Ambassador Anatoly Antonov greeted participants and guests of the U.S.-Russia Economic Council's annual meeting in New York

I would like to welcome participants of the U.S.-Russia Economic Council, which brings together representatives of the companies that have been working successfully on our market for a long time.

The annual meetings of the Council have become part of the most important events devoted to our trade and economic cooperation. Last year you were visited by the Russian Minister of Trade and Industry Denis Manturov. This year the New York City welcomes a broad delegation of leaders of the Russian ministries and business circles, both chambers of the Federal Assembly of the Russian Federation and Russian regional authorities.

Yesterday’s talks have showed interest of our U.S. counterparts and guests from Moscow in a mutually beneficial trade and economic cooperation. It is important for priorities and current business problems to remain in the limelight, when a lot of sanctions mechanisms are implemented against our country.

We live in unprecedented times of complicated and difficult relations between Russia and the U.S. If we look at certain characteristics, they are even worse than during the “Cold War” era. The Russian factor is still used an instrument of U.S. domestic political warfare. Russia and its foreign policy are surrounded by fake news. Blaming us for all troubles and misfortunes has become a convenient trick. This situation cannot but trouble us, since it directly influences the ability of our countries to reach agreements and cooperate in order to solve real problems.

The Midterm Elections are now over. New people will join the U.S. legislative branch. I would like to emphasize that we respect the decision made by American people. We stand ready to work with the new composition of the House and Senate to develop mutually beneficial contacts, to seek converging stances on any, even the most complicated issues. In the nearest time I wish to meet with the leadership of the House of Representatives and Senate for a serious discussion on ways to mend the Russia-U.S. relations, restore inter-parliamentary dialogue between our countries.

Stabilization of Russia-U.S. ties is necessary not only to the Russians and the Americans, but also to the entire world. As largest nuclear powers and permanent members of the UN Security Council we bear a special responsibility for maintaining strategic stability and security on the planet. Lack of a full-scale bilateral dialogue is not only abnormal, but also dangerous, considering the current international “turbulence” and multiple regional crises.

It is especially important now, when the architecture of treaties and agreements on arms control and non-proliferation became fractured. First and foremost, it involves the situations with the INF Treaty, the New START, the CTBT and the JCPOA, as well as other documents. There has not been an instance in history, when a collapse of arms control and non-proliferation agreements led to strengthening of global stability.

Nowadays many look at Russia-U.S. relations from a standpoint of solely geopolitical rivalry. Allow me to disagree with such evaluation. Historically speaking, our countries have never been enemies. We have no territorial claims to each other.

There are many good examples to that. From the declaration of armed neutrality, by which Catherine the Great supported the U.S. in the War of Independence, to the Crimean War, when American surgeons lead by a prominent Russian surgeon Nikolai Pirogov worked at the hospitals of the besieged city of Sevastopol. From the American Civil War, when Russia was the only European country to support President Abraham Lincoln, to the Second World War, when the Soviet Union and the U.S. were allies. Russia was among the first countries to support the U.S. in the fight against terrorism after the tragic events of September 11.

In the current complicated situation, we must fully preserve positive aspects of Russia-U.S. relations. A bright example – peaceful space exploration, the area where our cooperation is developing better than on planet Earth.

Cultural and humanitarian ties play an important role. This area promotes building trust and mutual understanding between the Russians and Americans, and a proof to that are the sold-out concerts of Russian artists in the U.S. Even today the interests of our peoples in each other remains high. The very fact that so many American tourists came to visit Russia for the FIFA World Cup (46 thousand people, second after China) speaks volumes.

Russia stands for equal, mutually respectful, beneficial and pragmatic relations, where there is no room for the strong and the weak one, the big and the younger brother. We treat U.S. national interests with respect. All we want is reciprocity. On our part we are open to a constructive cooperation to the extent the American side is ready for.

Dear colleagues, 
It is not often that I get a chance to visit separate American state. This year I had an opportunity to visit California and Utah. These business trips confirm how essential are contacts between business circles, between regions of our countries, and their deficit is clearly showing.

The sanctions hinder bilateral trade volume, although a positive tendency is visible. For instance, over 9 months of 2018 it grew by 13% - up to 20,8 billion dollars. It is a very small amount for our countries. It clearly corresponds to economic interests of neither the U.S., nor Russia. The two great countries could achieve much greater results should political and economic restrictions be dropped.

