INTERVIEW: Russia-Chinese cooperation to advance in 2017

MOSCOW, May 12 (PRIME) – Trade turnover between Russia and China is increasing rapidly and may boost economic cooperation in 2017 as there is interest from Chinese investors implying that the trend may expand further, managing partner of the Russian division of consulting company EY Alexander Ivlev said in an interview with PRIME on Friday.

“The work to improve conditions for foreign investment (in Russia) has been intensified lately and 2017 may become a year of rapid growth in economic cooperation between Russia and China. (The trend) may continue next year,” Ivlev said ahead of an economic forum in China.

The Belt and Road international cooperation forum will take place in Beijing on May 14-15. Heads of 28 countries have confirmed their attendance, including Russian President Vladimir Putin.

Ivlev said that trade turnover between Russia and China rose 41% on the year in the first two months of 2017 and added that Chinese investors consult with his company and do active market research in order to enter the Russian market.

The executive also said that the marcoeconomic situation of the past year has improved helping cooperation between the states although there are still a number of risks of investment in Russia, including the lack of predictability of the legal system.

“Chinese investors… have taken a wait-and-see approach… Some investing problems must be solved in order to accelerate the process,” he said.

He added that according to a survey, the level of mutual trust between Russian and Chinese companies is high, and Russian businessmen also see the Chinese market as very attractive despite cultural differences.

Discussing active expansion of Russian companies in China is premature, although “not only traditional sellers of natural resources are interested in China, but also firms representing other industries,” Ivlev said. He added that the Belt and Road forum is primarily aimed at investments in energy and infrastructural projects, but cooperation in tourism, financial services, agriculture and other sectors is possible in the future.

Russian-Chinese energy cooperation has significantly expanded in volumes and geographic terms and Chinese investors are even considering joint projects in the Arctic, the executive also said.

“Chinese people think long-term and express a strong interest in the (Arctic) region. It is not a secret that there are huge resources there. Besides, Chinese companies are willing to participate in the Northern Sea Route project, because the navigation season of this transport route may rise considerably due to climate changes,” he said.

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