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In February 2010 it was 90 years since the date of establishing the Russian Trade Delegation in the UK.
On this occasion the Trade Representative of the Russian Federation Victor Spasskiy, Member of the Board of Ministry for Economic Development of the Russian Federation, addresses the "Diplomat" magazine.
In February 2010 we celebrated 90 years anniversary since the first Russian Trade Delegation abroad - Trade Delegation of the Russian Federation in the UK - was established.
The beginning of 20th years of the last century was a very difficult time in Russian history - the country was ruined during the civil war, its people were starving, because of the economic embargo of the governments of the Entente countries Russia was not able to export and import goods which its economy was needed. To find a way out of this complex situation the Russian Government decided to send a trade mission to the UK.
Leonid Krasin, the first Russian Trade Representative in the United Kingdom and the Russia's Minister of foreign trade, wrote in those days: "Britain is the world merchant. It co-exists with the British Merchant Navy and every confusion in trading eventually hurts English industry, and increases the huge unemployment which has lasted in Great Britain since the end of the war".
Before 1917 the UK was the leading Russia's foreign economic partner: in 1913 the Great Britain's part in Russia's import was more than 12% and in export - about 20%. Russia held the first place in the British export among European countries.
The UK also understood the importance of reestablishing of trade relations with Russia for its wellbeing. The then Prime Minister of the United Kingdom, Lloyd George noted: "We are dependent on Russia and Russia is dependent on us".
On 16 January, 1920 the Entente Supreme Council allowed to resume the trade links with Russia and the doors for the Trade Delegation of Russia in Britain was opened. At the end of 1920 the Trade Delegation started the negotiations with the UK Government on signing the trade agreement. On 16 March 1921, after sustained negotiations, the trade agreement between the Russia and the UK was signed by Mr. Krasin and Sir Robert Horn, and the Russian Trade Delegation in London became an official representation of the Russian Government.
The Delegation did its best for the reestablishing of the Russian-British trade. As a result, bilateral trade turnover began to grow rapidly. Great Britain became the Russia's leading partner, and its share in foreign trade of our country in the first half of the 20th years was about 25% at that time.
Nowadays Russian - British trade and economic cooperation has been developing successfully. Great Britain is one of the leading trade partners of Russia. In 2008 the foreign trade turnover between two countries reached the peak, $22.5 bln. Great Britain is among the four leading investors in Russia (as of the end of September 2009, the amount of cumulative British investment in Russia stood at about $26bn, nearly one tenth of total foreign investment in the Russian economy) and it holds the first place in Russia's external trade in services.
Unfortunately, the global recession has decreased the volumes of the bilateral cooperation. Nevertheless, the role of Britain as a Russian foreign economic partner has not changed.
At present the Trade Delegation is an integral part of the Embassy of the Russian Federation to the UK, but it is subordinated directly to the Ministry of Economic Development of the Russian Federation headed by Minister E.Nabiullina.
Both the Russian Embassy and the Russian Trade Delegation in the UK take a constructive part in the activities of the Russia - UK Intergovernmental Steering Committee on Trade and Investment (ISC), established in 1992 to solve the problems in the bilateral economic relations and to render assistance to business on the intergovernmental level.
At present the Committee is coached by the First Secretary Lord Mandelson and Deputy Prime Minister A.Kudrin.
The last ISC Session was held in London on 5 November, 2009. It was the first meeting at intergovernmental level after a long, almost seven year break, which had a resounding success and reflected that the British and Russian governments pay a great attention to the development of mutual economic cooperation.
Before this session, forums were held on finance, energy, nano-technology and Olympic legacy, as well as meetings of the representatives of the Russian Union of Industrialists and Entrepreneurs with the Confederation of British Industry, and meetings of the Russian and British financial world.
All these facts give an optimistic picture of the future trade and economic cooperation between Russia and Great Britain. As the bilateral business ties go from strength to strength and continue to serve as a key cornerstone of a wider Russia-British co-operation, our nations will further benefit from such a long lasting relationship based on traditions, trust and mutual respect.