Trade between Russia and the United Kingdom could double in the next five years

London, 29 November 2017 – The Third Russian-British Business Forum was held in London on 28-29 November, organised by the Ministry of Economic Development of the Russian Federation, the Trade Delegation and Embassy of the Russian Federation in the UK with the support of Russian and international partners to discuss the development of trade and investment relations between the two countries.
Forum participants included His Royal Highness Prince Michael of Kent, State Secretary-Deputy Minister for Economic Development of the Russian Federation Oleg Fomichev, President of the Republic of Tatarstan Rustam Minnikhanov, Presidential Commissioner for Entrepreneurs’ Rights Boris Titov, representatives of the House of Lords and the House of Commons, representatives of specialized authorities and business associations and leaders of Russian and British companies.
According to forecasts presented during the forum, in 2017 business activity between Moscow and London will continue its gradual recovery, with trade turnover between the countries increasing by more than 20% to exceed US$12 billion. In 2017, there has been a trend of diversification of both Russian exports to the UK and British imports to Russia.
“In 2017, business within the two countries continued to adapt to the new reality, and trade and economic relations are now developing. If the current macroeconomic indicators remain on the same level and the potential for trade and investment cooperation is realised, trade turnover between Russia and the UK may double in the next five years”, explained Oleg Fomichev.
“2017 has seen a continuation of Russia’s trade surplus with the UK – Russia sells to Britain 1.7 times more goods and services than Britain sells to Russia. At the end of 2017, this figure will be more than $4 billion”, added Boris Abramov, Trade Representative of the Russian Federation in the UK.
Over the first 9 months of 2017 Russian exports to the UK increased by 29.4% to US$6.5 billion compared to the 9 months of 2016. Russia’s non-energy exports to the UK are growing steadily, amounting to US$3.1 billion (48.5% of exports). At the same time, demand for chemical products almost doubled (3.7% of exports), while demand for various Russian mineral products increased by a factor of nearly 1.5 (71.5% of exports). Demand for Russian metals and products made from them increased by 15.3% (3.2% of exports), while exports of precious metals and stones almost doubled (17.4% of exports).
Imports from the UK, based on the results of the first 9 months of 2017, increased by 18.7% compared to the same period in 2016. In connection with the revival of industrial production in Russia, demand for British machinery and equipment continued to grow (48.9% of imports), where growth reached 21%. The share of chemical products in the import structure is 34.1%. Third place goes to food products and agricultural raw materials (8.9% share).
The UK retains its place among the top three in trade in services among all Russia’s partner countries (financial, transport, IT, consulting and other services). According to the Bank of Russia, the turnover of Russian-British trade in services is growing steadily, and over 6 months in 2017 increased by 15.8% to US$3.6 billion.

About the Russian-British Business Forum
The Forum’s purpose is to develop Russian-British economic relations and trade and investment cooperation between Russia and international business stakeholders. During the Russian-British Business Forum, Russian and British experts evaluate market dynamics for growth and international trade relationships, identify economic trends and international, British and Russian investors’ interests, and set up ways of expanding bilateral and multilateral trade and economic cooperation.

For 2017, the two-day event is being organised by the Ministry of Economic Development of the Russian Federation and the Trade Delegation of Russia in the United Kingdom, together with its partners: BSI Global Group, Sberbank of Russia, Aeroflot Russian Airlines, Tatneft, Phosagro, SMP-Neftegaz, Freedom Finance, Synergy University, BLOOMBERG, London & Partners, the Russian Embassy in Great Britain, the Russian-British Chamber of Commerce, Skolkovo Foundation, Agency for Strategic Initiatives, Westminster Russia Forum, Cision PR Newswire and Rossotrudnichestvo. The Forum is held annually during the Eastern Seasons week of business and cultural events.
http://www.rbbf2017.ru/, https://www.facebook.com/rbbf2017/, https://twitter.com/RBBF2017, https://www.linkedin.com/company/18318216/.

