Russian president scraps capital gains tax on foreign investment to boost economy

Russia scraps gains tax on foreign investors

ST. PETERSBURG, Russia — President Dmitry Medvedev says that starting next year Russia will scrap the capital gains tax on long-term foreign investment in order to attract more investment.

He acknowledges that Russia will need an “investment boom” in order to get its oil-and-gas based economy on track.

Medvedev also told a major business forum Friday that Russia would cut the number of strategic enterprises fivefold to allow for partial foreign ownership of these companies.

Russia’s economy has been badly hit by the downturn, with economic output plummeting 7.9 percent last year.