NorwegianRussian economic relations, market opportunities and developments

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Norwegian-Russian economic relations, market
opportunities and developments

• Roger Håkon Mikkelsen,
• Consul Commercial Affairs
• Innovation Norway, Murmansk
• Royal Norwegian Consulate General, Murmansk

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Innovation Norway

• Started its activities 01.01.2004
• Took over the initiatives formerly offered by the
  
• Norwegian Regional and Industrial Development
  Fund
• The Norwegian Trade Council
• The Norwegian Consultative Office for Inventors
• The Norwegian Tourist Board
• 750 employees in offices distributed throughout
  all of Norways counties and more than 30
  countries

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Mission
Innovation Norway shall promote nationwide
industrial development both with respect to the
business economy and Norways national economy
and be a facilitator in releasing the different
regions potential by contribution to innovation,
internationalization and promotion of the industry
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Innovation Norway representative offices

Offices in all of Norways counties and in 34
countries
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INNOVATION NORWAY - Consulting and practical
assistance - Finance support services
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Consulting and practical assistance
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Representation offices in Russia

• Moscow (Royal Norwegian Embassy)
• Roger Martinsen, Commercial counsellor, station
  manager
• St. Petersburg (Royal Norwegian Consulate
  General)
• Nikolai Shavrov, Station Manager
• Murmansk (Royal Norwegian Consulate General)
• Roger Håkon Mikkelsen, Consul Commercial Affairs,
  station manager

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Services for companies

• Connections to decision-makers / local
  authorities
• Perform market research and partner search
• Act as strategic discussion partner and
  troubleshooter
• Advise choosing most relevant cooperation model
  and assist with company registration
• Arrange business delegations, exhibitions,
  workshops, seminars, receptions, meetings etc.
• Tailor-made services according to individual
  needs
• Etc

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Finance support services
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The funds territorial boundaries
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The Russia, CIS and Balkan Funds

• The investment fund for Russia, CIS and Balkan
• 120 mill. NOK (18,5 MUSD)
• The investment fund for North-West Russia
• 150 mill. NOK (23 MUSD)
• The consultancy fund for North-West Russia
• 30 mill. NOK (4,6 MUSD)

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Russian-Norwegian economic relations
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Trade between Norway and Russia current
developments

• Total foreign trade development BNOK 15.1 ca.
  9 increase from 2005 to 2006
• (22 increase from 2004 to 2005)
• Norwegian export to Russia BNOK 5.1 ca. 6
  decrease of from 2005 to 2006
• (ca. 56 increase from 2004 to 2005)
• decrease in 2006 mainly due to the Russian ban
  on export on fresh fish from Norway which dropped
  15 - value of ca. 0.5 BNOK - in 2006
• Norwegian import from Russia BNOK 10.0 ca.
  14 increase from 2005 to 2006 (ca. 9 increase
  from 2004 to 2005)
•  

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Russian Offshore - Northwest
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Focus areas

• Strategic industries
• Oil gas supplier industry
• Energy
• Sea food
• Tourism
• Strategic countries/markets
• Russia NWR, Central regions
• Established SMEs with potential to succeed
• Depending on where there are potential for
  Norwegian businesses

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Possibilities for Norwegian companies in Russia?

• The years of the arctic cowboys are over
• Huge (and rapidly growing) market potential
• Russians exporting raw materials
• Oil Gas, a powerful driving force
• More internal production
• Norwegian expertise and know-how
• More Norwegian companies looking east
• Murmansk/Archangelsk vs. St. Petersburg/Moscow
• Expectations, ambitions, possibilities etc.

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Prirazlomnoe Project Norwegian Suppliers
Norwegian offshore technology and expertise used
in Russia
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Fokus area North West Russia

• Archangelsk oblast 1,3 mill Archangelsk city
  360.000
• Murmansk oblast 0.9 mill Murmansk city
  330.000
• Republic of Karelia 0,7 mill Petrozavodsk
  265.000
• Nenets autonomus okrug 0,042 mill Naryan Mar
  18.000
• Republic of Komi 1,2 mill (Syktyvkar 300.000)

Ca. 4.150.000
Focus area Northern part of Norway

• Nordland county 235.000
• Troms county 154.000
• Finnmark county 73.000

Ca. 460.000
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Norwegian companies registered in NWR

• Norwegian ownership/Daughter company, Branch
  office, representation office etc.
• Salary paid to Russian employees
• 80 Norwegian companies confirmed established in
  NWR,
• Estimated approx. 1.000 man-labour years in
  Norway/Russia

• Business services
• Research/Science
• Trade
• Transport/logistics
• Industry/production
• Tourism

• Bank finance
• Building/Contracting industry
• Property/Real estate
• Fishing industry
• Oil Gas related business
• Media, Press and IT

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Some general advices

• Bureaucracy Legislation
• Language Cultural differences
• Corruption/bribes
• Access to reliable information
• Business infrastructure
• Qualified labor force
• Mafia