Andrei Denisov on Russian Foreign Policy and Commercial Issues

Quotes of Note

Ed. note: Andrei Devisov is Deputy Foreign Minister of the Russian Federation. I met with him in July 2002 and the following are several excerpts from our discussion I thought might be of interest to our members.

“For the first time since the 1950s, last year, Russia exported grain to Western Europe and other countries. Russia produced 3.5mn tons of wheat, and 2mn tons of barley. We are looking for other markets in Asia and other countries. Our agricultural productive capability rests mainly in the southern part of Russia.”

“Our volume of trade with the U.S. is about $9-10bn dollars. It is far from what is possible. It is about equal to Russian trade with China.”

“Our trade with the European Union is about $60bn euros (in 2001). It comprises about 35% of Russian total trade turnover. It is heavily concentrated on natural materials and natural gas.”

“Poultry production in the Soviet Union in the 1960s was highly advanced. But lack of management and lack of funding weakened this industry after 1991, and Russia then needed to import poultry.”

“In reference to several dispute cases that Russia and Western companies find themselves in now, it is important that both sides sit down to face each other and compromise. People must share. They must find a ground for compromise. Now, it is in the national interest to find solutions to these problems. It is not just a matter of the local enterprise. The government must try to find ways to resolve these cases.”

“Russia needs the WTO for three main reasons. First, is to help Russian exporters gain better market access. Second, is to have direct access to dispute resolution mechanisms, otherwise, we lose out on protection measures. Third, we need WTO membership to be a big player in global trade and cooperation. The WTO will provide a better legal framework for market integration.”