Trade and investment relations between Czech Republic and Russian Federation

This Master Thesis examines cooperation between Russia and the Czech Republic in the spheres of foreign trade and investment relations. The analyzed period is primarily over the last decade with the concentration on the current trends. The analysis is carried out through evaluation of present level of trade volumes and investment flows between countries, search of obstacles and incentives for mutual cooperation in these areas, countries' governmental and other sources of support, etc. The Thesis considers trade and investment perspectives for relation development and mutual cooperation between Russia and the Czech Republic as well. One of the study's purposes was to provide recommendations for improvement of the business environment in Russia and making its national economy attractive for foreign capital. The study shows that, even though the share of the Czech Republic in the total trade volume between the EU and other non-EU member states makes up about 1%, the trade volumes in relations between this country and Russia remain significant. The largest category of Czech exports to Russia are machines and means of transport; Russian exports to the Czech Republic are energetic commodities, raw materials and mineral oil. As a matter of fact Russia's economic growth in later years has largely been driven by its energy exports. The country's dependency on energy sector demands structural changes in the national economy, modernization is critical for its long-term economic growth. The analysis emphasizes that Russia should adopt experience of the Czech Republic, as a highly industrialized country, use Czech innovative technologies and equipment, enter into joint projects with the Czech Republic, and so on in order to ensure future growth in today's competitive world. This is necessary especially in the light of the fact that Russia close to gaining membership to WTO, which can potentially facilitate trade and investment flows between the country and the EU, including the Czech Republic.