KEY CONCLUSIONS
Coronavirus pandemic did not hinder economic cooperation between Russia and Japan
«Despite a difficult year, we managed not only to continue existing projects but were even able to launch new ones. An express test for coronavirus was created, and a container train with Japanese goods was launched for the first time on the Trans-Siberian Railway. Construction began on a centre for preventive medicine in Khabarovsk. The Japanese company Fanuc opened an engineering centre in Skolkovo. Future plans include the creation of liquefied natural gas trans-shipment complexes in Kamchatka and the Murmansk region and the construction of an ion therapy centre for cancer treatment in Obninsk. We are preparing to enter new and promising tracks in hydrogen energy, climate change, the creative economy, and e-commerce», Minister of Economic Development of the Russian Federation Maxim Reshetnikov.
«Japan has been and remains our most reliable partner, a partner in a variety of areas. In terms of investments, this includes, of course, the further development of projects with Mitsubishi and Toyota Tsusho. Mitsubishi has placed its headquarters in Kaluga this year, and together with Peugeot Citroën has been working with us since 2009. Along with Volkswagen and Volvo, it makes up the core of the automotive cluster, which accounts for 12% of the automobiles produced in the country today», Governor of the Kaluga Region Vladislav Shapshа.
«We operate a wonderful plant built in Tatarstan by Mitsubishi and Sojitz. I must say that Japanese equipment has proved its reliability. We are very pleased with this plant. Its capacity is 720 thousand tonnes of ammonia and methanol. We are grateful for your contribution», Founder and Chairman of the Board of Directors of the AEON Corporation Roman Trotsenko.
«Foreign trade between Japan and Russia reached 50 million tonnes last year. This is 5.5% growth from 2019. This year, we have noted a steady growth in transit freight traffic — 40%», First Deputy Managing Director of Russian Railways Sergey Pavlov.
«We launched our machining shop for Mazda engine parts. It was a very difficult start, given that cooperation was interrupted, and we could not communicate directly. On the other hand, however, we have introduced a lot of interesting digital communication methods. [...] Thanks to such mobile cooperation and even VR technologies, we still managed to launch production», General Director of Sollers Group Vadim Shvetsov.
The new environment has pushed countries to seek new resolutions to overcome challenges
«The coronavirus pandemic has forced us into many challenges. But at the same time, it has highlighted, illuminated in a new way some of the problems that we had seen and been aware of even before the epidemic. These are the problems of healthcare, energy, and digitalization. It seems to me that now is the moment for us to start new cooperation in these areas, especially in healthcare», Minister of Economy, Trade and Industry of Japan Hiroshi Kajiyama.
«Our trade and economic work together probably suffered a little from that period of forced isolation. [...] Nevertheless, I certainly believe that the crisis is pushing us to search for new ways to create benefits for our consumers», Chairman of Delovaya Rossiya (Business Russia) and Chairman of the Board of the Group R-Pharm Alexey Repik.
PROBLEMS
Russia and Japan face similar environmental challenges while developing economic cooperation
«Amid the growing trend of decarbonization, in October of last year, Japanese Prime Minister Yoshihide Suga announced a goal aimed at achieving carbon neutrality by 2050. Moreover, the goal is to reduce 2013 levels of greenhouse gas emissions by 46% by 2030. Achieving these targets will require that Japanese industry be heavily involved and adaptable», President of the Japan Association for Trade with Russia and the NIS (ROTOBO) and Special Advisor of Kawasaki Heavy Industries, Ltd. Shigeru Murayama.
«It is of great significance that President Vladimir Putin in his address to the Federal Assembly set the task of significantly limiting the accumulated volume of carbon emissions in our country just as similar goals were set by the Prime Minister of Japan, Mr. Yoshihide Suga, for the Japanese economy,» Chairman of Delovaya Rossiya (Business Russia) and Chairman of the Board of the Group R-Pharm Alexey Repik.
«Natural gas, which can reduce carbon emissions, is a very important resource of which Russia is a leader. The unification of these Russian resources and the Asian market is just one area of promise for us», Minister of Economy, Trade and Industry of Japan Hiroshi Kajiyama.
Russian business needs to attract investment
«The demand for equipment and the demand for capital both remain in Russia. Russian capitalism, in the positive sense of the word, is young, and there is little national capital in the country. Interest rates on loans remain very high, and the requirements of the national bank, the Central Bank of the Russian Federation, to credit policy remain stringent», Founder and Chairman of the Board of Directors of the AEON Corporation Roman Trotsenko.
«There are forecasts that the Russian economy will resume growth this year and ultimately grow by more than 3%. Japan also aims to recover as soon as possible from pandemic-related failure. For this, of course, the primary and first step to build a healthy and sustainable post-covid society across the globe, will be to work together with Russian partners on the basis of the eight-point plan», Director of Mitsui and Co. Ltd. Masami Iijima.
SOLUTIONS
Avoiding sanction-related restrictions
«The challenge is to move the financing relationship between Japan and Russia outside of these sanctions. For example, financing in euros or in yen. This would be very positive and would allow us to take advantage of the cheap rates on loans in Japan in Russia», Founder and Chairman of the Board of Directors of the AEON Corporation Roman Trotsenko.
Healthcare and energy partnership
«New areas are emerging. For us it is hydrogen and ammonia; it is the capture and storage of carbon, carbon dioxide, and its use as a resource. Here, it seems to me, we must increase our work together,» Minister of Economy, Trade and Industry of Japan Hiroshi Kajiyama.
«The health sector is the first item in the eight-point economic cooperation plan. I think that our countries should increase cooperation in this area», President of the Japan Association for Trade with Russia and the NIS (ROTOBO) and Special Advisor of Kawasaki Heavy Industries, Ltd. Shigeru Murayama.
«We believe that Japan can help achieve the goal of increasing healthy life expectancy set by the government of the Russian Federation,» Chairman of the Japan-Russian Committee for Economic Cooperation and the Federation of Economic Organisations Keidanren and Chairman of the Board of Directors of the Marubeni Corporation Fumiya Kokubu.
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