FOR WHAT IS potentially a long-term relationship, the West's dealings with Russia seem to be getting off to a rocky start. Some of the Western companies which have invested in joint ventures with Russian industry are beginning to wonder when they will see a return on their investments. Some Russian industrialists, meanwhile, can only view with dismay Western efforts to penetrate their domestic market.
In the main, the joint ventures have been frustrated by the financial frailty of the Russian partners, discouraged by Russia's social and political chaos, and dogged by misunderstanding and misrepresentation on both sides. Little wonder, as Flight International's Moscow correspondent Alexander Velovich suggests that enthusiasm for East-West joint projects, appears to be waning (P33).
Many ventures were started with the aim of Westernising Russian designs for sale outside the traditional Soviet markets. This has not proved as simple a task as some might have hoped, not least because of the length of time it is taking to agree a certification bilateral between Russia and the USA. Then there is the issue of financing.
Most Western companies have taken a financial risk on Russian ventures in the hope of seeing a return when sales begin. The Russian Government is in no condition to help its manufacturers finance those sales, however, placing Russian industry in the ironic situation of having to turn to its Western partners for financial assistance, even in selling aircraft to the country's own airlines.
The stakes are high, the rewards uncertain, and the potential for mistakes on both sides enormous. Only by taking a long-term view that a relationship with Russia is a good thing can the West hope to make any progress. As Velovich says, it will take time to see if East-West co-operation is as fruitful as hoped. Patience and perseverance are of the utmost importance.
Source: Flight International