Published: March 9th, 2016

On the fourth Moscow Economic Forum, which will take place in Moscow on March 23-24, one of the key topics will be the impact on the Russian economy of the current political situation. In anticipation of the III Plenary discussion "Partnership and confrontation: the dividing line in the modern world” co-chairman of MEF, the president of the Industrial Union "New Commonwealth", the chairman of the Federal Council "Party of Doings" Konstantin Babkin told about the action of the political "freeze" on business and the prospects of international cooperation.

– Konstantin Anatolievich, two years as there are economic sanctions against Russia, and on the eve Barack Obama announced their extension for another year. How aggravation of the political confrontation between Russia and the West is reflected in the relationship of entrepreneurs?

– In my opinion, the negative impact of sanctions and political cooling in relations between the companies, of course, exist. We observed a decrease in the credit lending to Russian companies, also discussed the supply constraints of machines and components. While in the agricultural machinery is not as much there, but the fact of such discussions are making some nervous and suppresses the possible development of a long-term business relationship.

– How under sanctions Russian and European business can find points of cooperation?

– Sanctionsalthough affected the business environment, but the contacts of businessmen, of course, continue and even develop. Of course, life does not stop: both Russian and Western companies do not stop, except for long-term, contract, regardless of any restrictions. Russia is the country that is too big to be smoothly isolated and excluded from the international partnership.

– Speaking of international partnership development what are the prospects opening up before Russia in connection with the lifting of sanctions against Iran?

– Sanctions imposed on Iran significantly limits the possibility of cooperation with Russia, so the removal of economic restrictions would lead to a revival of supply from Russia and more active development of relations, including in the long term. Meanwhile, all the agreements are still on the development stage and talk about some of the results of the lifting of sanctions is too early.

– Given the current political situation in which parts of the world Russia should seek partners?

– Naturally, you must strive to cooperate with all countries, and continue to build a relationship with the Western countries, and China. Yet, in the first place, it is necessary to strengthen the Eurasian Economic Union. Its creation has opened significant opportunities for Russian business, they need to be further developed. There remain some outstanding issues that need to be addressed. The member countries of the Customs Union continue to operate completely different economy support system, industry and agriculture, which introduces an element of unequal market competition. For example, if we consider the agricultural machinery, there are many issues in relations with Belarus: restrictions on the supply of Russian agricultural machinery in the country. All of these existing problems, of course, should be removed. But, in general, the Eurasian Economic Union is now a priority for the partnership.

Source: PR department of MEF