‘Tatarstan team is interested in developing diplomatic ties and business with BRICS’
Russian business communities and representatives of Russian embassies see their task in being the first to “pave the way” to the markets of these countries
China is interested in consuming more and more Russian gas, India is interested in building new microelectronics production facilities, and Brazil enjoys the endless supply of fertilisers from Russia. Is there any prospect of building trade and economic relations in other areas? How to settle accounts with India's partners if their banks do not make payments due to sanctions? How to work in South Africa? Is there corruption there? Truthful answers to topical questions were given at the conference Business With BRICS States. Read the details in the material of Realnoe Vremya.
BRICS jurisprudence differs from the Russian one
Next year Kazan is hosting the global summit of the BRICS countries, which will be held under the chairmanship of Russia. But already now Tatarstan business is trying to get to know the specifics of the business partnership of these states, which account for a third of the world's GDP. They are distinguished by a more complex legal jurisdiction, which Tatarstan businessmen cannot master even with a staff of professional lawyers and economists.
Indeed, the hall in the elite Luciano centre was full, there were no empty seats for latecomers. Olga Kulikova, the vice-president of the Russian-Indian Trading House, and Anna Nadobnykh, the business ambassador of Delovaya Rossiya in South Africa, acted as video experts.
China is one of the main partners of Tatarstan
BRICS unites five countries with dynamically developing economies — Russia, Brazil, India, China and the Republic of South Africa (South Africa), which is considered as an entrance point to Africa. Now the union is compared with the EEC, but it does not have a general secretary — the work is coordinated by the country in turn, which changes every year. The most important event is the annual BRICS summit, where the leaders of the states develop new geopolitical strategies. Next year, six countries are going to become its members — the UAE, Egypt, Argentina, Ethiopia, Saudi Arabia, and Iran.
The largest partner of Tatarstan in terms of foreign trade turnover is China, Deputy Minister of Industry and Trade of the republic German Lerner said at the opening of the conference. According to him, it has increased by 43% compared to last year. Tatarstan cooperates with the People's Republic of China in the supply of components, in the energy sector. India is the second place, Brazil — the third.
“China is a global economy, and there are few countries from the Eastern Hemisphere that do not interact with China," Aynur Yalilov added.
How to receive payments from India
Manu Manikandan, the secretary general of the Indo-Russian club, founder of the Russian House in Trivandrum, welcomed the businesses with a message about the adoption of a state programme to accelerate economic growth in the country. According to him, the Indian authorities decided to open special economic zones to “soften the work of industrial enterprises”. Preferential regime is provided for the creation of microelectronics factories, which the country is very interested in. Besides, there are several high-tech IT parks in the country that export developments. He boasted that IT technologies bring about 10% of GDP. And the country itself expects economic growth of 8% by the end of 2024.
But Tatarstan businessmen were worried about how to return the proceeds from the provision of services if Indian banks block the transfer of payments to Russia under the threat of sanctions. Olga Kulikova, the vice president of the Russian-Indian Trading House, acknowledged the problem and advised using transit operations. Finally, she showed her mobile phone number, which photographed the entire hall from the screen.
Mauricio da Costa Carvalho Bernardes, the deputy head of mission of the Brazilian Embassy in Moscow, did not hide his joy that Russia was increasing fertiliser exports to the country. Due to this, the volume of agricultural production has increased by 10%.
“This is an important part of our economy," he stressed.
According to him, the country needs fuel and oils. Recently, Russia has increased the shipment of grain. The “paths” in South Africa, which is an outpost to Africa, are less studied. The business ambassador of Delovaya Rossiya in this republic, Anna Nadobnykh, called for building relations first with industry associations, and then with specific firms, and not vice versa.
It's better to meet again
Business communication is an important step in deepening trade relations with the BRICS countries, concluded the moderator of the conference, head of the International Association of Lawyers, Aynur Yalilov.
“It is clear that it is difficult for businesses to get used to third-party jurisprudence, where a different legal system operates, there are cultural and mental peculiarities. An outside businessman, even with a staff of professional lawyers and economists, will not be able to immediately comprehend them. And such events give the opportunity to systematise information a little and provide news from the fields. Some business panthers already work in these countries, or work closely with intermediaries. Our event is one of the first to make an introduction to the upcoming BRICS summit.
Among its future participants is Iran, with which Tatarstan has close relations.
“Iran is a Muslim country. During the period of major sanctions, Iran provided great assistance to the Russian Federation, helping to neutralise the negative consequences. Therefore, it is possible to foresee a favourable outcome of their application to join the BRICS. This is obvious," Aynur Yalilov is sure.
In his opinion, the experience of their work under the pressure of sanctions deserves respect and interest.
“These countries want to cooperate with Russia and do not want to adapt to the general line of a particular country — they defend national interests. Such a union has a great future," he concluded.