Businesses in certain Gulf Cooperation Council (GCC) states have been asked by their governments and members of the governing families to reduce trade with Russia because of its “arrogant” position toward Arab League (AL) efforts to resolve the ongoing crisis in Syria, a senior official of the Saudi Council of Chambers of Commerce and Industry (SCCCI) has said. The official, requesting anonymity, spoke to the Saudi Gazette at a dinner Saturday at the Jeddah home of the head of a diplomatic mission. The move comes in the wake of Russia indicating it will use its United Nations Security Council veto to protect Syria from sanctions. The SCCCI official added that he expects the Saudi government to take a formal position at some stage with regard to trade with Russia. Asked if he expects a decision to be taken soon, he said. “This is not how we play ba'loot (a card game) in the Kingdom.” The source said businessmen in Kuwait and the United Arab Emirates were approached by their governments and members of the governing families, to reassess trade relations with Russia, in the light of the “arrogant position” the Russians have taken with regard to Arab League efforts to resolve the crisis in Syria. The source added that, as is normally the case in such matters, no formal announcement will be made on the trade issue. The GCC governments are appealing to the conscience of businesspeople and expecting the word to spread, he added. Assessing the current scope of business relationships with the Russians, the source said: “Some Gulf businessmen and firms have made good inroads into the Russian energy and mining markets, including the exploitation of iron and aluminum deposits. There are now seven joint venture companies working in Russia with Kuwaiti, Saudi and Emirati capital,” the source said. “Before the current Syrian crisis, there was talk in a GCC member-state of cooperating with Russia in the field of electricity production. This member-state worked on behalf of the GCC, as a spearhead for further government-to-government cooperation, to construct nuclear reactors, but now all this is up in the air,” he added. Asked how these developments would affect the office of the GCC Chamber of Commerce in Moscow, the source said that the office operates within the overall GCC trade policy. “I think they had a good chance to sign a free trade agreement with us but obviously there have now been huge setbacks.” “The Russians need us commercially more than we need them. The entire global market is our playground, from Australia to Hawaii. We are traders by birth and culture. The GCC countries produce more than 26 percent of the world's oil. We are gradually transforming into a global market for gas supplies and renewable energy, in particular, solar energy. We truly could do without them.” On the other hand, he said, the Russian economy can benefit considerably from goods and services available in the GCC. This includes the region's sophisticated and world-class financial services industry. He said these important financial and trade matters have not been taken seriously by both parties, despite the number of mutual visits by GCC and Russian officials, and the signing of a number of beneficial trade agreements. The source said that the private sector in the GCC could benefit from various lucrative investment and trade opportunities in the Russian market. The SCCCI official said that the GCC is looking to adapt to recent global economic and trade developments. This means seeking to strengthen ties with other fast-growing and influential countries such as Brazil, China and India, without neglecting trade relations with current primary partners. These international changes, which include the European Union's enforced trade restrictions on GCC countries, require the GCC to reform its global economic relations. __
