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Felicity Arbuthnot
Western accusations have lately been flying towards Russia: Russia has taken a “dark path”, according to US vice president Joe Biden; Russia is “in flagrant breach of international law (sending) a chilling message across the continent of Europe,” according to British premier David Cameron and US President Barack Obama is worried about “Russian aggression”.
Never mind that Russia has stated and restated that it has no intention to move further into Ukraine and that its troops in Crimea are still well below the contingency allowed in a mutual, legal agreement, whilst the US crosses the Atlantic to rattle sabres (and F-16s.)
There is going to be a backlash from Western attacks on and attempt to isolate Russia.
Belgium, population 11 161 642 (2012) has had trading links with Russia since the early 18th century. Peter the Great visited what is now Belgium in 1717 and donated funds for a portico to a spa town, some sixty years before the birth of the United States. Last year’s exports to Russia were worth some four billion Euros.
In all, according to Eurostat, the 27 EU countries exported 108 billion euros -worth of goods to Russia in 2012 and imported 163 billion euros in trade from Russia: “with energy accounting for more than three quarters of imports.”
In blindly backing the US in another certifiably insane provocation, Britain has much to lose. According to UK Trade and Investment: “Russia remains an important trading partner . . . Between 2009 and 2012, exports of goods and services to Russia have grown by over 75 percent from £4,3 billion to £7,6 billion.”
Last September, David Cameron made a “landmark visit “to Moscow with a “strong commercial focus.”
With him were the Foreign Secretary, the Trade and Investment Minister Lord Green and a delegation of 24 business leaders representing a range of sectors. The visit aimed to “cement relations.” Beware British politicians bearing gifts.
In November, Business Secretary Vince Cable led a trade visit to Russia “with more than thirty British companies to boost the fast growing economic links between the two countries . . . British exports to Russia have almost tripled in the last ten years, with around 600 UK companies currently operating in the country. The opportunities are huge for British business — that’s why we’re also investing in a US$50 million fund to help British small businesses export to Russia.”
The not so small businesses who accompanied the Business Secretary were bosses from Britain’s biggest companies, including Rolls-Royce, British Airways, Rio Tinto and Diageo in a bid to “strengthen ties and promote trade.” Other companies that have recently moved in to the Russian market include Cadbury, AstraZeneca, Kingfisher, Marks & Spencer and Monsoon.
Trevor Barton, executive director of the Russian British Chamber of Commerce said that British exports to Russia have been continuing to grow at 20-30 percent per annum, with Russian imports in mainly raw materials, oil and gas slightly exceeding exports.
However, the market is “pretty substantial (the UK’s) fastest growing export market of anywhere in the world”, which the UK government had actively “encouraged.”
Russia was a “very close trading partner and the possibilities have not gone away”, said Barton for whom, it seems, the country is not alone a business opportunity, but for which he cares and relates. But these were “challenging times” in “spending time talking to companies” and explaining possibilities, when frequently potential investors currently simply unquestioningly take at face value the insane biased media hype. (Mr Barton was scrupulous in not commenting on politics, the latter lines are entirely the writer’s interpretation.)
Germany’s foreign trade group BGA, has warned that Germany would suffer more than other European country if sanctions escalated. “With about 6 200 German companies invested in Russia and bilateral trade worth 76 billion euros ($105 billion) last year. A trade conflict would be painful for the German economy . . .” warned BGA President Anton Börner, adding that Germany could not do without Russia since both economies were “highly complementary.”
By late 2010, French companies in Russia had increased six-fold with trade between the two countries worth $22,6 billion. Fifty percent of Russia’s fruit and berries are imported from Holland, Portugal and Poland. Meat deals with Brazil (pork and beef especially) also have the potential to diminish or trash European trade.
From Ireland in the west of Europe to Italy in the south (the latter Europe’s fourth largest trader with Russia) to Greece in the east, focus has been on developing trading ties with Russia and the EU can certainly do with fewer financial setbacks, as it is already, in the eyes of many, a fiscal train wreck waiting to happen.
Across the Atlantic, in Houston, Texas alone, 400 companies trade with Russia. Sanctions could lead to some of America’s biggest companies being impacted. PepsiCo “had nearly $5 billion in net revenue from Russia in 2012.” Coca-Cola has a “large presence” and Exxon Mobil has signed a deal with Russian state oil company Rosneft to drill in the Arctic, beginning this year.
“The lucrative crude up there could be worth hundreds of billions of dollars.”
Both General Motors and Ford have a market share in Russia and have invested in production facilities, with Ford negotiating a partnership with Russian Sollis, all worth several billions.
“Russia is an emerging market with growing incomes, and US companies have been actively looking to increase their investment there in recent years.” — Global Research.
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