SeverStal, Russia's biggest steelmaker, is to mount a $6billion (£3.1billion) investment programme in its home operations, including building several new plants and doubling output at one of its key factories this year.

The company, which is headed and majority-owned by Alexei Mordashov, expects to sell 70 per cent of its Russian-produced steel in its home market as construction soars by 20 per cent and large infrastructure projects, particularly in the energy sector, reshape the economy.

By 2011, SeverStal plans to boost steel output by 25 per cent. This year, production at its pipe mill at Kolpino, near St Petersburg, is to double to 600,000 tonnes, largely on the back of orders from Gazprom and other energy companies.

In an interview with The Times Mr Mordashov backed claims made this month by President Putin that Russia's economic development could make the country the world's most attractive business location by 2020.

“I think that is absolutely realistic, with our strong industrial base, natural resources, and the education of our people, despite the turmoils of last decade,” Mr Mordashov said.

“We see the growth of a lot of Russian companies who have become world players - in the energy sector, of course, in metals - and we see also capital inflow into the country.”

Mr Mordashov said that with Russia's “managerial capabilities”, the country was on track to take its companies to a “world-class level”. Mr Putin has been promoting industrial development in the run-up to an election next week, in which he will step down as president but almost certainly return as prime minister. His assertive leadership has triggered conflicts with the West and accusations that the Kremlin wields too much influence over Russian business.

Mr Mordashov dismissed the threat of political tensions - such as those that arose from the murder of Alexander Litvinenko, the former Soviet and Russian agent, in London in 2006 - damaging business between Britain and Russia. “I don't feel any problems for us or for other Russian investors. Maybe you shouldn't overestimate the influence of some fluctuations on the surface,” he said.

He denied that the relationship between business and government was any closer in Russia than in other countries.

“I believe I should be a good CEO - and being a good CEO of a big industrial company I have to develop a relationship with the Government to help development of the company. It is in line with the normal rules of conduct. My personal relationship with the Kremlin is normal, it resembles those in France, or the US ... Only through this interaction and steady dialogue can we achieve a better future for our country and our companies.”

Mr Mordashov has also heeded Mr Putin's call for Russian companies to invest overseas, with two mills in the United States and an Italian business. This month SeverStal bought a goldmine in Kazakstan.

However, it missed out on the big prize of Arcelor two years ago after attempting a white-knight bid for the European steelmaker when it was facing a hostile bid from Mittal. ArcelorMittal, now by some distance the world's biggest steelmaker, recently announced plans for a steel mill in Russia - an unusual success for a foreign steelmaker.

Mr Mordashov, who is reputedly worth $22billion through a range of business interests, is philosophical. “History is over and we have a good relationship with ArcelorMittal. It is nothing exceptional but it is a normal good business relationship. Russia is an open country and has a free market economy. Everyone is free to invest.”

Last year Russia's GDP growth was 8.1 per cent and similar rises are forecast for the next few years. Mr Mordashov is hopeful that the strength of his home economy will help to shield the company from uncertainty in the global markets.

He acknowledged that SeverStal would be affected by international events, but believed that the risk of recession in Russia was “much lower” than elsewhere. “The world has come through many crises in the last 20 years, in the middle Eighties, the middle Nineties, and came through much stronger. We are seeing what economists call decoupling. The Asian economies plus Russia and Brazil are becoming the second engine of world economic growth.”

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