British ambassador to Russia Tony Brenton spoke about bilateral economic cooperation, as well as about Russian-British political relations in an interview with Interfax

Britain is interested in the success of the G8 summit in St. Petersburg, said British Ambassador to Russia Tony Brenton, adding that questions related to the advance of democracy in Russia might be raised at the summit.

"We want it to be a successful summit. But there are questions about the way civil society is moving in Russia, the way democracy is moving in Russia," he said in a Tuesday interview with Interfax.

"For example, there was a lot of concerns about Russia's recent act of parliament with regard to nongovernmental organizations," he said.

"I don't think it is a formal issue for the summit but it would be surprising if heads of government when they meet in St. Petersburg would not discuss issues that they care about," Brenton said.

Responding to a question, the ambassador expressed concern over the situation surrounding the British Council in Russia.

"It is mysterious to us that there are continuing problems. The British Council it seems to me is an organization that builds up Anglo-Russian mix in one of the most crucial areas: education - the core subject of the St. Petersburg summit," he said.

"The British Council is spending far more money in Russia than it takes out of Russia. So this particularly mysterious court case going on in St. Petersburg that has been stopped three times and started again. We are being assured that it is being finished but then somehow it is not finished," the ambassador said.

Britain is interested in the improvement of the investment climate in Russia for foreign, especially British, investors, Tony Brenton has said.

"I wish to think that it is in our interest and in Russia's interest to improve the environment to make it still more friendly for foreign investors," he said in a Tuesday interview with Interfax. He added that he was very interested in British companies coming to Russia.

In Brenton's opinion, there are real difficulties for foreign companies operating in Russia. "We can see upcoming legislation which is going to limit a foreign company's involvement in the economy and we all know stories of corruption and overregulation," he said.

The ambassador acknowledged that there had been changes in the investment climate in Russia.

"You should look out the windows to see the growing prosperity in the street and I am very pleased that British companies have been part of Russia's prosperity and contribute to it," he said.

Brenton answered the question about Britain's view of Russia's plans to make the ruble convertible.

"It is not for Britain to have a view but in general we are keen to see the Russian economy become a normal, integrated member of the world trade and economic system," he said. The convertibility of the ruble would help that development and "for Britain it would be a very welcome step," he said.

The ambassador also spoke of the possible acquisition of Centrica by Russia's Gazprom. Britain has the fastest growing large economy in Western Europe and the core, main reason for that is openness to investment from wherever it comes, he said. The country has rules "that encourage competitive behavior and rules that discourage the emergence of monopolies," he said.

"Should Gazprom bid, those rules shall apply to Gazprom as they would to any other company bidding to enter the British market. We welcome investment from wherever it comes, including investment from Russia provided that it observes these rules," he said.

European steelmaker Arcelor's decision to merge with Mittal Steel Corporation and not with Russia's Severstal is not politically motivated, Tony Brenton told Interfax.

It's not a matter of whether it is a Russian or other company, it's a matter of money, he said.

"What's going on around Arcelor is very interesting, a competitive battle, that's what's going on. I've seen a number of other similar competitive battles, some were fought by British companies, some - in a wider international context," the ambassador said.

What is interesting about this particular battle is that a major Russian company is involved, he said.

"Weather or not Severstal succeeds, this is a healthy indication of Russian companies participating in the international competitive environment," Brenton said.

As earlier reported, Arcelor's Board of Directors, meeting on Sunday, backed a merger proposal from Mittal Steel for 26.9 billion euros ($33.7 billion) and rejected a merger with Russia's Severstal.

Mittal increased its offer by 7% to 40.40 euro per share. After all formalities are completed, Arcelor will own a 50.5% stake in the new group, while the Mittal family will own 43.6% and not a controlling block as previously thought.

Tony Brenton said that in the United Kingdom only courts may decide on matters of political asylum and extradition.

"The position with regard [famous businessman Boris] Berezovsky and [Chechen separatist emissary Akhmed] Zakayev is that it is not a political decision. The status of political asylum has a very clear judicial definition. And it is for the courts to judge whether that status ought to be awarded or not, and it is also for the courts to judge whether they will be extradited or not. The courts in the UK are completely independent of government," the ambassador said in an interview with Interfax.

"So, that not only me having an opinion on Berezovsky and Zakayev, that is even not only Tony Blair having an opinion on Berezovsky and Zakayev. It is possible to loose the status of political asylum. For getting involved in criminal behavior, for example. Then your status is endangered. And this not a judgment for any minister to make, finally, that is a judgment for the courts to make," Brenton said.

Interfax