Business & Investments in Russia

Guest writing?

2012-09-07T22:14:00.001-07:00

Hi,

I'm sorry to disturb you, but I was wondering if you accept submitted editorial on your site at yourbusinessinrussia.blogspot.com

It would be really useful if you could let me know your policy, and/or if you accept paid-for editorial - if so what are the costs associated with this?

If you have any questions please let me know,

Thanks,

Jo

Guten Tag!!

2012-08-04T16:47:00.001-07:00

Guten Tag!!!

Mein Name ist William Patrick aus der Elfenbeinküste.

Ich bin der einzige Sohn von Mr & Mrs . Richard Patrick, ich will dich, mir zu helfen und meine jüngere Schwester investiert in Ihrem Land. Ich verlor meine Mutter im Alter von 10,wurde mein Vater zu Tode während des Krieges hier in Cote d'Ivoire vergiftet.

Vor dem Tod von meinem verstorbenen Vater er hinterlegt die Summe von 4,5 MillionenDollar, die er in einem Sicherheits-und Finanz-Unternehmen gehalten hier in Abidjan er auch benutzt meinen Namen, um das Geld als seine Anzahlung
First Son für nächsten Angehörigen.

Aber aufgrund der politischen Problem hier, und der Grund für meine Eltern Tod, werde ich nicht wünsche, hier zu investieren, so dass ich möchte, dass Sie mir helfen Übertragung dieses Fonds in Ihrem Land für Investitionen Zweck seit dem Recht Ihres Landes verlangen, dass ich suchen Partner.

Wie für Ihre freundliche Unterstützung, bin ich bereit, Ihnen 20% der Gesamtsumme nach dem erfolgreichen Abschluss der Transaktion.

Kontaktieren Sie mich zurück, wenn Sie mir bei der Unterstützung interessiert sind, werde ich Ihnen mehr Details, wie bringen fruchtbar dieser Übertragung und auch die Kontakteder Bank.

Herzlichst,

William Patrick

NB... YOU CAN STILL WRITE ME IN ENGLISH

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2011-09-21T19:14:00.001-07:00

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SOCHI IS TO HOST THE 2014 WINTER OLYMPICS

2011-09-17T14:03:00.001-07:00

On 4 July 2007, the holiday resort of Sochi was declared the official capital of the 2014 Winter Olympic Games. Even earlier, the Russian Government had adopted a Federal Targeted Programme “Development of the City of Sochi as a Mountain and Climatic Health Resort”. The total cost of the Programme is over 9 billion euros, of which 3.5 billion will come from off-budget sources. Still earlier, 18 months ago, theKrasnodar Territory adopted a Master Plan for development of the Sochi holiday resort. The coordinated efforts of all levels of government have given a boost to the economy and attracted an inflow of funding: the volume of foreign investments in Sochi increased tenfold to 55 million euros during 2006. Total investments in Sochi’s development increased from 400 to 560 million euros within a year.

The Programme envisages construction of more than 250 facilities, including fifteen new sports centres forming two clusters, one on the coast and the other in the mountains.

The former will centre around the Olympic Park, which will have an Olympic stadium and a square for award ceremonies, the Olympic Village, the main media centre, hotels and five ice sports arenas.

The Sochi-2014 mountain cluster, the most modern ski resort in the world, will be created at Krasnaya Polyana. It will comprise biathlon and ski complexes (20,000 and 16,000 places respectively),a bobsleigh track (11,000 places), a mountain Olympic Village (2000 places), ski jumps, a snowboard park and a freestyle centre. All the facilities at the mountain cluster are financed by private investors.

WHY IT MAKES SENSE TO INVEST IN THE KRASNODAR TERRITORY

2011-09-17T14:00:00.001-07:00

The Krasnodar Territory (the southernmost Russian region) is a bridge between Europe and Asia.

The three international transport corridors passing through it provide the shortest land, water and air routes between the countries of Europe, the Mediterranean, the Middle East and Central Asia.

Highly skilled and competitive manpower.

A wide range of skills.

Considerable economic potential.

Steady positive GRP dynamics driven by growing goods and services production in the main sectors of the economy.

