Investment in Exchange for Technologies

In Saint-Petersburg high-ranking Russian participants of Russian-Arab Business Council (the RABC) regular session called on Arab businessmen to invest into Russian regions and Southern territories in particular. The host country tried to convince the guests of prior investment appeal of territories, where Islamic population of higher density lives.

The 6th forum of the Council that unites Russian and Arab business worlds was a record one in every respect. The organizers managed to get over 120 major Arab businesspersons together. Russian government was represented by President of Russia’s assistant Igor Shuvalov, who read Vladimir Putin’s message to those present, the governor of Saint- Petersburg Valentina Matvienko, plenipotentiary representatives of President Ilya Klebanov, Alexander Konovalov, and Dmitriy Kozak. Business elite was represented by head of JSFC “Sistema” Vladimir Evtushenkov, president of the oil company RussNeft Mikhail Gutseriev, general director of Aeroflot ValeriiyOkulov.

The keynote of the forum was financial investment into Russian regions. President’s plenipotentiary representative of President in the Southern federal region Dmitriy Kozak called the region he is in charge of ‘really prosperous for both life and business’. He explained continuing risks for investment as existing stereotypes and called ‘to have a look at the South of Russia from a different viewpoint’. President of Chechnya Alu Alkhanov invited investors to ‘reconstruct the republic’ and called Islamic Development Bank to pay attention to Nothern Caucuses. The plenipotentiary representative of President in the Volga region Alexander Konovalov reminded that on the territory he is in charge of live 40% of Russian Muslims. The head of Chamber of Commerce of Saudi Arabia Abdurrakhman Ar-Rashed, the head of the Arab side of the RABC this year, spoke of a possibility of major investments, pointing out that ‘Russia may become an advisor of the Arab world for technological development’. Chairman of the Federation of the Chambers of Commerce and Industry Adnan Kassar also spoke about the readiness of Arab countries to invest into Russia. According to the plans of the RABC the Arab House in Moscow will provide investors with favourable conditions. Another investment project is to set up a Russian-Arab investment fund and then a joint bank.

An important event for the RABC was the signing in Saint- Petersburg of an agreement on establishing Russian-Bahraini Business Council; it is the 13th bilateral branch of the organization.

The Russian-Algerian Business Council (the RAlBC) was established earlier in March. Mikhail Gutseriev became a co-chairman of it. The Algerian direction of Russia’s energy and power policy is a particularly attractive one for experts because of natural gas supplies to Europe. It is well-known that Russia and Algeria are the major players of this market. A recent signing of a memorandum of understanding between Gasprom and the Algerian state company Sonatrach has arisen a concern in European business community that it means setting up of a gas cartel for further price control. NG’s correspondent asked the chairman of the RAlBC to express his opinion. ‘I think it is adjusted elaborate state policy, the results of which will be advantageous for both countries’ economies’,- Mikhail Gutseriev said.

The cooperation between Gasprom and Sonatrach was enhanced after Vladimir Putin’s visit to Algeria this March. According to the head of RAlBC today LUKOIL, Tatneft work actively in the country as well. RussNeft has its own interests in Algeria. Mikhail Gutseriev said that an active step of negotiations on setting up an Algerian-Russian company with the participation of RussNeft is launched. Such a company is expected to participate in a tender for development of 1-2 fields in Algeria.