Mali-Russia economic relations предварит

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Mali - Russia economic relations
Introduction
The Republic of Mali is a landlocked country in West
Africa, a region geologically identi ed with the West
African Craton. Mali is the eighth-largest country in
Africa, with an area of just over 1,246,814 square
kilometres. The population of Mali is 19million.Its
capital is Bamako. The sovereign state of Mali consists
of ten regions. The country's economy centers on
agriculture and mining.In the aftermath of the collapse
of the Soviet Union in 1991, the Russian Federation ,
an ideological friend and ally of many African countries
during the Cold war period , started the disengage
from Africa and other developing countries , and to
develop closer relations with the western countries.
Mali-Russia relations
The Soviet Union recognized Mali’s independence
on July 7, 1960 and diplomatic relations between the
two states were established on October 14 , 1960.
After the collapse of the Federation of Mali, Modibo
Keita, the rst president of Mali seeks to establish
closer ties with the Soviet Union. In 1961, the two
countries signed trade and cultural agreements, and
the Soviet Union provided Mali with loans and other
assistance, which included the purchase of two
passenger aircraft for the Mali air force. As part of the
cultural agreement, Russia sent the artist in the circus,
athletic trainers and football team in Mali. The African
continent enriched by vast natural resources and with

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burgeoning consumer markets , has become a very
attractive destination for Russian economic stability,
which resulted in strong economic growth (yearly GDP
growth rate of 6,9%),increasing demand for Russia
exports(mostly oil and other natural resources) and
higher foreign exchange reserves.This presented an
opportunity for the Russian government and business
elites to expand their in uence beyond Russia and CIS
borders and to enhance their political and commercial
ties with African countries and other emerging mar‐
kets; it's an opportunity for it too to get some minerals
such as manganese, bauxite and chromium, which are
important for its industry.The global context, Russia
trade with Africa has always been overshadowed by
Moscow 's trade relations with Europe, Asia and the
United States. Bilateral trade between Russia and
Africa reached its peak of US $7.3 billion in 2008.

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Countries like Mali, where France is traditionally
the most in uential power its presence is proof that
Russia can act in areas that the West sees as its
sphere. To improve its political and commercial ties
with Africa and facilitate market access to its rms, the
Russian government embraced a new foreign policy
toward Africa, undertook high o cial visits to some
African countries, advocated for con ict resolution,
humanitarian assistance, and debt relief for Africa.
Traditionally strong position of Russia in Africa
is in the arms market. In recent years, this trend is
strengthening, despite the intense competition in
the market. The motivation behind Russia business
expansion in Africa is also driven by the depletion of
the resources base in Russia. The absence of new
discoveries and technological advancement, which
are weakening Russia's domestic energy, together with
the lack of easy access to the remaining underground
mineral deposits in Russia Africa's considerable natural
resources. While Africa's share of global energy
production is about 12% and increasing , its share of
global commercial energy consumption is only 3%,
which represents a signi cant supply for Russia's
growing oil demand. The high costs of accessing
Russia's reserves of diamonds, uranium, gold, copper,
nickel and other metals and their reduced economic
viability given the volatility of these products' world
prices, have encouraged Russian rms to turn to Africa
as an alternative source of supply, as the costs of
exploration and production are much lower there. In

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fact Africa's underexploited mineral reserves which ac‐
count of about 30%of global resources, will be strate‐
gic complementaries to Russia's depleting natural
resource base including zinc, diamond, gold, uranium,
oil, copper, nickel, manganese, bauxite and coal.
Another important place in the turnover is played by
agriculture which is very important in countries such
as Mali known for the production of cotton, rice ,
mango, sugar cane and so on...
Africa (Egypt, Côte d'Ivoire, Benin, Nigeria,
Guinea-Bissau, Central African Republic, Guinea,
Burkina Faso, Mali) increases the supply of fruits
and vegetables to Russia, taking advantage of the
favorable market conditions against the background of
counter-sanctions of the Russian Federation regarding
products from the European Union.
Large Russian business is considering Africa as a

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promising investment target. The greatest interest
is the energy and mining, as well as agriculture,
manufacturing, transport, infrastructure.
Strengths and weaknesses of Malian economy
STRENGTHS:
Substantial natural resources: agriculture (cotton) and
wealth of the basement(gold, petroleum and uranium)
-Political situation is stabilising; drive to improve
the economy
-International aid
WEAKNESSES:
-Economy vulnerable to weather and commodity
price uctuations
-Geographically isolated
-Dependent on international aid
Russia's expertise in energy exploration and
production,and its membership in the G8 present an
opportunity for Malian or African governments to
work jointly with Russia companies and international
organizations such as the African Development Bank
in order to ensure a strong and constructive linkage
between Russia's energy interests and sustained
economic growth in the continent. For example Russia
has invested in some African industries like: Gold
mining and processing in south Africa($1.16 billion) ,
nickel mining and processing in Bostwana($2.5billion),
oil exploration in Ivory coast($900 million), Aluminum
referring in Nigeria($250 million), nuclear power in
Egypt($1.8 billion)... Russia has not yet invested in any
Malian industry is helping Mali in some other ways.

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Conclusion
to summarize, the relationship between Mali and
Russia does not date from today. these two countries
have always had good relations and help each other.
Mali or Africa helps Russia with its natural resources
such as gold, bauxite and uranium iron... and Russia
helps Mali with its weapons and equipment.
Last modi ed: 18:28