RUSSIA–JAPAN: CREATING A NEW BUSINESS COOPERATION MODEL
The participants in the business roundtable discussed prospects for the creation and development of a new model of business cooperation between Russia and Japan. Representatives of both countries searched for ways to effectively address challenges to business and trade and economic relationship.
Moderating at the roundtable session was Alexey Repik, President of the All-Russia Public Organization Delovaya Rossiya (Business Russia), Member of the Public Chamber of the Russian Federation, and Founder and Chairman of R Pharm.
In recent years, Russian business has essentially turned towards Asia, and Asian partners are often preferred when it comes to the development of business relations. Japan is one of the leading partners in the region.
Russia and Japan are building a long-term mutually beneficial track record of relations with APR economies. There is enormous untapped potential for growth of the relationship between the two countries, the speakers said.
The Japanese speakers noted that contacts between countries need to be consolidated in the current economic landscape, especially with Russia.
Representatives of Russia and Japan mentioned the joint Sakhalin-1 and Sakhalin-2 projects, accounting for about 10% of Japan’s oil import, as successful energy cooperation projects. They also referred to the special investment project with Mazda Sollers, which is currently in the pipeline, as well as joint production of mineral fertilizers in the Far East to supply to Asian markets, pharmaceutical projects, etc.
The roundtable also addressed the one of its kind Russia–Japan group to improve the investment climate. The group explores systemic challenges to both countries, such as customs issues, as well as specific problems that individual companies encounter. Stanislav Voskresensky, Deputy Minister of Economic Development of the Russian Federation, referred to the group as “Russia’s real ombudsman office for Japanese business”.
The participants also mentioned the new product which is now undergoing tests at the port of St. Petersburg and will eventually be used in Nakhodka. It was designed pursuant to a special decree of the Federal Customs Service encompassing the two ports. The project has improved the quality of customs procedures and resulted in specific KPIs with a clear indication of the time and number of documents required for import and export operations.
Russia also pointed to the fact that the vast potential of the Far East must be exploited. Japanese companies will be offered benefits if they work with export supplies from Russia, and for goods coming from the Far East, these benefits will be maximized, including tax preferences, government subsidies, and simplified administrative procedures.
Some 200 companies with Japanese capital operate in Russia, not many compared with Japan’s presence in other APR economies. However, this implies that there is considerable potential to unlock, the speakers agreed.
