Association President Schochin on Western Companies and Cooperation with the United States
Alexander Schochin, president of the Russian Union of Industrialists and Entrepreneurs (RSPP), spoke out in support of Western companies still operating in Russia in the presence of Russian President Vladimir Putin. “We believe that normal operating conditions for friendly companies from unfriendly countries must be maintained as much as possible,” Schochin stated at yesterday’s RSPP annual meeting. Schochin coined the phrase “friendly companies from unfriendly countries”—those sanctioning Russia—during the RSPP annual meeting two years ago. Addressing President Putin, Shokhin said this time: “And you have, as far as I can tell, supported the term—noting that while there are unfriendly elites (in these countries), companies (from these countries) can continue to operate in Russia and even expand their presence.”
In the run-up to the meeting, the business association had drafted its proposals for resuming economic cooperation with the U.S. “in the event of favorable conditions.” The proposals were presented in yesterday’s print edition of the Russian daily newspaper RBC.
What the RSPP proposes regarding Russian-American cooperation:
- Development of deposits and extraction of mineral resources in the Murmansk region, the Southern Urals, Siberia, and the Sea of Okhotsk
- Cooperation in the Arctic
- Cooperation in space
- Cooperation in the energy sector, including nuclear energy
- Resumption of deliveries of Russian rolled aluminum alloy and titanium products to American aerospace companies
- Resumption of cooperation with American smelters regarding the supply of Russian carbon-graphite products, particularly graphite and carbon electrodes
- Restoration and expansion of industrial cooperation in the field of renewable energy (RE), including the lifting of sanctions against Russian manufacturers of equipment for RE generation (photovoltaic modules and inverters, electrical equipment for solar power plants, etc.)
According to RBC’s assessment, the RSPP may also have the exploration and use of rare earths in mind. In this sector, Russia ranks fourth globally in reserves and seventh in production. The Russian Ministry of Natural Resources and Environment reports domestic rare earth reserves as of January 1, 2024, at 28.5 million tons of rare earth oxides (REO). Currently, the Murmansk region is the most important production area for rare earths. However, the processing of Loparit concentrate from the ores of the Lowosero deposit in the Murmansk region takes place exclusively at the Solikamsk Magnesium Plant (SMZ) in the Perm region. Other potential cooperation projects include the joint production of aluminum, for which the aerospace company Boeing could be the main customer.
What President Putin said
In his speech at the RSPP assembly, President Vladimir Putin announced right at the outset that he had nothing “truly revolutionary” to share: “We meet regularly with some—or with many—of those present in this hall to discuss the most pressing issues for their companies. […] Therefore, as they say, we are all in the loop.”
We have compiled Putin’s key statements for you:
“It is important to maintain the course of the country’s gradual development, increase the competitiveness of the domestic economy, and strengthen the positions of domestic companies and enterprises in both foreign and domestic markets. To do this, we must consolidate our own sovereignty.”
“We will continue to promote private-sector investment in the modernization of enterprises and production capacities based on our own technologies. We particularly want to support the introduction of solutions in three key cross-cutting technologies: artificial intelligence, autonomous systems, and digital platforms. In this area, there is scope for cooperation with other countries, including those from the world’s high-growth regions, the Asia-Pacific region, and Southern Eurasia. We intend to expand such cooperation, particularly within the framework of the BRICS group of nations.”
“To increase investment and expand the scope for entrepreneurial initiative, we will continue to reduce costs for businesses and organizations and eliminate bureaucratic hurdles—something we constantly discuss—and I am also referring to the use of electronic services.”
“I have already noted on several occasions Russia’s progress in international corporate governance rankings. These are not only expert assessments but also the opinions of entrepreneurs themselves regarding how easy it is to establish businesses in Russia and operate in our markets. Nevertheless, the business environment must be constantly improved. And we are approaching this work systematically—with the participation of the RSPP and other business associations.”
This article first appeared in the exclusive newsletter of the German-Russian Chamber of Foreign Trade
