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Results of participation by an official Krasnodar Region delegation in the St Petersburg International Economic Forum 2009
The official Krasnodar Region delegation took part for the fourth time in the work of the International Economic Forum in St Petersburg. This year the key theme for discussion by world leaders was setting up a post-crisis world financial architecture. In the conditions of the global economic crisis heads of states and regions in Russia, leading economists and winners of the Nobel Prize developed practical recommendations to stabilise the world economy.Within the framework of the plenary session at the Forum the President of Russia, Dmitrii Medvedev, emphasised that ‘The current crisis, without doubt, will lead to a reforming of the world. As a result economic leaders, models for behaviour and functioning of markets will change'. ‘But the new model has yet to undergo testing for stability, to show its effectiveness,' he added. In his words the crisis could prove to be ‘such a successful situation' which will make it possible ‘to move the economy in line with innovation, to carry out technological modernisation.' At the same time it is important to make the right conclusions from the current crisis not only in the sphere of macroeconomics, but in the ‘practical dimension'.
At a working breakfast with heads of international corporations and representatives of international banking societies the President of the Russian Federation expressed the hope that fast developing markets, including Russia, are meeting the consequences of the crisis better and faster than could have been expected. ‘The exchange of resources to support of the economy, to dealing with crisis events, to dealing with problems with liquidity, support to the banking system, to support to the real sector, for Russia has an unprecedented character - this is about 12% of the gross domestic product, and of course for us it is very important that this money is disbursed correctly,' noted Dmitrii Medvedev.
The main speakers from the Russian side at the forum were First Vice Premier of the Russian Federation Igor Shuvalov, Minister for Finance of the Russian Federation Aleksei Kudrin, Deputy Minister for Economic Development of the Russian Federation Andrei Klepach, as well as managers of major domestic transnational corporations and leading political analysts and economists in the country.
Within the framework of the forum two plenary sessions and 28 discussions were held, attended by about 200 experts from various fields of activity. At the Lenikspo site (the venue for the forum) the Minister for Finance of the Russian Federation Aleksei Kudrin, Managing Director of the World Bank Graeme Wheeler, Euro Commissioner for Economic and Monetary Policy Joaquin Almunia, the First Deputy Managing Director and CEO of the IMF John Lipsky and other representatives of the world financial community discussed reform of international financial institutes and new formats for cooperation.
The practical result of the work of the forum was the signing of a range of agreements and memorandums. These included: an investment agreement to develop an technical and economic assessement of construction of Kankunskaya hydro-electric power station within the Complex Development of South Yakutiya public-private project worth $2 billion, one of whose signatories was RusGidro; an agreement between Yakutiya and the state company Rosnano on co-finance of construction of production of new generation light equipment with an overall value of 3.35 billion rubles; an agreement between Rosnano and Renovi on setting up in Russia of production of solar modules, whose total sum of finance will be 20.1 billion rubles; an agreement between St Petersburg and two major hotel chains on construction in the town of a minimum of two hotels. In addition, the government of St Petersburg and the Intel corporation concluded an agreement on construction in the sphere of school education, which in particular will make it possible to equip schools in the northern capital with 250 000 school computers from 2009 to 2012. The Governor of Altaiskii Region Aleksandr Karlin signed an agreement with the Rost-Retail company, which provides consulting and broker services on the commercial real estate market, on realisation of a range of major investment projects in Barnaul worth more than 50 billion rubles. Sovkomflot and the Union of Industrial Corporations intend to jointly build multi-functional ice breaker ships for offshore mining and tankers for transport of liquefied natural gas. In accordance with the agreement Gazprom will receive 49% of the Gerosgaz company, which owned 2.93% of Gazprom shares, as a result of which the property rights to this share packet will pass completely from E. ON Ruhrgas to the Russian gas concern. E. ON in its turn will receive 25% in the registered capital of Severneftegazprom by the end of the year.
Representatives of the official Krasnodar Region delegation carried out six working meetings and negotiations. In addition, agreements were signed on trade economic, scientific technical, cultural and social cooperation between the Administration of Krasnodar Region and the Government of Saratov Region.
At a meeting with the Extraordinary and Plenipotentiary Ambassador of the French Republic in the Russian Federation Jean de Gliniasti a range of practical questions were examined on cooperation and preparations to the opening in the summer of 2009 of a hypermarket by the French Carrefour company, agreement on construction of which was signed at the Sochi 2008 International Investment Forum. In addition, the approach was discussed to realisation of another project with use of French capital, construction of a glass factory in Bryukhovetskii District by the French Saint Gobain Overland company, the agreement on which was also signed at the Sochi forum last year. And questions of realisation of a project to construct a cement factory in Krimskii District in Krasnodar Region were discussed with the senior manager of the Lafarge Cement company, Alex de Valukoff.