More than sixty types of mineral, from oil and gas to building materials.

1.5 million hectares of forests, mainly of valuable species.

Fertile agricultural land supporting the full spectrum of moderate-belt crops and some subtropical ones.

The region is the leading agricultural producer in Russia.

A well-developed transport infrastructure.

The region has three international airports, 8 seaports, and Southern Russia’s biggest railway hub, which is also one of the biggest in the whole country. The region has the best roads anywhere in Russia.

Unique recreation resources support development of virtually all types of tourist and recreation industry.

All Russia’s main seaside resorts are concentrated in the region, along its 1161 Km. coastline. Favourable investment climate.

The Krasnodar Territory is among the top ten Russian investment regions.

Fitch Ratings - (London-Moscow) has awarded the Krasnodar Territory long-term BB ratings in foreign and national currencies and a short-term B rating in foreign currency. The Krasnodar Territory has the national long-term AA- rating. The long-term rating forecast is “Stable”.

Standard & Poor’s has revised its rating forecast for the Krasnodar Territory from “Stable” to “Positive”. Moody’s Investors Service Ltd has awarded the Krasnodar Territory a Ba1 issuer rating on the international scale in national currency. The rating forecast is stable. By the same token, the rating agency Moody’s Interfax, in which Moody’s has the controlling stake, has awarded the territory an Aa1.ru rating on the national scale.

Rapidly developing financial sector.

The territory traditionally attracts banking structures and is one of the top ten Russian regions in terms of banking penetration.

INNOPROM 2011

2011-09-17T13:57:00.000-07:00

INNOPROM-2011, an annual exhibition on progressing Russia's innovative economy, will take place in Ekaterinburg on June 14-17, 2011. The Skolkovo Foundation, an INNOPROM partner, will present a number of major projects from its residents and sign documents with government authorities and institutes of higher education in the Ural region.

In developing its partner relations, the Skolkovo Foundation intends to sign contracts and partnership agreements, including an agreement with the Korea-Russia Business Council; a contract with the Russian Ministry of Communications and Mass Media; an agreement with the Ural Federal University; an agreement with the Sverdlovsk district administration and the Ural IT Cluster Nonprofit Partnership.

Skolkovo Planning Council Chairman Jean Pistre's presentation of the Innovation Center's master plan will be among the forum’s main events.

Daily joint meetings between the Skolkovo Friends Club and the Vedomosti newspaper will be held at INNOPROM through round tables and workshops, including: A City as a Generator for Demand for Innovative Solutions and a Place to Create Innovations; Intellectual Property in an Innovative Economy; and Society in 20 Years: What Innovative Technologies Will Lead To. Futurologists’ View.

Over 15 Skolkovo residents will present their projects, talk about their experience of working with the innovation center and let people in on what advantages their partnership holds.

The Skolkovo Foundation President Viktor Vekselberg will take part in the Foundation's main events at INNOPROM-2011.

Cisco to develop “Virtual Skolkovo”

2011-02-28T23:58:00.000-08:00

Cisco and the Skolkovo Foundation in February unveiled further details of joint efforts under the Skolkovo Project plans to develop a “Virtual Skolkovo”. Based on the proposal from the Cisco Internet Business Solutions Group (IBSG), Virtual Skolkovo will be a business innovation ecosystem that pushes the advantages of traditional clustering beyond physical boundaries into the virtual realm of new possibilities. It is founded on being:

Community-driven by common interest, not physical proximity
Open to borderless and global collaboration, and
Enabled by a hybrid of communication technologies

The memorandum of understanding signed during a Cisco Telepresence meeting between Victor Vekselberg, President of Skolkovo Foundation and Mohsen Moazami, a Vice President of Cisco IBSG, outlines a three-tiered approach for Virtual Skolkovo that will look at operational collaboration for faster decision-making, creating a community from across different ecosystems, and building global alliances through a multitude of networks and exchange with international research centers, universities and economic players in various markets.

The project will culminate in a pilot business case, assessing Skolkovo-specific factors for generating innovative ventures and capital, intellectual property, partnerships and business models around research and development, as well as smart work centers and smart homes.

