Abu Dhabi: The UAE has emerged the leading trade partner of Russia with the total volume of trade reaching Dh7.3 billion ($2 billion) in 2012. Russia expects the trade figures to surge further this year due to a steady increase in joint ventures, trade exchanges and tourism activities.
More than a million Russian tourists are expected to visit the UAE this year. Alexander Efimov, the newly appointed Russian Ambassador to the UAE, spoke to Gulf News on the prospects of trade relations between the two countries
Q. What is the volume of trade between Russia and the UAE?
A. In 2012, our bilateral trade reached a new record level, totalling $2 billion. We do hope that it will continue to grow in 2013 due to the rise in tourism and bilateral events held by representatives of our business communities. An active participation of a high-level UAE delegation in the 3rd Meeting of the Russian-Arab Business Council and 11th “Arabia-EXPO” Exhibition, which took place just two weeks ago in St. Petersburg, contributed to the surging business activities.
Q. What is your perspective of Russian tourist arrivals to the UAE?
A. Russia is an increasingly important market for the UAE, which has managed to establish itself as one of the key tourism destinations in the world. The number of Russian tourists to the UAE is consistently increasing. Last year, the UAE welcomed about 600,000 tourists from our country, thus setting one more record within our bilateral relations.
Q. Why is the UAE a suitable destination for Russians?
A. There are many reasons in fact. The first is the country’s strategic location. The second is stability and security. The third is its ultra-modern facilities and services. Though the country is not as cheap as Egypt or other regional destinations, the UAE is preferred to other countries for these reasons.
Q. How about UAE-Russian investments?
A. This is already a significant issue of our bilateral agenda. Many of Russia’s business entities such as Rosneft, Lukoil, Gazpromneft, INTER RAO, VTB-Capital, have opened their offices in the UAE. The overall number of Russian companies registered and operating in different parts of this country is 450. We are in a final stage as regards creating solid legal basis for this partnership. The agreements on the promotion and mutual protection of investments as well as on taxation policies for the government entities’ activities of both countries have been already signed, and their ratification is coming to a successful end.
Q. Would you name some of these investments?
A. Well-known companies from the UAE are actively involved in a number of commercial projects, being implemented in Russia’s oil and gas industry, infrastructure and logistics. Our Emirati partners are investing in the 2014 Winter Olympic Games facilities in the Black Sea resort city of Sochi. The UAE’s Gulftainer, a ports and logistics group, has secured a $275 million contract to co-develop and operate Ust-Luga Port near Saint Petersburg, a key gateway into the heart of Russia’s Baltic western region.
The UAE also hosts joint ventures between our two countries. I guess many people have heard about the construction of Taweela- Fujairah gas pipeline, but, may be, not all of them know that it was done with the support of our StroyTransGas company. Russia’s state-controlled giant Rosneft is working together in Sharjah with the UAE’s Crescent Petroleum, with $630 million investments in the project. Of the main Russian investments in the UAE is between Metalloinvest, a Russian steel and iron firm, and Hamriyah Steel.
The ongoing discussions, which are carried out from our side by Rosteh Corporation and the Russian Fund for Direct Investment, make us optimistic about the future of our bilateral cooperation in this field. I do hope that new investment projects in Russia and the UAE, as well as in third countries, will follow soon.
Q. How do you estimate Russia-UAE relations at the current stage in general?
A. The two countries maintain close and friendly bilateral ties. They are traditionally based on mutual respect, same or similar approaches towards major international and regional issues, common desire to strengthen mutually beneficial cooperation in various fields. We do have an intensive and open political dialogue at all levels, including first and foremost at the highest levels. I would like to mention in this regard the visit of Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Supreme Commander of the UAE Armed Forces, to Russia in October 2012 and his meeting with Vladimir Putin, President of the Russian Federation. Our Foreign Ministers, who recently had their regular telephone conversation, are in constant touch as well.
Much is done through Intergovernmental Commission for Economy, Trade and Technical Cooperation, which is co-chaired by Shaikh Abdullah Bin Zayed, UAE Foreign Minister, and Denis Manturov, Russian Minister of Industry and Trade. Its third Plenary Meeting took place in Abu Dhabi in February, 2013, and turned out to be a very effective opportunity to discuss new agreements and projects, all other issues covered by this important mechanism of promoting bilateral relations, be they material or humanitarian.
Q. What is the level of bilateral military cooperation?
A. We have a very good cooperation. The UAE Armed Forces are equipped with Russian-made “BMP-3” infantry combat vehicles, Pantsir-S1 Air Defense System, other weapons. Russia had also provided the Emirati side with training devices and as per the relevant agreement will provide service maintenance and continuing training of UAE specialists with scores of Emirati officers being trained for six months in Russia on the new devices.
Q. Russia and the UAE had signed a nuclear cooperation agreement in 2012. What is your viewpoint of this accord?
A. This agreement is undoubtedly of tremendous importance for both sides. Besides exchange of technologies, it sets up a foundation for designing, constructing, commissioning and decommissioning research reactors and nuclear power plants, producing radio-isotopes and using them in various sectors such as industrial, healthcare and agricultural fields. The agreement also touches upon processing of radioactive wastes.
If there was no such agreement, we would not be able to sign a contract, according to which Russia will supply UAE’s first nuclear power plant in Barakah with natural uranium conversion and enrichment services. Russia is ready to help the UAE in other aspects of its peaceful atomic programme.
Q. There is a major oil and gas summit in Moscow. Is the UAE taking part?
A. Being a member of the Forum for the gas-exporting countries, the UAE is invited to this summit. We are looking forward to welcoming the Emirati delegation at the highest possible level. Heads of states, prime ministers and senior officials from other countries — members of this Forum will be also participating.
Q. You are newly appointed to the UAE and this is your first interview for the UAE press, what would you tell readers?
A. We have enjoyed very good diplomatic ties with the UAE since 1971. It’s also a fact that great progress in various fields has been achieved during these years. Nowadays there is a need to push these relations further for the benefit of both countries and their peoples.
