Russian-Algerian economic area is called into being

The Russian-Algerian Business Council (RABC) set up during the visit of Russian President Vladimir Putin to Algeria in March this year has started tangible work aimed at expanding intergovernmental financial and economic contacts. On May 20 the first meeting of this international body was held in Algerian capital, Algiers. The Council is chaired by two co-chairmen. The Russian party is represented by Mikhail Gutseriev, a well-known businessman and President of company RussNeft, and the Algerian party is represented by Kamel Abdelrahim, one of the political leaders of this North-African republic. 
At the meeting the parties approved and adopted the Statute of the Russian-Algerian Business Council, applying concepts of the intergovernmental agreement on strategic partnership concluded earlier. The document defines major objectives of RABC. The members of the Council must promote and develop commercial and production relations between Russian and Algerian organizations and companies, assist with exchange of technologies, back up the contacts between businessmen of both countries, facilitate investments and partnership, and help organizations implement their projects. RABC shall also have all the information related to the legislation of both countries and make it available to businessmen. The Council undertakes to arrange for economic and commercial events to take place and for businessmen to exchange visits. The members of the Council are going to assess the degree of economic and commercial interaction between the two countries. Furthermore, RABC shall do the economic forecasting and make recommendations to be submitted for consideration of Russian and Algerian governments.
The structure of RABC will consist of six core sectors in fuel and energy, construction, industry, finances, agriculture and trade, chemistry and pharmaceutics. Relevant Russian and Algerian companies will be in charge of each of the above sectors. The parties have drawn up the immediate action plan of the Council. Representatives of the Algerian Ministry of Privatization and Investments, Ministry of Tourism, Ministry of Energy and Mines made detailed reports carrying on the country’s legislation and investing conditions in Algeria. Russian representatives asked specific questions about legal aspects of the tax regulations of the North-African state. At this point, the Russian businessmen noted by common consent the significant potential for Russian business in Algerian economics. In his turn, Mikhail Gutseriev offered the Algerian partners to explore the possibilities of investing in Russia’s rapidly growing economy.
Algerian hydrocarbon sector seems the most interesting area for Russian investments. As it was found out during the meeting, Algeria had no restrictions set on crude oil export and import transactions. Mikhail Gutseriev pointed out that the Algerian legislation was of a reasonable and advanced character and guided by the necessity of integrating the local economy with the global markets. At this point, the head of RussNeft suggested establishing a relevant Russian-Algerian joint venture and confirmed that he was going to take part in the six tenders announced in Algeria. With all that going on, there are plans to initially invest at least $ 100 million in Algerian economy
The conferees were particularly interested in the opportunities of investments in Algerian tourism (in the year 2005 1,450,000 tourists visited the country), first of all, related to the costal area of the Mediterranean. Such opportunities mean construction of hotels and developing leisure industry. With lower prices in the country Algerian resorts could successfully compete with those in Egypt and Turkey. As for holiday-makers fond of going through thrills and spills one can arrange for them special events raging from mountain skiing to visiting Sahara, all in one day, and won’t forget to include the world-famous Tassilia’s wall-paintings.  
In the course of the meeting the Russian and Algerian businessmen conducted serious business negotiations.
Summarizing the results of the meeting, Kamel Abdelrahim pointed out that the conferees had succeeded in stirring to activity the bilateral cooperation and started to create a common Russian-Algerian economic area in actual fact. Mikhail Gutseriev paid special attention to the high level of political and economic stability in Algeria allowing Russia’s businessmen to promote development of mutually beneficial and fruitful cooperation between the two countries. The next meeting of the Russian-Algerian Business Council is to be held this autumn in Moscow and St. Petersburg.