19 April 2004 11:25 Everything is expanding - The seventh economic forum opens in London on 18 April. As usual, prospects for developing cooperation, above all economic cooperation between the UK and Russia, will be discussed there. How would you define our relations today, as part of the British press has criticized our president [Vladimir Putin] and Russia's economic and democratic course and many experts talk about a cooling of relations between Russia and the UK? - This is completely wrong. Just a week ago I was present at a very interesting conference here organized by the Higher School of Economics. I listened to speeches by the deputy prime minister, the finance minister, the economic minister and so forth and all of them stressed the Russian government's determination to move forward with regard to economic reform. Since then, we have already seen a decision taken to reduce taxes on business. They have a highly promising programme to particularly stimulate growth among small and medium-sized businesses. During the conference German Gref said that his ministry's new slogan is "Competition, competition, competition". The Russian economy's results for last year were excellent. As a result, the level of British and foreign investment generally in Russia grew. There is colossal potential for a growth in partnership not just in investment, but also in trade. - Can you give any figures? - I can say that trade between the UK and Russia grew by over 24 per cent last year to an annual figure of 6bn dollars. British exports to Russia grew by 43 per cent last year and Russia was the second highest growth country for us last year. The UK also became the largest direct investor in Russia last year, especially due to decisions by large companies like BP and Shell and also manufacturers like Pilkington to make major investments in Russia. - Can you name any examples of planned major projects for the near future? - At the moment I don't know exactly what the next major project will be. However, at the moment a new glass factory is being built in Moscow Region by the well-known British company Pilkington. This is just one example. Tomorrow morning I have a meeting with the director of a British company that would like to open retail shops here. Everything is expanding and expanding. - Coming back to the London forum. Who do you think are more interested in it, politicians or businessmen? - Businessmen, because this annual forum is the best sales window for Russian business, not just in the UK but abroad in general. It attracts over 1,000 businessmen each year. About half of them are Russian and the rest are from different countries. It is an excellent opportunity for Russian businessmen - not politicians - to describe what is happening here. - The stereotype of economic relations with Russia is mainly oil and gas. What else are investors interested in Russia? - At the moment they are very interested in the fact that the economy is growing in other sectors, for example, in car manufacturing. They are also interested in opportunities for different forms of trade. We have seen how successful Swedish company IKEA has been and that Russian people now buy a lot of high-quality goods from various countries and that Russia now produces these goods. This is particularly the case in the service industry. Britain is Europe's financial centre and many Russian firms, Russian financial structures are working there. Almost all British financial structures are now developing their activity on the Russian market. - So the threat of terrorist attacks or differences over human rights will not prevent the development of mutually beneficial cooperation between Russia and the UK? - I think that, if we are talking about the economy, for investors and foreign companies stability, the strengthening of transparency, the strengthening of the judicial system and respect for property rights are very important.
[Ekho Moskvy radio] |