News

Deputy Minister А.Е. Likhachev held Russian-Chinese round table on the cooperation in investments and industrial production

07.09.13

On September 7, 2013 in Kaluga, as part of the International Forum for development of motor industry and auto components construction, AutoEvolution 2013, a Russian-Chinese round table was held on "Russia and China cooperation in the field of investment and industrial production."

The round table presided by the Deputy Minister of Economic Development of the Russian Federation Alexey Likhachev and Plenipotentiary Minister, adviser on trade and economy of the Embassy of the PRC in Russia Lin Ji, was organized by Vedomosti newspaper with the participation of the administration of Kaluga Region and with the support of the Ministry of Economic Development and the Ministry of Industry and Trade of the Russian Federation.

The round table where the plans and possibilities of investors from China in Russia and mechanisms to facilitate foreign investors from the federal and regional authorities of Russia were discussed, was attended by the heads of the Government of Kaluga Region, representatives of ministries and agencies, regional governments, business and industry circles of Russia and China.

Summary of speeches of the Deputy Minister of Economic Development of Russia A.E. Likhachev at the Russian-Chinese round table on cooperation in the sphere of investments and industrial production, September 7, 2013, the city of Kaluga, Grabtsevo industrial park

On behalf of the Ministry of Economic Development of the Russian Federation I sincerely welcome all participants of the Russian-Chinese round table on cooperation in the sphere of investment and industrial production present in this hall!

The theme of the meeting corresponds to one of key activities of the Ministry of Economic Development of Russia to develop cooperation with China.

I am grateful to the organizers of the round table - Vedomosti newspaper and the Government of Kaluga Region for invitation of our Ministry to its preparation and holding.

Kaluga region demonstrates the consistently high results in efforts to attract industrial investment from abroad and to form a cluster of production of cars and auto components in the region. Today, we have become participants of the opening ceremony of a plant producing automobile glass in Grabtsevo industrial park by the Chinese company Fuyao Glass Industry Group. This is a good example of the attraction of direct Chinese investment in Russia. This high-tech production with an investment of 300 million Euros will create nearly 900 jobs.

The actual interest of investors is the real assessment of the region’s work over its investment climate.

A few words about the state of Russian-Chinese economic cooperation.

China continues to be a major trading partner of Russia. Our bilateral trade volume exceeded 87.5 billion U.S. dollars in the previous year. In 2012 Russia retained the 9th place in the ranking of China's trading partners.

The situation in bilateral trade in this year is rather difficult. During the first seven months 2013 there is certain stagnation. The main reason is the reduction of exports from Russia to China by 5.4%. Also there is no major changes in the structure of trade. The flow of mutual investments is still small.

The economic cooperation between our two countries has significant unused potential.

Under certain conditions, the scope of bilateral cooperation can be significantly expanded, and the trade structure may be diversified.

Together with our colleagues from the Ministry of Commerce of China we are working together on a series of proposals that should allow us not only to stop a certain tendency of reducing trade turnover, but also to achieve the restoration of its growth.

First of all, we are talking about implementing the Russian-Chinese intergovernmental memorandum on cooperation in the sphere of economic modernization, executed in 2011.

To the present date, our ministries finalized the agreement of the List of Russian-Chinese projects of modernization focus, being implemented by the Russian and Chinese companies. This document includes 40 projects in various sectors that will be supported.

Previously, the goal was set to increase Chinese investments in the Russian economy by 2020 up to 12 billion USD, and the Plan of Russian-Chinese investment cooperation was adopted. At the present time, the Ministry of Economic Development of Russia and the State Committee for Development and Reforms of China develop the mechanism of implementation of this Plan. We have agreed with our Chinese partners on the use of Russian-Chinese investment platform in the Internet to enhance the exchange of information and to assist companies in finding partners for investment cooperation.

I believe, the issue of the establishment of a special economic zone in Russia with the participation of Chinese companies in the management and financing of infrastructure facilities should not be removed from the agenda. It should be recognized that during the elaboration of the issue a certain hold-back has occurred. An exchange of visits took place, but the Chinese partners have not accepted the proposed site. We are ready to take into account the wishes of the Chinese party on the location of the SEZ.

Special attention should be paid to improving the channels to enhance contacts between the two countries' businessmen.

In 2012 27 Russian business missions to China were arranged, another 14 - in the first half of 2013. Some regions are very active in this sphere. During this year delegations from Voronezh, Orel, Kursk, Tula, Yaroslavl and other regions visited China.

On October. 22, 2013 the 8th Russian-Chinese Economic Forum will take place in Beijing. We propose to dedicate the upcoming Forum to the development of measures in conjunction with the business to ensure the further growth of the Russian-Chinese trade.

Efforts aimed at creating favorable conditions for doing business in Russia are made for foreign companies, including Chinese investors.

The Ministry of Economic Development of Russia and the Russian Agency for Strategic Initiatives (ASI) and the business community have formulated a national business initiative (NBI), which consists of road maps for the most problematic areas of state regulation.

The Commissioner with the President of the Russian Federation for the Protection of the rights of entrepreneurs is established. This mechanism should become a full-scale response center for requests of entrepreneurs and ensure the effective implementation of the rights of entrepreneurs.

The Institute of Improving the Investment Climate - Russian Direct Investment Fund (RDIF) is created to work with long-term financial and strategic foreign investors.

 

At the end of the last year, the Ministry of Economic Development of Russia has launched a project aimed at radical restructuring of trade missions. It's called "The project of forming a new image of trade missions of the Russian Federation."

Essence of the project are new requirements for trade missions in order to facilitate the promotion of Russian companies and regions abroad. The whole system is targeted at that: organizational changes, and staffing, and evaluation of the trade mission and trade representatives themselves.

The backbone of the created system will be the implementation of specific projects with the direct participation and support of trade missions.

During this short period agreements with major Russian companies, including the Rosatom, OAK, Russian Railways, Inter RAO, Mechel, Norilsk Nickel, Power Machines, Aeroflot, Rostekhnologii, Rusal, AvtoVAZ, KAMAZ, RusGydro, Uralkhim were agreed - 44 companies in total. Under these agreements over 170 projects are implemented in more than 40 countries. The similar work is being established with the subdivisions of the Russian Federation - agreements with 28 regions of the Russian Federation have already been signed. One of the first agreements was signed with Kaluga region.

The Russian-Chinese investment cooperation is an important topic discussed at all levels of interaction, including contacts of senior management of our countries. The investment issue has become one of the topics of the talks of the President of the Russian Federation Vladimir Putin and the President of China Xi Jinping held two days ago at G20 summit in St. Petersburg.

So I am sure that holding today the round table on the Russian-Chinese cooperation in investments and industrial production in Kaluga is an important practical guidance for high agreements of leaders of our countries.

Documents