General Powell – America Needs Strong Russia

THIS POST WAS ORIGINALLY PUBLISHED JUNE 18, 2007

 General Powell – America Needs Strong Russia

“Russia: Investing in Prosperity”

Today is the first day of one of the major events in Russian investment banking market. 11th Annual Investor Conference. Renaissance Capital, the leading global emerging markets investment banking group headquartered in Russia hosts the meeting under the name of “Russia: Investing in Prosperity.” It is by far the largest annual gathering – with more than 1,000 leading investors, corporate executives and government officials attending it.

Renaissance Capital is well known in Russia for its meticulous high quality conferences. This time it is being held in the famous Gostinny Dvor – just a few steps from the Kremlin and Red Square. Everything at the conference is catered to investor’s taste – starting from Internet workstations to Bloomberg terminals. And today’s; speakers are one of the highest qualities:
- Former U.S. Secretary of State Colin Powell
- BP PLC’s Group Chief Executive Tony Hayward
- Deputy Prime Minister Sergei Naryshkin
- Minister of Finance Alexei Kudrin
- Minister of Telecommunications and IT Leonid Reiman
- Minister of Energy Victor Khristenko
- Head of the Audit Chamber Sergei Stepashin
- Head of the Federal Financial Markets Service Vladimir Milovidov.

Investors are treated to presentations from leading Russian executives representing, among others, Gazprom, Rosneft, Lukoil, Transneft, Surgutneftegas, Novatek, RAO UES, Norilsk Nickel, RUSAL, MMK, TMK, Polyus Gold, Severstal, SUEK, AFK Sistema, Prof-Media, MTS, Sitronics, Sberbank, VTB, Wimm Bill Dann and X5 Retail Group. Renaissance Capital is arranging more than 2,000 private, one-on-one meetings between investors and Russian corporates. Special roundtables on derivatives, real estate, the banking sector and endowments in Russia are also scheduled, as are regional site visits for investors to Sakhalin, Sochi and St. Petersburg.

Stephen Jennings and General Powell before the grand opening

The conference was opened with the speech by Stephen Jennings, CEO, Renaissance Group. “Russia is no longer a sideline observer at G8 summits. Nor is it kowtowing to the West. Russia isn’t just an economic hub of the CIS. It is a global economic and financial center in its own right. These are the realities of Russia today. International and domestic political rhetoric, and less than stellar market performance, are making headlines. But they can’t mask a fundamental truth. Russia today is a very different, and qualitatively stronger and more robust, global economic and political center of influence.”
Mr. Jennings stressed: “We are bullish on Russia, in spite of the weaker market conditions of late and the even more bearish political speak coming from London, Brussels and Washington, DC… Follow the money and you find a very different Russia compared to what emerges from pundits, naysayers and politicians… Not even rash statements by Western leaders, like Tony Blair’s swansong warning that foreign investors will turn away from Russia because of concerns over democratic principles, can dampen the enthusiasm coming from foreign and domestic investors alike.”

Naturally the keynote speaker was General Colin Powell. When the chairperson introduced Mr. Powell he asked – what is the way to present you “former Secretary of State” or “former general” – to which he got a great reply: “there may be former Secretary of State, but no former general”.

Mr. Powell in his eloquent 30 minute speech drew a great comparison lines starting from his young military years when Russia was potential enemy and iron curtain separated the world. He remembered his years when he was stationed in Germany and the Russian General Vladislav Achalov was the Commander in Chief of the 8th Army that faced US troops. Mr. Powell noted that he used to keep the small picture of General Achalov on his table – just to point to it during numerous visits of US Congressmen and Senators. When Colin Powell met general Achalov in person he found out that he also had Powell’s picture on the table for the same reasons.
General Powell very vividly described his meetings with President Gorbachev (comparing him with Chinese leader Deng Xiaoping). Describing the current world he noted that instead of red and blue there is a great mosaic developed. Russia faced serious challenges under President Eltsin, he gave credit to President Putin – who established rule of order, rule of behavior. “In each society the basis of Law should exist – that everybody has the ability to appeal to the Law”. 

“The world is flattening, information is moving around the world at the speed of light. The economy is getting more globalized”. And in these circumstances Russia is creating wealth for the people; it has the ability to trade globally, to move capital globally. 

Regarding recent rhetoric, General stated: “I’d rather have challenges between Russia and USA of current nature, than when I was Chairman of JCS every morning looking where Russian submarines are now.” “Business moves forward often without looking into domestic political considerations”.

“12-13 years ago I could never imagine the conference like this. Russia is really creating opportunities for people to come and do business here. There is time for openness. There is time for trading. Russian needs America, America needs Russia. We need Russia to be stable and confident.”

Deputy Prime Minister Sergei Naryshkin , General Colin Powell, 

Minister of Finance Alexei Kudrin

Discussing Telecom and IT with Minister of Telecommunications and IT Leonid Reiman