Trade Representative of the
Russian Federation in Finland
Dr. Valery A. Shlyamin
Economic relations between Russia and Finland
from the point of view of Russia`s WTO accession.
Turku,
23.05.2012
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December 16th, 2011
Geneva
Ministerial Conference has approved the
Working Group report concerning Russia's
membership
End of the longest ever negotiation period
(18 years)
Now the Russian Federation has 220 days
to ratify the accession protocol
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GDP PPP (bln.$) in 2010
Place
Country
GDP PPP
(bln.$)
1.
United States
14526
2.
China
10119
3.
Japan
4323
4.
India
4058
5.
Germany
2944
6.
Russia
2231
7.
United Kingdom
2181
Source: International Monetary Fund
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Estimates of Russia’s WTO membership
impact on the Finnish economy
Conservative estimate
Optimistic estimate
Market capacity for Finnish
goods and services
+0,7%
+1,1%
Finnish GDP
+0,1%
+0,2%
Finnish exports
+0,5%
+0,7%
Employment in Finland
+0,2%
+0,3%
Source: Bank of Finland, World Bank
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Russia’s WTO accession conditions
IMPORT DUTIES
Averageweighted import
customs tariff
(current level)
WTO bindings,
average-weighted level
Entry level
Final level
All goods
10.29%
11.85%
7.15%
Agricultural goods
15.63%
15.18%
11.28%
Non-agricultural goods
9.39%
11.26%
6.41%
Source: Ministry of Economic Development of the Russian Federation
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Russia’s WTO accession conditions
SERVICES
116 sectors with liabilities
39 sectors without liabilities
• The current legal base of maritime transport
services guarantees the national treatment for
foreign ships in Russia.
• Russian accession commitments in the transport
services sector don't bring any significant changes
in the short-term period.
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Russia’s WTO accession conditions
Providing sea transport companies on the reasonable and nondiscriminatory conditions with following services in sea ports:
- Pilotage (for ships under the flag of the Russian Federation pilotage
enjoyment can be optional);
- Ice-breaker pilotage;
- Towage;
- Fuel, foodstuff and fresh water supply;
- Garbage and sewage collection;
- Harbor captain services;
- Navigation support (lighthouse navigation services, radar stations
services, other electronic support services etc.);
- Services, delivered from the coast and essential for ship’s operation
(incl. communicational services, water and electricity delivery etc.);
- Emergency maintenance aids;
- Berths and wharfs services.
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Russia’s WTO accession conditions
1.Russian legal entities will have the priority for participation as
sea carriers within the bounds of production share agreements.
2. Russian legal entity can be the only form of commercial
presence in the following sectors:
• Handling of goods;
• Storage warehouse, container stations and depots services;
• Customs brokers services;
• Forwarding companies services.
3. No commitments in the sector of inland water transport
(right up to closing of sector from foreign business).
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Possible benefits and challenges
of Russia’s WTO membership
•
•
•
•
Benefits
Freight traffic uncrease in the middle-term period;
More efficient markets (due to higher competition);
Possibilities for modernization of production facilities;
Industrial cooperation development.
Challenges
• Increase of competition environment for Russia due to market
opening;
• Need for renovation of subsidizing mechanisms in shipbuilding
sector.
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Declaration
on partnership for modernization between
the Russian Federation and the Republic of Finland
(Saint-Petersburg, 14th March 2011)
• business climate
• regional cooperation
• easing contacts
(according to RussiaEU visa dialogue)
• energy efficiency and
energy saving
• telecommunications
• timber industry
(including wooden
house-building)
• maritime sector
• others
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Possible benefits of Russia’s WTO membership
WTO membership
Possibilities for development of technology
exchange and industrial cooperation
One of the ways for Russian economy diversification and
modernization
Finnish partners (particularly shipbuilding sector) have good opportunities
for participation
We open our markets to create modern and
competitive economy
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Industrial and scientific-industrial cooperation
•
•
•
•
•
•
•
•
•
Shipbuilding
Delivery of 50 main multifuel engines for 25 tankers to be built in Russia
(Oka Shipyard and Krasnoye Sormovo – Wärtsilä)
Delivery to Finland of propellers, spare blades and their maintenance
(Ship-repairing Centre Zvyozdochka – ABB Marine, Steerprop)
Creation of joint venture (Arctеch Helsinki Shipyard = AHS)
by United Shipbuilding Corporation, Russia, and STX Finland
Construction by AHS for Sovcomflot of 2 multifunctional icebreaking supply vessels (for
the needs of Exxon Neftegas’s Sakhalin project) to be delivered in spring 2013;
construction and delivery to AHS of hull sections for these vessels by Vyborg Shipbuilding
Plant in 2011-2012.
Construction by AHS for the Ministry of Transport of the Russian Federation of
multipurpose emergency and rescue vessel to be used at the Baltic Sea. To be delivered in
the end of 2013, construction of hull by Yantar Shipyard (Kaliningrad), started in April
2012;
Construction of railroad and ship engines plant in Penza. Supposed start of manufacturing
– in 2013 (Transmashholding and Wärtsilä).
Projects, being worked over by United Shipbuilding Corporation and Wärtsilä:
− Creation of joint venture for production of rudder propellers.
− Creation of joint venture for integrated designing, deliveries and service of
propulsive systems.
− Creation of joint design office for civil vessels planning.
Cooperation with STX Finland for planning and construction of multitype research vessel
for Namibian fishery sector needs at Rauma shipyard.
Perspective project: Construction of large freezer trawler for Russian customer at Arctеch
Helsinki Shipyard
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Thank you for attention!
Trade Representation of the Russian Federation in Finland
www.rusfintrade.ru
E-mail: vneshtorg.vesfin@rustrade.inet.fi
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