Russian-American Business Cooperation

Russia-U.S. economic cooperation is developing. The U.S. is one of the Russian Federation’s major trade partners, though the volume of the commercial relations does not correspond to economic potential of the two countries. Bilateral trade has grown considerably after a substantial caused by the global recession.

In 2011, the volume of foreign trade turnover with U.S. reached a record figure of $42.9 billion. In comparison with the previous year, it increased by 30% ($31.5 billion in 2012). Russian imports reached to $34.7 billion, while the American imports are worth about $8.2 billion. Positive trade balance exceeded $26 billion.

By the end of the first eight months of 2012, the level of bilateral trade was lower than for the same period of 2011 reaching $26 billion (compared to $27.8 billion). Russian exports to the U.S. dropped by14% accounting for $19.3 billion, while imports from the U.S. increased by 29% to $6.7 billion.

With support from the U.S., on December 16, 2011, during the 8th WTO Ministerial Conference, a Protocol on Russia’s accession to the WTO was approved. Thus, a “marathon” of negotiations towards Russia joining the organization was completed. On August 22, 2012, Russia officially became a member of the World Trade Organization.

Investment cooperation is advancing. Among the most talked about business projects are PepsiCo’ sacquisition of Russian food and beverage producer Wimm-Bill-Dann for $3.8 billion, as well as the agreement between Rosneft public corporation and ExxonMobil to explore the Black Sea and Arctic shelves proving for $1 billion of investments into drilling.

Russian Technologies State Corporation signed a contract with Boeing to purchase 50 airplanes for $3.7 billion. VSMPO-Avisma continues to supply Russian titanium for aircraft production.

The U.S. shows great interest in the creation of the Skolkovo Innovation Center. Cooperation agreements were signed with such high-tech industry leaders as Microsoft, IBM, Intel, Googleand the Massachusetts Institute of Technology. Cisco announced its plans to invest $1 billion, Boeing intends to create a large research and development center.

Russian companies and entrepreneurs are, in their turn, actively mastering the U.S. market. Severstal company has invested $400 million in a factory that produces automobile steel in Michigan. TMK has doubled the production output of a pipe plant in Ohio. The Novolipetsk Metallurgical Complex acquired Steel Invest and Finance for $600 million, JSC Atomredmetzoloto purchased Uranium One’s uranium mines in Wyoming, Mail.ru e-mail service provider bought ICQ instant messaging service, while Mikhail Prokhorov acquired the New Jersey Nets basketball team. Russian Digital Sky Technologies Corporation accumulated 10% of shares of Facebook. RUSNANO State Corporation is intensifying its partner ties in the U.S. biotechnological industry.