Addressing the opening assembly, Mr Zubkov said:
"Representatives from the state authorities of our two countries, some Russian regions and the CEOs of major Russian and Israeli corporations and banks, have gathered here for the first time in the modern history of Russian-Israeli relations. The purpose of our meeting is to find ways to cooperate on ideas and business projects in various economic sectors of mutual interest.
"Allow me to wish all of you a productive time here as you pursue common business interests and sign promising contracts. I would also like to wish our Israeli colleagues a pleasant stay in Russia.
"Today's meeting highlights the sustained development of our bilateral business ties. Establishing direct ties between businessmen and opening new avenues for cooperation are the main practical result of any business forum.
"This forum was initiated by the Joint Russian-Israeli Commission on Trade and Economic Cooperation. At its meetings, the Commission examines the most important cooperation issues in various spheres and charts long-term bilateral trade and economic relations.
"The Commission held its latest meeting in December 2009 in Moscow and assessed the state of bilateral cooperation and the influence of the global financial and economic crisis on our cooperation. We agreed that the future of Russian-Israeli cooperation will be determined by a change to the more popular forms of cooperation, including co-production arrangements, investment cooperation and joint ventures, primarily in the high-tech sectors.
"National business communities actively supported by state agencies must become the main driving force of this process.
"I am happy to note that national governments always oversee issues of bilateral trade and economic cooperation. The latest visits to Russia by President Shimon Peres of the State of Israel and Prime Minister Benjamin Netanyahu have made an important contribution in this respect.
"I would like to say a few words about the state of the Russian economy and its development prospects. Expanded business ties directly depend on the level of macroeconomic stability and the investment climates of our economies.
"The Russian economy had virtually doubled from 1998 until late 2008. I would like to remind you that Russia ranked among the seven largest economies in the world in terms of purchasing power parity (PPP). Apart from extensive growth, qualitative economic changes were posted. The positions of raw-materials sectors were consolidated as a result. Notably, Russia became the largest oil producer in the world. Most of the revenue was generated in hydrocarbon and metals production and exports.
"In 2009, the Russian economy experienced the fits and starts of the economic crisis. Sharply aggravated foreign economic conditions, declining exports and suspended bank-loans contributed to a considerable investment and industrial slump in the first half of last year.
"The Russian economic recession began to let up by mid-2009, and steady economic growth resumed in June.
"The Federal State Statistics Service (Rosstat) says the GDP declined 7.9%, rather than 8.5% as expected.
"A sharp decline in personal income was avoided. Due to the effective budgetary and monetary policy of the Government and the Central Bank, inflation levels have dropped to 8.8% in 2009.
"The agriculture sector showed the greatest stability and positive dynamic last year. The industrial and construction sectors performed somewhat better in late 2009.
"Although positive trends remain unstable, we can say that we have provided the right conditions for sustained economic growth that might total about 4% in 2010.
"Russia considers the rapid transfer to a high-tech and innovative economy an unprecedentedly important task.
"We consider the achievements of Israel's highly developed economy, your experience and knowledge in this field to be useful and valuable. I believe the Russian market is quite attractive in terms of cooperation. A solid cooperation base exists. Bilateral cooperation is facilitated by the geographic proximity of our countries, Israel's large Russian-speaking community and the mutually supplementary nature of the Russian and Israeli economies.
"In striving to elevate Russian-Israeli cooperation to an entirely new level, we are doing our best to expand the contractual-legal base which must be completely conducive with current requirements.
"I would like to point out two documents.
"Over a short time period, we have managed to prepare an important document, namely, an inter-governmental cooperation agreement in the R&D sphere which will make it possible to create adequate mechanisms for high-tech Russian-Israeli cooperation. Two ministers will sign this document today.
"Unfortunately, this cannot be said about another document, namely, an inter-governmental agreement on investment promotion and protection something the national business communities are waiting for. Work on this draft agreement has been unjustifiably delayed. Unfortunately, negotiators failed to meet in Jerusalem March 9-10 in order to coordinate the text of the agreement. The meeting has been put off until mid-April at the request of the Israeli side. We hope the meeting will finally make it possible to eliminate the current differences.
