Install

Get the latest updates as we post them — right on your browser

Today's paper. Last Updated: 05/25/2012

Timber, Hotels Beckon U.S. Investors

A delegation of powerful Russian lobbyists will urge U.S. investors next week to invest in timber and the construction of cottages and small hotels in exchange for assistance in entering the Russian market.

The U.S. side, in turn, would like to see the Russian government reduce protectionist measures and streamline the process for obtaining business visas.

The Russians will make their pitch during three days of talks, starting Monday, with Michael McFaul, President Barack Obama’s adviser on Russia, and members of Congress in Washington. The delegation, representing the Russian Union of Industrialists and Entrepreneurs, Delovaya Rossia and the Russian-American Business Council, will also meet with officials from the American Chamber of Commerce.

The trip comes amid a new push by Obama and President Dmitry Medvedev to strengthen investment ties following a Moscow summit in July.

After the summit, the Russian Union of Industrialists and Entrepreneurs, or RSPP, took a poll of several dozen Russian companies on what fields they saw as having the most potential for cooperation. The suggestions will be voiced at the talks next week.

Andrei Kuznetsov, who will represent the Russian Union of Industrialists and Entrepreneurs at next week’s meetings, provided a preview of the results in an interview, saying U.S. investment was most sorely needed in developing Russian infrastructure.

“We have decided that we want to cooperate on big strategic projects in key sectors such as infrastructure on each other’s territories,” Kuznetsov said.

Kuznetsov said Russia could learn from the American experience in timber and small-scale construction projects.

“Designing factories that produce construction materials and garbage-processing plants is what Russians would be glad to see the Americans involved in,” he said, speaking Wednesday in his office on Staraya Ploshchad, just next to the building of the presidential administration.

He also said Russia needed American expertise and technology in deep-processing timber factories and reforestation.

Kuznetsov said U.S. investment was “especially welcome” in the construction of small power-generating stations in cities and villages and the building of small hotels, cottages and stadiums across the country.

“American businesses have good experience in building things that are small but efficient,” he said.

In return, “we are ready to help their companies enter the Russian market,” he said.

He said RSPP and its business members were ready to help U.S. investors find Russian partners and develop projects.

Andrew Somers, president of the American Chamber of Commerce in Russia who will attend next week’s meetings, said the talks would be a good chance to set priorities.

“We have to decide between ourselves what is most important and then approach our governments,” he said. “You can’t come to them with too many issues.”

He said reducing protectionism in the Russian agriculture and transportation sectors were major issues.

“Business visas and work permits are a most important issue for us as well,” he said. “It has improved, but there are still delays. People don’t get their visas on time.”

RSPP head Alexander Shokhin said at the July summit that Russia should scrap visa rules for U.S. citizens in exchange for the United States lifting Jackson-Vanik, a Cold War-era trade restriction.

Kuznetsov said both the Russian and U.S. government should ease visa rules for scientists and managers.

“We would like a reciprocally facilitated visa regime to be introduced for scientists and engineers,” he said. “We also want to introduce education programs to train Russian managers working in innovative fields such as bio and nanotechnologies, aviation and space.”

He said Russia needed U.S. investment to implement cutting-edge technology in the pharmaceutical industry. “We would like to create joint ventures to produce drugs in Russia using American know-how,” he said.

Returning to infrastructure, Kuznetsov said he hoped U.S. investors would bid for projects. “It would be great if American companies could take part in tenders to construct railroads, sea ports and other infrastructure projects on equal terms with Russian companies,” Kuznetsov said.

Russian businesses, whose business interests in the United States range from steel mills to real estate, would like to participate in U.S. tenders as well, he said.

“We want to form partnerships with American businesses to work on common projects in the United States and in third countries,” he added.

He said he was looking forward to his trip to Washington and credited Obama for making it possible. “There never was any regular dialogue between the countries’ business communities before Obama took office,” he said.





This article has no comments.

Be the first to leave a comment


Discussion
The Moscow Times welcomes your comments and invites you to discuss topics with other readers. Your comment will be posted automatically to enable a live discussion. If you aren't familiar with our comments policy, you can read it here.

If you're a registered user, you can start typing your comment below. If not, take a moment to sign up. and then return to the article.

If your comment doesn't appear, contact us by using our web form.

Comments

Comments via Facebook



Also in Business

Protest and Chaos Seen in Kudrin-Ordered Study

Continued protests in Russia will likely lead to violence or chaotic change, according to a new study ordered by the former finance minister.

Initiative Brings Khamatova Joy and Frustration

The Soviet maxim "initiative is punishable" is only half true for actress Chulpan Khamatova.

Medvedev Divides the Burden Amongst His Deputies

Prime Minister Medvedev on Thursday allocated responsibilities between his deputies, saying he couldn't solve all the issues on his own.

Rotenberg Gets Road Contracts by Decree

Before leaving the Kremlin, former president and current Prime Minister Dmitry Medvedev gave Arkady Rotenberg's Mostotrest an extravagant gift of several tens of billions of rubles' worth of contracts for road construction in Moscow without competition.

Luxury Hotels Compete to Raise Service

In 2007-10, the Radisson Royal Hotel, Moscow (formerly the Hotel Ukraina) underwent a $300 million transformation from Soviet behemoth to internationally branded luxury hotel. Now the hotel is rebuilding its training system to bring customer service up to world-class levels, with a "Russian twist."

Mid-Level Ready to Take In Tourists

Tourism industry website TripAdvisor recently ranked Moscow fourth on its list of "15 destinations on the rise," and the Moscow government will invest $11 million into developing tourism in the city this year. The capital is also undergoing a massive beautification project to increase the total area of city parks fivefold in the next five years.



print


Comments

This article has no comments.

Be the first to leave a comment





Most Read
MarketGid
 

One Year Ago Today a Russian Internet IPO Topped the News

Search engine Yandex announced the pricing of its NASDAQ initial public offering of 52 million shares at $25 per share Tuesday, higher than the earlier price guidance of $20 to $22 per share — and shot up more than 42 percent in the first half day of trading.