Address by H.E. Mr Yury Fedotov at a reception to mark the 15th anniversary of Peter Hambro Mining PLC at Hertford House
Ladies and Gentlemen!
It is with great pleasure that I have joined you today to celebrate the success of a British – Russian business partnership that was established fifteen years ago. I am certain it is no coincidence that Peter Hambro Mining chose the Hertford House that is a home to the unique Wallace Collection, to mark this important occasion. Indeed, like the Wallace Collection which was largely born out of the dedicated artistic and entrepreneurial spirit of the 4th Marquess of Hertford and the art collection assembled over many years by Anatole Demidoff, Prince of San Donato, the company established by Peter Hambro and Pavel Maslovsky is a very good example of the business synergy that reflects the close trade and investment ties existing between our countries. Remarkably, as I am informed by the Chairman, the company has just changed its name and is now called Petropavlovsk Plc which is a Russian name and reflects the true nature of the joint business which was set up as a small gold producer and developed into a major mining enterprise in my country.
As a business, today it is a very positive example of a British – Russian joint venture that has evolved over the years, saw its ups and downs, navigated a few bumps on the road, yet emerged even stronger to demonstrate resilience and commitment to the Russian market. It has created 8000 new jobs, brought the necessary capital and new scientific and technical skills to the Russian Far East to become a leading gold mining company aiming to produce half a million ounces of gold this year. It is currently expanding into iron ore and other metals and is working on 30 projects in 7 regions of Russia. These welcomed efforts do deserve the highest appreciation.
As the Ambassador, I would also like to highlight the important work done by the company to promote stronger business relationship between our countries. Throughout its existence Petropavlovsk - I have to admit, it will take some time before we all get used to the new name - has demonstrated dedication and firm support for our bilateral economic co-operation, played an active role in showcasing Russia to other international investors. I believe it is particularly critical today when the global economic crisis has spared no single country.
While Britain continues to remain a major trade and investment partner of Russia, the volumes of the bilateral trade and investment have substantially decreased this year (in the first half of 2009 - 47% and 78% respectively on the last year result). In this unfavorable global economic environment investors and business partners, in order to remain competitive, have to prove their worth, to join forces, to be inventive and to innovate. In 2009 Petropavlovsk has expanded into new areas of business, attracted additional capital and went to trade on the Main Market of the London Stock Exchange. This and many other successful joint business projects give me a very good reason for optimism with regards to the future of the Russian – British business partnership. They may and, I am confident, will serve as a solid foundation for growth of the bilateral co-operation once the global economic recovery becomes sustainable. Our two Governments demonstrate full support for such a mutually enhancing and beneficial economic co-operation and intend to meet at the high level in London in November to discuss our joint priorities for the future.
There must be a golden lining to every cloud. I expect that Petropavlovsk will continue to serve by example and remain one of the beacons of the traditionally strong economic partnership between Russia and Great Britain.
I would like to wish future successes to the joint company Petropavlovsk!