“I’m very happy to be accelerating our cooperation with Cisco through this MoU for Virtual Skolkovo. It’s very important that every aspect of the Skolkovo city embodies a new vision, a new approach and new technologies. Cisco’s proposal of Virtual Skolkovo which uses collaborative and virtualization technologies and business models to deliver services, first to the “virtual” and then “physical” tenants of Skolkovo will make this project a forerunner,” said Mr Vekselberg.

“Most industrial clustering in recent times has regarded technology as an industry to be attracted or supported, rather than as a catalyst for their own innovation and growth. Virtual Skolkovo is therefore a fantastic opportunity to exploit all the opportunities of the digital economy in terms of collaboration, partnerships, virtualization, and resource sharing to generate capabilities and innovation for Skolkovo city,” said Mr Moazami, Vice President of Cisco IBSG Emerging Markets and Globalization.

MoU on Virtual Skolkovo follows up a memorandum of understanding signed last June by Cisco Chairman and CEO John Chambers and Victor Vekselberg during President Medvedev’s visit to Ciso headquarters in San Jose, California. According to that MoU, Cisco will share with the Skolkovo Fund global best practices and expertise in the creation of innovation centers and put forward this expertise to the development of the Skolkovo Project. One of the areas of focus for Cisco and the Skolkovo project will be for Cisco to play a key role in the design of 'Technopolis Skolkovo'.

Investment Portrait Of Modern Russia

2011-02-13T04:09:00.000-08:00

The Russian magazine «The Capital of the Country» has inquired 35 Russian regions (for inquire there are 83 regions in Russia) and constructed the investment portrait of modern Russia.

Nowadays direct investments have reduced all over the word especially it concerns developing countries. Russia is not an exception. The questionnaire was filled out by the members of the investment departments of the local government. This research has been carried out together by the Chamber of Commerce and Industry and the Investment department.

The key industries in Russia according to experts are as follows:

Main branches of industry

So, we can see that traditional branches create the center of region's economy. (For Tomsk fuel handling equipment composes almost a quarter of the region's economy. For Yakutia (the area where diamonds are produced)- 80 percent of all economy are nonferrous-metals industry and fuel-energy complex).

Priorities - branches need to invest. So we come to the conclusion that main branches of industry coincide with the branches' center. But the area of the branches ' priorities is more than the center. It includes two directions: transportation industry and tourism.

The next slide demonstrates us pain spots and regions' requirements.

Ranked distribution shows us the next picture (in the order of reduction)

So, we can see visible connection between pain spots and regions' priorities.

It's interesting that pain spots don't agree with regions' requirements (or real market demand). For example undeveloped tourism is considered as problem area, but there isn't demand for this subject of sale. Exception is sector of building materials, in this branch there is permanent demand for cement.

We draw a conclusion that pain spots aren't support by demand. So the government to address the concerns of infrastructure and energy problems. Organizational structures and facilities (e.g. buildings, roads, power supplies) needed for the operation of Government of the Country, not local administration. And businessmen have never begun to invest without good foundation. I mean developed infrastructure. It concerns foreign and Russian businessmen equally. For example in Sochi - the future capital of the winter Olympic game 2014 there aren't small ships which can go off the shore and solve a transportation problem. The first Government decides that businessmen are interested in this subject and they will organize public marine themselves. But nobody has done anything. Now moorages are built by administration. Only after that private investors will buy some ships for public use.

The second example. Kaluga region is not far from Moscow. The minister of economy of this district Maxim Shereikin told us about their strategy. Five yeas ago they didn't understand why the investors didn't want consider Kaluga region for business. But then they had understood - investors don't want to solve the documents problems. Execution of documents for land is very bureaucratic process in Russia. In addition power supplies needed for beginning business. And the local administration decided to create industrial parks equipped by all necessary things - power and water supplies and typical building. In results the cluster of motor industry exists in this region. A few week ago Lars Himmer - Deputy Managing Director of the company Volvo Trucks Russia said us that they are very glad to choose Kaluga for business. They produced there Volvo Truck and want to increase output.

