaboration in the field of research and development at an individual as well as an institutional level.

Both the Russian and the Swiss governments have noticed that joint research and scientific projects are extremely attractive, and they have succeeded in drawing up a framework agreement in this respect. This agreement is now ready to be signed. We could call such collaboration a renaissance of a long tradition. In earlier days there was a flourishing exchange of scientific expertise between our two countries. For example, a certain Swiss gentleman by the name of Leonhard Euler played an active part in reforming the Russian system of weights and measures almost 300 years ago. In contrast, at the beginning of the last century, “Present and Future Swiss Philosophy” was explained to us by the Russian professor Anna-Ester Pawlowna Tumarkina.

I am convinced that joint Russian-Swiss projects in science and research will continue to take advantage of mutual potential in the future, and produce solutions in various fields.

Ladies and gentlemen, in view of the serious global crisis, a free-trade agreement and close collaboration in research and science will, it is true, be only a drop in the ocean. Nevertheless, each individual agreement will mean new prospects for entrepreneurs, employees, scientists or students, and as far as I’m concerned that will be a positive thing.

I shall be addressing and discussing these and other issues during my official trip to Russia at the invitation of Mr. Sergey Mironov, President of the Russian Federal Council. During this trip, which is planned for the last week of April, I shall be visiting St. Petersburg, Moscow and Sochi together with a delegation of senior Swiss parliamentarians.

I wish you all a successful meeting. Thank you for your attention.