A. N. BRAGIN

Our sobkor in Ethiopia

Russia-Africa Forum Keywords: Russian-African cooperation, Russian private business

In December 2011, the first Russia-Africa business forum was held in Addis Ababa, which was attended by more than 250 people, including ministers from Ethiopia, Zimbabwe, Niger, Chad, Mali and Sudan, representatives of the African Union, and heads of African companies. Representatives of key Russian companies and state corporations, such as Gazprom, Lukoil, Russian Railways, Vnesheconombank, Rosatom, Zarubezhgeologiya, Power Machines, and others, attended the event from the Russian side.

Opening the forum, Ethiopian Prime Minister Meles Zenawi said that " Africa is open to Russian investment, including in the fields of mining and infrastructure." He stressed: "Africa may be of interest to Russia primarily from the point of view of creating infrastructure and participating in the extraction of minerals." At the same time, the Ethiopian Prime Minister expressed concern not only about the modest volumes of mutual goods flows, but also about the fact that they are carried out mainly through third countries.

In his speech, Mikhail Margelov, the Russian President's Special Representative for relations with African leaders, announced Russia's intention to begin a full-scale return to Africa. "In the 1990s, Russia lost almost all its positions here, freeing up territory for the United States, the European Union and China. In 1992, the Russian Federation recklessly closed 9 embassies in sub-Saharan Africa. This poor economy has led to strategic losses that now need to be recouped. Russia should recall its achievements and connections on the continent, and our state is designed to help businesses develop trade and economic ties with Africa. It is time to step up Russian-African contacts, " he said.

Today, Russia's policy in Africa is mostly based on economic interests. In addition to military-technical cooperation, the Russian Federation is interested in developing cooperation in such areas as geological exploration, energy, infrastructure development, mineral development and production of hydrocarbons, fertilizers and rare metals.

According to experts, the development of minerals that are scarce in our country - vanadium, chromium ores, cobalt, and uranium-is of particular importance for Russia. The African continent is known to produce 80% of the world's vanadium production, 70% of chromium ores, and 37% of cobalt. Africa provides more than 90% of the world's demand for platinum, 70% for diamonds, and 35% for manganese.¹ "If the continent manages to manage its wealth rationally, the world will get a new economic pole, along with the United States, the European Union and the countries of the Asia - Pacific region," Margelov is convinced. "There are forecasts that many European and Asian businesses will eventually move to the Black Continent."

African states are beginning to find their own vision of the political and economic situation in the region and the world, their own position in solving acute problems. "In the near future, Africa will become a significant player in the international arena," Margelov said.

Russia and Africa have good prerequisites for developing the full potential of cooperation. Russian Prime Minister Vladimir Putin expressed confidence in this in his welcoming message to the forum participants.: "In recent years, Russia's cooperation with African countries has been gaining momentum again. Russian corporations such as Gazprom, Rosatom, Lukoil, RUSAL, and Severstal have gained a foothold in the markets of African countries, making solid investments in the development of metallurgy and mining, computer technologies, and satellite communications." In his opinion,"the time-tested traditions of Russian-African friendship and partnership serve as the basis for the forum's fruitful work."

Putin recalled that"numerous industrial enterprises, energy and infrastructure facilities have been built in Africa with the participation of our specialists, and thousands of graduates of Soviet and Russian universities are among the political, business, scientific and cultural elite of the African continent."

At the same time, Russian companies in Africa face strong competition from companies in the United States, the European Union, China, India, as well as corporations from the Arabian Peninsula. China, for example, has not only a clear state policy, but also huge funds. Russia, which is rich in its own raw materials, does not yet have clear goals in relation to Africa, as, indeed, means. There are only some projects implemented by private businesses.

According to Dmitry Suchkov, Executive Secretary of the Coordination Committee for Economic Cooperation with Sub-Saharan Africa at the Russian Chamber of Commerce and Industry, Russia's trade turnover with Sub-Saharan Africa totaled $1.9 billion in 2010. It has been around this level for many years. For comparison, in 2010, China traded with Africa for $115 billion, and even Turkey-for $10 billion.²

According to local observers, the forum in Addis Ababa can be considered an important event for business ties between Russian and African businesses. At the closing of the forum, the parties agreed that the development of serious relations requires regular communication between representatives of business communities and government institutions. Participants expressed the hope that the business forum will become a step towards economic cooperation between Russia and African countries at a new stage.

¹ http://www.mining-enc.ru/a/afrika/

² http://www.magazine.rbc.ru/2011/04/01/main/562949980060536.shtml

Permanent link to this publication: