Russian-Czech Trade Turnover Grows by 42% Year-on-Year in 1Q of 2017

PRAGUE (Sputnik) — The Russian-Czech trade turnover reached $1.6 billion in the first quarter of 2017, showing a 42-percent growth year-on-year, head of the Russian Trade Mission in the Czech Republic Sergei Stupar told Sputnik.

"A gradual recovery of the bilateral trade turnover has started since the second half of 2016. As a result, the trade turnover between our states amounted to $1.6 billion in the first quarter of 2017, which is 42 percent more than the same period of 2016. At the same time, the Russian exports increased by 64.1 percent and reached $903 million, while imports from the Czech Republic increased by 19.9 percent and amounted to $654 million," Stupar said in an interview.

Stupar noted that the investment activity was also growing. Many Czech companies show interest in the Russian market, where their products have always been and still are in demand. The BRISK company, in particular, from the Czech city of Tabor opened a plant for production of spark plugs in Russia in October 2016. The Agrostroj Pelhrimov company is building an enterprise for the production of agricultural machinery in Voronezh, while Hestego and Trimill machine-tool companies are developing their production in Russia's Ulyanovsk, Stupar added.

The Czech delegation, including officials and business representatives, is expected to attend the St. Petersburg International Economic Forum (SPIEF), which will kick off its three-day run on June 1.

Share of Russian Non-Resource-Based Exports to Czech Republic Growing

The structure of Russian exports to the Czech Republic is gradually changing, with the share of fuel reducing, and the proportion of non-resource and high-tech products increasing, Stupar told Sputnik.

"The structure of Russian exports to the Czech Republic is gradually changing. In particular, over the recent years the proportion of mineral fuel in Russian volume exports to the Czech Republic has significantly reduced. According to the Czech statistics, this figure has decreased from 83 percent in 2013 to 63 percent at 2016 year-end. Similar figures are being observed in the first quarter of this year," Stupar said.

According to Stupar, the proportion of non-resource and high-tech products in Russian exports is also growing. The share of the group "Machines, equipment and vehicles" in the monetary volume of Russian exports to the Czech Republic presently exceeds 12 percent.

At the end of 2016, the Skoda Auto company has opened an additional line for the production of Skoda Yeti car models for the European market at the plant in Russia’s Nizhny Novgorod, with deliveries of these cars to the Czech Republic having begun in January. Russia also remains the sole supplier of fuel for the Czech NPPs.

Russian, Czech Businesses Expected to Hold Regular Meetings in 2017

Russian and Czech business circles are expected to hold frequent meetings in 2017, which will give new impetus to bilateral ties, Stupar told Sputnik.

"Today a two-day session of the Czech-Russian Intergovernmental Commission for Economic, Industrial and Scientific Cooperation starts in Moscow… the delegations will not only sum up the results of successful cooperation last year, but also initiate new intensive contacts between companies, enterprises and whole regions of both countries," he said.

According to the trade mission's head, traditional Days of Russia will take place in the Czech town of Ostrava in the beginning of June, then, on June 23-24, delegations from the Commonwealth of Independent States (CIS) and European countries will gather at the financial and economic forum, known as Prague business meetings. At the end of June, a Russian-Czech business forum of small-and middle-sized businesses will take place in Moscow.

In July, Czech delegation headed by Czech Minister of Industry and Trade Jiri Havlicek is expected to attend Russia's international industrial trade fair INNNOPROM 2017. In August, Russian companies will participate in the international agricultural fair in the Czech Republic's town of Ceske Budejovice and in October, Russian enterprises will travel to the international engineering fair MSV 2017, which will be held in the Czech city of Brno.