This week the post of General Director working in Russia Association of European businesses (AEB) leaves Frank Schauff, who held this position since 2007. On the results of its activities, and about work in conditions of a pandemic and the prospects for lifting sanctions on Russia Mr. Schauff said in an interview with the correspondent of “Kommersant” Galina Dudina and Olga Nikitina.— You were CEO of the AEB since 2007. What has changed during this time?— Yes, I was engaged in this business for nearly 13 years — it’s time to change something. Although I was all this time very interesting work and I could always count on a respectful attitude and a willingness to cooperate with Russian partners. The next Director General of the Association elected Swiss Tadzio Schilling.During this time, AEB has become the largest Union representing foreign investors in Russia. We represent European companies in contacts with Russian authorities and with the European institutions. Despite all the problems, the EU remains the largest trading partner of Russia, and I think we managed to ensure that we are seen as an important player in this relationship. Expanding the scope and scale of the issues that we deal with has increased the number of committees — for example, when I came to the AEB, there were about 20, and today there are 34, they cover almost all sectors of the economy. And if European business, despite the difficult circumstances, continues to see prospects for further growth and development in Russia, I would like to believe that this is our merit.The Association of European businesses (AEB) was established in 1995 on the initiative of Russian companies in the European countries and head of the EU delegation in Russia to strengthen economic ties between business circles of the European Union and Russia. Today it unites more than 500 companies (mostly European), includes 60 industry committees, subcommittees and working groups.— How do you work in the current environment?— As elsewhere, many companies—members of the Association for which it was possible, switched to remote work. We in the AEB also restructured its operations. The committees continue to function remotely, last week we released the statistics for sales of road construction equipment for the first quarter of this year, a week earlier — sales of passenger cars. In addition, we are able promptly and in English to inform the Association members about the developments of recent weeks and on measures to combat the spread of COVID-19, adopted by the government of Russia and the crisis staff. With the introduction of various measures enterprises have more questions, who can work, who are the backbone to companies how to comply with the Labor code of Russia in the new environment. Some of the difficulties faced by the company, we signaled to the Russian authorities. However, all these questions arise now not only in Russia — everywhere.From Russia, the European business is not going away — and not because of a lack of flights. Although I can say that for certain, on the contrary, a problem that at the moment of closing the borders they were abroad and now they can not enter Russia and remained there until. Helps digitization of business.Frank Schauff studied at the University of Cologne, Volgograd state University and the London school of Economics. Prior to joining the Association of European business from 2001 to 2007 he held the post of Advisor on foreign policy to the Board of the Social democratic party of Germany. In 2007, Mr. Schauff was elected CEO of the AEB, and was re-elected to the post in 2010, 2013 and 2016. In addition to his native German fluent in English, Russian, Spanish and French.— And from an economic point of view, the crisis has hit European businesses in Russia?— A pandemic is an external factor, which in a short time has been a major influence on the position of the business — both in Russia and around the world. For example, in the restaurant industry, European companies are less involved, but in tourism, the hotel industry employed many, and they have serious problems right now. Suffer and businesses engaged in the sales of online trade cannot compensate for the sharp drop in demand, which we see in all industries. With regard to economic support from the state until we help companies clarify their terms.Specific figures that would allow to speak about the effect of the crisis for European companies in Russia, yet. But in General we are in the same position as that of Russian enterprises.
Of course, if growth this year will be negative, it will be a serious problem for the Russians and for Russian companies and subsidiaries of European companies in Russia.— You become the CEO of AEB in 2007, then was the crisis of 2008-2009 and the period after the annexation of Crimea in 2014. In General, this is not the first crisis that you are experiencing. Which one is the bigger hit European businesses in Russia?— The financial crisis of 2008-2009 and the current pandemic event on a global scale. But what happened in 2014 and after, had a distinctive Russian characteristics. But at the same time we can talk about a certain predictability. From the financial crisis of the country gradually recovered, by coordinating their actions.The peculiarity of the current crisis is that it has not the economic root cause and provoked the spread of a new virus, which imposes a significant uncertainty on its consequences for the economies of ��all countries. And it is very difficult to say in advance how things will develop in this situation, how are we going to get out of quarantine and won’t this create a second wave of the epidemic and quarantine in a couple of months or in six months.— The European business in Russia with critical remarks on sanctions. Can I say that you are lobbying for their repeal? And whether you have access to key persons in Russia and in European countries?— Now with meetings is not easy, but in General we have, of course, there are contacts at the highest level. And we see that our as the main representative of foreign investors communication channels in recent years have not deteriorated. Every year, for example, members of the Association in Moscow meets Russian foreign Minister Sergei Lavrov.We do always discuss the sanctions during meetings with the European officials. Of course, the business is not for sanctions: entrepreneurs prefer to do business without sanctions and political restrictions. But we must not forget that sanctions is a political problem, and companies are aware of the fact that it requires a decision. In this respect, high expectations and from the European and Russian political leadership.Say, with regard to European sanctions, the situation in 2014 is more or less stable and that all parties understand the rules of the game. Of course, the work of the financial sector and European banks in Russia has changed. But European companies abide by the restrictive measures and somehow live with it, and we find that Russian producers in General do. But sanctions by the US (which to a certain extent more related to the political situation in the United States than with the Russian-American relations), much less predictable, potentially affecting a broader range of companies and threaten to turn into so-called secondary sanctions. Especially for Europeans, because the EU is an important trade partner for Russia. I hope that this policy will one day be more rational and predictable.— Many are now talking about the possibility of lifting the sanctions in the context of the pandemic. Do you think this may relate to the restrictive measures imposed by the EU and Russia?— Hard to say, but now more and more concerned with how to contain the coronavirus at home.—How do you assess the effectiveness of AEB in terms of industry?— We released monthly by statistics of car sales in Russia and for the Russian market is one of the major statistical estimates for which data are cited then and abroad. This statistic really reflects the situation on the market, as almost all relevant manufacturers and importers are to our Committee of manufacturers.The Committee continues to maintain a dialogue with the representativesmi government and international automotive associations, focusing on the most important and topical issues of the automotive business.— And what do you think about the split that occurred in the relevant Committee in agreement of appeal to the government to support measures? According to our data, the differences caused utilsbor and Russian automakers are the members of the Committee blocked the email, so now is the question of their exclusion.— There is no conflict whatsoever, the more the split is unknown to me. I am not going to comment on the rumors, but in General, in any industry Union, when you bring together different producers and working on a joint position, can be different opinions on the same issue. They are discussed in the Committee of car manufacturers. But in the end the Committee reached a common position, and “b” about it also wrote.
