Diplomats speak

"THIS CITY IS OF GREAT IMPORTANCE FOR RUSSIA"

Mr. John Guy,
the British Consul General in St. Petersburg

        - Mr. Guy, 300 years have passed since Peter the Great went to Britain with his Embassy. Does this date simply belong to the dusty shelves of history or does it have impact on the present?
        - Oh, well, both. It belongs to history, but of course it has meaning and significance for us today because it was an important point in the development of relations between Russia and Britain. Peter the Great went to Britain at the time when we already had a very viable relationship with Russia based on trade and relations which were conducted in the main in the capital Moscow. Peter reinvigorated that relationship and we want to take that as an inspiration for the work that we are now doing to modernize the relationship which we have in business, in politics, in the arts.
        - The British statesmen say that your country appreciates its relations with Russia and thinks of Russia as a very important partner. Does this statement reflect the opinion of British business circles?
        - Oh, yes, I think so. I think that the businesses that I know who are already engaged either with trading or investing in Russia have committed themselves to a long-term relationship, they value this relationship, it's often founded on a what one may call a traditional if not historical relationship. Many of the companies that we deal with have long traded with Russia, before the 1917 revolution. That already gives a good idea of the understanding which exists in many companies, many circles in Britain, about the value of this relationship and I think businesses have been looking with enormous interest at the future potential of Russia since the end of the Soviet Union in 1991. The economic and financial crisis in August last year, of course, had an impact. It has caused many companies to pause in their activities. But I don't believe it has had a fundamental impact on their approach in the sense that they remain committed to developing investment, developing relations with Russia. I think that we can look forward in a year or two to the emerging signs of revitalization of that relationship.
        - How do you see the place of St. Petersburg in expanding economic and financial relations between Russia and the UK? Is there a special interest towards St. Petersburg in the UK?
        - I have an enormous belief in the importance of St. Petersburg as the former capital of Russia where in many ways the foundations of the modern relations between Britain and Russia were laid. Many British businesses were involved in the creation of this city, many British figures were involved in the creation of the institutions that Peter the Great established. But I think there is more to the relationship than that. I mean Petersburg was a capital and has many of the attributes of the capital city, it has wonderful collections of museums, palaces, cultural heritage which is unrivaled anywhere else in the world. It has a concentration of educational and research establishments which are world class and many first class businesses. So I think it is a natural place for businessmen, for people who are interested in the future of the arts, simply for people to meet each other through the mechanism of tourism. It is a terribly important city in Russia. It can play and will play, I am convinced, a very important role in the future.
        - Are you satisfied with the present state of relationship between Great Britain and St. Petersburg? In what directions should it develop?
        - Well, I would like to see much more engagement by British people in business, in the arts, coming here as individuals, as tourists active on the ground here in this part of Russia. So our mission is to try to ensure the people do think a little bit more about this city as one which offers potential for future development. So I suppose an honest answer to your question is that I am not entirely satisfied with the relationship. We still have more to do. But I think the way in which it should develop to ensure that more Russian people go to my country, get involved in a variety of activities that are going in the world of business, in the world of social communication, in the arts and cultural activities, go simply as tourists. I would like to see much greater flow of people in that direction. I would like to see a similar flow from Britain to Russia and I want them coming through St. Petersburg.
        - Mr. Guy, traditionally we Russians cannot imagine an Englishman without a pipe, a golf-club, a dog, a car and love for children and monarchy. Is it true?
        - Yes, I think it is true. Of course it is a generalization and like all generalizations you could quarrel with it, but you will find that in large measure it is very true. There are many people who prefer the cricket bat to the golf club or some other activity. But I think the important thing to bear in mind nowadays is that over the past twenty or thirty years from being a rather conservative society, very traditionally minded, British society has become much more extrovert.
        - Mr. Guy, of course you are aware that St. Petersburg is going to open a representative office in London, I know you support it. You are a very experienced diplomat, what could you wish to the future head of this office?
        - Well, I wish him success of course. The task is an enormous one - representing Petersburg would be an enormous honour for anyone but I think a tremendous challenge too, because the city has so much to offer, so much to present to the outside world that it will require enormous dedication, immense reserves of stamina and a great deal of imagination and, of course, resources. I know from having run missions representing my country round the world that unless you get the tools to do the job it can be a very frustrating business. We will certainly do whatever we can to make a success of the venture.
        - What do you think this representative can do for expanding relations between St. Petersburg and Britain?
        - A great deal. The representative needs essentially to be a good networker and, in an informal way, an ambassador for the city. He is going to need to travel widely within the confines of the city of London but also to travel outside London, visit the regions of Britain, to carry the message to our chambers of commerce, to our business associations. Most British people still have in mind an image of Russia that starts and finishes with Moscow. I hope that the new representative will succeed in painting a different picture of Russia, of St. Petersburg.
        - Do you think the image of St. Petersburg in the minds of the British still does not reflect the reality we have here?
        - Oh, I think that is absolutely true. I think if you meet any British visitor coming here for the most time, you will find the overwhelming majority are astonished at what they find here. They are astonished by the richness of the culture, they are astonished by the numbers of cultural establishments, of palaces, galleries; they are amazed by the architectural ensembles which are presented by the historical centre of St. Petersburg. These are things that very few people know about. I can tell you from personal experience of dealing with British people coming to St. Petersburg for the first time that these are things which come as an enormous surprise to them. I think that the next thing to note is that the British people are overwhelmed by the warmth and generosity spirit they encounter when they meet Russian people. I think that the history of our relationship during the Soviet period during past 70 years or so has been one of an estrangement and therefore neither British people nor Russian people have really known or understood each other. There has been a gulf which has kept us apart. That is all changing. One of the happiest things you can experience is just to see people coming from my country meeting spontaneously ordinary Russian people and going away with the most marvellous appreciation of the hospitality shown to them.
        I have been here for 3 and a half years and I have experienced many times the warmth and hospitality of the people of the city. Of course, I've enjoyed living and working here.