About Eastern Seasons
The Eastern Seasons annual week of business, cultural and sporting events has been held since 2015 with the support of founding partner BSI Global Group. The project is aimed at developing trust and strengthening relations between Russia and Great Britain. The organisers of Eastern Seasons Week set out to create an international platform in London for productive business dialogue and cultural exchange. Partners and sponsors of Eastern Seasons 2017 are: BSI Global Group, Sberbank of Russia, Aeroflot Russian Airlines, Tatneft, PhosAgro, Synergy University, Freedom Finance, Cision PR Newswire, SMP-Neftegaz, Rossotrudnichestvo, Blackthorne, Pushkin House, Russian Film Week and Street Child United.
http://www.easternseasons.com/, https://www.facebook.com/easternseasons/, https://twitter.com/EasternSeasons, https://www.instagram.com/easternseasons/.

Russian company SPLAT in the UK

In 2016 Russian company SPLAT entered the British marked and opened its first office in the UK. Today SPLAT products are distributed in more than 1000 retails in the UK, including Harrods, Harvey Nichols, John Bell & Croyden, Revital. SPLAT products can also be found at hundreds of pharmacies, beauty shops and dental practices around the UK, as well as in web stores. SPLAT Global UK won 7 awards, one of the most prestigious – Beauty Shortlist Mama and Baby Awards 2017.
SPLAT is a Russian company that specializes in developing and producing of professional solutions in categories of oral care, eco home care products and kids’ cosmetics. SPLAT is family-run business. Today the company sells products to more than 60 countries worldwide and strives to create the very best products that will provide healthy oral care solutions. SPLAT has been recognized as the TOP-30 fastest growing global brand by Stanford University.
SPLAT products are manufactured from only the very best ingredients from leading global producers, in its own modern, environmentally friendly factory, located in Valdai region. The company’s quality control system and certified production meet the international standards GMP Cosmetics (ISO 22716) and ISO 9001. SPLAT specializes in the creation of high-quality ecologically friendly products.
SPLAT is a member of the UK’s largest dental industry body – British Dental Industry Association. SPLAT products are always displayed in the leading trade exhibition in the UK: Natural Organic Products Europe, BDIA Dental Showcase, Pharmacy Show, Annual conference of British society of periodontology and others. SPLAT is a social oriented company and contribute to charities around Russia and the UK.

Press release: Russian-British Business Forum 2017 offers new perspectives on bilateral trade

 

Press release

Russian-British Business Forum 2017 offers
new perspectives on bilateral trade

Members of the British Parliament and UK business representatives join leaders of the Russian business establishment to discuss building cooperation in innovative sectors of the economy

Moscow – London, 16 November 2017. On 28-29 November 2017, the Russian-British Business Forum Synergy for Growth returns to the Queen Elizabeth II Centre in Westminster, London for the third year, with the aim of strengthening bilateral economic relations and trade and investment cooperation between Russia and international economic circles. The RBBF is organised by the Ministry of Economic Development of the Russian Federation, the Embassy and the Trade Delegation of the Russian Federation in the United Kingdom, with support from Russian and international partners.

As a result of this ongoing dialogue and growing business activity, 2017 actually saw an increase in trade turnover between Russia and Britain for the first time in the last three years. In fact, turnover grew by more than 20% in the first half of this year, with the UK remaining Russia’s number one partner in service trade.

The forum will bring together representatives of the political and economic establishment of Russia and the UK, including members of the British Parliament, the heads of a number of Russian regions, leaders of trade organisations and unions, representatives from public and private companies as well as young business leaders developing innovative projects in the financial services, information technology and retail sectors of both countries.

During the forum, the following topics will be addressed on the main day – 29 November – in a series of panel sessions:

• Brexit as a source for transforming economic dialogue between Russia and Great Britain
• Tomorrow through the eyes of the financial sector: trust, FinTech, multilateral projects
• Key challenges and opportunities for developing cooperation in Russia with international business circles in various industries
• Investment and business climate in Russia. New opportunities in the regions of the Russian Federation

Eastern Seasons 2017

The RBBF is held as part of the Eastern Seasons Week of business, cultural and sporting events. The week will begin on 27 November with a special performance by Russian virtuoso pianist, Alexei Volodin, who will be joined by fellow pianist Edith Peña and members of the London Chamber Orchestra to present  a programme devoted to the legacy of Russian-British composer Nikolai Medtner. Eastern Seasons Week will also feature film screenings and sports competitions – the Goodwill Tennis Tournament and Eastern Seasons Golf Day.

