Loyalty has its Rewards: Zeman led Trade Envoy to Cash in on Billions in Russian ContractsČTK
(CTK) – Representatives of Czech companies who will accompany President Milos Zeman on his forthcoming trip to Russia are expected to sign contracts worth billions of crowns, Chamber of Commerce president Vladimir Dlouhy said today.
Contracts are to be signed by nine companies, including Brisk and Pragoimex, Confederation of Industry spokeswoman Eva Velickova told CTK.
According to the organizers, the business mission will be the biggest in the Czech Republic’s history, with more than 130 companies taking part in it.
The mission is being organized by the Chamber of Commerce, the Confederation of Industry and Chamber of Trade and Industry for the Commonwealth of Independent States.
According to Dlouhy, the delegation will include representatives of car, tractor and train component part manufacturers, companies specialising in aircraft repairs, suppliers for the nuclear energy sector and spa companies.
The companies to be represented include Zetor Tractors, GE Aviation Czech, Lazne Teplice, PSJ, Zdas and Skoda JS.
According to Velickova, Brisk Tabor plans to sign a contract to extend its investments in the Samara region. Last year, the company opened a spark plugs plant in the town of Tolyatti. “Within a year it produced and sold nearly 7 millions pieces,” Velickova noted.
Spark plugs from Brisk Tabor are used by every third or fourth car in Russia, she added.
Pragoimex plans to cooperate with Russian company Uralvagonzavod on modernisation of Czech trams CKD T-3 for Russian cities.
“Russia has been, is and will be an interesting country both for exporters and for financially strong investors. To build production capacities in Russia is not very difficult, as it is just a question of financial possibilities. What is difficult is selling products on the Russian market,” Confederation of Industry president Jaroslav Hanak said.
Two business seminars will take place during the trip, one in Moscow and one in Yekaterinburg. Zeman is to attend both of them.
Trade with Russia has been limited because of the economic sanctions imposed on Russia by the EU and the USA. Zeman is a long-standing critic of the sanctions. According to Dlouhy, the Chamber of Commerce opposes the sanctions as well.