The level of UK foreign economic relations with Russia

Economic co-operation continues to be one of the priority areas of the Russia-UK relations. The UK remains one of Russia’s leading foreign trade and investment partners. Trade volumes have recovered after a slowdown caused by the global financial crisis and reached $23.2 bln in 2012. Britain was fifth in accumulated foreign investments in Russia, totaling $26.7 bln in 2012. Today hundreds of British companies continue to successfully operate in the Russian market. Russian business presence in the UK is expanding too. Among the most attractive areas of investment co-operation are the financial sector, retail trade, mechanical engineering, metallurgy, mineral resources industry, transport, communications, pharmaceuticals, real estate. Bilateral dialogue between regions is also becoming more active and increasingly involves Russian as well as British regions.

The London Stock Exchange remains a leading international platform for our companies working with investors in the global capital markets with more than 60 Russian and Russian-focused companies traded in London. Among them - Sberbank, Gazprom, Lukoil, Rosneft, Norilsk Nickel, VTB, X5 Retail Group, SISTEMA, MegaFon and others.

The two countries’ governments are actively promoting further expansion of our economic co-operation, which is one of the primary elements for ensuring positive development of Russia-UK relations. The 9th meeting of the Intergovernmental Russian-British Steering Committee on Trade and Investment (ISC) was held in October 2012 in London. At the meeting the business representatives of our countries confirmed their interest towards further intensification of co-operation for modernization and development of knowledge-based areas of economy, including innovations and nanotechnology, financial services and the creation of an international financial centre in Russia, as well as energy and energy efficiency, preparation of large-scale international sports events, small and medium enterprise development, and others. Britain is one of the most important business partners of Russia. According to all available statistics, UK confidently ranks among the four leading foreign investors. In the direct investments and securities UK divides the second place with Germany and Switzerland. The largest British companies in key sectors, including energy, telecommunications, banking, trade, and consumer goods, have adopted long-term liabilities on the Russian market. Despite the difficulties caused by the devaluation of the ruble in August 1998, British companies continue to trade and investment in Russia. In its activities in Russia, having a wide spectrum: from the delivery of mining equipment to the sale of children's clothes, they work closely with Russian partners. It is obvious that in the interests of both countries the volume of trade and investment should grow. For Russia British business seems to be the source of investments and experience, which can make a valuable contribution to the reform and economic recovery. Britain is also a growing export market for Russian firms. For British companies, Russia is potentially a huge market, which is not far from the UK. However, one should not underestimate the temporary difficulties. Seven months after the August crisis, the trade turnover of the majority of British companies operating in Russia, decreased seven times compared with last year. The resumption of growth will be faster, if the obstacles in the development of our economic relations will be reduced or excluded at all. Overcoming these obstacles will bring equal benefit to Russian and British companies and help to reveal the possibilities of Russian economic growth.