Oleg Fomichev: Russian business is interested in Emirates partners


State Secretary — Deputy Minister of Economic Development of the Russian Federation Oleg Fomichev has taken part in opening the expert consultations on preparation of final minutes of the 5th meeting of Intergovernmental Russian-Emirates committee for trade, economic and technical cooperation.

Oleg Fomichev has draw attention to the fact that Russian-Emirates ties are built on historical interrelations and the continuity. As he noted, "Cooperation between our countries, both economic and the political one, has everywhere the constructive and positive nature".

Beginning from 2009, within 5 years the volume of mutual trade in goods and services was continually growing up and has reached, as per the official Russian statistics, around USD 5.5 mlrd. The volume of trade in goods has accounted for USD 2.5 mlrd, whereas the volume of trade in services – USD 2.9 mlrd.

Deputy Minister has also informed the in structure of trade turnover the Russian export considerably exceeds the import of goods from UAE.

Meanwhile according to his words in last year the volume of mutual trade in between the Russian Federation and UAE has declined. The relates both the trade in goods and services (overall decline has accounted for more than 20%). As Deputy Minister said, "Unfortunately, in the current year the tendency of dropping Russian-Emirates trade retains. As compared with similar period of the last year, for 9 months of 2015 the trade turnover between our countries has reduced approx. in 2 times". The said reduction relates both to the export of goods from Russia to UAE and to the import of Emirates products to the Russian market.

According to Oleg Fomichev, "Taking in mind the above mentioned negative tendency of reducing volumes of mutual trade that is created both by internal and external factors, I suppose it is necessary to activate efforts on the formation of additional conditions facilitating the radical changes in such a tendency". Deputy Minister also noted that Russian side intends in cooperation with Emirates partners make the maximum efficient use of the collected positive cooperation experience, the reliable legal and economic background, high degree of  mutual understanding and experience of the constructive interaction in regional and international affairs so as to bring the bilateral relations to the new level. 

According to his words, the interest of Russian companies to Emirates market is growing. As he draw attention, "Representatives of Russian business are in active search of the interested Emirates partners, constantly run talks to determine the specific projects of trade and economic cooperation, as well as take part in the relevant exhibitions, fairs and conferences at the UAE territory. Russian-Emirates trade and economic relations has substantial growth and development potential". UAE is dynamically developing country that is steadily building up its commercial, scientific and technological potential. This creates conditions and prerequisites for the development of interaction in the wide array of industries. 

Currently in UAE are functioning more than 3000 Russian companies. Emirates companies are also studying their opportunities to invest in Russian economy, the implementation of major projects in field of oil & gas production, hydrocarbons processing, construction of large industrial and agricultural facilities inclusive. As stressed the representative of Ministry of Economic Development of the Russian Federation, "Russian is laying stress upon the adequate protection of Russian investments abroad an foreign investments in Russia".

Meanwhile Oleg Fomichev has noted that the legal and regulatory base of Russian-Emirates trade and economic cooperation is already shaped. As he specified, "we have signed intergovernmental agreement of trade, economic and technical cooperation (in which the most favoured nation principle is inbuilt), intergovernmental agreement of taxation investment proceeds gained by agreeing countries and their financial and investment institutions, and also intergovernmental agreement of promotion and mutual investments protection". According to his words, the availability of such documents allows to provide the long-term stability and predictability of legal environment; in future it will promote the widening and deepening the investment, trade and economic cooperation in between Russia and UAE.