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Alexey Ulyukaev: We are able to return the investment dynamics to high standards

05.02.16

On 4 February 2016, the Minister of Economic Development of the Russian Federation Alexey Ulyukaev held a meeting with Prime Minister of Bavaria Horst Seehofer.

It was about the prospects of development of Russian-the Bavarian trading and economic relations. In addition, at the meeting, the negotiators discussed issues related to the activities of Bavarian companies in Russia and Russian companies in Bavaria, and the impact of sanctions on trade and economic cooperation.

According to the Head of the Ministry of Economic Development of the Russian Federation Alexey Ulyukaev, following the meeting with Prime Minister of Bavaria Horst Seehofer, the Ministry of Economic Development of the Russian Federation and the Government of Bavaria agreed to establish a working group dealing with the issues of development of bilateral trade and economic relations.  

As explained by him, the working group will not deal with the issues of sanctions. "This matter is of exclusive competence of the European Union, - Alexey Ulyukaev said. – They imposed these sanctions and we cannot to interfere in their fate". "We will deal with specific projects", - the Head of the Ministry of Economic Development of the Russian Federation said.

Bayern is the main partner of Russia among the 16 Federal States of Germany. At that, Alexey Ulyukaev noted that the trade of Russia and Bavaria was undergoing the same changes that currently were fixed in relations between Russia and Germany in general. "We see a reduction in all positions of trade and economic cooperation", - he stated. According to preliminary estimates, in 2015 the volume of Russian-German trade declined by 34.1% and amounted to 46.2 billion dollars. According to German statistics, in January-November 2015 the trade turnover between Russia and Bavaria amounted to 7.4 billion euro, having decreased by 19.2%.

Alexey Ulyukaev stressed that Russia valued the Bavarian and German investment business, bringing high technology and competence in the economy. He noted that Russia was seeking to be responsible towards foreign partners and investors and ready to provide comprehensive support at all stages of implementation of investment projects.

He also said that this year there would be another visit to Russia of the Prime Minister of Bavaria, heading the business delegation, and the Head of the Russian Ministry of Economic Development intended to visit Munich together with the representatives of Russian companies. "Bayern has a very good cooperation with Moscow, we are ready to spread it to other regions," - he said.

As joint projects that were discussed, the Minister of Economic Development of the Russian Federation named Siemens, interested in the project of high-speed railways, a set of already existing projects in the automotive industry, in the construction industry, which need help and administrative and commercial. "Today we have not discussed any specific issues and agreed that the Prime Minister of Bavaria will instruct the relevant Minister to prepare proposals from the Bavarian side, we will prepare the offer and continue to work on these projects", - Alexey Ulyukaev said.

According to the Head of the Russian economic authority, despite all the difficulties in the modern international environment, they are successfully continuing the dialogue with German partners, including at the regional level, supporting working contacts with business associations, and being engaged in constructive interaction with the authorities.

"We see the tremendous interest of investors, and we believe that Russian assets are now seriously undervalued. This fact creates an additional demand. It is no coincidence that upon receipt of information about the acceleration of processes of privatization, investors have also demonstrated their huge interest", - Alexey Ulyukaev said, noting that investments are continued in ongoing projects.

"We have a number of joint investment platforms, and the volume of foreign investments is not falling; it's growing, but growing at a rate significantly lower than it was a few years ago," - he admitted.

At the same time, the Head of the Ministry of Economic Development of the Russian Federation is sure that this growth can be returned. "This is a serious impediment to it relating not only to the sanctions, but also to the domestic economic situation connected to the loan price, loan costs and the key interest rate. But it seems to me that all of these issues will be resolved within a relatively short time,"- the Head of the Ministry of Economic Development of the Russian Federation said.

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