The lure of business over the politics of distrust
Hopefully, the economic cooperation agreement between these two countries, signed on by Polish Deputy Prime Minister Jerzy Hausner and Russian Economy Minister German Gref, will help to solve existing problems.
The agreement supplements the regulations already operating in the EU and Russia. Most importantly, it defines the rules of operating for a mutual commission on economic affairs, whose function is to settle the economic disputes between countries. The agreement was to be signed initially at the end of September during the meeting of Presidents Aleksander Kwaśniewski and Vladimir Putin. The Russians, however, questioned the content, especially the section on the mutual protection of investments. This is why operating in Russia so far has been much more expensive for Polish companies than for EU ones.
Polish companies are rather cautious when investing in Russia. Their investments have not exceeded $90 million. Fortunately, this value has been growing for the past few years. For example, Pfleiderer Grajewo is building a plant worth zl.300 million and Forte, the furniture manufacturer, intends to start up a factory in Russia too.
Food plays an important role in Polish exports to Russia. Last year it constituted 24 percent of all domestic exports, valued at $357.8 million.
This year, for the first time since 1997 (i.e. before the Russian economic crisis), the value of Polish domestic exports to Russia has grown above the line, reaching $1.6 billion between January and August 2004.
At the same time Russia is the third largest exporter of goods to Poland. Ninety percent of all the oil and gas processed in Poland comes from Russia.
The most influential company from the East operating in Poland is Gazprom, with 48 percent of shares in EuroPolGaz, which has built and explored the Polish section of the Jamal gas pipe. Generally, however, Russian investments in Poland are rare, most probably due to the fact that Polish entrepreneurs do not consider Russian capital reliable. An economic cooperation agreement has finally been signed to facilitate trade between Poland and Russia
The agreement supplements the regulations already operating in the EU and Russia. Most importantly, it defines the rules of operating for a mutual commission on economic affairs, whose function is to settle the economic disputes between countries. The agreement was to be signed initially at the end of September during the meeting of Presidents Aleksander Kwaśniewski and Vladimir Putin. The Russians, however, questioned the content, especially the section on the mutual protection of investments. This is why operating in Russia so far has been much more expensive for Polish companies than for EU ones.
Polish companies are rather cautious when investing in Russia. Their investments have not exceeded $90 million. Fortunately, this value has been growing for the past few years. For example, Pfleiderer Grajewo is building a plant worth zl.300 million and Forte, the furniture manufacturer, intends to start up a factory in Russia too.
Food plays an important role in Polish exports to Russia. Last year it constituted 24 percent of all domestic exports, valued at $357.8 million.
This year, for the first time since 1997 (i.e. before the Russian economic crisis), the value of Polish domestic exports to Russia has grown above the line, reaching $1.6 billion between January and August 2004.
At the same time Russia is the third largest exporter of goods to Poland. Ninety percent of all the oil and gas processed in Poland comes from Russia.
The most influential company from the East operating in Poland is Gazprom, with 48 percent of shares in EuroPolGaz, which has built and explored the Polish section of the Jamal gas pipe. Generally, however, Russian investments in Poland are rare, most probably due to the fact that Polish entrepreneurs do not consider Russian capital reliable. An economic cooperation agreement has finally been signed to facilitate trade between Poland and Russia
