02
Business
RUSSIA BEYOND THE HEADLINES
BOOKMARKS www.rspp.ru Russian Union of Industrialists and Entrepreneurs
SECTION SPONSORED BY ROSSIYSKAYA GAZETA, RUSSIA
www.moscowtimes.ru Find article ‘Medvedev Address Hints at Change’
en.rian.ru/business RIA Novosti News Wire
WWW.RBTH.RG.RU
Global Russia Economics Investors are showing interest, and prospects are
Calendar
optimistic. But is Russia ready to compete for foreign money?
Founding meeting for the International
Cooperation and Investment Council
February 6, 2008, President Hotel,
Moscow, Russia
The Russian Union of Industrialists and Entrepre-
neurs, in agreement with the American Chamber
of Commerce in Russia and the European Busi- Investment
ness Association in the Russian Federation, has
decided to establish the International Cooperation
and Investment Council within its structure.
The council will hold regular meetings and draw its
strength from the business communities in Russia. Medvedev’s nomination is
It will benefit from the expert potential of Russian
and foreign companies in tackling the current
problems associated with Russia’s economic de-
velopment. good for Russian business
Members of the Russian government and heads of
major foreign companies operating in Russia will
take part in the council’s work.
www.rspp.ru lowing NGOs: the National
Association of Investment and
Russia Offshore 2008
About Alexander Shokhin
Development Agencies
February 6-7, 2008, Moscow, Russia (NAAIR), the National Agency
This timely event will examine the challenges and lion, 52.2% more than in the Born on December 25, 1951, of both the Russian Academy of of Direct Investments (NAPI)
latest technologies in the field of offshore oil and same period of the previous Alexander Shokhin is currently Natural Sciences and the Pub- and the RUIE Investment Pol-
gas development. It is aimed at improving Russian year. In other words, foreign the Chairman and President of lic Chamber of Russia. icy and PPP (Public-Private
offshore oil and gas exploration through advanced investors are interested in the influential Russian Union In the years 1991–1994, he Partnership) Committee. They
domestic and foreign expertise. Russia. The lion’s share of in- of Industrialists and Entrepre- held various posts in the Rus- have all been created for the
www.fdi.net/events vestments in January-Sep- neurs (since 2004 and 2005, sian government, including purpose of providing support
tember 2007 came from the respectively), and the Chair- the Deputy Prime Minister, the to foreign investors and have
II Russian-Indian Forum on Trade and UK, Holland, Cyprus, Luxem- man of the Supervisory Board Minister of the Economy and extensive experience working
Investments bourg, Switzerland, Ireland, of Renaissance Capital Invest- the Minister of Work and Em- with multinational corpora-
February 12-13, 2008, Delhi, India France, Germany and the U. ment (since 2002). ployment. tions. For example, this year
The main emphasis of the Forum agenda will be to S. Together, these countries He graduated from the Eco- Shokhin was subsequently they’ve helped companies like
discuss new joint projects, prospects and condi- accounted for 85.5% of the nomics Department of Mos- elected to the Russian State PepsiCo and SAB Miller ex-
tions for increasing the effectiveness of the already total accumulated foreign in- cow State University in 1974. Duma (parliament), where he pand into regional Russian
existing ties between companies and regions of vestments and 84.4% of direct Shokin is a Doctor of Econom- served as an MP from 1994 to markets.
the two countries. Special attention will be paid to investments. ics, a professor and a member 2002.
developing partnership in such spheres as power Equally important is that fact Do you foresee any dramatic
engineering and energy resources, transport that, over January-September changes facing Russian busi-
and infrastructure, hi-tech and technical military 2007, there was $87.9 billion nesses after the upcoming pres-
cooperation and also issues of strengthening in- worth of new foreign invest- sian economy? Who supports ruption, etc.) and at the region- idential election?
ternational partnership by small and medium-size ment activity, which is 150% these investors in their rela- al level (attempts to offer Yes. I think investment policy
business representatives. more than in the analogous tions with authorities? Who preferential treatment to local will become much more effi-
The Forum will host about 500 delegates from Rus- KONSTANTIN ZAVRAZHIN_RG months of 2006. is responsible for protecting businesses and complicated cient. We believe that Dmitry
sia and India. Our optimistic outlook is en- their rights? formalities in securing the use Medvedev’s nomination is
www.rus-ind.com hanced by the fact that Rus- Under the law, foreign inves- of land). good for business — he is the
sians are now beginning to un- tors in Russia have the same Foreign companies are free to most liberal and market-mind-
CIS Metals Summit 2008 derstand that they must use the recently created in- ed of all the potential candi-
February 18-20, 2008, Moscow, Russia compete for foreign direct in- struments of public-private dates who have been men-
For 12 years, this summit has been the key event In an exclusive interview vestment (FDI) with other de- We believe that partnership: to sign conces- tioned in recent years. His
in this field, gathering professionals and top with RBTH, the President veloping economies, such as
Medvedev’s nomi-
sion agreements, borrow from candidacy will finally improve
executives from the CIS metals sector and their of the Russian Union Brazil, India and China. The
nation is good for
the Investment Fund and to lo- the dialogue between busi-
international colleagues, each year attracting of Industrialists and federal government has also
business — he is
cate their facilities in recently ness and the state on the high
more than 300 of the biggest names in the Entrepreneurs, a powerful recognized this: FDI was dis- created “special economic level of government interfer-
industry. lobby group, speaks about cussed at a recent high-level the most liberal and zones.” ence in the economy, which
This conference will allow attendees to hear a Russia’s investment climate, meeting between the Presi-
market-minded of all
There are also organizations will be good for Russia’s image
development forecast of the CIS Metals market as foreign partnerships dent, Prime Minister and the
the candidates who
in Russia that support foreign and for the overall investment
well as to meet potential partners, build business and the candidacy governors of Russia’s regions.
