Maritime Sector Russia Market opportunities and developments

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Maritime Sector RussiaMarket opportunities and
developments

• Nikolay Shavrov
• Commercial adviser
• Royal Norwegian General Consulate
• Innovation norway
• Uddevalla, 21.03.2007

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Topics

• Innovation Norway general presentation
• Russia developments, economic relations
  Norway Russia
• Russian Maritime sector

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Innovation Norway
.
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Innovation Norway

• Established 19 December 2003 as a statutory
  company
• Started its activities on 1 January 2004
• Took over the initiatives formerly offered by
  The Norwegian Industrial and Regional Development
  Fund (SND), the Norwegian Trade Council, the
  Norwegian Consultative Office for Inventors (SVO)
  and the Norwegian Tourist Board.
• 750 employees in offices distributed throughout
  all of Norways counties and in 34 countries. The
  Head Office is located in Oslo.

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An organisation close to its customers
Regional knowledge of business and the
community Regional differentiation of
Innovation Norways products and services
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Bergen
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District Offices Local Offices
Kristiansand
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An organisation close to its markets
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Visit our website at innovationnorway.no
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IN Moscow and IN St.Petersburg
Embassy IN seafood tourism industry environment
EFF INTSOK
General Consulate IN maritime pulp/paper/wood el
ectrical sector

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Russia current developments
.
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General data about Russia
Basic facts on Russia
Basic facts on Russia (2005)

• Area 17,075,400 km2
• Population 143.6
  million (urban 73)
• Population density 8.4 inhabitants /
  km2
• GDP USD 550
  billion
• Capital Moscow
• Average monthly salary USD 250
• Currency Rouble (1
  NOK 4.3 RUR)
• PC penetration 10
• Internet penetration 15
• Mobile penetration 25

4,596,200
1,332,700
8,539,200
1,251,200
1,387,800
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Inflation and Exchange Rate Development, to
previous year
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Russian GDP change, , 1995 2006
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RTS Index, 2002 - 2007
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Foreign investment in Russia, cumulative June
2006 (128 bln USD)
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Norwegian-Russian Trade, mil.NOK
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Norwegian export to Russia, 2006 (5.1 bln NOK)
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Russian Maritime Sector
.
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Major maritime centers of Russia
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Maritime Russia going North
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Russian Offshore - Northwest
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Northern Passage
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Major Russian shipowners (Barents region)

• Sovcomflot (Moscow, St.Petersburg, Cyprus)
• Murmansk Shipping (Murmansk)
• Northern Shipping (Arkhangelsk)

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Russian shipowners, DWT, April 2005
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Major players Sovcomflot
Over 15 years 14
0 10 years 63
10 15 years 23
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Sovcomflot latest developments
Acquisition of 2 LNG tankers, 70.000 cbm, ice
class. Nov.2006 4 LNG tankers 145.000 cbm, ice
class with delivery 07-08, plus 2 145.000 cbm non
ice class 2 LPG carriers acquired, 35.000 cbm
3 Arctic tankers 70.000 dwt, delivery 08-09,
ordered at Admiralty Shipyard 3 product carriers
(continuation of 6 ship series) ordered at
Admiralty
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Murmansk Shipping

• Dry cargo ships
• Tankers

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Murmansk Shipping

• Icebreakers, nuclear and diesel
• Nuclear cargo ship

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Icebreaker fleet available
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Murmansk Shipping latest developments

• 50 Let Pobedy has passes sea trials
• March 07.
• Commissioning to MSCO end of March

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Russian shipyards - current Status

• In 2005 average workload of Russian shipyards is
  about 30 of the capacity. Most successful are
  fully loaded
• Share of civil products about 30 of the total
  production
• Future not more than 40 of shipyards will
  survive. The rest either united with winners,
  or focused on other business

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Shipbuilding- major players, North-West Russia

• State owned Admiralty Shipyard (St.Petersburg),
  Sevmash (Severodvinsk), Zviozdochka
  (Severodvinsk) Avangard Shipyard (Petrozavodsk)
• KSMS Yantar Shipyard (Kaliningrad), Sred
  ne-Nevsky Shipyard (St.Petersburg)
• UIC Baltijsky Zavod (St.Petersburg), Severnaya
  Verf (St.Petersburg)
• N-W Shipping Nevsky (St.Petersburg)
• Vyborg Shipyard (Vyborg, St.Petersburg)
• Pella Shipyard (St.Petersburg)
• Onega Shipyard (Petrozavodsk, BO Shipping)

