Russia and Europe: lovers' quarrels are soon mended

On January 13 Tatarstan Investment Development Agency Chief Executive Taliya Minullina took part in the panel discussion "Russia and Europe: Economic Prospects", held within the Gaidar Forum-2016.

During the debate presented the Head of the IMF mission in Russia Ernesto Ramirez Rigo, Deputy Energy Minister of Russia Alexey Teksler, First Deputy Minister of Economic Development of Russia Alexey Likhachev, prominent economists and financial experts.

Participants discussed issues of influence formed the transatlantic trade and investment partnership between the US and the EU on the Russian-European economic cooperation, the relationship of the economies of Russia and Europe, their long-term trends, common interests and controversy, the effects of mutual sanctions.

In particular, it was noted that the trade turnover of the EU with Russia is falling, but despite this, even today, more than 44.5% of Russia's trade turnover goes to the EU. For the Old world Russia remains a key partner, after the US and China. Russia's main European partners today are Germany, the Netherlands and Italy. Thus, as was noted in the debate, despite of annoying pause in the relationship,the work is still work.

According to Ernesto Ramirez Rigo "Sanctions and oil prices - the two shock for Russia. Investors need confidence, as well as technology transfer is necessary." However, apart from the negative factors, there are positive aspects in the trade and economic cooperation between Russia and the EU. This is a continuation of interaction between European companies, active participation of European entrepreneurs in business forums and the continued partnership on the four sectoral dialogues: space, migration, health and science. Moreover, Russia and the EU have many common interests - the establishment of a joint energy space with strong internal connections, the formation of a common transport and logistics structures, the gradual removal of barriers in trade and investment.

During the discussion, Alexey Likhachev said that trade with the EU in comparison with other partners declined, Russia's exports to the EU decreased by 37.7%, while imports from the EU - 41.5%, but at the same time, Russia's trade with the EU countries in physical terms grew by 2.5% in 2015 against the background of all sanctions. For some positions, there was a significant increase of products shipped from Russia to eurozone countries. For example, shipping of tractors and trucks has increased three times. The speaker also noted that foreign direct investment from France, Germany, the Netherlands and Cyprus showed an increase, comparing the first half of 2015 with the same period of 2014. Generally, in the period from 2011 to 2014 investments from Europe to Russia increased by three times, but the spring of 2014 presented a different reality.

At the same time in 2015 was held seven intergovernmental commissions with European countries. "That is, in spite of the worsening of relations, Russia has been able to maintain the trend of growth of physical volumes of Russian supplies, investments also have been increased," - said Alexey Likhachev.

- Europe for Tatarstan, as well as for the whole of the Russian Federation is an important partner. The difference approaches to Syria and Ukraine problems, sanctions and answers to them, of course, have an impact on the business.However, this is unprofitable for the European economy or the economy of Russia. Therefore, the warming of relations with time is inevitable: lovers' quarrels are soon mended, says Taliya Minullina.