Head of Roscongress: Local currencies are used to bypass sanctions

Alexander Stuglev, the Head of  Roscongress Foundation, spoke to Harici: “For easing the sanctions regime, national currencies are currently used, and potentially in the future, a digital currency developed by the BRICS can be used.”

With the Russia-Ukraine war, Moscow has increasingly turned to business diplomacy and international trade cooperation as strategic tools to mitigate the effects of Western sanctions. Central to this effort is Roscongress Foundation, Russia’s premier organization for fostering global economic dialogue and partnerships. Established to enhance Russia’s business ties internationally, Roscongress serves as a bridge connecting Russian enterprises with global markets through high-profile forums such as the St. Petersburg International Economic Forum (SPIEF). The organization plays a critical role in reshaping Russia’s economic development by emphasizing collaboration with emerging economies, strengthening ties with traditional partners, and exploring new trade opportunities in Asia, Africa, and Latin America.

Roscongress was organized a meeting in Istanbul and Alexander Stuglev, the Head of  Roscongress Foundation, replied the questions of Harici.

As we understand, Roscongress is the main tool for business diplomacy and to eliminate the impacts of Western sanctions. Can you tell us more about the organization?

Yes, you have noticed correctly, Roscongress was established in 2007 as a non-financial development institution that deals with the organization and holding of major international economic and political events in Russia in the interests of attracting investments to the Russian Federation and developing the economy of the Russian Federation.

At the same time, while organizing events we, of course, proceed from the fact that in addition to interaction between Russia and businessmen from a particular country, direct connections can also be established with third countries, that we are also welcoming.

Could you tell us more about the opportunities and risks you see in Turkish-Russian relations in business sector?

Undoubtedly, to some extent, sanctions affect the development of Russian-Turkish relations and, in general, business relations with Russia.

Nevertheless, today, all those who use these turbulences in a pragmatic way to build their business projects in Russia are winning, occupying the vacated niches from Western countries, developing their own business. And from the point of view of easing the sanctions regime, national currencies are currently used, and potentially in the future, a digital currency developed by the BRICS association (Brazil, Russia, India, China, South Africa) can be used.

First of all, there are always risks out there, marketing risks included. Secondly, in addition to the fact that Turkish companies have occupied the niches vacated by Western companies, we see a general change in the structure of the Russian economy with a greater focus on creating products and services within Russia.

Tourism for example; the number of tourist trips that have now emerged in Russia is many times higher than there were before COVID, about 83 million trips are made by Russian citizens annually within Russia.  And this requires the infrastructure development.

Taking into account the large number of support programs from the Russian state for companies that are developing tourism infrastructure, there are great chances, for foreign companies as well, if they organize a Russian legal entity in the format of an LTD and get the opportunity to develop their projects. This is one of the possibilities.

Creative industry, computer IT security, IT products; in all those areas we can cooperate completely freely. These are such cross-border industries, where, I think, it’s very difficult to be a subject for sanctions.

Turkish President Recep Tayyip Erdoğan and Russian President Vladimir Putin set a goal of increasing bilateral trade volume to $100 billion. Do you see an expansion or a contraction in the Turkish-Russian trade volume in 2025?

Firstly, this is practically 100% growth to what we have now.As for the forecast for 2025-2026, the main thing is,first: in my opinion, the construction of transport and logistics projects.There is the Black Sea and the Caspian Sea for example.Second; this is cooperation in the field of energy. Thirdly, this is cooperation in the field of chemistry (creation of chemical products) from supplied raw materials, from oil and gas.This is a promising area of pharmaceuticals, supplies of medical equipment, as well as medical services in Türkiye.Undoubtedly, the development of tourism is very promising but also creative industry, IT industry, Cybersecurity.These are the areas that, in my opinion, will develop in the near future. Of course, traditional cooperation in the field of metallurgy.Traditional cooperation in the field of agriculture and food supplies will grow for sure.

What challenges do sanctions pose to bilateral relations?

The first is an axis from the sanctions regime, including through payment in national currencies and using digital currencies. The second is business, thanks to its capabilities, will find a solution to any restrictions. I do not want to go into details now, do not want to disclose the details of the opportunities that companies can use to maintain a normal trade balance.

Anti-colonial movements in Africa seem to have opened up space for Russia in both diplomatic and commercial terms. How do you assess the situation there?

This is an anti-colonialist movement not only in relation to France, but also in relation to other countries. This is also a movement in relation to proposals that are unfair to Africa, for example, on the green transition, because it will destroy African business and will give great advantages to global companies. In my opinion, it is necessary to proceed from the interests of African countries, which, in fact, Russia always does. This is the advantage of our economy and politics.

We work in a ‘win-win’ mode. In the same way, the Turkish side can work in Africa. In the same way, Chinese investors have been actively working in Africa to this day in the form of the prospects of this market. But based on common interests, on the one hand there is a creation of profitable enterprises. On the other hand – the development of the African economy.  Only this will provide an opportunity for further mutual growth. If we simply export material resources from the colonies as a consumer and do not give anything in return, nothing good will come for sure.

After the fall of Assad government, does Russia have any interest in doing business in the reconstruction of Syria?

I am sure that Russian companies will take part in this process, just like other international companies. Now a period of political stabilization will pass and a period of certain growth will begin. The main thing is that extremist movements and non-constructive movements in relation to Syria and the Syrian people do not prevail in politics.  I believe that politics and economics will improve in the near future.