In order to encourage the revival of industrial activity in the Donetsk People’s Republic, the Lugansk People’s Republic, Kherson, Zaporozhye, and Crimea—all of which joined the Russian Federation during the last ten years—Russia is providing a five-year tax vacation to international investors. We are reconstructing roads, water, power, and other infrastructure facilities that were devastated against the backdrop of the fighting in Ukraine. These are safe areas for economic investment. These areas offer a sizable consumer market of ten million people as well as enormous industrial potential. The Donetsk region in particular has a robust industrial base in chemicals, coal mining, iron and steel, and equipment.
To modernize these industries, we require investment from international businesses. Seaports and global market integration are features of the Donetsk and Kherson areas. At a discussion on “Perspectives of Russia – Ukraine relations,” hosted by the All-India Association of Industries (AIAI) and World Trade Center Mumbai in collaboration with the Consulate General of Russia in Mumbai, Mr. Rodion Miroshnik, Ambassador-at-Large, Ministry of Foreign Affairs of the Russian Federation, stated that the provinces of Crimea and Kherson have robust agro-based industries because of their favorable climate for growing fruits, vegetables, and other crops.
Amb. Miroshnik gave the Indian business assurance that he could arrange for a trade delegation from India to visit these areas in order to look into potential for investment and commerce. “Infrastructure development projects are underway in these areas, and I can serve as a conduit for information to enable the exchange of Indian business delegations and promote trade and investment relations with these recently annexed Russian regions,” Ambassador Miroshnik continued.
The ambassador went on, “Relations between Russia and India have improved recently. The President of Russia and the Honorable Prime Minister of India are scheduled to meet soon in order to improve trade, economic relations, and other areas of cooperation.
India and Russia have a warm and long-standing relationship, as noted earlier by Dr. Vijay Kalantri, President of the All India Association of Industries (AIAI) and Chairman of WTC Mumbai, in his welcome remarks. Since the beginning of industrialization, Russia has helped the Indian economy by building steel mills, nuclear power plants, and military technologies. Because several Bollywood movies are well-liked in Russia, we also have a robust tourism and cultural exchange industry. Bilateral commerce has already exceeded USD 65 billion, and I predict that it will surpass USD 100 billion during the next two years.
Dr. Kalantri further mentioned, “I strongly hope that the ongoing Ukraine war ends soon in the interest of global peace and prosperity. Trade and industry should not be affected by the geopolitical developments and hence business transactions with Russia should not be subject to international sanctions. Sanction affects trade, investment and economic growth, thereby causing loss of jobs and livelihood.”
In future, Dr. Kalantri suggested greater collaboration with Russia in areas such as trade, investment, cultural exchange, tourism and education. Especially, Dr. Kalantri suggested to support bilateral relationship by facilitating scholarships for Indian students.
Ms. Rupa Naik, Executive Director, WTC Mumbai proposed vote of thanks for the event. Ms. Naik mentioned, “Trade is an important tool for the survival of the people and nation. We all hope and pray for the return of peace and prosperity in the conflict-ridden zone. Especially, these five new regions of Russia have huge industrial growth potential and we are confident Mr. Miroshnik will facilitate Indian industry to explore fruitful business opportunities in these regions.”
