Russia seeks stronger economic ties with Ghana under Mahama's leadership

Russia seeks stronger economic ties with Ghana under Mahama's leadership

Russia seeks stronger economic ties with Ghana under Mahama's leadership

By Kestér Kenn KLOMEGÂH

In this thought-provoking conversation, H.E. Sergei Berdnikov, the Russian Federation's Ambassador to the Republic of Ghana, explored various elements of Russia's connections with Africa as a whole, and with Ghana specifically. Berdnikov also emphasized that economic collaboration, enhancing trade links, investment opportunities, and public diplomacy are the key areas in today's Russia-Africa relations.Here are the interview passages:

Following the initial and second Russia-Africa summits, along with the first Foreign Ministers' conference convened in November 2024, is it possible to evaluate the extent of investments within the Republic of Ghana? Which economic sectors are drawing interest from Russian investors, particularly under the current administration led by President John Mahama of the National Democratic Congress? How would you describe the economic collaboration, especially trade relations, between the Republic of Ghana and the Russian Federation over these recent years?

H.E. Sergei BerdnikovAfrica is a rapidly evolving continent, blessed with extensive natural resources and a human potential of 1.5 billion people, most of whom are young. As a result, it serves as both a significant manufacturing hub and an ever-expanding market for consumers, naturally drawing in foreign investors, including those from Russia. According to predictions, the total size of the African economy could multiply several times within the next ten years, potentially reaching up to $8.5 trillion. Currently, Africa contributes 2% to global production and 3% to the global economy, with 12 of the 20 fastest-growing economies located on the continent.

Russian firms could potentially explore favorable opportunities in initiatives involving the building of hydroelectric, thermal, and nuclear power stations, along with the exploitation of hydrocarbon, diamond, gold, uranium, copper, rare-earth elements, and bauxite reserves, as well as the processing of mined resources.

The expertise of Russian investors is also sought after in developing advanced infrastructure, such as upgrading seaports and terminals, railways, and road systems. African partners show significant interest in digital technologies, especially within the public, municipal, and financial sectors. Moreover, African nations have a long-standing and ongoing interest in investments in agriculture, which plays a crucial role in ensuring a country's food independence.

As an extra step to assist Russian businesses operating in Africa, a dedicated financial mechanism (fund) has been set up, following the President's instructions, to support Russian initiatives on the continent.

Currently, Russian businesses are effectively carrying out projects in the oil, gas, and mining industries throughout multiple African nations. Prominent companies participating include "Rosneft," "Gazprom Neft," "LUKOIL," "ALROSA," "Nordgold," "Severstal," "Renova," "RUSAL," and others. These initiatives involve geological surveys, the development of oil and gas fields, the building of liquefied natural gas (LNG) terminals and associated facilities, and the extraction of minerals.

Regarding the trade and economic collaboration between Russia and Ghana, it is governed by an applicable agreement concluded between the Soviet Union and Ghana on October 28, 1978.

As per the Ghana Statistical Service, the overall value of bilateral trade surpassed US$850 million in 2023. The primary exported items included petroleum products and wheat. Russia was the second-largest provider of petroleum products to Ghana in 2023, making up 18.2% of total imports in this sector.

Significant are the opportunities for collaboration between Russia and Ghana in the area of nuclear energy. The intergovernmental agreement "On cooperation in the field of the use of atomic energy for peaceful purposes" signed on June 2, 2015, details the parties' intentions concerning the training of professionals in the nuclear sector, the construction of a nuclear power plant, and the upkeep of the facility following its completion.

The deal also includes plans for creating a Center of Excellence in nuclear science and technology within Ghana. Operational details will be managed by the Joint Coordination Committee, which consists of the State Atomic Energy Corporation of the Russian Federation (ROSATOM) and Ghana's Ministry of Energy.

Since 2021, ROSATOM has been involved in a bidding process for building a nuclear power plant in Ghana. The proposals encompass both large-scale reactors capable of generating gigawatts of power and small modular reactors.

In the oil and gas extraction industry, the Russian firm PJSC "LUKOIL" operates in Ghana, possessing a permit to exploit the Pecan oil field, situated within the deepwater Tano Cape Three Points (DWT/CTP) area.

This area contains the biggest oil find among multiple discoveries within the contract zone. The development of the Pecan field will occur in two stages, anticipated to yield approximately 268 million barrels of oil, with an estimated capital expenditure of US$3.5 billion. In total, the recoverable oil reserves from all findings in the DWT/CTP block are projected to be around 550 million barrels.