Partners and sponsors of Eastern Seasons 2017 are BSI Global Group, Sberbank of Russia, Aeroflot Russian Airlines, Tatneft, Phosagro, Synergy University, Freedom Finance, Cision PR Newswire, SMP Neftegaz, Rossotrudnichestvo, Blackthorne, Pushkin House, Russian Film Week and Street Child United.

For full programme information and tickets to events, please click here

About the Russian-British Business Forum (RBBF)
The purpose of the RBBF is to develop economic relations and trade and investment cooperation between Russia and international business stakeholders. At the RBBF, Russian and British experts evaluate market dynamics for growth and international trade relationships, identify the key economic trends and investors’ interests, and set up ways of expanding bilateral and multilateral trade and economic cooperation.

The two-day event is organised by the Ministry of Economic Development of the Russian Federation and the Trade Delegation of the Russian Federation in the United Kingdom, with support from its partners: BSI Global Group, Sberbank of Russia, Aeroflot Russian Airlines, Tatneft, Phosagro, Synergy University, Freedom Finance, BLOOMBERG, London & Partners, Skolkovo Foundation, Agency for Strategic Initiatives, Westminster Russia Forum, Cision PR Newswire and Rossotrudnichestvo. The Forum is held annually during the Eastern Seasons week of business and cultural events.

To register for the event, please click here, and you can follow the RBBF news on social media via the following links:

https://www.linkedin.com/company/18318216/
https://twitter.com/RBBF2017
https://www.facebook.com/rbbf2017/

About Eastern Seasons

With the support of founding partner BSI Global Group, Eastern Seasons is an annual week of business, cultural and sporting events taking place in London from 26 – 29 November. Established in 2015, the project aims to build trust and foster relationships between people from different countries, cultures and backgrounds. Eastern Seasons Week strives to create an international platform for productive business dialogue and cultural exchange in London.

For full programme information and tickets to events, please click here. You can follow the Eastern Seasons Week on social media at the following links:

https://www.facebook.com/easternseasons/
https://twitter.com/EasternSeasons
https://www.instagram.com/easternseasons/

New Calendar of Events at Moscow EXPOCENTRE

Expocentre is a world-known Russian organizer of major trade shows and congresses in Russia, the CIS and Eastern Europe with close to 60 years of experience.
All own trade shows of Expocentre are supported by Russian federal executive authorities and national industry associations. Most of these shows are also held under auspices of the Russian Chamber of Commerce and Industry.
Expocentre was the first Russian company to join UFI, the Global Association of the Exhibition Industry, in 1975. In 2005 we played host to the 72nd Annual Congress of UFI, the main international association of exhibition organizers.
Expocentre is a founding member of RUEF, the Russian Union of Exhibitions and Fairs (since 1991), and a member of the Guild of Exhibition and Fair Organizations of the Moscow Chamber of Commerce and Industry.
Due to the development of convention activity, Expocentre also joined AIPC, the International Association of Congress Centres; ICCA, the International Congress and Convention Association; IFES, the International Federation of Exhibition and Event Services; EMECA, the European Major Exhibition Centres Association; and IAEE, the International Association of Exhibitions and Events.
General Director of Expocentre AO Sergey Bednov serves as a vice president of RUEF, the Russian Union of Exhibitions and Fairs, a member of the boards of UFI, the Global Association of the Exhibition Industry, and the Guild of Exhibition and Fair Organizations of the Moscow Chamber of Commerce and Industry.
Annually, Expocentre Fairgrounds hosts more than 100 international trade shows with more than one million professional visitors attending and about 30 thousand companies from more than 100 countries participating. It also accommodates more than 700 conventions, conferences and similar events.
Today, Expocentre Fairgrounds comprises 9 fully equipped exhibition pavilions and 35 multifunctional halls for conventions, press conferences, meetings, seminars and symposia. The total exhibition space at Expocentre Fairgrounds is 165,000 sq m comprising 105,000 sq m of indoor space and 60,000 sq m of outdoor space.

