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ISSUE 1 | 2013

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Interview ING

'Dutch top sectors
match Russian demand'

Ten questions for minister Timmermans

Minister of Foreign Affairs for the Netherlands, Frans Timmermans, knows Russia and can even speak the language fluently. This acquaintance with Russia can be owed to the time he spent working in Moscow during the excitement of the 1990s. Since then the relationship between the Netherlands and Russia has matured, with the two nations becoming closer trade and investment partners. Here we interview Timmermans on his expectations of "the Netherlands-Russia Year 2013" as well other useful insights he has on these two countries.

1 You worked at the Dutch Embassy in Moscow from 1990 to 1993, just after the fall of the Communist regime. Can you tell us something about your experience?
"During my recent visit to Moscow in February, Foreign Minister Sergei Lavrov and I recalled the coup of August 1991. I told him how I had visited the White House, the seat of the Russian Federation parliament, and seen then-President Boris Yeltsin climbing the tank out front. I remember Yeltsin shaking hands with a surprised, shy soldier; I remember Yeltsin reading his statement from the tank. At the time it all seemed very chaotic; I even felt a bit awkward. But when the images of President Yeltsin were sent around the world, I realised I had witnessed history in the making."

2 You speak Russian. Why did you learn this language and how did it help you?
"I had the opportunity to learn Russian when I was in the army. Languages are an important tool in building bridges between people. They help us understand other cultures and societies. And my knowledge of Russian has helped me deepen my understanding of Russian society, which is very interesting but very complex."

3 What do you think Dutch and Russian business people have in common?
"Dutch and Russian business people alike understand the importance not only of doing business, but also of investing in personal relationships with our partners. We think long-term, and don't just aim at quick profits."

4 What can they learn from each other?
"After the energy crises in the Netherlands in the 1970s, we learned how difficult it is when you depend largely on one source of income, in our case natural gas. We needed to reform our economy – to innovate, to diversify – and we did. The need for diversification is a hot topic nowadays in Russia. Because Dutch businesses are innovative, they can have a lot of added value for Russia."

5 It has been twenty years since you worked in Russia. What do you think are the most important changes in the Netherlands-Russia relationship
"On the economic side, I think business relations between the two countries have matured since the early 1990s. When the Soviet economic structures fell apart and the whole system had to adapt to new conditions, Dutch activities in Russia were all to a certain extent in support of that transition. Nowadays, Russia is a self-confident economic partner, which knows what it wants and needs and under what conditions. In that respect, Russia and the Netherlands have become more equal trading partners. Russia's recent admission to the WTO was also a crucial moment in multilateral trade, which is bound to yield significant results over the course of the next several years. As for our political relationship, it has always been good. The current bilateral year is a clear sign of this, and I'm looking forward to the many events we're organising jointly. The Netherlands and Russia may not always agree on everything, but there is always room for frank and open discussions. I think it is important to understand that every country, especially Russia, has a unique history and needs to be assessed on its own merits. At the same time, Russia is a partner in the international community, with international obligations and commitments, so we call Russia to account on these points."

6 Russia and the Netherlands have become close and intense trade and investment partners. What is the key to this fruitful relationship?
"I think this is a good example of supply meeting demand. Russia needs to diversify its economy and modernise a number of sectors like agribusiness, health care, infrastructure in general, the maritime and transport sectors and so on. These sectors largely match the Netherlands' top sectors, for which the Dutch government, business sector and knowledge institutions are developing special policies focused on innovation and internationalisation. At the same time, Russia's energy resources are still vital for the Netherlands and for the EU as a whole. So we and the Russians have common ambitions and common goals. That makes for a good match."

7 You have recently taken up the position as Minister of Foreign Affairs. What are your main priorities, with respect to the relationship?
"The Dutch government greatly values our close political contacts with Russia at both federal and regional level. We have a healthy and open dialogue with Russian politicians. That allows us to discuss any relevant topic, whether it concerns foreign policy, bilateral issues, human rights or business. If there are business-related problems that can be solved through discussion at governmental level, the discussion will happen. In this respect, the bilateral year will be no different from other years: the Dutch government aims to support Dutch companies all over the world, in Russia as elsewhere."

8 Can you tell us why the Netherlands-Russia Year 2013 is important? When would you consider this to be a success?
"For the Dutch government the Russian-Dutch Bilateral Year is a useful tool to further strengthen and deepen our relations with Russia. In 2013 there will be a wide range of meetings, more than usual, between Dutch and Russian government officials and businesses. It will provide plenty of opportunities to profile our country as an important Russian partner for economic cooperation and cultural and social exchanges. We hope and trust that this will give a boost to Dutch-Russian economic, cultural and other ties in the longer run."

9 Are there new or unexplored business opportunities for both sides? How can financials, like ING, contribute to that?
"To cite a few examples: the healthcare sector in Russia is growing quickly nowadays, and Russia is deliberately turning to foreign partners like the Netherlands for help. Dutch business can also contribute to the development of regional airports and aviation safety. We also hope that Dutch companies can help with the preparations for the FIFA World Cup in 2018. The involvement of reliable financial institutions to back up these business opportunities will be crucial. Recent developments have shown that more and more Russian companies are finding their way to the Netherlands. We have welcomed a number of Russian investments, and we look forward to welcoming more."

10 Imagine it is four years from now. We have invited a panel of internationally active companies. We ask them to look back at your tenure as Minister. What do you hope they will say?
"I hope they will say that I revived a more balanced and respectful dialogue with Russia, which opened up opportunities for the business community and others. I hope our cooperation will contribute to a more open, modern Russian economy, a more transparent and reliable legal system, and the consolidation of the rule of law. This will not only make it easier and safer to do business with Russia, but also ensure that we live up to the international commitments we have made in the interest of our societies and our peoples." .

ING