German businessmen promise Vladimir Putin to boost the Russian economy.
Vladimir Putin met with top German businessmen at the government reception house on Vozdvizhenka on October 21. The Germans explained to the Russian Prime Minister why it was so important for Russia to cooperate with Germany.
Putin was one step ahead of his foreign audience, however, and pointed out that Germany was already Russia's main foreign trade partner in every area. "What pleased me and even surprised me a bit was that German investments in the Russian economy have grown by 36% in January to April of this year. That is a good sign", the Prime Minister said.
Unlike Russia's relations with other countries, relations with Germany are diversified. The Germans aren't interested in only energy; they also invest in agriculture and high technologies. Putin also noted that there were currently some major investment projects underway, casually posing the rhetorical question of what result these projects would bring. "We're helping to preserve and create new jobs both in Germany and in Russia," the Prime Minister said, promising all-round government support to German businesses.
Klaus Mangold, chairman of the Committee on Eastern European Economic Relations, stressed that this was the most representative German delegation ever to visit Russia and that if things went well for German business, more of such delegations would come.
Mangold's words carried extra weight because, as it turned out, two very interesting German businessmen were sitting at the same table with Putin: their companies had a turnover of half a trillion euros and employed two million people. "We have faith in Russia's future economic power," the German said.
"We want to ensure that our companies come to Russia to make Russian enterprises more effective and competitive," Klaus Mangold said, as Putin listened to him without the help of an interpreter. "The German economy sees itself as a natural partner of Russia in modernising the Russian economy", Mangold added.
Mangold noted that all 6,000 German enterprises that had come to Russia have stayed, and this fact served as solid proof of the "strategic partnership" between the two countries.
The Germans would also like to take part in the programme of privatisation of state-owned enterprises that the government announced several weeks ago. Mangold urged close cooperation, specifically in that sphere. As the head of the Eastern Committee pointed out, German investments would help Russia "achieve a higher level for the economy and a higher level of competitiveness." In addition, this would also contribute to the development of the country's middle class.
Contrary to expectations, Putin made no attempt to tout the glowing prospects of the Russian economy to his guests. Instead, he acknowledged that GDP would drop significantly, albeit not as dramatically "as we thought at the beginning of the year". As for economic cooperation, the Prime Minister admitted that he had the impression that German business was not in need of administrative help from Russia. Things were going great. "The government in Germany has yet to be formed, but work is going on there as if nothing were happening in the political sphere," Putin said through laughter.
In the meantime
Russia and Italy may begin joint production of light trams in St Petersburg. The topic was discussed yesterday by Russian Prime Minister Vladimir Putin and Italian Prime Minister Silvio Berlusconi, with St Petersburg Governor Valentina Matviyenko also taking part. The Russian, Italian and Turkish Prime Ministers are due to discuss the South Stream gas pipeline project today.
Pier Sidibe