Russia and Germany: new opportunities for cooperation in the primary sector

Abstract

The paper examines modern status and prospects of the Russian-German economic cooperation in the mineral resources sector. It has been revealed that in the recent years the bilateral trade between the two countries is influenced by the foreign affairs and witnesses a downwards trend. Development of economic cooperation in the traditional sphere, i.e. the fuel and energy sector, is hindered by several circumstances. Among these is a significant change in the energy policy of Germany and in the European energy market regulatory framework. A need appears to find alternative areas and forms of cooperation between the two countries. For this reason the major focus is on the problem of providing critical materials the German industry through creation of primary partnerships. Cooperation in this format secures access to the required feedstock for the German companies in exchange for creation of a complete value chain on the basis of the Russian companies. The role of Russia as a potential supplier of certain critical materials has been defined. The need in closer integration between the universities and the businesses for more efficient facilitation of bilateral scientific and technical cooperation has been justified.