MOSCOW, April 26: The level of investment in Russia is too low, representing only 20 per cent of gross domestic product, World Bank economist Hans Timmer said here on Monday. "An investment rate of 20 per cent of GDP is very low for a country that has completed an economic transition, that came after a long period of declining capital and is growing more than five per cent a year," he said.

The amount invested in infrastructure "is worrying" and there was a "big gap" to fill, he said. "Foreign direct investments are still at a very low level compared with the size of the economy in Russia," Timmer said,

Foreign direct investments, representing less than one per cent of GDP, went to the oil sector alone, he said, adding: "It's not healthy". Like many emerging market countries, Russia saw a big inflow of foreign capital last year due largely to bond issues and bank loans, Timmer said.

However, he said: "There is still a lot to be improved in the investment climate. "It's not only important to attract more foreign capital and enterprises, that bring with them the expertise and technologies, it's also important for domestic investment because ultimately most of the financing is coming from domestic sources." -AFP