Business urged to seize opportunities in Russia

British businesses have been urged not to miss the boat and to seize the attractive business opportunities on offer in Russia.

Trade and Industry Secretary Patricia Hewitt today challenged businesses to show foresight and grasp the opportunities of a "prosperous, stable and outward-looking Russia".

Speaking at the Russian Economic Forum in London, Ms Hewitt warned an audience, which included the Russian Deputy Prime Minister Alexander Zhukov, Russian Finance Minister Aleksei Kudrin, Supachai Panitchpakdi, Director General of the WTO and CBI chief Digby Jones, that Britain could not afford to miss the boat as happened during the expansion of China.

"Global reach and foresight are vital tools in the modern economy, with increased trade and openness. And whilst history has blessed us with global reach, our foresight has sometimes been found lacking," she said.

"Take China, the most populous nation in the world, set to be the largest economy in the world in a generation. Ten years ago, it's potential for growth was clear. But we missed the boat. As a result, Germany now exports eight times as much to China as we do.

"We're catching up now. But I'm determined that this won't happen again. And Russia shows every sign of being the next China. I want Britain to have seats on the plane before it takes off."

Ms Hewitt said that UK Trade and Investment and the British Embassy in Moscow would be able to offer advice and assistance to British businesses exploring partnerships or investment in Russia.

Over 400 British companies currently operate in Russia, including large companies ranging from Cadburys, Scottish & Newcastle, Shell, GlaxoSmithKline and Unilever.

Last year UK exports to Russia rose by 43%, and were worth a total of £1.4 billion – their highest level ever. Imports from Russia also rose substantially last year, by 24%.

(gmcg)