On June 28 -July 5 a delegation from the republic
of Karelia
(Russian Federation)
visited the United
States. A trade
promotion event called Days of Karelia in the U.S.
took place at the Russian Trade representative Office in New
York. Russian-American Business talked
to the leader of the delegation, the Head of the republic
of Karelia,
Sergey Katanandov.
-
Mr. Katanandov, what were the main parts of the Days
of Karelia in the U.S. program?
- The central event was the presentation of our
Republic, conducted through the Russian Trade Representative Office in New
York. Our delegation consisted of
government officials and representatives of the largest Karelian
companies that specialize in forestry and woodworking, contraction and
transportation. The main goal of The Days of Karelia
in the U.S. was to give an overview of the economy of our republic and to
start a dialog with the representatives of small and mid-size businesses to
discuss the opportunities for cooperation, trade and investment.
-
Why did you choose to focus on small and medium businesses, as opposed to
multi-million American corporations?
- Large companies have already taken their
positions on the Russian market. They have already entered the market with
rather successful results. In my view, the future of US-Russia relationship
lies with small and medium businesses, with ordinary American guys.
-
In your opinion, in what ways is the Republic of Karelia attractive to American investors?
- Karelia
has great potentials for investment and mutual international cooperation. The
republic is located on the most important Russian transport networks. Our
republic is a gateway to Europe.
Karelia
is very rich in natural resources, especially, with forests. Timber is our main
industry; it accounts for 60 % of the Republic’s economy. Our primary aim is to
find American partnerships in that area. Also, we have traditionally worked in
the raw materials industry, including ores, stone, gravel, and fish. In
addition to that, I see a large growth potential in the tourist industry: Karelia is a
country of beautiful blue lakes. This, however, does not mean that we can’t
cooperate in other enterprises. We are open to any ideas.
-
Were you successful in convincing the Americans in the benefits of working with
you? Were any specific agreements made?
- I can say that the interest among the
Americans was quite high. The number of visitors to the Day of Karelia alone serves as a confirmation. There are
several concrete offers from the American businesses. They are currently being
analyzed by our specialists. Soon, those projects may become a reality.
-
Currently, what is the size of American investments into the economy of Karelia?
- Presently,
the size of direct American investments is not very high: from 1999 to 2003 it
totaled $ 17 million. That number is only 5 percent of our exports. The leading
positions of our foreign investors are held by Finland;
Germany
and Norway
closely follow. We hope that the size of American investments will grow.
-
Mr. Katanandov, Karelia is a sister-territory with the
State of Vermont. How were you greeted by your
“American relatives?”
- During the course of our trip, we visited two
of our sister-territories. First of all, it was Vermont.
Karelia
and Vermont
were involved in sister-partnership as early as 1989. This year was the 15-th
anniversary of that cooperation agreement. We had a very productive meeting
with Vermont’s
governor, Jim Douglas. There, we discuss the issues of mutual interest,
including the value of the sister-state relationship, enhancing economical
development, environmental protection strategies, and the possibility of
legislative and executive exchanges. Governor Douglas is a very interesting
man. He majored in Russian Studies in university and speaks very good Russian.
He has high hopes for our partnership. “Our relationship with the Republic
of Karelia
can help us to open more markets for Vermont
products in Russia,
and help us to strengthen cultural ties to an important part of the world,” Mr.
Douglas said. According to the Vermont World Trade Office, Vermont
exports to Russia
went from $ 1.04 million in 2002 to $ 3.1 million in 2003.
-
You have also visited Minnesota. In that State is a sister city of Petrazovodsk…
- Yes. We came to Duluth,
Minnesota,
the sister city of Karelia’s capital Petrozavodsk.
There, we took part in a festival dedicated to the joined cities. We really
liked the celebration of the 150-th anniversary of the Mississippi
River. The people came to the quay and saluted the
passing river boats. It is a nice tradition. Of course, there were numerous
business meetings in Minnesota;
we talked about possible economic and cultural projects.
-
Mr. Katanadov, how many times have you visited the US?
- This was my seventh visit. Although, I last came
to America
seven years ago.
- What
were some of the differences you noticed?
- First of all, the airport security changed. It
impressed me. Americans reacted well to the tragedy of September 11.
-
Thank you for the interview.
Administration
of the head of the Republic of Karelia
19
Lenin Prospekt,
Petrozavodsk 185028,
Republic of Karelia, Russia.
Tel.: (8142) 76-2477
Fax:
(8142) 76-4148
