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Interview with Ivan Bulavin, BelCCI representative in Sverdlovsk Oblast, Russian Federation
Dear Mr. Bulavin, less than a year has passed since your appointment as a representative of the Belarusian Chamber of Commerce and Industry. However, you have already managed to open a BelCCI representative office in Yekaterinburg. What questions do Belarusian manufacturers ask you? What issues do they address to you as a guide between the two countries? What is the scope of initiatives Russian producers of the Ural region come up with?
The BelCCI representative office in the Ural region was set up to satisfy the needs of the local market for various Belarusian goods, to develop mutually beneficial cooperation and partnerships in all economic and business spheres. I believe that one of our main objectives is to hold events aimed at the improvement of trade and business relations between the countries. These are business meetings, exchange of delegations, consultations for Russian and Belarusian businessmen, providing them with information on participation in public procurement and entering local markets. We elaborate all the aspects of cooperation.
According to the Sverdlovsk Oblast officials, bilateral trade with Belarus in 2022 increased by more than 50 percent and amounted to about USD 754.7 million. It was stated to be the record-breaking indicator in the history of bilateral relations. What played the leading role in such a rapid growth? What goods are in the top list of those supplied to and exported from the Sverdlovsk Oblast?
Indeed, economic cooperation performance is stronger than ever. According to Belarusian data, which slightly differs from Russian because of different calculation methods, this figure is even higher. Moreover, the trend has been positive during the first months of 2023 – this is the statistics of all trade turnover aspects.
There's no doubt, that sanctions have made a considerable impact. But at the same time, clear understanding has emerged that fair trade is only possible between friendly and fraternal countries, like Russia and Belarus.
Cooperation is evolving in various areas. And it's not just goods supplies and import substitution, but in many cases – joint design of in demand products. As an example: interesting projects are being implemented in the petrochemical sphere. The products of Ural energy companies are in good demand on the Belarusian market.
What products from Belarus do Sverdlovsk entrepreneurs traditionally import? In which areas do you see the greatest potential for the promotion of supplies to the Ural?
Belarusian food products are always in demand in the Ural market. This is due to their high quality, organic character and low price. There is also a wide range of mechanical engineering products present, including passenger and cargo transport, agricultural, municipal and specialized machines.
For example, during my visit to Belarus in December 2022, I was at the Rogachev plant, which is widely known for its condensed milk. But the plant also offers a broad selection of dairy products: cheese, yogurt, other dairy products, including 20 kinds of condensed milk! I visited the Zhlobin meat factory and some dairy and meat factories in the Minsk region. During the visit in March this year, I was at the Minsk Automobile Plant with a delegation. We saw how buses, minibuses and special vehicles are assembled from scratch. I was delighted to observe how Belarusians have preserved their industrial potential and constantly improve it. We also visited companies that produce cosmetics and perfumery. The demand for such products is constantly growing.
Speaking of promising niches, I would like to mention agricultural production. The products of Belarusian agricultural enterprises are traditionally in great demand. However, they are represented within a rather limited scope in our market. This is because of the difficulties in logistics, registration, sanitary procedures, which require significant cost and time. When this burden lies heavy on companies only, they choose what brings more profit and requires less cost. That's the way it is. Now we are working to minimize the existing barriers with the help of public and administrative authorities, and to expand the range and availability of products, accordingly. I see the organization of permanent fairs of Belarusian products and consumer goods in our region as the first step. If we succeed and get the support promised by the regional authorities, we will manage to implement the project.
In addition, given the fact that agricultural sector is now booming in Russia, there is a demand for machinery and equipment. One of the main factors for the development of supplies of agricultural, municipal and specialized equipment is the availability of various financing mechanisms, such as bank loans, lease financing, and other support options. We, as the representative office of the Belarusian Chamber of Commerce and Industry, have direct contacts with manufacturers and dealers, and can always assist in securing the most favorable purchase plan.