In 2018, during the St. Petersburg International Economic Forum, PJSC "Rosneft" entered into a 12-year agreement with the Ghana National Petroleum Corporation for the delivery of LNG to Ghana. The intention was to supply roughly 1.7 million tons of LNG each year to the port of Tema, which would meet about a quarter of Ghana's energy requirements, improve its energy security, and reinforce its role as a significant LNG center in West Africa. Nevertheless, the COVID-19 pandemic and the sanctions imposed in 2022 on Russian state-owned enterprises disrupted the execution of this project.

In August 2013, a deal was made to create a Permanent Joint Commission for Cooperation (PJCC). The initial gathering of the Commission occurred in Moscow in October 2014. Throughout the expert-level talks, the involved sides examined future actions to enhance their bilateral relations.

During the fourth meeting of the PJCC, which took place in Accra from December 13 to 15, 2023, the Russian delegation restated its desire to enhance collaboration in energy, mining, and machinery sectors. Nevertheless, actual execution of these initiatives has not commenced yet, as Ghana remains cautious about potential secondary sanctions.

Amid changing geopolitical conditions, most African nations, such as Ghana, appear to be shifting their trade towards the Asian region, paying less attention to Russia. In your view, what obstacles do potential exporters encounter when trying to enter the Russian market? What are the primary specific grievances expressed by local exporters in Ghana?

Berdnikov: Initially, it's important to clarify the reasons behind the recent changes in the global economic system. A key factor that has led to uncertainty and a deteriorating situation in the world economy is the effect of illegal unilateral restrictions imposed on Russia by the West following the start of the Special Military Operation in Ukraine in February 2022.

These strict policies have adversely affected global manufacturing and supply networks, causing an imbalance in investment and trade movements. They have also exacerbated debt issues and limited access to products, services, financial resources, and technology for numerous nations, particularly in Africa. Moreover, they have eroded the foundations of equitable competition, resulting in economic regionalization and the splitting of the global economy into distinct blocks.

It's important to note that the adverse effects of these restrictions have also impacted those who utilize them for their own geopolitical purposes. As per the IMF, the overall economic growth of developed nations did not surpass 1.8% in 2024, with a projection of 1.4% for 2025. The countries of the Old World are facing a particularly challenging scenario – economic growth within the eurozone reached only 0.9% in 2024, and it is anticipated to remain below 0.8% in 2025.

The implementation of Western sanctions and the utilization of reserve currencies by Washington and its partners have eroded the confidence of numerous global entities in the financial system that relies on the supremacy of the US dollar and euro. As a result, there has been a rise in the adoption of other currencies for international trade and savings.

In organizations like BRICS, the SCO, and ASEAN, numerous nations are increasing discussions about utilizing local currencies for trade among themselves and developing their own payment and settlement mechanisms. This movement is also evident in individual country interactions. Fluctuations in financial markets are causing gold prices to rise and leading sovereign investors to lose interest in U.S. dollar-based investments.

Nations such as Brazil, Indonesia, the United Arab Emirates, and Turkey are actively decreasing their amounts of dollar-based assets. The euro has already relinquished its status as the second most important reserve asset globally, having been overtaken by gold, which now constitutes a larger portion of central banks' official reserves than the European currency.

Under the present conditions and evolving global economic landscape, African nations are increasingly finding opportunities to expand their trade connections, especially with Russia and Asian countries. Over the past four years, the trade volume between Russia and Africa has increased by 45%—rising from $15 billion in 2021 to $27.7 billion in 2024 (exports at $24.2 billion, imports at $3.5 billion).

Nevertheless, despite the current potential, the results obtained are still far from reaching the maximum. A lot needs to be accomplished, especially as both parties aim to enhance their relationships. The Action Plan for 2023–2026, approved at the 2023 Russia–Africa Summit, highlights this goal. The plan focuses on enhancing collaboration in trade, energy, transportation and logistics, industrial growth, digital technologies, education, and scientific research. These areas are anticipated to serve as drivers for long-lasting, sustainable economic involvement. For instance, Russia is striving to expand its presence in African energy infrastructure, covering both traditional and nuclear sources, and to broaden railway and port development partnerships throughout the continent.

To enhance Russian-African trade and economic collaboration, the framework of commissions focused on trade, economic, and scientific-technical cooperation with African nations is being actively employed. Since the start of this year, the PJCC meetings have been held with Algeria, Zimbabwe, Egypt, Mozambique, the Republic of Congo, Tanzania (on two occasions), Tunisia, and South Africa. By the end of 2025, plans are in place to conduct the PJCCs with Angola, Guinea, Morocco, Namibia, Sudan, and Uganda.

Another significant approach to enhance trade and economic collaboration with Africa is by utilizing the BRICS framework. The rise of BRICS as a unified economic entity has opened up fresh prospects for Africa to participate in strategic South-South cooperation. The expanding impact of this group on the world stage, along with Africa's developmental requirements, has fostered greater hope regarding the potential for a win-win partnership.

