From foreign countries to St. Petersburg
WINDOW ON THE NETHERLANDS
Annemarie Jorritsma-Lebbink,
Vice-Premier and Minister
of Economic Affairs of the Netherlands.
- In accordance with the Memorandum of Understanding, projects on industrial conversion, construction of power plants, energy-saving technologies, environmental studies, and the sale of St. Petersburg's high tech products abroad (especially to Western Europe) are realized in the city for three years within the framework of the Program of Cooperation with the Countries of Central and Eastern Europe (PSO). What results have been achieved in course of the Program's realization? Are you planning to expand the program?
- The Netherlands will continue the development of long-term industrial and commercial relations with St. Petersburg. The PSO program is one of the means to achieve this goal. The projects are relatively modest in size, but they do directly benefit Russian companies and organizations and do entail concrete results.
Dutch companies are mostly interested in small projects in industry. For example, the Netherlands' know-how, technologies, and materials have been used for installation of packing equipment in the food-processing sector. This resulted in long-term cooperation between the Russian and Dutch partners. St. Petersburg's transport is also included within the PSO framework.
PSO projects are the first step in promoting investments and durable trade relations. Local authorities can contribute to this and establish intensive relations with international financial institutions (World Bank, EBRD) in order to get credits for investment for the private sector.
In 2000 the Netherlands plans to sign a Memorandum of Understanding with St. Petersburg so new PSO projects will be realized within its framework.
- What fields of cooperation with St. Petersburg do you consider the most promising?
- Every year the Netherlands, St. Petersburg and Leningrad Region sign a Memorandum of Understanding on the PSO program. This document always includes a list of branches of industry in which PSO projects are to be realized. These branches of industry are chosen by the enterprises striving for the participation in the program. In 1999 priority was given to St. Petersburg's power plant construction industry and its conversion industry. In Leningrad Region two sectors were chosen, namely, transport and agriculture. Before determining the most promising sectors it is, of course, necessary to take into account local regulations on the most important directions of municipal and regional development, though the final decisions are made by the involved businesspeople of both countries.
- Today there are about 25 companies in St. Petersburg that are partly or wholly financed by Dutch capital. How do you see future cooperation between Dutch business and St. Petersburg? What should be done to promote Dutch investments in our city?
- It is true that many Netherlands companies work in your city. According to the Consulate General of the Netherlands in St. Petersburg, there are about 50 Dutch companies working in various spheres. The Russian Federation decided that reconstruction of local industry was a priority, so this direction should be central for foreign companies. But foreign investments into local industry must be protected by federal and local regulations. I hope that Dutch investors will be attracted to participation in local industry by the investment laws adopted in St. Petersburg and Leningrad Region, and by the new tax code as well. The authorities of the Leningrad oblast and the city of St. Petersburg determine the priority sectors of the PSO programme. The concrete project proposals are formulated by Dutch and Russian companies within these sectors.
- Last year the Netherlands occupied 9th place in exports and 5th place in imports in St. Petersburg foreign trade. Do you think growth of trade is likely?
- As I know, the Netherlands supplied a great amount of food products to the Russian market before the crisis of 1998. After that local industry began to get back on its feet, thanks largely to inflation and rise in prices; on the other hand, there was a noted decrease in food imports. I think that trade between St. Petersburg and the Netherlands may be increased by supplying industrial equipment and raw materials from the Netherlands.
- How do you evaluate the significance of the Window on the Netherlands program for the development of cooperation with St. Petersburg?
- As you know, the Window on the Netherlands program was first introduced in St. Petersburg four years ago and was dedicated to the 300th anniversary of the Great Embassy of Peter the Great to Holland. The Program's main idea was to give a new impulse to the historical relations between St. Petersburg and the Netherlands. Since then it has become a tradition and will celebrate its 5th anniversary next year. As Minister for Transport and Water, I visited St. Petersburg twice. I must admit that the idea of the Program to unite economic, political, cultural, and educational activities is very timely. Because it shows all aspects of our bilateral cooperation, it is helping to raise the popularity of the Netherlands among Petersburgers.
