Russian-American Business Cooperation
Despite the White House initiative to impose a freeze on the activities of the Presidential Commission and a series of the U.S. sanctions aiming at Russian individuals and legal entities, business contacts among our countries continue. Russian companies develop their businesses in the US. American businesses are interested in safeguarding their positions in Russia. In addition to that, major investors plan to expand their projects in our countries, especially now when the Eurasian economic union is established.
According to the Federal Customs Service of Russia the bilateral U.S.-Russia trade turnover in 2014 amounted to 29.2 billion dollars which is 7,2% higher in comparison with 2013. Russian export to the U.S. was 18.5 billion dollars, while American Import to Russia - 10.7 billion dollars.
According to 2015 January-September data the bilateral trade volume decreased in comparison with the same period in the previous year by 29%, and totaled 15.9 billion dollars. American import to Russia lost 40%, and reached 8,7 billion dollars while Russian export to the U.S. proved to be more sustainable: there was an 8% decrease (up to 7.2 billion dollars).
In the Russian export list prevail energy resources (59% in 2014 and 73% in 2013), metals – 25% (16% in 2013), chemicals – 9% (7% in 2013). Leading import items from the U.S. are cars, machinery and transportation vehicles (68%), products of chemical industry (8%), and agricultural raw materials (7%).
The decline in numbers in 2015 in monetary terms can be explained in the first place by the fall in Russia’s export goods. However it is worth noting that in volume terms Russian export in the same period even demonstrated growth. The key reason behind this fact is that due to the currency depreciation and fall of the value of Rouble, Russian goods became more competitive on the international market. In particular there was export expansion in traditional product groups (mineral resources (+52%), chemicals (+35,7%)) as well as in the innovative and high technology goods (+61,5%). Machinery sales to the U.S. also grew significantly: almost 2,5 times.
Investment cooperation continues to develop. According to the data provided by the Central Bank of Russia by the end of 2014 the flow of direct investments from the U.S. to Russia grew up to 45% reaching 708 million dollars. In the first quarter of 2015 this number increased by almost 350 million dollars.
In 2014 the volume of Russian direct investment to the U.S. rose 2,2 times and equaled 1.66 billion dollars. The additional raise in the first quarter of 2015 amounted to 174 million dollars. As of July, 2015 accumulated American direct investments in Russia were estimated at 2.9 billion dollars, and Russian investments in the U.S. – at 7.9 billion dollars.
Russian companies’ investments in the U.S. are located in the metallurgic industry and in oil and gas sector. Cooperation in the IT field is also established.
American direct investments in Russia are predominantly allocated in manufacturing industry, mineral resources, wholesale and retail commerce, automotive maintenance, transportation, telecommunication, financial services, real estate, leasing, and other services. American companies demonstrate particular interest in developing cooperation and providing investments to those Russian regions which are rich in natural resources or where present centers of major chemical, metallurgic, aerospatial, industries.