RUSSIA – ARAB WORLD: CONFIDENCE-BASED RELATIONS

On the occasion of the opening of the Arabia-EXPO exhibition, Vladimir Yevtushenkov, chairman of the Russian-Arab Business Council (RABC), and chairman of AFK Sistema's board of directors, spoke to Diplomat

• Mr. Yevtushenkov, the Arabia-Expo exhibition is being held for the first time. How many countries will take part in it and how many exhibitors from Arab countries will show their goods and services?

  Indeed, an exhibition of this scale is being held for the first time ever and, frankly, we are pleased with the interest displayed by our potential partners. Half of the Arab nations, namely, 14 Arab countries will take part in it. What's more, the exhibitors will not just have stands, but also national exhibitions of their respective countries, which will differ from each other in both their exhibits and national decor. Russia will also have an exhibition introducing all sorts of companies wishing to attract prospective Arab partners to their stands. I guess the total number of exhibitors may approach 200, which points to the timeliness of the event and the need for it expressed by the Arab business community.

• You are not only the head of the RABC, but also one of the «captains» of the Russian business community. How big is the interest of the major Russian companies in interacting with Arab countries and participating in the Arabia-EXPO event? What obstacles do Russian businesses, in general, and the Sistema corporation you head,in particular, encounter in entering Arab markets?

• The RABC has been in existence for five years now. Our experience suggests that Russian companies consider Arabs to be reliable and serious partners. This is specifically borne out by the growth of the goods turnover: in just the last few years, it has increased nerly threefold, exceeding the $6 billion mark. Look at what is happening in Dubai, Saudi Arabia and the Maghreb countries: Russians win tenders, purchase real estate, and work out major construction projects. Of course, the very fast that numerous Russian companies are exhibitors and their chief executives and our business elite will come to the official opening ceremony demonstrates that interest in the Arab world is growing. There are objective reasons for it. We undoubtedly see Europeans as serious partners, to whom we are linked under already existing commitments. There is, however, another world, the Oriental world, where our interests largely coincide and where we have projects of a long-term nature. Given the history of Russia's relations with the Arab world, we seek to boost and diversify our ties and get real returns in the form of concrete offers that eventually may bring quite substantial benefits.

• What role do the media play along with the activities of Russian and Arab companies in each other's markets? Can we count on more active involvement of Russian stateowned and corporate media in the Middle East?

• We concluded from discussions with our Arab partners that there are huge unlocked reserves for stepping up cooperation. And this goes not only for the traditional oil and gas sector, but also for metallurgy, nuclear engineering, transportation, telecommunications, the banking sector, the construction business, and the tourism industry. I must note that we already have graphic examples of interaction between our countries in high-tech areas, mainly in the use of space. Seven Saudi Arabian telecommunication satellites were brought into orbit by Russian launch vehicles. Six more launches are planned. We have suggested our Arab partners get involved in the Russian GLONASS satellite navigation system. There is also mutual interest in creating technology parks and technology transfer centers.

  As for obstacles, they are an absolutely normal thing in business. We are not afraid of problemes

  and are ready to overcome them together with our partners. In my view, we have already achieved the main purpose, which was the establishment of relations with Arab enterpreneurs based on trust, and we have demonstrated by a number of concrete projects that we can work together , specifically, at the level of strategic partnership.

  It is important that Russia and Arab countries have eastablished a continuous exchange of informaton, because only then will there not be a shortage of informaton. There are quite a few accredited Arab journalists in Moscow with whom we are working. Of late, a satellite channel, «Russia Al-Yum» (Russia Today), targeting Arab audiences, has been launched in Moscow. By the way, the channel is Arabia-Expo's general media sponsor. We have established ties with serious Arab media, including the Al-Jazeera channel, as well as publications that gladely help us cover Russian-Arab interaction. Incidentally, there are quite a few Russian-language newspapers and magazines published in Arab countries: they help Russian entrepreneurs get more closely integrated into the Arab economic community. And still, a lot remains to be done in this area. I think that representatives of the media are going to have to not only convey truthful informaton about the economic situation and each other's markets to businessmen, but also to create a propitious atmosphere for a constructive dialog