AEB: European business wants to maintain a presence in Russia

AEB: European business wants to maintain a presence in Russia

European companies in Russia have already experienced several crises, but the crises are temporary, said the Chairman of the Board of the Association of European businesses Philip Pegorye.

VERONA (Italy), 26 Oct. European companies seek to maintain production and partnership in Russia in a difficult economic environment in the country, while reducing costs, said in an interview with the Chairman of the Board of the European business Association Philip Pegorye.

“There’s an economic crisis, we adapt our presence, reduce costs, send back expats, but save all we can save, especially plants, partnership in Russia”, — he told on the sidelines of the fourth Eurasian forum in Verona.

He noted that European investment in Russia to date has reached 170 billion euros, accounting for about 75% of direct investments into the country. While 20 years ago this volume was equal to only one billion.

“European companies here, they’re here to stay, they have experienced several crises. The only difference with this crisis is that it is not only economic crisis but also political,” says Pegorye.

In his view, all crises, even political, are temporary. “These sanctions are too temporary, especially sanctions related to Eastern Ukraine. We are working with European authorities to withdraw these sanctions”, — concluded Pegorye.

Relations between Russia and the West deteriorated in connection with the situation in Ukraine. At the end of July 2014, the EU and the USA from the point of sanctions against certain individuals and companies have moved to measures against entire sectors of the Russian economy. In response, Russia has restricted food imports from countries that have imposed sanctions against her. In June 2015, in response to extension of sanctions, Russia has extended food embargo until 5 August 2016.