Interview by Tatyana Emelyanova

Diplomats speak

EGYPT IS STRIVING FOR
MAXIMUM DEVELOPMENT OF MUTUAL RELATIONS

Reda Ahmed Shekhata,
Ambassador extraordinaire
and plenipotentiary
of the Arab Republic
of Egypt in Russia

        - What are the perspectives for the development of mutual relations between Egypt and St. Petersburg?
        - They should be regarded within the context of relations between our two countries. It is worth mentioning that Egypt is striving for an intensive development of mutual relations. These relations are solidly based on the agreements signed by the Egyptian President in Moscow two years ago.
        Among the measures taken already one must bear in mind the representative congress in Cairo in October 1998, on the problems of Egyptian cooperation with the countries of the CIS. In March last year the second session of Joint Russian-Egyptian Commission on Trade, Economic, Scientific, and Technical Cooperation took place. It signed a series of bilateral agreements concerning double tax exemption, support and protection of investments, cooperation in the field of sea transportation, creation of agricultural export companies for the supply of goods from Egypt to Russia as well as the creation of industrial import companies supplying Russian industrial goods to Egypt. The Commission also decided to form a joint Egyptian-Russian Business Council and create a free economic zone. Of course, all this is directly connected with our relations with St. Petersburg.
        Speaking about relations between Egypt and St. Petersburg, I mean they must be multi-faceted and take place at various levels. Today a Business Council of St. Petersburg and Alexandria is being established. Its activities will be based on the principles adopted by the Egyptian-Russian Council created by our two countries.
        - Last summer the economic forum took place on the banks of the Neva. Was it in any way significant for the intensification of mutual relations of St. Petersburg and Egypt?
        - This forum was attended by the Egyptian representative delegation. I think that our report was of very great significance, because it determined the development of relations with Russia's regions, and with the industrial regions of St. Petersburg and the whole of Russia's Northwest in particular, as a priority task of our bilateral cooperation. I think that the report's conclusions and propositions may serve as good ground for the intensification of relations between Egypt and St. Petersburg.
        - What can be done to revive cooperation between the Egyptian and Petersburg industrial enterprises?
        - Trade and economic relations between Egypt and Russia, and also our relations with Petersburg, are long standing. Russian goods are well known in Egypt. Their quality is very good and they are not expensive. But after the disintegration of the Soviet Union followed by the privatization of Russian enterprises and abolition of barter transaction that had previously been popular in Egypt, Russian goods almost completely disappeared from the Egyptian market. We then found suppliers in the West, who are willing to give various privileges to Egypt as well as carry out investment projects in our country. Both Egypt and Russia need to apply significant efforts to revive their mutual cooperation and increase their exchange of goods. Besides, Egyptian companies may adopt Russian technology, invite Russian specialists, and create joint ventures in Egypt, for our country possesses a favourable investment climate, tax privileges as well as free transfer of capital. We must take into account that Russian technology completely corresponds to the conditions of Egypt, because it is constructively simple and competitive.
