St Petersburg, 14 June: There is no alternative to economic freedom for Russia at the present time, [Economic Development and Trade Minister] German Gref told reporters today as he summed up a discussion on the country's choice of development model for the medium term.

The discussion took place at the 9th international economic forum, with Russian President Vladimir Putin taking part.

"We need to move towards increasing economic freedom and deregulation. That was confirmed by everyone in the discussion," Gref said. "Everyone was inclined to the viewpoint that in the current climate there is no alternative to economic freedom for the individual."

He dismissed paternalism, whereby the state plays a greater role in the economy, as not relevant to Russia.

[Gref conceded that investor confidence had been hit by the Yukos affair, in a report by Interfax news agency, Moscow, in Russian, 1035 gmt 14 Jun 05. "This has without doubt had an adverse impact on improving the investment climate in Russia," he was quoted as saying. But in another RIA report (at 1017 gmt) he announced that Toyota will put 250m dollars in two years into vehicle assembly in Russia, and could eventually spend 1bn dollars. Talks with three other major car manufacturers are underway, Gref said. He claimed the credit for the government: "This is the result of a government policy aimed at diversifying the economy. We have created an environment to attract Toyota and other major producers."]