Russia to host BRICS business leaders next month
May 29, 2015, 8:18 am

The business meet in Russia is also aimed at proving Moscow can weather the tide of economic sanctions, civil war in Ukraine and falling oil prices [Xinhua]

BRICS business leaders will gather in Russia on 18 June to debate trade opportunities and new investments in these countries even as growth slows in the US and the Eurozone.

“The number of foreign participants has increased from last year: 698 foreign participants have confirmed their attendance at the business forum, compared to 590 last year. They will represent 383 foreign companies, and 170 of them are these companies’ top officials,” said Sergey Belyakov, Chairman of the Board of St.Petersburg International Economic Forum Foundation.

The SPIEF is Russia’s annual equivalent of the Davos summit in St Petersburg.

Among those attending the BRICS Business forum are Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), Indian Commerce Minister Nirmala Sitharaman and Ping Yu, Vice Chairman, China Council for the Promotion of International Trade.

Government and business leaders will debate “the current state and prospects for BRICS trade and investment cooperation, ways to stimulate recovery in BRICS economic growth, building and strengthening inter-regional ties, and establishing of favorable business environment, harmonization of trade regulations and removal of administrative barriers and bottlenecks,” said a statement posted on the SPIEF website.

US and euro zone business growth slowed in May while China’s factory sector contracted again, reinforcing the need for major central banks to continue supporting economic growth.

The US Federal Reserve is seen unlikely to tighten monetary policy in June since the US economy barely grew at the start of the year.

Growth in euro zone business activity also weakened in May, just two months after the European Central Bank launched a 1-trillion-euro stimulus program.

The Joint SCO-BRICS Business Forum next month “will focus on the current state and potential of trade, economic and investment cooperation among the BRICS countries and ways to stimulate economic revival in the group’s countries” said an official statement.

“The agenda also includes issues related to the Eurasian Economic Union,” added the statement.

The business representatives will also discuss “implementing multilateral projects, financing SCO economic programmes and making use of other market opportunities”.

The business meet in Russia is also aimed at proving Moscow can weather the tide of economic sanctions, civil war in Ukraine and falling oil prices.

Earlier last month, global banking giant HSBC said Russia is currently an attractive option for investors.

According to Olga Yangol, a senior official at HSBC, Russia has relatively high bond interest rates, which makes it attractive for investment. In addition, Russia’s floating exchange rate helped it overcome the decline in oil prices.

“Because of this, Russia is stronger now than before. Of course, the situation is different now, but from a market point of view and considering that others underestimate Russia’s rating, right now it makes sense to invest in this country,” she added.

TBP