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June 29, 2022

Russia, target for many Romanian and European companies

The Russian Federation has commenced a policy designed to encourage foreign investment and Romanian companies should make the most out of it, says Sorin Dimitriu, President of the Romania-Russia Business Council and President of the Chamber of Commerce and Industry of the City of Bucharest, ‘Adevarul’ daily notes. Romanian goods are very well received on the Russian market, production costs are smaller and the tax environment is much more attractive than in Romania or other EU states.

‘First of all, a large part of the Romanian industry used Russian equipment and technologies which need revamping. Secondly, Romania depends on Russian energy and, at the same time, we have in interest in exporting large added value goods such as furniture, textiles and agri-food products,’ Dimitriu says in an interview with the newspaper. On the other hand, the access to raw materials and costs are much smaller there. ‘I am convinced that many Romanian companies will transfer some of their operations to Russia and China in the upcoming period,’ Dimitriu added.

An excellent opportunity brought by the next years is the 2014 Winter Olympic Games to be held in Russia, at Sochi. ‘Romania has the necessary potential to participate in those investments. Here is already a signed agreement in place with the Upetrom group for the construction of a submarine pipeline for gas supply to the Soci region,’ the Chamber of Commerce official reminds. In what regards the difficulties that may be encountered on the Russian market, Dimitriu says there are no barriers as Russia is not a member of the World Trade Organisation.

Last year’s Romanian import from Russia totalled USD 2.35 bln, with over 80 per cent being energy raw materials – mineral goods, oil and natural gas.

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