Many other districts pattern. In Karelia (this region is closed to Finland) try to create transport infrastructure and build deep-water port. Near Moscow logging and timber processing complex is organizing now.

Most investment projects have been realized produced foreign investments. Companies from more than 25 countries work in Russia.

German companies work in 40 regions.

German	40
USA	36,7
Swedish	30
Chinese	20
British	16,7
French Finnish	13,3 13,3

Belgium Holland Austria Italy Norway take part in investment process in Russia. It should be added here that foreign investors take over the initiative from Russian businessmen according to real demands.

Foreign investment direct at developing such branch as logging and timber processing complex (46% regions has realized such projects (Austria Sweden Germany Belgium USA Finland China). The market of the building materials divide into parts between different countries. The investment capital works in the market of food industry (production beer, juice cold tea).

Investment in geological exploration and mineral deposit development is growing up. For example Canadian company work in Yakytia for developing field of silver. Chinese work out deposit of metal in Tuva, oil pool in Tomsk is work out by British company.

So there are a lot of foreign companies working in Russia with obvious success.

By materials of "The Capital of the Country"

PwC And Skolkovo Foundation Presented Future Innovation Hub In Davos

2011-02-10T02:22:00.000-08:00

During the World Economic Forum in Davos, the PwC Thought Cafe played host to a presentation on Russia’s Skolkovo Innovation Centre.

Dennis M. Nally, Chairman of the PwC International network, opened the event with remarks on the importance of innovation in global business today and Russia’s ambitious plans in this critical area.

“Fostering innovation stimulates economic growth around the world. The leading global companies are all strong backers of this idea. That’s been confirmed by PwC’s latest Annual Global CEO Survey, which we presented in Davos. The new Skolkovo Innovation Centre promises to be an ultra-modern, hi-tech hub that will offer outstanding opportunities for investors. PwC has experience in helping to establish similar innovation clusters in other countries. We believe that Russia, with its built-in IT infrastructure and bio-tech and energy industries, as well as its renowned academic resources, represents a unique platform for the commercialisation of advanced R&D breakthroughs.”

Next, Viktor Vekselberg, Renova Group board chairman and President of the Skolkovo Foundation, addressed the briefing. He spoke in detail about this new, innovation-driven project, describing the many partnership opportunities the hi-tech hub will offer and how companies can become partners of the Skolkovo Foundation.

Then, John Chambers, Chairman and CEO of Cisco Systems, reiterated his company’s support for the project, confirming Cisco’s plans to invest $1 billion in Skolkovo.

The PwC event took place right after President Dmitry Medvedev’s speech at the Davos Forum, in which he emphasised that Skolkovo will be Russia’s premier initiative in building an innovation-driven economy.

“This year, the [Skolkovo] project will draw in numerous enterprises, large and small in every region of Russia, as active participants. They will all enjoy special preferential conditions. I am certain that in the next few years we will see Russia give birth to entirely new global brands, and the contribution of foreign businesses to this process, especially those with a track record of innovation, will only enhance our chances of success,” Medvedev noted in his speech.

PwC Russia provides industry-focused assurance, tax, legal and advisory services to build public trust and enhance value for its clients and their stakeholders. There are over 2,000 professionals working in PwC offices in Moscow, St. Petersburg, Yekaterinburg, Kazan, Yuzhno-Sakhalinsk and Vladikavkaz. The firm applies its knowledge, vast experience and creative approach to developing practical guidelines and decisions to generate new opportunities for business development.

“PwC” is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. The global network includes over 161,000 employees in 154 countries.

Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as an agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way.
“PwC Russia” refers to PwCIL-member firms operating in Russia.

Successful American Companies In The Russian Market

2011-02-09T10:36:00.000-08:00

Many business projects were developed well before this so called transformation or "reboot" in business-relations between Russia and the USA. The long term cooperation between VSMPO-Avisma and Boeing Corporation is just one example of many.

Emerson Electric, an American corporation, sets an example of successful cooperation by having organized production on the basis of a plant of Metran Industrial Group and established the high-tech engineering centre using the high intellectual potential of young Russian scientists.

