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Published: March 23rd, 2016

Lomonosov housing MSU

On the theme:
During the "cold war" economic relations between the USSR and the West was a factor of peace and détente. In today's political crisis in Russian-European relations economy, contrary to the pragmatic mutual interests, it becomes a means of exerting pressure and instrument of confrontation.
Whether the economy doomed to sacrificed to the policy, or economic relations can serve as a factor to overcome the political crisis between Russia and Europe?

Moderators:
Andrei Kobyakov, an economist and publicist, member of the Organizing Committee of the MEF

Among participants:
Axel Lebahn, Vittorio Torrembini, Gerd Lenga, Oleg Prozorov, Tadzio Schilling, Thomas Kerhuel.

The fourth Moscow Economic Forum (MEF) held a conference with representatives of international business "Russian-European economic relations: survival in times of crisis." The main question raised by the participants of the discussion: whether the economy is doomed to be sacrificed to political or economic relations can serve as a factor to overcome the political crisis between Russia and Europe. Participating in the discussion were representatives of a number of European countries: Germany, Switzerland, France, Belgium, Italy, Austria.

Moderator of the discussion Andrei Kobyakov, economist, political scientist, member of the Organizing Committee of the MEF, among other outlined key issue for discussion is whether today's economy the instrument of geopolitical struggle, or on the contrary, it serves as a vehicle of cooperation and mutual trust.

Commercial Director of the Franco-Russian Chamber of Commerce Toma Keruel noted that relations between the two countries have evolved over the past two years. Despite the fact that the short and medium term effects of the sanctions policy is negative, there are positive long-term trends. If small and medium businesses, as a rule, have to suspend its activities in Russia, the larger companies are planning to work in the Russian market in the near future. Among the obstacles to foreign business in our country the economist called the investment climate and the large number of new regulations, restrictions - it is very difficult to work in such conditions with the Europeans, accustomed to abide by the rules and act within the law. For small and medium businesses the legal aspects of the work are often the deciding factor in entering the Russian market.

President of the Association of Italian businessmen in Russia GIM Unimpresa Vittorio Torrembini supported his French counterpart in mourning for the investment climate in our country. However, he noted that Italian companies due to the smaller scale are often more flexible in a rapidly changing environment. The investment climate for such companies in Russia - a specific agreement with the authorities of the region. The heads of only some subjects actively go to the contact, in other cases, by the remark of a businessman, the culture of the Italian and Russian businesses do not find a common language. Vittorio Torrembini convinced that representatives of the Russian business and regional authorities have the opportunity to meet foreign business, and sanctions if they are not canceled, can serve as an additional incentive to intensify this dialogue.

Gerd Lenga, a former member of the Board of the Association of Economic Cooperation with the countries of Eastern and Central Europe, brought disappointing statistics of the recession and import turnover of German companies in Russia. He lamented the serious gap of business interests and political power in Germany, due to the influence of the United States. The primacy of politics, the conviction of Dr. Lenga, is a problem in itself, and does not allow to look optimistically into the future.

Director General of the Belgian-Luxembourg Chamber of Commerce in Russia, Oleg Prozorov said that the business always and everywhere experiencing difficulties associated with political problems. According to his observations, among the business representatives it becomes less and less talk of sanctions and increasingly of finding ways to develop in those conditions.

This point of view is supported by the business development director of the international department of Ernst & Young Taj Schilling. "Trade relations has suffered to a lesser extent because of the sanctions, and more - because of the economic slowdown and the fall in purchasing power due to the devaluation," - he concluded. The presence of Swiss companies that demonstrate growth on the basis of 2015, talks about the importance of selecting the right business strategy in the circumstances. The businessman also said that exports from Russia fell much less sharply than imports, due to the dynamics of the ruble. According to him, to save the relationship with European partners is very important to prevent too sharp fall in imports and to maintain a balance.

Axel Leban, who led in the 1980s, the Moscow bureau of Deutsche Bank, believes that the effect of sanctions can have far-reaching consequences. According to him, Russian and European companies must together seek exits and create a climate which will lay the foundations for a new relationship.

Moderator of the discussion Andrei Kobyakov said that one of the achievements of the conference is the consensus of speakers in expressing their unequivocal condemnation of the sanctions regime, in recognition of its futility. Common is the optimism that manage to maintain, in spite of the notes sounded alarming. It is worth noting that all the Europeans in one way or another expressed the idea that Europe did not act as initiator of sanctions itself , but there is a third force behind it - the United States of America. "Frankness, with witch the statement was made, in view of the fact that the participants were not opposition politicians and businessmen who are linked major economic interests and are not inclined to risky statements - this is a huge success," - said the analyst. At the same time, scientists are confident that the many aspects remained behind the scenes and require further discussion.

Source: PR department of MEF