NEW GERMAN-RUSSIAN BUSINESS PLATFORM

German and Russian trade associations have formed a joint entrepreneurial platform in order to foster closer business ties despite Moscow’s controversial EU policy. The joint initiative between German and Russian businesses should promote economic cooperation between the two countries. In addition to increased interaction between the two sides, the German-Russian Chamber of Commerce (AHK) said that politics and the economy could both benefit from the joint venture and that the platform should be a forerunner in improving bilateral relations. Berlin-Moscow relations have deteriorated since Russia's annexation of the Crimea, leading to a collapse of trade between the two countries. Particularly hard-hit has been the dairy sector, with the price of milk collapsing due to over-production.

The new business platform is only one of the means by which the two countries are seeking to improve relations in the wake of the Ukraine crisis. In Potsdam, the so-called Petersberg Dialogue resumed on 22 October after a lengthy pause. For many social groups, one of the main themes of the two-day forum is using modernisation as an instrument to create a common "European house".

The new platform will be made up of the Association of Russian Industrialists (RSPP), the Russian business association 'Delovaya Rossiya', the Committee on Eastern European Economic Relations (OA) and the AHK.

About the RSPP

The Russian Union of Industrialists and Entrepreneurs (RSPP) was established in June 1990 as a non-political organization to protect the interests of industry at the time of fast and large-scale transformations in the state politics and economy. RSPP President is Alexander Nikolaevich Shokhin. From the very first days of its life the RSPP priorities include: promotion of the business community interests in Russian and at the international level and consolidation of Russian industrialists and entrepreneurs` efforts for business environment development; enhancing the status of business in Russia and the world; maintaining the balance of interests of society, government and business. RSPP represents the interests of all Russian businesses irrespective of size, sector or regional location of companies. The Russian Union of Industrialists and Entrepreneurs acts in two forms – as a non-governmental organization and all-Russian association of employers, the combination which allows to advocate the interests of the RSPP members most effectively given different rights and capabilities of organizations. RSPP today brings together about 130 sectoral and regional associations of employers.

The RSPP regional branches’ and employers associations’ goal is to create favorable conditions for business activities in the Russian Federation subjects. Their activities focus on the issues of regional social and economic development, fostering government and business engagement, tax policy, incentives for modernization and enterprises’ innovation, support and development of SMEs, pricing policy of natural monopolies and others. Coordinating councils of industrialists and entrepreneurs established in the federal districts play an important role in the process of consolidating the positions of the RSPP regional branches and associations of employers. Through a broad discussion process in regional and sectoral RSPP member organizations as well as at the federal level, each company has an opportunity to present its position on actual social and economic policy issues.

RSPP as an association of employers has the advantage of formalized mechanisms of cooperation with governmental authorities through Russian Trilateral Commission on the Regulation of Social and Labour Relations, regional and territorial trilateral commissions.

RSPP work with governmental authorities for favorable investment climate development is particularly important under the circumstances. This is one of the RSPP priorities at national and international levels.

About All-Russia Business Association 'Delovaya Rossiya' 

All-Russia business association “Delovaya Rossiya" (Business Russia) is an independent non-for-profit organization representing interests of Russian small and medium entrepreneurs, doing business mainly in non-commodity sectors of the Russian economy. The aim of “Delovaya Rossiya” is through dialogue between the Civil Society and the Government to form a favorable business environment, to achieve development of Russia as a democratic country integrated into the global economy with a modern and up-to-date diversified national economy, developed and civilized national business and strong state, that provides and guaranties effective growth and order. Over 2,500 members. More than 60 regional offices - the largest regional network among Russian business NGOs. More than 20 expert committees aimed at solving specific tasks and business problems. More than 50 sectoral branches, aimed at consolidating the leading players in each non-commodity sector in order to improve business climate and meet the challenges of the industry. Specialties : Roadmaps for improvement of the investment and business climate in Russia, Business Advocacy against corruption pressure and breach of rights, Government Relations, Expert Assesment, Analysis and Forecast, Business & Economic Events.

About the Committee on Eastern European Economic Relations

The Committee on Eastern European Economic Relations was founded in 1952. It is a joint organisation of the leading associations representing German business. It is supported by the Federation of German Industries (BDI), the Association of German Banks (BdB), the German Insurance Association (GDV), the Foreign Trade Association of the German Retail Trade (AVE), as well as the German Confederation of Skilled Crafts (ZDH). Membership of the Committee on Eastern European Economic Relations is open to companies with interests in Russia, Central and Eastern Europe, South-East Europe, the Caucasian Republics and Central Asia. The Committee on Eastern European Economic Relations comprises a Board of Management, the General Assembly and working groups. The Committee is managed by the Federation of German Industries. Chairman of the Committee is Prof. Dr. Eckhard Cordes. Prof. Dr. Rainer Lindner is the Executive Director of the Committee. The Committee on Eastern European Economic Relations represents and pools the interests of German business in Germany and in the above countries. It supports and strengthens the growing economic ties with these countries and regions. The Committee on Eastern European Economic Relations provides the following services: A network of contacts to government representatives and business associations in Germany and in Russia, Central and Eastern Europe, South-East Europe, the Caucasus and Central Asia; Coordination of the institutionalised dialogue with the various governments (Cooperation Councils, working groups etc); Current information regarding economic developments in the relevant regions; Organisation of delegations, conferences, seminars with high-ranking government representatives and entrepreneurs from Russia, South-East Europe and the Caucasus, as well as from Central Asia.

About the German-Russian Chamber of Commerce (AHK

Deutsch-Russische Auslandshandelskammer (AHK)

The German-Russian Chamber of Commerce with offices in Moscow and St. Petersburg is the interest representation of all German firms active in Russia and all Russian firms active in Germany. The AHK counts over 800 German, Russian and other enterprises. Michael Harms, Delegierter der Deutschen Wirtschaft in der Russischen Föderation

Survey

1. Most Germans (59%) are skeptical about the effectiveness of the current economic sanctions against Russia, they firmly believe that close economic cooperation with Russia can have a positive effect on the political situation, and should be intensified. 52 % of Germans still consider Russia to be a reliable economic partner. Specifically pertaining to natural gas and other energy supplies, Russia’s reputation is even more positive: for 56 percent of the German population see Russia as a reliable energy supplier. Only 40 percent do not see Russia as a reliable energy supplier.
2. Good business partnerships can play a role in improving political relations between Germany and Russia: more than two thirds of Germans (71 percent) share this view. In contrast, only about a quarter of them (26 percent) do not believe that good economic relations can influence the political relationship positively.
3. Since most Germans share the conviction that economic cooperation can have a positive impact on political relations, it is no surprise that the large majority of the population is in favor of intensifying economic ties with Russia. No less than 75 % of Germans would welcome it if economic relations between Germany and Russia were more intense in future than they are now.
4. According to information from the German-Russian Chamber of Commerce (AHK), around 6,000 companies with German participating interests are currently active in Russia. Thus, the number of German companies doing business on the Russian market remained virtually constant over the last year.