Another U.S. company - Carbo Ceramics, whose Headquarters are in Texas - is running a successful plant in the Chelyabinsk Oblast.

John Deere agricultural machinery assembly plant is working in Orenburg and these machines are already quite popular amongst Russian farmers.

American companies, for instance Halliburton and Baker Hughes, have been successfully working in Russian oil and gas sector for quite some time.

Leading brands of American food processing industry - Coca Cola, Pepsi, McDonald's and Subway - are also represented in the Russian market. These companies have brought with them the background of successful corporate culture that has taken root in Russia.

These examples of cooperation clearly demonstrate that Americans highly value the intellectual potential of Russian specialists, the well developed engineering thought, and industrial potential of the regions. This is why high tech companies, for instance Microsoft, Hewlett Packard, and IBM also work successfully in Russia. The latter are the only small percentage of companies doing business here.

KOKS Postponed IPO Due To Market Conditions

2011-02-04T10:41:00.000-08:00

Russian producer of metallurgical coke Koks decided to postpone the initial public offering (IPO) of its shares citing market conditions the company reported on Friday.

Thus it had to be the first of the four already announced for this year IPO of companies with Russian assets.

Market participants do not consider it as a sign for further IPO of other companies, but recognize that from a psychological point of view, this fact may have some negative impact.
Next week the following companies should close the book: HMS Group, CHEL PIPE, and Nord Gold.

Revenue of Koks, which assets are located in the Kemerovo and Tula regions in 2009 amounted to 26.9 billion rubles, EBITDA - 4,6 billion rubles.

IPO of Russian Agricultural Holding Valars Group

2011-02-02T07:41:00.000-08:00

Russian agricultural holding Valars Group is planning an IPO on the Warsaw Stock Exchange in May 2011. The company expects IPO in early May, following reports for 2010.

The organizer of the IPO is Deutsche Bank. Soon the company may sign a mandate with another bank.
Valars Group plans to sell 40 percent of shares and generate $ 300 million.

According to preliminary estimates the cost of the company Valars Group is more than $ 1 billion.

First Time In Russia: Car Hire, Customs Rules, Climate, Language

2011-01-31T02:01:00.000-08:00

Car Hire

You can hire a car in an airport or a hotel, but then you should not expect it to come cheap. It is better to employ services of car hire companies. You can hire a car with or without a driver.

In Russia they drive on the right hand side. The speed limits are 60 km/h (about 37 mph) in built up areas, outside the city limits - 90 km/h (about 56 mph). Wearing a seatbelt is mandatory!

Driving in Russia is not the simplest of tasks. Large cities have very intense traffic, you can be stuck in a traffic jam for hours, and there are serious parking problems. The road surface quality often leaves much to be desired. Different cities have different driving styles. It may seem somewhat aggressive to a European. We do recommend you hire a car with a driver.

Customs Rules for Individual Persons

You can bring into or out of Russia foreign and (or) Russian cash as well as travellers cheques, foreign and (or) domestic securities in physical certificated form in the sum of up to the equivalent of 3000 US dollars. When the amount is in excess of this sum, the money must be declared to the customs office by submitting a TD-6 customs declaration stating the sum total of money carried.

Climate

One of the most widespread stereotypes is the Russian colds. First of all - it is not always cold. Secondly, even though there is this stereotype, the Russian cold is often underestimated. The fact that Russian territory is so huge makes it virtually impossible to assert anything regarding "Russian climate". The same day may see +20 Celsius (+68.00 Fahrenheit) in Sochi and -20 Celsius (-4.00 Fahrenheit) in the northern regions. In the South the summer heat may exceed +40 Celsius (+104.00 Fahrenheit) while even -50 Celsius (-58.00 Fahrenheit) is usual for the winter in the North. The only thing to advise is watching the weather forecast and not the one for Moscow, but for the city or the region you are planning to visit. The weather there may differ from that in Moscow by 30 degrees. Either up or down.

