Russia and Bahrain

Cooperation breaking new grounds

This year a Russian delegation headed by minister of trade and industry Denis Manturov and chairman of Russian-Bahrain business council, vice president of the Russian chamber of commerce and industry Vladimir Dmitriev has paid a working visit to the capital of Bahrain Manama. The visit has become an important stage of further extension of business relations between the Russian Federation and the Kingdom of Bahrain.

The delegation held a number of meetings with the King of Bahrain Hamad al Khalifa, Prime Minister Khalifa al Khalifa, and Crown Prince Salman al Khalifa among others.

Following the negotiations important decisions were made as to development of relations in industry and trade between two countries.

‘We have discussed the issues on the agenda of our countries. They included trade, economy, investments, science and technology cooperation and cultural advancement of our relations,’ Denis Manturov said following the meeting.

Thus, in particular, Russia and Bahrain discussed establishment of international multilateral designated organization dedicated to commercial production of aluminium. Such move is going to facilitate prevention of inefficient use of resources, stabilization of market and proper operation of global aluminium industry.

So far as trade is concerned during the panel meeting it has been revealed that in 2016 commodity turnover between two countries increased almost five times as compared with 2015. Besides, Russian export has grown more than 11 times. The potential of development is increase of grain crops export. Moreover during intergovernmental panel meeting agreements were made as to supplies of finished meat products for customers of the Kingdom of Bahrain. The products include raw beef, mutton and poultry.

Investment cooperation is among the key areas of the bilateral relations. Today Russia is considering Bahrain as a reliable investment partner. As far back as 2014 investment foundations of two countries undersigned an agreement to invest Bahraini $250 mln into joint projects. Now 9 of them have received investments. Over $50 mln have been invested in retail, commercial property, mineral production and logistic services. Several dozens of projects are being under consideration now. Other 6 Bahrain-involved transactions including investments in regional airports of Russia, real estate and agriculture are expected to close in the next months.

Oil and gas beneficial cooperation has been also discussed during the meetings. Bahrain has plans to build the first liquefied natural gas import terminal which is expected to start operation in 2019. Currently the parties are making in-depth studies of gas delivery opportunities to Bahraini market. Making certain agreements as well as beginning of practical cooperation in this regard will help hold more meaningful dialogue with Bahrain including the issue of creating a regional gas hub.

Denis Manturov explained: ‘We consider this issue as very promising. Taking into account the terminal to start operation in 2019 we expect to have increased the liquefied gas output in Russia by this time that will allow to export the part of it to other countries including Bahrain.’

Another subject discussed at the meetings is probable supply of airplanes and helicopters made in Russia. Now PJSC United Aircraft Corporation is ready to discuss the possibility of supplying civil planes SSJ-100 and MS-21 to be used for regional and international flights as well as establishing maintenance and operation facility dedicated to planes delivered.

At the same time the states are considering prospects for tourism cooperation. Thus, taking into account developing relations between Russia and Bahrain the latter has also launched visa liberalization initiative.

The King of Bahrain Hamad al Khalifa has also mentioned powerful capabilities of developing trade and industry relations between two countries: ‘Today the potential of Russia is obvious. Its national leaders look forward without backward glance.’

A plenary meeting of Russian-Bahraini intergovernmental panel for trade and economy, science and technology cooperation was held during the visit. Initiated by business councils of our countries and in accordance with action plan for their joint work signed in November last year the intergovernmental panel protocol included main areas of Russian-Bahraini trade and economy cooperation.

In his opening speech at the panel meeting its co-chairman Minister of industry, trade and tourism of Bahrain Z. al Zayani has emphasized the important role played by business councils in progressive development of cooperation between two countries. Denis Manturov mentioned the significance of bilateral agreements signed in November 2016 under Russian business mission headed by Vladimir Dmitriev. The Russian minister has also announced plans for Russian national exhibition to be held in the near future in the Kingdom of Bahrain. The exhibition is to be focused on the Gulf States and the first Russian film festival.

Speaking at intergovernmental panel meeting Vladimir Dmitriev has appreciated the efforts made by Bahraini business council partners with regard to implementation of available potential of beneficial cooperation. He said that during the fruitful negotiations and meetings held in two days the parties had jointly managed to specify certain areas of cooperation and actual requirements of both parties as well as shape a plan for further actions.

Besides, Vladimir Dmitriev has also negotiated with the chairman of Bahraini-Russian business council, chairman of Bahraini Chamber of commerce and industry Khalid al Moaied, chairman of tourism and exhibition council of Ministry of industry and trade sheikh Khaled al Khalifa. During the negotiations they discussed issues of common interest for businessmen of both countries. In particular, they talked about establishing joint funds to be involved in providing money for projects both in Russia and Bahrain, arranging Russian national exhibition in the Kingdom of Bahrain and other proposals dedicated to further enhancement of Russian-Bahraini trade and economy cooperation.