|
Minister Dlamini Zuma to Co-Chair 7th SA – Russia Intergovernmental Committee on Trade and Economic Co-Operation
Moscow – South African Minister of Foreign Affairs Dr Nkosazana Dlamini Zuma will, together with Minister of Natural Resources Yuri Trutnev, today Thursday 22 May 2008 co-chair the 7th South Africa – Russia Intergovernmental Committee on Trade and Economic Cooperation (ITEC) in Moscow Russia from Thursday – Friday 22-23 May 2008.
Minister Dlamini Zuma will co-chair the 7th session of the South Africa – Russia ITEC within the context of South Africa’s priority to consolidate and strengthen bilateral political, economic and trade relations with a view to enhancing North-South dialogue.
In this regard, bilateral trade and economic relations with the Russian Federation are governed under the umbrella of the ITEC and this mechanism is likely to continue to enhance mutual beneficial trade and economic ties between the two countries.
Ministers Dlamini Zuma and Yuri Trutnev met in Moscow in February this year to prepare for the 7th South Africa – Russia ITEC.
The 7th South Africa – Russia ITEC is expected to assess the current status of and prospects for bilateral trade-and-economic co-operation
Status reports in the following areas of co-operation will also be received:
- The Sub-Committee on Agriculture;
- The Sub-Committee of Education;
- The Sub-Committee on Social Issues (Health and Medical Science);
- Sub-Committee on Trade, Investment and Banking;
- Sub-Committee on Science and Technology;
- Joint Sub-Committee on Minerals and Energy;
- Joint Sub-Committee on Transport; and
- Joint Sub-Committee on Water Affairs and Forestry.
Minister Dlamini Zuma is expected to depart from Russia on Sunday 25 May 2008 for Yokohama, Japan ahead of the 4th session of the Tokyo International Conference for African Development (TICAD) where she will join President Thabo Mbeki.
Bilateral Economic Relations
South Africa’s trade with Russia does not reflect its potential and there is much room for expansion. The Joint South Africa-Russia Business Council provides an opportunity to achieve greater trade and economic co-operation between the business sectors of both countries.
| Year |
SA Imports |
SA
Exports |
Total |
| 2005 |
US$ 629,047,000 |
US$ 449,274,000 |
US$ 078,3210,000 |
| 2006 |
US$ 1,895,876 |
US$ 675,800,000 |
US$677, 69,876 |
| 2007 |
US$ 2,283,517 |
US$ 237,831 |
US$ 240, 114, 517 |
The bulk of SA exports are made up of vehicle engines (18.8% of exports); machines & mechanical appliances (14%); Fresh grapes (13.8%); flat-rolled products or iron (10%); pears (6.8%) peaches (3.4%) - amounting to almost 70% of SA exports to Russia. The major import from Russia, accounting for over 65% of SA imports is made up of the nickel group of minerals.
SA multinationals Anglo American, Standard Bank, De Beers, JCI, Barlowworld, Capespan and Bateman have substantial interests in Russia. In addition, to their existing plant in the Kaluga region, SAB/Miller has announced a new brewery which represented a US$100 million investment, and their product, Golden Barrel Beer, is highly successful in the local market. Standard Bank also has a growing presence in Russia as well as SAPPI, Protea Hotels and Sun International. Mondi has recently also announced its intention to invest in the Russian Federation.
South Africa BEE entities held meetings with prominent Russian entities including Norilsk Nickel, Renova, Aton Capital, Colliers International, Rusimport, Transneft, MorPort, Sual, Lukoil, Interfinance Developments and Crystal Diamond Company. The meetings were constructive and fruitful and a number of projects of mutual interest were identified. The joint venture company, United Manganese of Kalahari (UMK), between Black Economic Empowerment groups and the Russian Renova Group of companies, has been established in order to co-operate on the prospecting, mining and processing of manganese ore in the Kalahari basin. Russia’s largest steel maker, Evraz, who held 24,9% of Highveld Steel & Vanadium, recently bought the remaining 29,2% owned by Anglo American which took its holding to 54,1% . Evraz still holds the option of buying the 24,9% held by Credit Suisse. With almost 80% of the business under Evraz’s control, there are concerns that they would be too dominant in the vanadium market.
Issued by Ronnie Mamoepa on 082 990 4853
Department of Foreign Affairs
Private Bag X152
Pretoria
0001
22 May 2008 |
