Prospects for the Russian-Czech economic cooperation

This paper is aimed at studying the promising areas of economic relations between the Czech Republic and the Russian Federation in the light of current political and economic conditions, taking into account the export potential of the Czech Republic and the Russian Federation. In an increasingly competitive global market, cooperation between the two different types of economies (Russian resource economy, industrial and service economy of the Czech Republic) is becoming increasingly important. Today, the Czech Republic is still heavily dependent on foreign trade with the European Union, which accounts for over 70% of its foreign trade turnover. Its main trading partner is Germany (29% of foreign trade turnover of the Czech Republic), which holding companies own a large number of Czech companies. It should also be noted that the business community of the Czech Republic recently focused its attention on Germany, which is the logical response to the development of the current situation in Europe (however, in prior years, 32% of Czech respondents considered export to Russia more promising, in 2014 this figure dropped to 15 %). Continuous positive dynamics in the mutual trade between the Czech Republic and Russia was replaced by reduction in export and import deliveries, and the reduction of the external turnover (by 14.6% at the end of 2014); this was due to stagnation of the economy, and the anti-Russian sanctions imposed by the EU and the US in the second half of 2014. However, despite the negative statistics, the existing potential for cooperation of the Czech Republic and Russia suggests that the development of economic relations between the two countries will continue under positive scenario. Despite the fact that Russia's main interests lie within such strategically important areas of cooperation as transportation, military industrial complex and energy sector, the current conditions stipulate the need for closer scientific and technological cooperation, and cooperation in the field of education. There is a field for cooperation in the production and distribution of electricity, gas and water; construction; wholesale and retail trade and repairs (including repair of motor vehicles); IT, ICT and telecommunications; various types of services. Despite the negative statistics, the economic relations between the Czech Republic and the Russian Federation have a great potential for further development.

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