Calendar of events: http://www.expocentr.ru/en/schedule/

Moody’s publishes a positive credit opinion on Russia’s International Investment Bank

Moody’s published a positive credit opinion on International Investment Bank (IIB) with the bank – formerly billed as the Soviet era’s answer to Europe’s EBRD – continuing to reinvent itself.
The international rating agency Moody’s Investors Services improved its credit opinion of IIB after meetings with the bank’s management in October.
Set up in Soviet times to foster cooperation and trans-border investment amongst the Comecon countries, the bank has been remaking itself over the last three years as a modern International Financial Institution (IFI) and the transition program officially came to an end at the close of 2015.
Moody’s noted a number of positive developments in its credit opinion that have had a positive impact on the institutional development and the operational activities of the IIB this year.
In May, 2017, Moody’s upgraded IIB’s rating outlook to positive from stable and affirmed IIB’s Baa1 issuer and debt ratings. In addition to the Moody’s Baa1 rating (outlook “positive”), IIB has been assigned ratings of BBB with a stable outlook from S&P and Fitch, as well as an A rating from the Chinese rating agency Dagong (outlook stable).
“The Moody’s opinion confirms the financial stability and the operational efficiency of the Bank. I would like to express my gratitude to the Agency for its positive evaluation of our efforts aimed at enhancing the role of the IIB as an effective multilateral financial institution, which operates in the interests of sustainable development of the economies of its shareholders,”, chairman of the IIB board Kosov said in a statement.
And the agency was pleasantly surprised by the “policy continuity” in the unanimous approval by the member states of the new development strategy that will start next year and run until 2022 as well as the board’s decision to re-elect the IIB’s chairman Nikolay Kosov for another five-year term.
The bank has been active in the last few years investing in the development of the economies of its member states and active development of local capital markets, including the issue of some pioneering local-currency bonds on local exchanges, its bank lending support programme with local partners and more recently its trade financing programme.
In the next strategic cycle IIB expects to deliver a two-fold asset growth and loan portfolio over five years, as well as delivering on more qualitative customer relations improvements, development of flexible products and service offerings in each of its member states.
The bank has also made progress in its risk management and liquidity management framework, according to Moody’s. This year IIB created an “Early Warning Mechanism” and extended the period for its liquidity buffer to 12 months from six months, which is intended to strengthen its stability during the stress tests.
But the proof of the pudding was the consistent assets growth, quality of the treasury portfolio, and funding diversification. IIB’s development assets, mostly loans, increased by around 38% y/y to circa €501mn in the first half of this year from €363mn in the same period a year earlier. The bank has also increased the Aaa-to-A3-rated assets in its portfolio – about 41% of the total volume as of June 30. At the same time, the IIB has expanded its funding to 11 countries as of the first half of 2017.

Resource http://www.intellinews.com/moody-s-publishes-a-positive-credit-opinion-on-russia-s-international-investment-bank-132229/?source=russia

What does the latest Brexit concession mean?

The government’s decision to cave into backbench pressure and seek statutory approval for whatever divorce deal it strikes with Brussels has rekindled fears about the future of Brexit itself, and closer examination of the fine print raises more questions than answers about the true scale of its climbdown.
Assuming there is a withdrawal deal struck with the EU over the next year – itself a far from certain outcome given current deadlock in Brussels – then Britain’s parliament will be asked to pass legislation putting it all into UK law. Not only will this mean a binding vote by a majority of MPs, but it also provides an opportunity to table amendments, which could theoretically even force some element of renegotiation. The Brexit secretary, David Davis, says that failure to pass the bill (or passing any overly ambitious amendments) will simply mean that Britain crashes out without an exit deal at all. Nonetheless it introduces yet more doubt about the government’s ability to maintain balance as it tip-toes across the Brexit tightrope.

