Thursday, March 08, 2007 Russians mull investing in Cebu
FORESEEING improvements in the country’s business climate, the Russian Federation is hoping to link ties with Filipino businessmen to further establish their presence in the Philippines.
“Because of Russia’s good economy, we are expanding our contact especially in the Philippines. That is our main reason. We also came to look at Cebu’s business environment,” said Dr. Sergey Kalashnikov, head of the Department of Social Development and Environment Protection of the Russian Federation.
He said Russia’s economic boom has increased the purchasing power of its citizens, who invest their money in travel and tours and real estate, to name a few.
Kalashnikov said while “it is early to tell” which kind of businesses the Russian entrepreneurs are most likely to venture into in the Philippines, they see strong prospects in the Philippines’ tourism and natural resources sectors.
However, he said he could not yet quantify how much investment the Russian government is willing to spend in the Philippines.
“We are still on our second day. It’s early to tell but we have optimism in what we saw,” he said in Russian, which was translated to English for Sun.Star Cebu.
He said an “exchange of knowledge” is possible especially in the field of nano technology and geology investigation, where Russia has a strong advantage.
Kalashnikov said reports about developments in the Philippine economy have reached the Russian Government, which was one reason that triggered their visit to the country and to Cebu, in particular.
With their reputation as “hardworking and competent people,” Filipinos also have good chances to work in Russia, Kalashnikov said.
“Russia is willing to provide high paying jobs,” he said during a lunch meeting with Cebu City officials yesterday at the White Gold House restaurant.
English proficiency
Kalashnikov said the Filipinos’ proficiency in the English language is a big factor in speeding up business negotiations.
Cebu City Vice Mayor Michael Rama said he welcomed the Russian delegation’s plans to invest in Cebu. He assured the Russian Federation officials that they “have chosen the right place.”
“It is our desire that we have a closer relationship so that we can share the system of government in our respective countries. In this way, you will have more reason to come back,” Rama said.
Kalashnikov said the group’s visit to the Philippines is also intended to lure Filipino entrepreneurs to invest in Russia.
He cited Russia’s tourism and natural resources sectors are among those showing bullishness.
According to a press statement from the Russian Embassy, Russia has seen its gross domestic product grow five-fold since 1998 to almost $1 trillion and its equity market expanded 30 times.
Aided by the increase in oil prices from $10 per barrel in 1997 to $78 in July 2006, Russia is now the biggest exporter of petroleum and natural gas. It is also among the largest producers of palladium, platinum, diamonds, nickel and gold.
The 54-member trade and investment mission from Russia, composed of businessmen, industrialists and government officials, arrived in Cebu last Tuesday.
The mission, led by Mikhail Nikolaev, deputy chairman of the Council of Federation of the Federal Assembly of the Russian Federation, is the first of its size visiting the Philippines since the founding of the Russian Federation in 1992.
The delegation was assisted by Armi Garcia, who was recently designated Russian honorary consul for Cebu. Garcia is tasked to help increase the number of Russian visitors to Cebu Province.
Tourist arriving in the Philippines from Russia and the Commonwealth of Independent States grew by 24 percent at the end of 2006, the press statement read. (MMM)