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Admiralty Shipyard, St.Petersburg

• One of the oldest and largest in Russia. Founded
  in 1704
• Capacity up to 70000 t DW, 250 m length, 35 m
  width
• 2 open slips, 5 covered berths, 2 floating docks
• Work force 4500
• State owned
• Products naval diesel submarines, large
  auxiliaries
• commercial tankers
• Naval program 70 of the total volume

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Admiralty Shipyard, St.Petersburg

• Commercial shipbuilding. Status and plans
• 1994-98 7 Pulkovo class tankers 28000 DW
  (Norway, India, Germany)
• 2000-02 5 Lukoil ice tankers 20000 DW (Russia)
• 2003-06 6 Sovcomflot tankers 47000 DW, 182 x 32
  x 18 m,
• No 6 keel-laid Nov.05. 3 more ships signed
  2006

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Admiralty Shipyard, St.Petersburg

• Commercial shipbuilding. Status and plans
• Sevmorneftegaz (Prirazlomnoe oilfield) 3 ice
  tankers 70.000 DW, 260 x 34 x 14. Tender won
  Sept.2004. 60 mln USD each. Design Aker Arctic
  Technologies. Delivery 2008-09
• Russian Navy Rescue ship keel-laid Dec.05.
  Delivery 2010. 5000 tons, 107 x 17 m. 2 ships up
  to 2015. Foreign suppliers Rolls-Royce

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Admiralty Shipyard, St.Petersburg

• Major naval products diesel submarines
• Kilo class - 2400 t DW, mainly for export
  (India, China)
• Lada class 1600 t DW for Russian navy
  (St.Petersburg)

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Baltiysky Zavod, St.Petersburg

• Founded in 1856
• Capacity up to 100000 DW
• Work force 5000
• Privately owned
• Products naval surface warships, including
  nuclear cruisers
• commercial chemical carriers (5800 DW),
  icebreakers
• Naval program 30-50 of the total volume.
• Services production of propellers, propeller
  shafts, marine valves fittings, heat
  exchangers, tanks and pressure vessels, galvanic
  coatings

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Baltiysky Zavod, St.Petersburg

• Major naval products
• Nuclear powered missile cruiser (Russian navy)
• Fregates (Indian navy)
• 3 ships during 2001-2004
• Plus option for 3 ships

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Baltiysky Zavod, St.Petersburg

• Commercial shipbuilding
• 2 ro-ro hulls for Fosen Mek.Vek. (Stena RoRo).
  Dec.05/Dec.06. LR

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Baltiysky Zavod, St.Petersburg

• 2 ro-ro hulls for Fosen Mek.Vek. (Stena RoRo).
  10.12.2004

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Baltiysky Zavod, St.Petersburg

• 2 ro-ro hulls for Fosen Mek.Vek. (Stena RoRo).
  21.12.2005

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Baltiysky Zavod, St.Petersburg

• 2 ro-ro hulls for Fosen Mek.Vek. (Stena RoRo).
  08.12.2006

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Baltiysky Zavod, St.Petersburg

• Commercial shipbuilding. Plans
• Diesel/electric icebreakers (111) for
  Rosmorport for Gulf of Finland (Primorsk).
  10.000 tons, 116 x 26 x 8
  No1 (Moskva) keel laid
  May.05, launching May.06, delivery 07.
• No 2 (St.Petersburg)-metal cutting started
  Dec.05
• Nuclear icebreaker 50 Years of Victory.
  Delivery March 2007

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Vyborg Shipyard

• One of the most western oriented shipyards. In
  the 90s owned by Kvaerner.
• Workforce 1600. Privately owned. 100 commercial.
• Products platforms, fishing boats, tankers,

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Vyborg Shipyard

• Commercial shipbuilding status.
• 2000-2004 hulls of fishing boats for DOF
• 2003 platform for Moss Maritime
• 2004 steel blocks for Kvaerner Masa Yards
  (Sakhalin-1 icebreaker)
• 2004 steel blocks for supply ship UT745 Aker
  Langsten
• 2005 steel blocks for Prirazlomnaya platform
  (Sevmash)

