ITALIAN INVESTMENTS IN RUSSIA REACH $1.4 BILLION

Italian investments into the Russian economy are about $1.4 billion, or 5% of foreign investments, Alexander Borisov, head of the Economic Development and Trade Ministry's Europe department, said. "Italy is the 11th largest foreign investor in Russia, its accumulated direct investments amounts to about $300 million," Mr. Borisov said. The investments are mainly in trade and public services. About 65% of Russian-Italian enterprises provide trade, intermediary, consulting, hotel, restaurant and transportation services. "About 30% of these enterprises are involved in woodworking, manufacturing furniture and textiles, the agricultural sector and the chemical and petrochemical industries," Mr. Borisov said. Russian-Italian joint ventures include Blue Stream, the construction of a gas pipeline to Turkey and manufacturing Stinol refrigerators in the Lipetsk Region, he said. Italy is Russia's second largest western trading partner and is the third largest overall partner after Germany and Belarus. Trade between Russia and Italy in 2003 increased by 13% and reached $11 billion. In the first half of 2004, trade was about $6 billion, however recently it has stabilized, he said.