Russia’s accession to the World Trade Organisation (WTO) will spur an increase in mutual Russian-European investment, and European companies should look East to the Russian market for new sources of growth. These were key themes addressed by Kirill Dmitriev, Chief Executive Officer of the Russian Direct Investment Fund (RDIF), in remarks delivered at the EU-Russia Industrialists Roundatable today. The Roundtable was held as part of the EU-Russia Summit in Brussels.
Russia’s expected accession to the WTO will give a sizeable boost to the country’s GDP growth rate, Dmitriev said. He expects industrial production to rise on increased international sales as Russia further integrates into the global economy.
"We expect a rise in mutual cross-border investments given that WTO membership will remove trade barriers and barriers to investment,” says Dimitriev. “In many industries Europe is fully saturated, and companies on the continent need to seek out new sources of growth. The challenge is further complicated by huge sovereign debt burdens in many European states. Russia, by contrast, has massive growth potential and some of the strongest macroeconomic fundamentals of any country globally. It is natural then that we are seeing more European companies coming to Russia for growth they cannot get at home."
Dmitriev will also participate in a meeting chaired by Russian President Dmitry Medvedev to discuss deepening cooperation between Russia and the EU in areas including trade and investment.
"We are awaiting a breakthrough in relations with Europe,” he says. “In the past the EU has sometimes hindered inbound Russian investment, but in the new economic environment with Europe facing economic headwinds they need to understand that barriers need to be removed and welcome Russian investment in the EU as well as European investment in Russia."