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Vyborg Shipyard

• Commercial shipbuilding status. 2005
• 2004-2005 2 tankers 12000 dwt for
  Kazmortransflot. 20 mln USD each. 150x17x7
  Aktau-Baku, Aktau Makhachkala. Designer
  Vympel, N.Novgorod
• 2005 2 tankers 12000 dwt for Mobilex Energy
  (Kazakhstan). Plans for 55. No5 to be
  delivered in 2007
• Nov.05 won tender for 6 freezing fishing boats
  for Turkmenistan. Total value 15 mil USD. Start
  Jan.06, final delivery Apr.08
• Dec.05 won tender for 3 tankers 12000 dwt for
  Dragon Oil (UAE Turkmen shelf

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Vyborg Shipyard

• Commercial shipbuilding status. 2005-07
• Sep.05 and Nov.05 two hulls of ferries for Aker
  Aukra AS
• Sep.05 hull of supply ship for Brevik
  Construction AS
• Dec.05 hull of supply ship for Brattvaag
  Skipsverft AS
• July.06 delivery of power distribution module
  for
• Sevmash (Prirazlomnaya)
• Aug.06 delivery tanker for Kazakhstan
• Aug.06 hull of supply ship for Aker Aukra
• Nov.06 hull of supply ship forKarmsund Maritime
  Services

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Sevmash, Severodvinsk

• The largest shipyard in Russia. Workforce
  27.000
• The largest naval shipyard in Europe
• Produced more than 100 nuclear submarines.
• State owned
• Products naval nuclear submarines, aircraft
  carriers
• commercial platforms, tugboats, barges
• Orders structure defence Russia 40, defence
  export 30, commercial 30

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Sevmash, Severodvinsk

• Naval program nuclear submarines (Russian Navy)
• renovation of aircraft carrier (India)

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Sevmash, Severodvinsk

• Commercial program
• Prirazlomnaya platform delivery 2007?

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Sevmash, Severodvinsk

• Commercial program Prirazlomnaya platform
• Dimensions 126 x 126 (level 0) icebreaking wall
  up to level 40
• weight 110000 t (w/o ballast), 510000
  (w/b)
• Height 99 m

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Sevmash, current developments

• Prirazlomnaya plaftorm out of the dock. December
  2006

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Prirazlomnoe Project Taken Business
Opportunities of Norwegian Suppliers
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Sevmash current developments

• Factory for liquification of natural gas. Yamal
  peninsular, Kara sea. Harasavejskoe gas field.
• Labour consumption 4 x
  Prirazlomnoe
• Feasibility study

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Sevmash current developments

• Floating nuclear power station 70 MWt.
• Contract with Rosenergoatom signed in June 2006.
• Delivery 2010

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Sevmash, Severodvinsk

• Platform CS-50 for Moss Maritime AS
• Contract signed June.05 (12 option). Delivery
  beginning 2007

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Sevmash, Severodvinsk

• Commercial program chemical tankers

Contract signed Nov.04 for 8 4 ships.
Keel-laying of No 1 14.12.05 delivery
2007. Chemical carrier 45.000 dwt, 185 x 32 x
18 m, designed by Kleven Design AS. By today the
largest commercial shipbuilding contract in
Russia
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Russian MaritimeNewsletter
Issued every month. Covering major events in
maritime area in Russia, Ukraine and
Kazakstan Send out by e-mail from Innovation
Norway St.Petersburg office
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Russian shipbuilding latest news

• March 2007. President Putin
• We need to support those sectors of shipbuilding,
  where Russian shipbuilders can be competitive
  platforms, tankers for LNG and oil, fishing ships
• March 2007. First Deputy PM Ivanov
• State assets of Russian shipbuilding will be
  united into 3 holding companies Northern
  (Severodvinsk), Western (St.Petersburg) and
  Eastern (Vladivistok)
• February 2007. Minister of Industry Khristenko
• By 2030 Russia will need 55 platforms, 85
  specialized ships and 140 support ships for
  offshore development. Russian shipbuilders will
  be given support and tax benefits to participate
  in this programme

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Neva 2007 exhibition, 24-27 September 2007
Largest event in ex-Soviet Union Russian
equivalent of Norshipping Focused on
shipbuilding, shipping and offshore 500 companies
from 40 countries Joint Norwegian stand
(Innovation Norway) Norwegian companies
participating via agents
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Neva-2005, Norwegian stand
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Neva 2005 Norwegian stand