In recent years, the BRICS nations have greatly increased their presence in Africa, with a noticeable increase in foreign direct investment and trade levels. Africa has shown great potential for economic change, fueled by its rich natural resources, positive demographics, growing middle class, and continuous progress in regional integration. These elements establish the continent as an important force in the future of global economic growth.

Several African nations are already prominently involved in BRICS: South Africa, Egypt, and Ethiopia are actively engaged in the group's activities, leveraging its platform to advance both their own national interests and the wider African perspective.

After the summit held in Kazan, Russia, last year, a new category of partner nations for BRICS was introduced. This year, Nigeria and Uganda have become part of this group. They are now being invited to take part in numerous events hosted by BRICS, such as gatherings of foreign ministers and expert-level discussions.

Several African nations have already shown their desire to enhance collaboration with the BRICS bloc. Official requests for membership are currently under review. There is no question that this approach of incorporating African countries into BRICS initiatives will continue to expand in the coming years.

Russia has consistently backed the expansion of African nations' involvement in BRICS, as this not only enhances its global standing and promotes the concept of multilateralism, but also boosts the group's political influence, transforming it into a broad-based forum for discussion. In this way, BRICS emerges as a more complete alternative to Western engagement models.

In this context, we urge Ghanaian companies to fully capitalize on the expanding trade opportunities in the current situation. With rising interest from both parties and the simplification of trade processes, Ghanaian exporters are well-placed to enter and thrive in the Russian market. This is an excellent moment for businesses to present creative ideas and collaborations that can boost mutual trade.

Incidentally, how would you typically describe Africa today based on the previous conversations? Do you believe that the establishment of Russian House and Russkiy Mir are tools to re-establish 'soft power' influence (public engagement initiatives) throughout Africa?

Berdnikov: The Federal Agency for Affairs of the Commonwealth of Independent States, Compatriots Abroad, and International Humanitarian Cooperation (Rossotrudnichestvo) is a prominent state body whose primary objective is to enhance Russia's humanitarian presence globally. The agency operates through 87 foreign missions in 71 countries around the world. Since 2021, it has been informally known as "Russian House."

Besides the official representative offices of Rossotrudnichestvo, non-governmental "Russian Houses" are being established globally, especially in Africa (Dakar, Luanda, Dar es Salaam, Addis Ababa, Cairo, Lusaka, Brazzaville, and Bangui). In the Sahel region, Russian Houses have been opened in Bamako, Mali; Ouagadougou, Burkina Faso; Niamey, Niger, and other cities. These serve as centers for cultural and educational collaboration, offering free opportunities to learn the Russian language, along with scholarships for studying in Russia. Moreover, a range of cultural, educational, and sports programs are organized and implemented, acting as solid "building blocks" in creating civilizational bridges between Russia and African nations.

Building upon the finest traditions of Soviet cultural diplomacy, Rossotrudnichestvo draws on the expertise of entities like the Union of Soviet Societies for Friendship and Cultural Relations with Foreign Countries (SSOD, 1958-1991). These institutions provide language courses, arrange art displays and movie screenings, and plan cultural events aimed at promoting mutual comprehension. The cultural aspect of Russia–Africa ties is viewed not just as a form of soft power, but as a vital element in establishing lasting trust.

In addition to Rossotrudnichestvo, the Russkiy Mir Foundation is a well-known Russian non-profit organization engaged in cultural diplomacy and the promotion of the Russian language and culture internationally. It functions through numerous centers and "Cabinets" (also referred to as "Russian Corners" or "Russian Language Classrooms") situated in various countries, typically in partnership with educational and cultural organizations. These Cabinets act as focal points for learning the Russian language, facilitating cultural exchange, and fostering a favorable perception of Russia.

In January 2024, the Russian Foreign Ministry took full ownership as the sole shareholder of the Russkiy Mir Foundation. This change represents both a distinction and a major responsibility. The Foundation is essential in advancing Russia's cultural diplomacy and fostering international humanitarian collaboration. Its efforts contribute to enhancing global connections among individuals linked by the Russian language and heritage, irrespective of their country of residence.

The principles that form the basis of Russian society—patriotism, respect for older generations, admiration for tradition, and the continuity between generations—are strongly established and broadly accepted across Russia's varied populations and religions. These principles are significantly different from some contemporary tendencies that promote moral relativism and personal freedom. There is increasing worry that these trends, frequently presented as promoting tolerance, may result in social division and the weakening of core ethical standards.

The safeguarding of Russia's traditional spiritual and moral values is not solely a national concern; it has also emerged as a fundamental element of the nation's foreign policy. The revised Foreign Policy Concept, approved by President Vladimir Putin in March 2023, highlights Russia's distinct identity as a civilization molded by more than a millennium of historical development. This perspective guides Russia's stance on present global issues, especially the situation in Ukraine.