were mentioned in
investors. Our union took a climate.
-
alliances and exchange experiences. of Dmitry Medvedev for They decided to form a state leading role in their formation. Prepared by
www.asi-conferences.com president. structure responsible for at- recent years. I would recommend the fol- Alexandr Chernov
tracting FDI, similar to the “in-
Russian Alternative Investment Forum Speaking as president of an or- vestment agencies” that exist
2008 ganization that includes many in many other countries. Our rights and obligations as Rus-
February 19-21, London, UK leading Russian businessmen Union will take part in the for- sian ones. The only problem MORE READING ....
Building on the great success of the 2007 forum, in its ranks, how would you as- mation and operation of the they face is connected with
which attracted more than 250 participants from sess the investment and busi- new organization, and we be- the country of origin of their FELIX GORYUNOV / Editor of www.rusbizconf.com
all over the world, this year’s forum will once again ness climate in Russia? lieve that it can play a critical capital, which is sometimes A QUESTION OF RECIPROCITY
bring together the most well-respected and dy- Our union is currently prepar- role in reorienting Russia’s restricted.
Russia Profile/business, December 7, 2007
namic industry managers and CEOs from hedge ing a detailed report on this economy away from raw ma- Other than that there are no www.russiaprofile.org
funds, private equity firms, venture funds, asset subject; I’ll provide a few key terials exports. differences between a Rus-
management companies, investment banks, pen- figures. As of September sian and a foreign company. VLAD IVANENKO / PhD. (Economics), Canada
sion funds, law firms, business consulting compa- 2007, accumulated foreign in- What are some problems faced They have similar problems at RUSSIAN GLOBAL POSITION AFTER 2008
nies and investment boutiques. vestments in the Russian by Western businesspeople the national level (VAT re- Russia in Global Affairs, No. 4, October - December 2007
www.asi-conferences.com economy totaled $197.8 bil- who decide to invest in the Rus- funds, mismanagement, cor- eng.globalaffairs.ru
1st Annual Columbia-Harvard Russia/
Eurasia Forum: Does Leadership in Russia
Matter?
February 21-22, New York, USA
Globalization Despite worldwide financial turbulence, 10 leading companies
The Harriman Institute at Columbia University and
the Davis Center at Harvard University, the country’s
two leading centers for the study of Russia and the
surrounding countries, are launching a joint project
Russian Corporate Giants Enter the
to foster in-depth comparative discussion of the
region and of the big intellectual issues surrounding
it. The Columbia-Harvard Russia/Eurasia Forum With Russia poised to become largest IPOs in history, while GAZPROM soared. Today Gazprom is val-
will be a lively annual event bringing together a mix Europe’s second largest others are only beginning Specialization: Oil and Gas ued at $345 billion — making it
of professionals, scholars and interested citizens, economy, its corporations to develop a global image. IPO: October 1996, New York (NYSE) and London the world’s third largest corpo-
each with their own perspective and experience. are hungry for a share of the Here we list 10 established (LSE) stock exchanges ration — and enjoys official
www.harrimaninstitute.org/events world market. Some have and emerging Russian Key Executives: Alexei Miller and Dmitry Medvedev monopoly status in Russia for
entered the global business corporations, along with key Market capitalization after IPO: unknown exporting natural gas. Its chair-
Russian Municipal/Regional Infrastructure lexicon: Gazprom is number people and ideas. man, Dmitry Medvedev (who
Finance Congress 2008 three on Forbes’ worldwide Emerging out of the USSR Min- ed its activities to media, oil ex- seems likely to become Rus-
February 21-22, Moscow, Russia corporations list, Rosneft
ARTEM ZAGORODNOV
istry of the Gas Industry, Gaz- traction, oil refinement and sia’s next president in 2008),
The government of the Russian Federation Gov- recently held one of the world’s MOSCOW prom originally listed 1.15% of banking. In 2005, Gazprom has announced ambitious
ernment plans to invest approximately 1.5 billion its shares on Western financial bought oil major Sibneft from plans for the company to reach
euros into rebuilding and expanding infrastructure, WIMM BILL DANN markets in October 1996. The billionaire Roman Abramovich. a capitalization of $1 trillion and
not least in transportation and industry, which will Specialization: Food Processing time between that and the ap- In 2006, following the Russian to become the world’s largest
also comprise water, waste disposal, alternative IPO: February 2002, NYSE pointment of Alexei Miller in state’s acquisition of a majority corporation by 2017. Currently,
energy and other key sectors. This is a bonanza for Key Executive: David Yakobashvili 2001 was marred by a a series of the shares of Gazprom, a Gazprom is pursuing an ag-
construction, project management, engineering Market capitalization after IPO: $960 million of scandals. Since 2001, the 20% cap on foreign investment gressive global expansion
and consultancy firms from Russia and Europe. company has instigated major was lifted, whereupon the com- strategy through a series of ac-
The congress will provide a unique networking When most Russian compa- subsequently seen its business structural reforms and expand- pany’s market capitalization quisitions.