We are ready to further develop dialogue with those U.S. businessmen, who wish to continue cooperation with our country. We are interested in technology transfer, participation of U.S. companies in development of our industry and infrastructure.

Businesses that work in our country do not wish to abandon the Russian market. Proof to that is active participation of U.S. companies in large economic forums hosted in Russia, emerging new enterprises. For instance, the U.S. business delegation once again was one of the largest to attend the Saint Petersburg Economic Forum in May (over 550 representatives).

In September the specialized economic area “Titanium Valley” in Verkhnyaya Salda (a town in Sverdlovsk Oblast) hosted an opening of the second “Ural Boeing Manufacturing” factory producing titanium forgings, as well as wing, fuselage and landing gear parts for “Boeing” airliners. A fullstream oil and gas company “Baker Hues” opened a factory in Tyumen to manufacture oil and gas-producing equipment. The “Mars” corporation increases its investments in production output and environmental security in Russia. Bilateral cooperation in production of medicines has also gained a positive momentum. Our ministers of energy Alexander Novak and Rick Perry exchanged visits in June and September. 
Our country has endured recent multiple shocks – low oil prices and depreciation of ruble, numerous sanctions. The Russian economy has adapted to new forms of restrictions. We began developing import substitution. We have achieved serious results. The state budget has entered the surplus zone – not only due to increased oil prices, but also thanks to improvements in tax revenue. Now we have a more robust banking system. Social obligations are fulfilled. As a result – the Russian economy remains attractive for investors.

Of course, there are difficulties that we have to deal with. We work on structural changes, search for ways to tackle demographic challenges. We strive for macroeconomic stability. Our general task is to develop manufacturing industries, small- and medium-sized businesses, export of high-tech commodities, with a view to increase the income of our citizens. We work on improving investment climate.

It is obvious that sanctions impede Russian economic development. They further aggravate our bilateral relations. But one cannot change Russian foreign policy course through sanctions. Sadly, not everyone understands that, and we are being threatened by new restrictions over and over again.

What was the outcome of sanctions? Certainly, they have led to growing distrust. We began looking for ways to compensate the “losses”. Russia found such opportunities in India and China. There is “a window of opportunities” in economic relations with Japan, South Korea and the ASEAN (Association of South-East Asian Nations) states. These countries showed great interest to Russian wares. Not only to our energy resources, but also space cooperation, nuclear energy, aircraft and car manufacturing, and many others. This was the real response to anti-Russian sanctions.

Today it is necessary to search for new methods and ways to restore a full-scale dialogue between our countries and develop mutually beneficial trade partnership.

Regional cooperation can become one of the means to compensate the losses in trade and economic cooperation on the federal level. We know little about each other. I am confident that the annual meetings of the U.S.-Russia Economic Council give a good opportunity to showcase investment opportunities of the Russian regions.

Although, direct links between American states and Russian regions could be a more effective way. For instance, a delegation of the Ryazan Oblast is planning to visit Massachusetts and Utah to develop medical cooperation. Moscow Government is sending its representatives to New York, Houston, San Francisco and Los Angeles in order to strengthen bilateral cooperation in healthcare. There are many of such examples.

There is great potential in restoring sister cities relations. The majority of them (several dozens) were established in 1990s, but have withered over the years. Although, the interest in such cooperation grows. For example, in Salt-Lake-City representatives of American cities spoke about the need to revive sister cities relations between Salt-Lake-City and Izhevsk, Tooele and Kambarka, West Jordan and Votkinsk. We believe that the regular Conference of the American Sister Cities Association planned for July, 2019 (Houston) will give additional momentum to revitalization of direct contacts between Russian and American cities.

I would like to remind of the initiative suggested by Russian President Vladimir Putin during the press conference following the Russia-U.S. Summit in Helsinki on creating a high level group that would bring together captains of Russian and American business. We have heard positive signals after John Bolton’s visit to Russia about the readiness of the American side to follow-up on the Russian proposal and organize the such first meeting early in 2019 within the future Consultative Council. We are confident that businessmen know better how to develop mutual cooperation. Your ideas on what specific strategic issues must be addressed in order to stabilize our economic cooperation would be quite valuable.

Undoubtedly, it will take some great effort, political will, readiness to work within an unfavorable information environment. But I wish to reiterate – you, U.S. businessmen, who wish to cooperate with our country further – have a chance to directly contribute to the improvement of bilateral ties. Russian business community is ready for such joint work.