        Cooperation with Egyptian industrial enterprises is available in the field of manufacture, meaning the manufacture of machine tools, instruments, and different mechanisms on the basis of Russian knowledge and Egyptian staff. We may export these goods to Arab as well as to African countries. Egypt has already signed some agreements with them that envisage the abolition of customs dues for Egyptian goods. This situation is favourable for Russian industrial companies to make investments in the Egyptian economy. This will allow Russian goods to enter the Arab and African as well as European markets. I think this situation will give St. Petersburg real opportunities to cooperate with Arab countries.
        Petersburg may create joint ventures using Egyptian technology in those fields of industry where Egypt has made significant progress. I mean Egyptian pharmacology as well as the manufacture of ceramics, carpets, chandeliers, and other goods. Today specialists in Egypt and St. Petersburg are in search of opportunities to conclude barter deals in the export of Egyptian fruits, vegetables as well as other food products, ceramics, carpets, cotton, various textile industry's products, footwear, and fancy leather goods. As for Egypt, it is eager to import Russian paper, cardboard, timber, machine tools, and machinery.
        - The Russian-Egyptian Society of Friendship has recently begun working again. What measures does it need to take in order to contribute to the development of Russian-Egyptian cultural relations?
        - It can perform multi-faceted activities. For example, one of its first actions may be the exchange of Arabian religious manuscripts. Many of them are kept at the St. Petersburg Oriental Studies Institute. They are extremely valuable from a historical and scientific point of view. They are of great importance to the explorers of Arabian religious culture.
        Of course, we need to intensify the cultural exchange between Russia and Egypt. We may exchange teachers and students, that is, students from Egypt studying Russian language and literature, and Petersburg students studying Arabic. We are ready to receive Russian specialists in Islamic subjects at our University of al-Azhar.
        Petersburg may hold Weeks of Egyptian culture, and in Cairo or Alexandria - Weeks of Russian culture, as well as regularly opening different exhibitions. It is also a good way to widely publish the materials gathered by Russian travellers around Arab countries and Egypt in particular, and to publish books about Russia written by Arab travellers.

Diplomats speak

IN EVERY DIRECTION

Linda McDonald,
the Canadian Consul General
in St. Petersburg

        Canada's relations with St. Petersburg and Northwest Russia are varied and growing. Around 30 Canadian companies are present in St. Petersburg, with another 40 or 50 active in the market. Most of Canadian commerce has been in the food, construction, informatics and industrial (transportation, mining, forestry) sectors, although interest is varied and the potential for enhanced collaboration is significant.
        The Canadian International Development Agency (CIDA) supports many different projects in Northwest Russia. Of particular interest in St. Petersburg is the Canada Aids Russia Project, a 1.5M$ Aids Training and Research Project. CIDA also funds (with the World Bank) an Energy Sector Technical Assistance Project in Murmansk. This project finances Canadian energy experts who will work with the Kola utility for two years.
        Canada's cultural exchanges with St. Petersburg are becoming one of the most active and visible aspects of our growing relationship. In addition to a number of successful art exchanges that are being undertaken between the Hermitage, the Russian museum, Peterhof and the Academy of Fine Arts and Canadian Museums, Canada will present its first major Canadian Art Exhibition in St. Petersburg in 2002. Organized by the Art Gallery of Ontario, the Hermitage and the Canadian Friends of the Hermitage, this exposition will be Canada's most important cultural event ever presented in Petersburg. The Consulate General plans to organize a Celebration of Canada around this exposition.
        The recently formed St. Petersburg chapter of the Russian Association for Canadian Studies provides another opportunity to focus on issues Canadian and promote expanded knowledge and understanding of Canada.

