OREANDA-NEWS. December 13, 2011. A large Argentinean business delegation visited the Chamber of Commerce and Industry of the Russian Federation (CCI of Russia) to discuss bilateral investments cooperation.

Argentinean and Russian businessmen interested in the extension and deepening  of bilateral relations attended the meeting.

CCI of Russia Vice-President Georgy Petrov opened the meeting. In his greetings he stressed the interest of Russian business in cooperation with Argentina and the historical and long-term business relations with that country. He also stressed that Argentina was one of the key partners of Russia in Latin America.

Russia-Argentina trade has not regained the pre-crisis level of USD 2 billion but its growth is inspiring. Cooperation in energy infrastructure projects, mineral development and agriculture displays a large potential of the bilateral relations, Georgy Petrov said. In his words, the Russian side is interested in Argentinean investments. Meanwhile, the amount of Russian investments in the Argentinean economy is not very large as yet, only USD 15 million.

Our countries need large joint projects towards which the Intergovernmental Commission for Trade, Economic, Scientific and Technical Cooperation and bilateral business councils are working, Georgy Petrov said.

The strategic union of Russia and Argentina started taking a new shape in 2008 when Argentinean President Cristina Fernandez de Kirchner made an official visit to Russia, Argentinean Ambassador to Russia Juan Carlos Kreckler said. In turn, Russian President Dmitry Medvedev visited Argentina in 2010. The joint efforts of diplomats, which followed the visits, resulted in the signing of an action plan by the foreign ministers of Russia and Argentina. The plan stipulates a considerable enlargement of the share of products with a high added value in the bilateral trade. The plan also set promising areas of bilateral investments, Juan Carlos Kreckler stressed.

Deputy Director of the Russian Foreign Ministry’s Latin America Department Alexander Shchetinin stressed the significance of two major documents signed lately, i.e. the Joint Statement on Strategic Partnership for Social Development and the actualized action plan – sort of a roadmap of future cooperation. In his opinion, a high degree of mutual understanding between Russia and Argentina was the basis of the visa-free travel, Argentina’s recognition of Russia as a market economy and the drafting of an agreement on the prevention of double taxation. Such strategic spheres as nuclear energy, space exploration and transport may become areas of significant joint projects of Russia and Argentina, Alexander Shchetinin said.

Argentinean First Deputy Minister of Foreign Affairs, International Trade and Worship Luis Maria Kreckler said that Argentina supported the Russian accession to the World Trade Organization (WTO) and expected constructive interaction within that organization.

Director of the Russian Economic Development Ministry’s America Department Veronika Nikishina recalled the ninth meeting of the Intergovernmental Commission for Trade, Economic, Scientific and Technical Cooperation, the Russian-Argentinean Business Forum and a meeting of Russian Economic Development Minister Elvira Nabiullina with Argentinean Minister of Foreign Affairs, International Trade and Worship Hector Marcos Timerman held this year.

The meetings resulted in the update of the strategic action plan. The bilateral trade grew by 76% in the first nine months of this year as compared with the corresponding period of last year.  Argentinean commodities are sold on the Russian food market. Domestic farmers are interested in Argentinean ‘direct sowing’ techniques and related modification of Russian rotor combine harvesters, Veronika Nikishina said.

In her opinion, the task of the soonest enlargement of the bilateral trade to USD 5 billion is quite realistic – it is the most important to implement joint projects in the economic branches essential for Russia. Russia intends to use not only foreign investments and high technologies but also foreign personnel of a variety of professions.

Russian business missions visiting foreign countries promote the access of Russian innovative business to external markets. A business mission will go to Argentina in late November 2010. Veronika Nikishina invited Russian participants in the meeting to take part in the mission.

Director of the Latin America Institute Vladimir Davydov said  it was time for  a breakthrough in Russia-Argentina relations: prerequisites for that have been formed and the most significant obstacles have been removed. The interaction of two economies, which are recovering from the crisis, is possible in diverse sectors, including nuclear energy, railroad and maritime transport, exploration of the South Atlantic and Antarctica, design and production of agricultural machines, mineral development, and Russian deliveries of civil helicopters and KamAZ trucks to Argentina, Davydov said.

Vice-Secretary of the Investment Promotion Department of the Argentinean Ministry of Foreign Affairs, International Trade and Worship Cecilia Naon accentuated that investments in the Argentinean economy were promising. In the past eight years Argentina, the same as Russia, has been reporting sustainable economic growth, she said. The population of 40 million produces food sufficient for 400 million people with the potential production of food for one billion people.

Foreign investments in Argentina grow year to year but Russia’s place amongst foreign investors is small so far (0.02% of total investments). It ranks 13th amongst foreign investors. Argentina enjoys duty-free trade with MERCOSUR member countries with the total population of 240 million people and offers foreign investors to operate in its nine main industries – agriculture and production of agricultural machines, cars and spares, computer software and information technologies, timber industry, biotechnologies, renewable energy resources, industrial design and tourism. Investors can count on adequate regulatory mechanisms and powerful state support, which is granted, in particular, by the Investment Promotion Department of the Ministry of Foreign Affairs, International Trade and Worship (SUINN).

Chairman of the Russia-Argentina Business Council Dmitry Titov reminded the meeting participants about a Russian-Argentinean bank forum due in the first quarter of 2012. A new Russian development institution – the Agency for Insurance of Export Loans and Investments – is ready to guarantee investments in Argentina, he said.

Chairman of the Argentina-Russia Business Council Antonio Estrany y Gendre pointed to the vital role of business councils in the drawing of small and medium companies of both countries in the bilateral cooperation, as such companies frequently lack sufficient resources for their independent access to the international market.

 The Argentinean delegation members also spoke about the BaPiP Argentinean online bank of investment projects, prospective cooperation in agriculture, the RROSAP program servicing agricultural production and investments in the production of biofuel.

Upon the end of the meeting Russian and Argentinean businessmen met bilaterally to discuss their points of interest.