Although facing external pressures, Russia still manages to gain backing from various parts of the world, including nations that maintain adversarial policies. A significant number of individuals worldwide admire Russia's position in upholding its values, independence, and cultural identity.

The Russian World is not solely determined by geography or ethnicity, but rather by common values, culture, language, and a feeling of historical connection. By protecting these roots—through education, diplomacy, remembrance, and collaboration—Russia highlights its position as an independent civilization in a complicated, multi-polar world. The future relies on the capacity of countries to maintain their distinct identities while encouraging mutual respect and peaceful living together. In this endeavor, every advocate of the Russian World has an important part to play.

Ultimately, African leaders and entrepreneurs are beginning to prepare for the third Russia-Africa summit scheduled for 2026. What might be the views and sentiments regarding this emerging phase in Russia-Africa relations, especially within the framework of global political transformations?

Berdnikov: As previously noted, the Russian Federation has greatly increased its involvement with the African continent, moving from occasional interactions to a more organized and strategic partnership. This development highlights Russia’s overall foreign policy goal of promoting a more equitable, multipolar global system where African countries are equal participants. The policy is based on mutual respect, sovereignty, and non-interference, and it focuses on practical cooperation in political, economic, humanitarian, and security areas. A key element is the Russia–Africa Partnership Forum and its Action Plan for 2023–2026, which details specific areas of collaboration across all major sectors.

In the Joint Declaration issued during the First Ministerial Conference of the Russia-Africa Partnership Forum (Russia, Sirius Federal Territory, 10 November 2024), it was decided to enhance political and diplomatic cooperation through broader bilateral and multilateral discussions. This involves more regular ministerial meetings, greater visits from government representatives, and collaboration within international bodies like the United Nations. Russia strongly backs the African Union’s Agenda 2063 and the continent's initiatives to achieve lasting presence in global governance frameworks, including the UN Security Council.

This political discussion aims not only to enhance mutual comprehension but also to strengthen collective resistance against what Russia refers to as "neo-colonial actions," such as external influence, unjust sanctions, and imposed political demands. The Russian side acknowledges that the foundation of collaboration is equality—Russia views African countries as autonomous entities with complete control over their internal and international policies.

Economic collaboration stands as a key foundation of the Russia-Africa connection. The stated aim is to establish alliances that support industrial expansion, technological progress, and long-term development across the continent. Moscow is collaborating with African nations to broaden trade frameworks and enhance reciprocal investments.

Initiatives are being implemented to establish joint business councils, trading companies, and direct business-to-business platforms to promote collaboration between Russian and African businesses. African markets are also being incorporated into Russian export assistance programs, with new mechanisms being created to lessen reliance on Western financial systems—such as utilizing local currencies and alternative payment systems.

Special focus is being given to initiatives that tackle essential requirements like food security. Russia has committed assistance through direct shipments of grain and fertilizers, investments in African agricultural enterprises, and the sharing of expertise in farming technology. These actions aim to offer sustainable solutions instead of temporary aid, with a concentration on achieving independence and advancing modernization.

Acknowledging the crucial part that human resources play in achieving sustainable growth, Russia has broadened its efforts in education, research, and cultural fields. Collaboration in education is increasing via the provision of state-funded scholarships for African students.

The Russian government is also actively involved in enhancing vocational training initiatives within the fields of engineering, medicine, information technology, and public administration. Companies from Russia operating in Africa are being urged to support the growth of the local workforce, while African professionals are being offered opportunities to take part in temporary fellowships and training programs in Russia.

Another key area of collaboration is security cooperation. Russia offers military-technical support to several African countries, aiding them in fields like counter-terrorism, border protection, and stabilization efforts. This support involves the provision of weapons and equipment, training for military staff, and assistance in developing national security structures.

Crucially, Russia presents its security support as unconditional and considers national sovereignty. In contrast to Western security aid, which frequently includes political conditions, Russia's method aims to enable African nations to manage their own security issues without external involvement. The objective is not to exert control, but to assist countries in preserving their autonomy against transnational threats like terrorism and organized crime.

To improve cooperation, Russia suggests forming joint task forces, increasing military education initiatives, and setting up regional security platforms that unite Russia with African nations confronting similar challenges. My country is also focusing on partnerships intended to reinforce Africa's information independence. This involves expanding Russian news organizations such as "Sputnik" and "RT Africa," which provide different viewpoints from Western media and highlight African perspectives on international issues. Initiatives are being developed to train African journalists, create shared media centers, and work together on digital content that showcases shared values and interests.

Provided by SyndiGate Media Inc. (Syndigate.info).

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