"The latest meeting of the Joint Russian-Israeli Commission on Trade and Economic Cooperation has cited the potential for cooperation in trade and investment, innovation, industrial R&D projects, energy, agriculture, fisheries, telecommunications, healthcare and pharmaceuticals, civilian space programmes and tourism.
"Visits and contacts facilitated by the Russian Nanotechnology Corporation show that Israel would like to help create an innovative economy in Russia and to further develop the partnership in state-of-the-art technology. We believe this cooperation venue has a future. Along with business-community representatives, we have discussed a number of potential projects including nanotechnology based production in Russia in targeted medication deliveries, nanostructured implant coatings, equipment for nanolevel quality control of semiconductor plates and chips, the creation of efficient batteries, super-condensers and fuel elements among others.
"We have accomplished a lot in agriculture, including the construction of small milk-processing plants in Russia, animal-fodder enterprises, turkey-meat production facilities, etc. We are interested in increasing grain exports to Israel.
"As far as energy cooperation is concerned, Gazprom continues to study the possibility of pumping natural gas to Israel through a pipeline via Turkey. There are prospects for the joint implementation of a project to develop an oil-shale deposit in Israel.
"Permanent working groups for cooperation in innovation, agriculture, energy and tourism have been established in order to coordinate work on high-priority projects within the format of the Joint Commission. Whenever necessary, such groups will be established in other cooperation venues.
"We hope that mutually beneficial cooperation projects will be discussed in great detail at this forum.
"We perceive real opportunities for expanded bilateral investment cooperation. Israel's share of accumulated direct investment in the Russian economy is very small, totaling less than 1% of all foreign investment in Russia. At the same time, Russia has failed to channel any substantial investment into Israel.
"Investment in the development of innovative Russian technology can be very profitable.
"Moscow is hosting the current business forum, and there are plans to hold a similar event in Israel in the second half of 2010. Both events will, doubtless, facilitate enhanced cooperation between the Russian and Israeli business communities. There are numerous examples highlighting the successful operation of Israeli companies in the Russian market - in real estate, telecommunications, postal communications, farm equipment and pharmaceuticals, etc.
"We must expand such experience, including the implementation of several flagship projects of in Russian-Israeli cooperation which were discussed at meetings with Israeli leaders and which, as we are confident, will be discussed at this forum.
"We would like Israeli business to encompass a broader range of economic activity in Russia's regions. Notably, this implies involvement in priority national projects including healthcare, construction, agriculture, education and tourism, as well as an expanded activity in our special economic zones.
"It was decided to establish the Russian-Israeli Business Council in order to facilitate stronger business contacts and mutually beneficial cooperation between Russian and Israeli businessmen. Vice president of Alrosa Sergei Ulin, who heads the Council's Russian section, has launched this work in an energetic and professional manner.
"The work experience of business councils involving other countries shows that they are an effective instrument in expanding business cooperation.
"The Russian-Israeli Council has already begun its work. Organising today's forum was the Council's first practical step.
"I would like to acknowledge the newly-appointed Chairman of the Israeli-Russian Business Council - Shraga Brosh, president of the Manufacturers Industry of Israel. We are counting on close and effective cooperation between both councils.
"To conclude, I would again like to wish the Forum every success and express my confidence that the representatives of the Israeli and Russian business communities will be able to cooperate and agree on joint business projects. This will promote the interests of enhanced bilateral ties.
"Thank you."
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The forum was held within the format of national business councils, established by the decision of the co-chairpersons of the Russian-Israeli Commission on Trade and Economic Cooperation, namely, First Deputy Prime Minister Viktor Zubkov and Deputy Prime Minister/Minister of Foreign Affairs of Israel Avigdor Liberman.
Two documents were signed during the forum: an Agreement Between the Government of the Russian Federation and the Government of the State of Israel on Cooperation in the Sphere of Industrial R&D Projects, as well as a Memorandum of Cooperation Between Business Councils.