Russian Chamber of Commerce encourages investment in Russia

Call to include relations with Russia in Finnish government programme

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Yevgeni Primakov, the chairman of the Russian Chamber of Commerce and Industry, wants Finnish companies to invest more in Russia. Speaking in Helsinki on Monday, Primakov promised to promote the activities of Finnish companies in his country.
      Primakov said that several laws are to be passed in Russia soon, which will facilitate the activities of foreign companies.
      He promised that efforts will be made to reduce bureaucracy and fight corruption. "It still exists - unfortunately", Primakov admitted during a press conference on Monday.
      Primakov is in Helsinki this week as a guest of the Finnish Central Chamber of Commerce.
     
Kari Jalas, Managing Director of the Finnish Central Chamber of Commerce, said that the Finnish government should raise relations with Russia in its next policy programme "to a position that corresponds to their political and economic significance".
      "It is a maximum mistake, to lose a grip on politics. Russians do business only with friends. Certainly we must also understand where the country is going", Jalas noted.
      He is disappointed that Finnish exports to Russia are growing by only 30 percent a year. "The rate of growth is not better than the development of Russia's foreign trade in general. Finland has not managed to benefit from its special position", Jalas pointed out.
      He urges Finnish small and medium-sized companies to "grasp the possibilities offered by Russia".
      Somewhat more doubtful was Risto Suominen, head of international affairs at the Federation of Finnish Enterprises. He points out that there are considerable risks involved in investing in Russia, where conditions remain "somewhat uncertain".
      Suominen nevertheless notes that there have been calls among entrepreneurs for state guarantees that would help in joining the Russian market.
      Esko Aho, President of the Finnish National Fund for Research and Development (SITRA), said that Finnish companies have woken up in the past couple of years to invest in Russia. SITRA has sought to support efforts in Russia especially by Finnish small and medium-sized companies.
      "Combining Finnish know-how with Russia's low costs benefits both sides", Aho pointed out.
     
Construction is one of the most successful sectors in Russia. The YIT Group, which focuses on construction and building maintenance, is currently building housing in Moscow and St. Petersburg.
      Last year, 4.4 percent of the concern's EUR three billion in turnover came from Russia, and 6.6 percent was from the Baltic states.
      Ilpo Jalasjoki, President of YIT Construction Services says that YIT's strategy for the future will be to build more apartments in Russia than in Finland.
      Jalasjoki says that Russia's economic stability has increased while President Vladimir Putin has been in office, during which time the country's legislation has taken on a more Western orientation.
      In his view, Finnish trade and industry have invested "tremendously" in Russia in the past couple of years.
      YIT is currently planning an industrial village near St. Petersburg. Shortly before Christmas the company asked if Finnish companies were interested in acquiring office and production space in the village. A long list of companies signed up.
      Other Western investors are also interested in Russia. "When YIT presents itself to investors in London, 90 percent of the time goes into discussions on Russia."


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