British companies invested $20 billion in the Russian economy in the first nine months of 2007, making the U.K. the leading investor in the country, the Russian ambassador to Britain said on Tuesday.

Speaking at a banking forum in London dedicated to the development of the Russian banking sector, Yury Fedotov said that Britain continues to be Russia`s leading investor.

"Britain rightly holds first place in terms of current investment in the Russian economy and is Russia`s leading investment partner," Fedotov said, adding that British investment in Russia had reached $14 billion in 2006.

"Neither trade and economic relations, nor investment and financial cooperation have suffered from the problems currently marring the political aspect of our relations," the ambassador said.

Russian-British relations deteriorated rapidly after former KGB officer Alexander Litvinenko was poisoned in London in November 2006.

Britain insists that Andrei Lugovoi, a former Kremlin bodyguard, murdered Litvinenko, and has demanded his extradition.

Russia has refused, however, citing its Constitution, and the row led to tit-for-tat diplomatic expulsions in July, with President Putin saying that, "Britain forgets it is no longer a colonial power and that Russia was never its colony."
sections: Economics, World News