platform as well as the latest insight on how this nies struggled to avoid bank- expand to include several local
government program is expected to evolve. ruptcy in the early 1990s amid dairy firms. Today, the compa- LUKOIL GAZ
www.euroconvention.com economic recession, Wimm Bill ny owns 37 processing plants in Specialization: Oil Specialization:
Dann’s growth seemed unex- the former Soviet Union that IPO: August 2002, LSE Automobiles, Trucks
Find more in “Global Calendar” at
plainable. It conducted an IPO serve over 280 million custom- Key Executive: Vagit Alekperov IPO: pending
in 2002 on the NYSE and has ers worldwide. Market capitalization after IPO: $13 billion Key Executive: Oleg Deripaska
www.rbth.rg.ru
RUSAL Coming out of the ashes of the listed on the NYSE with its pur- The history of GAZ dates back
Specialization: Mining and Metallurgy USSR’s Ministry of Fuel and chase of Getty Oil. Lukoil has to a 1929 joint venture between
IPO: pending Energy, Lukoil is the vehicle of since become the largest oil the USSR and the Ford Motor
Key Executive: Oleg Deripaska businessmen Vagit Alekperov company in Russia and the sec- Company. Following acquisi-
and Vitaly Schmidt. In the early ond largest in the world in terms tion by oligarch Oleg Deripas-
Rusal was formed in 2007 fol- nents. Following a global li- 1990s, they implemented sev- of proven oil reserves. It oper- ka in 2000, the company un-
lowing the merger of Russian quidity crunch, a planned IPO eral important multinational ates over 2,000 gas stations in derwent major restructuring
mining companies Rusal and for 2007 was shelved. As the partnerships. In 2000, Lukoil the U.S. alone, and currently and its primary model, the
SUAL and the alumina assets company expands internation- became the first Russian com- sponsors the NFL’s Philadel- Volga, received a long-awaited
of Swiss firm Glencore. As the ally, Rusal has focused on de- pany to buy an American firm phia Eagles. facelift.
world’s largest aluminum pro- veloping value-added products Appropriately enough, GAZ
ducer, Rusal employs over to be used in sectors such as KASPERSKY LAB hired Ford Motor Company top
100,000 people on five conti- aerospace and packaging. Specialization: IT Security manager David Eggers to
IPO: pending serve as its CFO in its modern-
VTB Key Executives: Natalia and Eugene Kaspersky ization drive (he has since re-
Specialization: Banking signed from the post).
IPO: May 2007, LSE Founded in 1997, Kaspersky virus software by PC World The company has recently ex-
Key Executive: Andrey Kostin Lab has been a beacon of hope Magazine. A decision by retailer panded abroad: in 2006, it
Market capitalization after IPO: $35.5 billion for the Russian economy. One Sam’s Club to market the pro- bought the struggling British
of the few successful domestic gram along with Symantec’s van producer LDV and re-
VTB was born out of the USSR’s considered the most ‘public’ IT startups to achieve interna- Norton Antivirus software will turned it to profitability; it also
foreign trade bank (Vnesh- IPO because 120,000 Rus- tional success, today Kasper- likely increase the presence of acquired the production lines
TorgBank) and spurred inter- sians bought VTB stocks. sky has an extensive support Kaspersky in the Western hemi- for the Dodge Stratus and Se-
est among financial circles Banker magazine recently network with offices on three sphere. This summer Kasper- bring models from Daim-
when it held the world’s largest rated VTB the 116th largest continents. Recently, Kasper- sky Lab restructured its board of lerChrysler. An IPO originally
IPO in 2007, raising approxi- bank in the world in terms of sky’s Anti-Virus 6.0 was award- directors as a prelude to an planned for 2007 is still in the
mately $8 billion. It was also capital. ed the Editor’s Choice in anti- IPO. works.
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