Russia Business Politics

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• Russia - Business Politics
• Challenges Opportunities
• How Why to Explore the Potential of Russias
  Regions
• October 12, 2006

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• BISNIS - Who We Are !
• U.S. Department of Commerce program since 1992
• BISNIS Mission Facilitate U.S. - NIS commercial
  collaboration and success
• U.S. and NIS - based Trade Specialists
• 8 Trade Specialists in Washington, D.C.
• 15 Offices Across Eurasia
• Expertise in
• Each NIS Country Russian region
• Most Promising Industry Sectors and Issues
• Local business needs and available resources

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BISNIS in Eurasia
U.S. Department of Commerce Info for Eurasian
companies www.bisnis-eurasia.org Info for U.S.
companies www.bisnis.doc.gov
Western NIS Kyiv, Ukraine (hiring) Chisinau,
Moldova
Russian Federation St. Petersburg Moscow
(Vacant) Nizhny Novgorod Samara
Yekaterinburg Novosibirsk Tomsk Khabarovsk Vladiv
ostok (Vacant) Yuzhno-Sakhalinsk
Caucasus Baku, Azerbaijan (Vacant) Yerevan,
Armenia (Vacant) Tbilisi, Georgia
Central Asia Tashkent, Uzbekistan Bishkek,
Kyrgyzstan Astana, Kazakhstan Dushanbe,
Tajikistan
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Market Size- 275 Million
Belarus 11m
Ukraine 51 m
Moldova 4m
Russia 145 m
Georgia 5 m
Armenia 3m
Azerbaijan 8m
Kazakhstan 17m
Turkmenistan 4m
Tajikistan 6 m
Uzbekistan 26 m
4.5 billion in U.S-Eurasia results since 1992
Kyrgyzstan 4 m
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BISNIS Services for U.S. firms

• BISNIS OnLine
• www.bisnis.doc.gov
• www.bisnis-eurasia.org
• Country Info
• Industry Info
• Leads
• Events
• Finance
• Resources

• BISNIS OnLine
• Unique Russian-language website
• E-mail Updates
• Leads
• BISNIS Search for Partners
• BISNIS Trades Tenders
• BISNIS Finance Link
• BISNIS ExpoLink Eurasia
• Consultations/guidance (phone, e-mail, in-person)
• BISNIS Bulletin (monthly newsletter)

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U.S. Commercial Service

• Presence in 107 U.S. cities
• Presence in 145 U.S. Embassies and Consulates
• E-mail Updates
• Individualized Programs
• Gold Key Matching Service
• One Year Interactive Promotion
• Contact Lists
• US Product Literature Centers
• Consultations/guidance (phone, e-mail, in-person)
• www.buyusa.gov

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RUSSIA

• Press v. Commercial Reality
• PBN Co Survey
• (One year later)

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RUSSIA

• Beware of the strategic sectors
• Oil Gas
• Defense
• Aviation
• Metals
• Telecommunications
• Banking

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RUSSIA

• But know the 4 priority sectors
• modern healthcare
• high quality education
• affordable housing
• effective agriculture

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Russias Regions Why?

• Moscow and St. Petersburg are highly competitive
• Incentives may not be appealing (Tax breaks,
  lesser regional support, etc)
• Moscow and St. Petersburg are not the only
  markets with more than 1 M inhabitants
• Geography

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Russias Regions Where?

• NorthWest Russia
• Upper Volga
• Lower Volga/Southern Russia
• Urals
• Siberia
• Russian Far East

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Russias Regions NW Russia

• Key Regions/Cities
  
• St Petersburg
• Leningrad Oblast (Region)
• Kaliningrad
• Vologda
• Pskov
• What
  Major Insfrastructure Development
  Projects Local Residential Housing leading to
  great potential for construction equipment and
  materials

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Russias Regions Upper Volga

• Key Regions/Cities
  
• Nizhny Novgorod
• Tatarstan
• Chuvashia
• What
  IT, the automotive, construction and
  engineering services, and finance sectors.

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Russias Regions Lower/Southern Volga

• Key Regions/Cities
  
• Samara
• Krasnodar
• Volgograd
• Rostov-na-Donu
• What
  automotive, agribusiness, tourism
  infrastructure development connected with the
  Sochi Olympics bid for the Winter Games of 2014

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Russias Regions Urals

• Key Regions/Cities
  
• Yekaterinburg
• Chelyabinsk
• Perm
• What
  infrastructure, franchising, retail

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Russias Regions Siberia

• Key Regions/Cities
  
• Novosibirsk
• Tomsk
• Omsk
• Irkutsk
• What
  SEZ in Tomsk, technology
  commercialization projects, leasing and consumer
  related sectors

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Russias RegionsRussian Far East

• Key Regions/Cities
  
• Sakhalin Island
• Vladivostok
• Khabarovsk
• Magadan
• What
  residential
  construction, port infrastructure projects and
  heavy machinery connected with large federal and
  private industrial projects such as oil gas
  production and distribution

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Russias Regions How?

• BISNIS Representatives in the Field
  
• St. Petersburg
• Nizhny Novgorod
• Samara
• Yekaterinburg
• Novosibirsk
• Tomsk
• Khabarovsk
• Sakhalin

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Russias Regions How?

• USFCS Representatives in the Field
  
• Moscow
• St. Petersburg
• Vladivostok

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Best Prospects in Russia

• Infrastructure
• Ports and airports
• Road construction
• Telecommunications
• Logistics (cargo terminals, warehouses, reloading
  terminals, etc.)
• Natural resource-oriented
• industries
• Wood processing, pulp paper
• Metals (steel, aluminum, gold, titanium, nickel,
  other)
• Oil gas
• Diamonds, amber
• Chemicals
• Fishing
• Environmental technologies

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Best Prospects in Russia

• Consumer market oriented sectors
• Food processing and packaging
• Printing
• Medical equipment and pharmaceuticals
• Textiles
• Retail trade and distribution
• Healthcare services
• Financial services (asset management, insurance,
  mortgage)
• Hotels and, in general, tourism infrastructure
• Industry
• Ship-building
• Construction (Residential and Commercial)
• High Tech (software development)
• Machine-building (nuclear power stations,
  electrical generators, optics, trucks and
  automobiles, other)

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Perceptions/Stereotypes and Reality

• There are a lot of negative articles in the press
  about Russia there must be a reason to it
• Russians are crooks
• Russia is so far away that transportation costs
  will eat away my profits
• Corruption is pervasive
• There is no predictability
• I have good buddies in Moscow, I can cover Russia
  from Moscow
• Many have lost their shirts in Russia, I could
  too

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More practical Information

• www.bisnis.doc.gov
• www.buyusa.gov
• www.amcham.ru
• www.usrbc.org
• www.pbnco.com
• www.ctec.ru

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Useful Resources

www.bisnis.doc.gov
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Contact Information

• Philip de Leon
• Deputy Director
• Tel [phone]
• Fax [phone]
• Washington, D.C.
• E-mail Philip_de_Leon_at_ita.doc.gov
• Web www.bisnis.doc.gov

www.bisnis.doc.gov