Diplomats speak

Santosh Kumar Ganguly
"LEARNING FROM EACH OTHER'S EXPERIENCE"

        Santosh Kumar Ganguly is a career diplomat who has worked in the diplomatic corps of India for over thirty years. For three years, he was Indian Consul General in St. Petersburg. He answered our questions before leaving St. Petersburg.
        - Does the current level of economic and trade relations between India and St. Petersburg correspond to its potential? What could help to broaden business relations between India and St. Petersburg?
        - India has traditionally enjoyed friendly relations with Russia based on continuity, trust, and confidence. After the disintegration of the Soviet Union and the emergence of Russia this continuity became a solid foundation for developing a new strategic partnership with Russia. This did not however happen in the field of trade and commerce where this continuity was badly disrupted with the emergence of new forms of business and trade. Former companies vanished and new structures began from scratch, necessitating bilateral trade relations between the two countries. Obviously the level of trade turnover between India and Russia decreased considerably since Soviet times. But the tendency was soon reversed. Trade and economic relations began to pick up in 1994, reaching a level of almost two billion dollars in 1997. However this is a long way from the maximum potential of Indo-Russian economic and trade relations.
        St. Petersburg occupies an important place in bilateral trade between the two countries and plays a vital role in supplies of Indian exports to the Northwest of Russia. The trade turnover between India and this region has witnessed a steady growth in the last few years. In 1997, India occupied the third place in exports from St. Petersburg (220.1 million dollars) and 17th place in imports (70.8 million dollars). In 1998, exports to India amounted to 147 million dollars and imports to 76 million. St. Petersburg exports equipment for nuclear reactors, electrical machines, ferrous metals, copper and polygraph products. Major imports are tea, tobacco, pharmaceutical products, and garments. St. Petersburg serves as a distribution point for the Northwest of Russia as well as for its northern and eastern parts.I believe, that, apart from great distance, there are no special reasons that hamper growth of trade between India and Russia.
        - Why isn't India interested in creating joint ventures in St. Petersburg? What are the obstacles?
        - India is a capital importing country with a high level of economic growth. Since 1991 when India embarked on the path of economic liberalization, a large number of positive changes in rules and regulations concerning economy, industry and investments have been introduced. As a result, a lot of new areas have opened up for new investments and private participation. The investment atmosphere has improved considerably and both foreign and domestic investors have taken advantage of this, making India one of the largest investment destinations in the world. This is the main reason why the Indian investor is presently not interested in looking much outside. The outflow of capital from India in the last few years to other countries including Russia has been modest.
        - Why has India placed its orders for construction of a number of frigates, which some specialists call the ships of the XXI century, at Baltyisky Shipyard?
        - India has traditional ties with the city's defence industries, particularly in the naval sector. This cooperation is likely to expand further under the agreement for a long-term program of military technical cooperation between India and Russia that goes up to the year 2010. The actual placement of the contracts is the decision of Rosvooruzhenie, which has the authority to sign agreements on all such orders with foreign countries. The Indian government is happy that the contracts have been assigned to the city of St. Petersburg and are being executed on schedule.
        - During the last few years several delegations of St. Petersburg businessmen were in India and Indian business delegations came to St. Petersburg. Do such visits help in joint commercial employment of new technologies?
        - Exchange visits of St. Petersburg businesspeople to India and the visits of the Indian businessmen definitely lead to better appreciation of each other's potential and a better understanding of how the two economies complement each other, something that may be of great mutual benefit. St. Petersburg has been particularly keen on expanding trade relations with India. More than a year ago a twelve-member delegation of city officials and local industry CEOs led by then first vice-governor Ilya Klebanov, visited India. This preliminary visit will now be followed up by a high-level business delegation led by governor Vladimir Yakovlev. It is expected that a number of agreements and contracts will be signed.
        - What are the common economic interests and problems that India and St. Petersburg share?
        - The major problem facing India today is the development of infrastructure which has severely lagged behind demographic growth and economic and industrial development. Our top priority today is to expedite investments in this sector. Russia faces a similar problem, although the investment priority here is on restructuring the existing industry and infrastructure. Both India and Russia can learn from each other's experience.