Resource: https://www.theguardian.com/politics/2017/nov/13/what-does-the-latest-brexit-concession-mean

Penny Mordaunt has been appointed international development secretary

Penny Mordaunt, the Brexit-backing work and pensions minister, has been appointed international development secretary to replace Priti Patel, who resigned from the cabinet on Wednesday night.
Mordaunt’s appointment will appease many Eurosceptic MPs who wanted to see the prime minister preserve the balance of leave and remain supporters in the cabinet after the departure of Patel, who has been one of the government’s most pro-Brexit voices.
Mordaunt, 44, had been widely tipped to replace Michael Fallon as defence secretary when he resigned over sexual harassment allegations last week, but he was succeeded by the former chief whip Gavin Williamson.
Mordaunt, a Royal Navy reservist from a military family, was first elected as the MP for Portsmouth North in 2010 and appeared on ITV’s celebrity diving programme Splash four years later.
May completed her mini reshuffle by moving the MP Sarah Newton from the Home Office to replace Mordaunt at work and pensions. Her responsibilities will focus on disability. Meanwhile, Victoria Atkins, who became a Tory MP in 2015, becomes an undersecretary of state in the Home Office, replacing Newton.
Ministers suggested that the prime minister was building up to a major reshuffle on her own terms in December, or the new year, after Philip Hammond delivers his budget later this month.
The shadow international development secretary, Kate Osamor, said Mordaunt “faces an immediate challenge of restoring integrity to British international development policy after the actions of Priti Patel”.
Osamor said Mordaunt should publicly recommit to the 0.7% of national income to be spent on international development.
“Unlike Priti Patel, who too often used the department to prop up her personal networks and leadership ambitions, Mordaunt must also quickly commit to the central cause of the department: to help the world’s poorest,” she said.
Patel resigned under pressure on Wednesday night and acknowledged that her behaviour “fell below the high standards” expected of a minister after she attended meetings with senior Israeli figures while on a family holiday, without reporting them to Downing Street.
It emerged she had 12 political engagements, including with the prime minister, Benjamin Netanyahu, while visiting the country in August.
When the meetings first came to light, Patel apologised to May and Downing Street said she would stay in post. It was then revealed Patel had attended additional meetings, one in the UK and one in the US, on her return from Israel.
The Israeli newspaper Haaretz also reported that during her stay in the country she visited an Israeli military field hospital in the occupied Golan Heights. Britain does not recognise Israeli control of the area seized from Syria.
Patel was summoned back from an official visit to east Africa, flying from Nairobi to attend a crisis summit in Downing Street, where she resigned.

Resource: https://www.theguardian.com/politics/2017/nov/09/penny-mordaunt-replaces-priti-patel-as-international-development-secretary

“Dodo Pizza” restaurant is to be the first Russian pizza in the UK.

Today the Russian chain of pizzerias Dodo Pizza Brighton has opened first restaurant in Brighton!
“Dodo Pizza” restaurant is business format franchise and it should become the first step towards the entering delivery-oriented mass market brand in Britain. “Dodo Pizza” aims to compete with British fast food chains such as Domino’s Pizza, Papa Johns and many others. Company features special delivery model.
“Dodo Pizza” is an international restaurant chain represented by over 250 pizzerias across 10 countries, including Russia, the USA, China and the UK.
According to Euromonitor International the restaurant’s amount and profit made chain of pizzerias “Dodo Pizza” is number one in Russia, company left far behind competitors such as Domino’s and Papa Johns.
Dodo Pizza was founded in 2011 in Syktyvkar, Komi Republic by an innovative entrepreneur Fedor Ovchinnikov.
For the last six years the innovative approach has revitalized outdated business and made company the market leader.
“Dodo Pizza” is an example of digital transformation. There is cloud-based system in the core of company’s franchise – own ground-baking cloud-dwelling ERP software. It coordinates processes and optimizes resources. The result is a fully transparent streamlined business system with a powerful competitive edge.
In fact “Dodo Pizza” is an IT-company which produces pizza and develops franchising.

Official website: http://www.dodopizza.co.uk/

Bank Rate increased to 0.50%

The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 1 November 2017, the MPC voted by a majority of 7-2 to increase Bank Rate by 0.25 percentage points, to 0.5%. The Committee voted unanimously to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £10 billion. The Committee also voted unanimously to maintain the stock of UK government bond purchases, financed by the issuance of central bank reserves, at £435 billion.

The decision to leave the European Union is having a noticeable impact on the economic outlook. The overshoot of inflation throughout the forecast predominantly reflects the effects on import prices of the referendum-related fall in sterling. Uncertainties associated with Brexit are weighing on domestic activity, which has slowed even as global growth has risen significantly. And Brexit-related constraints on investment and labour supply appear to be reinforcing the marked slowdown that has been increasingly evident in recent years in the rate at which the economy can grow without generating inflationary pressures.