As you've noted, bilateral trade is only one area of business cooperation. The second, no less important, is joint ventures creation. Please tell us about the significant projects in this direction.
Joint cooperation is the most profitable type of business between the countries. During the visit of the Sverdlovsk Oblast delegation to Minsk in March this year at the working group meeting there were representatives of the Sverdlovsk Oblast enterprises, both those already working with Belarusian business and those aspiring to establish business cooperation. I would like to state that many companies of our region have something to offer to their Belarusian colleagues. These are petrochemical products, construction business, joint transport production and information technologies.
The regions of the Ural Federal District have their own projects for the development of business contacts with the Belarusian business. In particular, the Chelyabinsk Oblast has extensive cooperation with Belarusian enterprises. For example, in January 2023, buses were shipped to Zlatoust. Other ties are being set up. For example, the Chelyabinsk Oblast is ready to implement a joint project on the construction of a large livestock complex with Belarusian equipment installed. "Belarus" tractors can be manufactured, among other options, at the Chelyabinsk Tractor Plant. The Ural Automotive Plant, which is based in Miass, is ready to buy components for the development of its capacity in the friendly republic.
So far, our scope of responsibility as a BelCCI representative office is limited to the Sverdlovsk Oblast. Maybe in the future we will expand to the entire Ural District as well. We have already received requests from our neighbouring regions, and of course we are keeping in touch with each one. I can assure you that we will support any initiative, regardless of the region it originates from.
A national exposition at the INNOPROM 2023 exhibition is now being organized. This year, the Republic of Belarus is the partner country at the exhibition. At a recent TASS-Ural press conference you told that the Belarusian exhibitors are exceeding the exhibition space provided, and the exposition area is considered to be expanded. What was the key approach to the formation of the Belarusian exposition?
I am sure there will be enough room for everyone who wants to take part. INNOPROM will showcase enterprises from various sectors: from heavy engineering, construction and municipal machinery, petrochemistry to light industry products, food, household chemicals, and perfumery. The approach to the exposition formation was simple, i.e. to demonstrate the entire range of the Belarusian domestic economy to the Russian consumer.
It has become a tradition that cooperation agreements are signed as part of INNOPROM. Perhaps, you could provide an insight on any of them? What can you already announce?
There are a lot of negotiations carried out: both within my area of competence and within the framework of public and commercial relations. There are very interesting projects in mechanical engineering, agriculture, IT, energy, and construction. I am not going to jump ahead, but trust me, there will be a lot of agreements. And not in business domain only: cultural, bilateral relations, and much more.
Presentations of the most significant, strategically important projects always take place as part of the events attended by the top officials. What will be the "highlight" of the INNOPROM program from the Belarusian side?
Belarus is this year partner country. Therefore, we are comprehensively preparing to represent not only industries, but the country as a whole. This year a comprehensive business program will be arranged, including a large-scale Russia-Belarus Business Forum. A special exhibition-fair-festival event will be organized for the citizens and guests of our city. At the fair it will be possible to taste Belarusian products.
Most of the issues we've discussed are pertaining to the development of trade and economic relations. But there are also other areas, such as tourism, education, etc. The Ural boasts rich tourist potential, and Belarus has become very popular among Russian tourists. What projects in these and other areas could you name? Which of them are being discussed today as the most promising?
Undoubtedly, tourism and education are among the most important areas of interstate cooperation development. I can tell you that we are currently working on several projects in these areas. We will present some of them at the INNOPROM. In the field of education, we have received several cooperation offers from Russian universities. There are requests from schools to organize tours for students to Belarus including visits to Minsk, Brest, other cities and sights of the country. I find it very interesting.
In conclusion I would like to say that our main task is to help Russian and Belarusian companies, businessmen and entrepreneurs to establish strong and mutually beneficial ties. That's why one can always request for our assistance in establishing contacts, business relations, finding partners for mutually beneficial business.