RUSSIA–NORTH AMERICA: BUSINESS OUTLOOK FOR ECONOMIC COOPERATION – A REALITY CHECK
The representatives of Russian and American companies tried to estimate the current situation in the sphere of business and cooperation ties, presented possible government measures to provide more comfortable conditions of cooperation and assessed prospects for the development of relations between the United Stated and Russia.
The meeting was moderated by David Iakobachvili, President of Orion Heritage LLC and President of the Russian–American Council for Business Cooperation, and Alexis Rodzianko, President of the American Chamber of Commerce in Russia.
Goods turnover in Russia and the United States last year reached approximately USD 21 billion, down 28% from the previous year. Imports into America from Russia dropped 38% per annum to USD 11.5 billion. Exports from the United States declined 10.5% to USD 9.5 billion.
In 2012, Canadian exports to Russia were at their all time high of USD 2 billion, a year earlier imports showed the best result, reaching approximately USD 1 billion. Now both figures shrank to USD 600 million.
The roundtable participants noted that sales between the two countries have never been high, however recently they have declined markedly. Businesses have been developing their investment ties for decades, and they are very valuable today, the speakers believe.
The parties proposed to establish contacts in the east of Russia, on the border with the United States. The role of the bridge shall be played by business. American companies do not want to leave Russia, according to the panellists.
Clyde C. Tuggle, Senior Vice-President, Chief Public Affairs and Communications Officer at The Coca-Cola Company, said that his company had invested around USD 6 billion in its Russian business when it came to the country 20 years ago. And today Coca-Cola is a Russian, not American business.
Mr. Tuggle noted that ‘road humps’ existed in many countries, not only in Russia. Companies opening their business abroad should be aware of this.
It was suggested during the debate that there were two basic problems for developing business globally: excessive regulation of entrepreneurial activities and uncertainty of macroeconomic policy.
Today, American companies estimate access to the Russian market at the global level. They believe that there should be equal conditions for all. Russia has made progress with regard to entrepreneurship, and improved its investment climate, which is also confirmed by World Bank ratings.