Possible prospects for joint research, development, production and sale of medicines were examined with the Chairman of the Board of AstraZeneka UK Ltd in Moscow, Frederic Gerard, as well as medical supplies, including during the preparation for and hosting of the 2014 Winter Olympics in Sochi.
The subject of the business meeting with the General Director of JSO, Gilles Sebihi, was participation by Krasnodar Region in congress exhibition events organised by the company.
The main subject for discussion with the President of the Caterpillar Inc group, Gerard Vittecoq, was attracting the capacity of the company, the world leader in production of construction and mountain equipment to preparations of facilities of the 2014 Winter Olympics in Sochi, as well as the possibility of organising production of this equipment in Krasnodar Region.
The possibility of opening an assembly factory in Krasnodar Region was discussed with the Chairman of the Board of Komatsu CIS, Masao Fudzita.
The first results of the St Petersburg forum were made by the head of the Ministry for Economic Development Elvira Nabiullina, heading the Organising Committee of the event. In her words, according to preliminary information ‘more than 3500 people from 83 countries round the world took part in the forum. The forum was attended by 1200 representatives from the mass media from 29 countries. There were five heads of state, 14 deputy heads of government, 33 ministers, 46 governors, 559 representatives of Russian business, 646 representatives of foreign business.'
The Minister also announced that ‘at the forum agreements have been concluded to a value of several billion dollars' correcting the initial slip of the tongue of ‘several dozen billion'. ‘As there is such interest, we have to count everything, and later publish information on our site,' promised the head of the Organising Committee.
Ms Nabiullina also noted that the state has reduced by one third budget expenditure on holding the forum from the planned amount.
The central event of the last day of the work of the International Economic Forum was the opening of the World Grain Forum. The President of the Russian Federation, Dmitrii Medvedev, proposed the initiative of holding a forum on such a scale in the summer of 2008 at the G8 summit in Japan. Heads of agricultural ministries from producer countries and grain consumers, managers of international organisations, UN institutions, representatives of companies participating in the grain market, scientists, experts and analysts took part in the grain forum.
At a working meeting with 30 heads of delegations from various states who travelled to take part in the grain forum, the First Deputy of the Chairman of the Government of the Russian Federation Viktor Zubkov noted that in the conditions of the crisis liberalisation of grain trading and development of approaches to ensuring the stability of the world grain market are essential.
Opening the forum, President Dmitrii Medvedev announced that providing the world with grain is not simply an important condition for world food reserves, but also a question of maintaining social stability in various regions of the world. ‘We are all worried by the problem of mass famine and malnutrition,' said Mr Medvedev. ‘They remain one of the hardest trials of humanity. Achievement of the main task of the millennium, reducing the number of hungry people, is under threat. Today the figure is close to a billion people. ‘But if we are speaking directly, then some countries seem to have come to terms with the fact that every five seconds in the world one person dies of starvation,' he emphasised. ‘The world to a large extent is concerned with income and profit. This is amoral.'
The Minister for Agriculture of the Russian Federation Elena Skrinnik considers that the world financial crisis will not lead to development of a food crisis if governments act correctly. This idea was also propounded by the representative of the World Bank in Russia Klaus Roland, who noted that in order to avoid a global food crisis against the background of the fall in the world economy it is essential to use not only market mechanisms, but also resources for support at government level.
The Minister for Agriculture of Russia also announced that already this year it is entirely possible the Black Sea grain pool will be set up. As the First Deputy Chairman of the Government of the Russian Federation Viktor Zubkov explained ‘today this region is the largest supplier of grain to the world market.'
This idea was supported by the Minister for Agricultural Policy of Ukraine Yurii Melnikii. ‘All parties understand the need to coordinate activity on the grain market,' he said, adding that ‘This concerns the Black Sea grain pool, which has great significance for world trade.' The parties intend to set up the so called grain pool ‘on the basis of taking into account the interests of the main producers, and of course the buyers.' ‘We have been looking for a forum for such work for a year and a half, we have met in Russia, Kazakhstan, Ukraine, I think that now we are at the stage of developing a concrete perspective of such work.'
Krasnodar Region is a key Russian region in this project. Questions of developing the Black Sea grain pool were discussed within the framework of the Prichernomore - a place in ensuring the stability of the world market business forum. The Vice Governor of Krasnodar Region Evgennii Gromiko was moderator. Those making reports at the business forum exchanged opinions on the potential for production of grain in the Black Sea region and on joint activities in the agricultural policy of Russia.
The Department for External Economic Activity of Krasnodar Region
Materials from Itar-Tass, RBK, RIA News and News Time have been used in the press release.