Language

You may encounter language problems. There are not a lot of people who know English, not even enough for everyday simple communications. Amongst middle-aged and older people - virtually none. This includes those serving you - waiters (with the exception of expensive hotels), taxi drivers, and security guards. The situation is better amongst young people. If you want to find out something - do try asking young people. In every three to four people there would be someone who would understand you. We do strongly advise to spend some money on a professional interpreter.

On the other hand be prepared for a keen interest in your person. Russia is not a country used to a big tourist influx. With the exception of Moscow and St. Petersburg, foreigners are perceived as something exotic here.

First Time In Russia: Clothes, Drinks, Entertainment, Safety, Water, Food

2011-01-28T01:46:00.000-08:00

Clothes

They do not wear valenki, touloups, and sarafans in Russia and have not been for some time. These exotic things you may find in a remote village and not that often either. The style in clothing of the urban population does not differ from clothes Europeans wear. If you work in a bank, a large company, or an office of authority, it is customary to wear suit. If you do not want to appear strange, dress as you would back home or smarter. The latter is especially true for women - being too casual in clothes and total lack of makeup in Russia might be perceived as being unkempt and not looking after yourself.

Drinks

Another one of widespread misbeliefs is that Russians drink vodka all the time. Maybe it was so once upon a time, but now vodka is not the most popular drink in Russia by far. Beer is more popular today. The choice is huge - from very cheap to elite international brands. In business circles cognac is much favoured traditionally, and in recent years - whisky. You may encounter large quantities of vodka during certain parties or celebrations. If you are not experienced in consuming ample amounts of this drink, it would be wiser to abstain. Those around you would understand.

Leisure and Entertainment

Entertainment industry is well developed in large Russian cities. Any taste is catered for. There are many cafes with ethnic cuisines - from Japanese to French, a multitude of entertainment centres, dance clubs and cinemas. In any city large or not so large you find theatres, often rather good. In regional centres you easily find a typical English pub and a Mediterranean cuisine restaurant. The difference between high and low prices may be very dramatic, especially in large cities. Even if you order roughly the same food, a dinner (including drinks) may cost you both under 20 Euro and over 500. The service changes accordingly. This is why we strongly recommend that you seek advice in the hotel. Another peculiarity is the age group composition of the customers. People you see in many respectable places are quite young; appearance of a middle age person on a dance floor of the majority of clubs might be perceived as rather odd.

Safety

The situation in large Russian cities is not much different from that in a European megapolis - there are "good" and "bad" areas. It is not advisable to walk around at night in the outskirts, talk to strangers, or go to dubious establishments. Money and valuables in the hotel room are best locked in the safe. If you left something in a taxi, most likely you can think of it as gone. On the whole, adhering to common safe behaviour standards you have been used to in your country would be enough.

Water

Water mains water in different cities is different quality - from fully compliant to the European standards to totally unfit for drinking. Good bottled drinking water may be purchased in any shop or a street stall/kiosk - there are very tough government regulations for drinking water manufacturers.

Food products

Food is best purchased in a large supermarket. The choice is not that much different from European. You will find goods of all best known brands on the shelves. Local products (primarily meat and dairy products, bread) differ considerably from what you would be used to - flavour and fat content are totally different. Convenience stores are open very late - at least until 8 PM, some even later. There are shops which stay open around the clock.

Chili's Grill & Bar Will Open 25 Restaurants In Russia

2011-01-27T09:25:00.000-08:00

Chain of restaurants Chili's Grill & Bar owned by American restaurant holding Brinker will open its first restaurant in Russia on February 1, 2010. PR Agency Provision Communications reported.

According to the agency the network in Russia will be developed y a local franchise partner - the company Trio Group Ltd. The Department of Investor Relations of Brinker reported that a franchise agreement with Trio Group Ltd, registered in Switzerland, was signed in August 2009.

Trio Group Ltd shall open 25 restaurants chain in Russia until 2017, opening of first one was scheduled for November 2010. But the first Russian restaurant of the chain will be opened in Moscow on Novy Arbat street only in Februery 2011, reported Pro-Vision Communications.

Chili's Grill & Bar is the main rival of the American TGI Friday's, which operates in the Russian restaurant market through the holding Rosinter.

