AEB wants fair access to Russian market

RUSSIA / FSU POLITICS - In Brief 29 May 2020 by Alex Teddy
On May 28 the chief executive of the Association of European Businesses (AEB) said he wants his members to have a fair chance to offer goods and services in Russia. This is especially in relation to coronavirus. The head of the AEB is Tadzio Schilling. The 42 year old former Swiss diplomat took over in May 2020.Over 500 companies are members of AEB. The government is giving billions of USD to Russian companies. The AEB does not want its members excluded from such financial support. The AEB argues that financial assistance to them will be repaid many times over in resultant economic growth.A third of Russian businesses might go bankrupt this year. SMEs are struggling horrendously. Only 12% of SMEs say they are sure they will survive. The government is prioritizing saving big foreign Russian businesses. Decisions are being made so fast that the AEB is sometimes unclear what the position is. Russia's support program is worth only 2.6% of GDP. This is one of the most modest in the world. Some foreign companies have received support in Russia. These include Ikea, McDonald's and Proctor & Gamble.AEB has also demanded the end of sanctions. 2008-14 investment from the EU was EUR 245 billion. Since 2014 that number is down by 80%. Schilling was heartened that the EU and Russia have helped each other during coronavirus.Over 50% of FDI in Russia is from the EU. That is even when you exclude reinvestment from Russian companies via their Cypriot and Dutch holding companies. The AEB notes that EU companies in Russia donated PPE. Mercedes Benz donated cars.At the outset of the coronavirus crisis Putin promised to tax dividends sent abroad. He threatened to pull out of double taxation...

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