Monetary policy cannot prevent either the necessary real adjustment as the United Kingdom moves towards its new international trading arrangements or the weaker real income growth that is likely to accompany that adjustment over the next few years. It can, however, support the economy during the adjustment process. The MPC’s remit specifies that, in such exceptional circumstances, the Committee must balance any trade-off between the speed at which it intends to return inflation sustainably to the target and the support that monetary policy provides to jobs and activity.

The steady erosion of slack has reduced the degree to which it is appropriate for the MPC to accommodate an extended period of inflation above the target. Unemployment has fallen to a 42-year low and the MPC judges that the level of remaining slack is limited. The global economy is growing strongly, domestic financial conditions are highly accommodative and consumer confidence has remained resilient. In line with the framework set out at the time of the referendum, the MPC now judges it appropriate to tighten modestly the stance of monetary policy in order to return inflation sustainably to the target. Accordingly, the Committee voted by 7-2 to raise Bank Rate by 0.25 percentage points, to 0.5%. Monetary policy continues to provide significant support to jobs and activity in the current exceptional circumstances. All members agree that any future increases in Bank Rate would be expected to be at a gradual pace and to a limited extent.

There remain considerable risks to the outlook, which include the response of households, businesses and financial markets to developments related to the process of EU withdrawal. The MPC will respond to developments as they occur insofar as they affect the behaviour of households and businesses, and the outlook for inflation. The Committee will monitor closely the incoming evidence on these and other developments, including the impact of today’s increase in Bank Rate, and stands ready to respond to changes in the economic outlook as they unfold to ensure a sustainable return of inflation to the 2% target.

Resource:  http://www.bankofengland.co.uk/publications/Pages/news/2017/007.aspx

Russia’s central bank cuts interest rate by 25bp to 8.25%

The Central Bank of Russia (CBR) decided to cut the key interest rate by 25bp at the board of directors meeting on October 27, the regulator said in a much anticipated press release.
A rate cut of 25-50bp was widely expected by analysts as the inflation-minded regulator had the annual inflation overshoot its target of 4% currently amounting to about 3%.
A more aggressive cut of 50bp would have meant that the CBR could prepare to tighten the policy again in the beginning of 2018, some analysts suggested. However, the CBR decided to abstain from an aggressive move and cut the rate by the minimum step of 25bp to 8.25%.
“The CBR’s decision to lower the key rate by 25 bps to 8.25% is in line with market expectations, but turned out to be more cautious than we anticipated,” Gazprombank commented on October 27.
“The board of directors noted that inflation remains close to the target of 4%,” the CBR press-release reads. The CBR argues that the “downwards deviation of inflation is related mainly to one-off temporary factors”.
The regulator has allowed for further rate cuts in the coming meetings in 2017. The decision will take into account the “significant and stable” deviation of inflation from its goal, as well as dynamics of economic activity.
Gazprombank sees that tone of the CBR’s press release as mixed. On one hand it sees the current strong disinflation as temporary and reminds of consistently high inflationary expectations. On the other hand, in medium-term persective risks, both the downsides and upsides of inflation deviations from the 4% target are mentioned.
“Moreover, for the first time in its communique, the CBR included a phrase regarding transition from “moderately tight” to “neutral” monetary policy, which in our view indicates a smooth reduction of the real key rate from the current level of 5.6% to the equilibrium 2.5%,” Gazprombank commented.
Gazprombank expects a 25bp reduction of the key rate at a base case scenario given no negative surprises for the next meeting scheduled for December 15. VTB Capital agrees saying: “We see a 25bp cut at the December meeting as a base case,” on October 27.
“The incoming data for October and November might nudge the Board to opt for a more ambitious cut of 50bp, but this would call for surprises from inflation reports, banking stats and economic activity data to combine into a convincing case,” VTB analysts commented.
The CBR expects inflation to end 2017 at 3.5-3.8%, while the Ministry of Economic Development that needs lower interest rates to help its ambitious 2.1% growth outlook expects 2.7-3.2% inflation in 2017.

Resource: http://www.intellinews.com/russia-s-central-bank-cuts-interest-rate-by-25bp-to-8-25-131492/?source=russia