IPO Of Chelyabinsk Pipe Rolling Plant

2011-01-26T02:35:00.000-08:00

Chelyabinsk Pipe Rolling Plant is waiting capitalization at the amount of $ 2,0-2,7 bln after the intended IPO in London.

One of the largest pipe manufacturers in Russia - Chelyabinsk Pipe Rolling Plant intends after the IPO in London to get the capitalization in the range of $ 2,0-2,7 billion. Price range per share of Chelyabinsk Pipe Rolling Plant for the placement is defined in the range of $ 3,50-4,60 per share and the same amount is for a receipt, the company reported.

The main shareholder of Chelyabinsk Pipe Rolling Plant can raise $ 157,5-207,0 million from the sale of the existing shares and receipts in the IPO, and two subsidiaries of Chelyabinsk Pipe Rolling Plant may raise $ 472,5-621,0 million.

German TUI Buys Russian Svoi Travel Group

2011-01-25T05:33:00.000-08:00

The company TUI Russia & CIS created with the participation of German tourism group TUI, said that his company buys Russian SvoiTravel Group which deals with booking hotels and travel arrangements. Amount of the purchase were not disclosed.

After completion of the transaction Svoi Travel Group will join TUI Travel PLC Accomodation & Destinations, which specializes in outbound tourism for different customers' groups.

Completion the transaction is scheduled for late March 2011 after obtaining all legal approvals, TUI Travel reports.

TUI Travel Russia & CIS was established in April 2009 as a joint venture of investment company S-Group owned by billionaire Alexei Mordashov and the German TUI Travel, which has 49 per cent in the joint venture.

The deal will be the fourth purchase of TUI Travel Russia & CIS: the company acquired 75 percent of Russian VKO Group and Mostravel, as well as control of the Ukrainian tourist company Voyage Kiev.

S-Group of Alexey Mordashov, in turn, is the largest shareholder of German TUI AG, the parent company of TUI Travel with a share of 18 percent.

Rusagro Plans IPO In April 2011 In London

2011-01-24T03:46:00.000-08:00

Russia's largest producer of sugar agroholding Rusagro resumed preparations for the IPO and plans the placement in April 2011 on the London Stock Exchange, Reutersreported.

the selling shareholders will be a Cyprus subsidiary of Rusagro - the company Matchzone Holdings Limited. In late December Matchzone increased its share in Rusagro to 14,3 percent of shares. Traditionally, the minimum amount companies attract during the IPO in London is about $ 400 million.

Organizers of the placement were chosen last year. They are Renaissance Capital, Credit Suisse, Alfa-Bank and Sberbank.

First Time In Russia: Personal Contacts, Telecommunications, Money

2011-01-22T08:52:00.001-08:00

Personal Contacts

One of the peculiarities of the Russian business life is that personal contacts are of the greatest importance here. Many issues you could settle over the phone or via mail back home here would demand a meeting in person. These meetings, especially for the first time, often take much longer time than necessary for the solution of the issues in question. This is a Russian peculiarity - people are willing to offer higher levels of trust to those they know personally. Personal connections are highly valued here. Situations happen when people here would prefer less profitable conditions of a contract with long-established partners to more profitable but offered by an unknown company. Establish and maintain as many personal contacts as possible. This is one of the cornerstones of business success in Russia.

Telecommunications

All types of communications are rather well developed in Russia. Most of the country's territory is covered by cellular services (GSM 900/1800 is the dominating standard). International roaming is possible virtually anywhere. If you are planning to stay for a long time, it would be advisable to buy a local provider's SIM card - this would make your calls within the country much cheaper. Russia's country code is +7.

Except for the very remote countryside areas, the Internet access is possible everywhere. You may gain access in almost any hotel or an internet cafe. In large cities there are many areas with Wi-Fi internet access coverage. As the last resort you may use GPRS internet access virtually anywhere.

Money

The rouble is the Russian national currency. Any other currency is not accepted anywhere. The exceptions where you can pay dollars or Euros are so few that it is pointless to list them. There are many currency exchange outlets even in towns not frequented by tourists. In large cities the ATM network is very well developed, many ATMs are accessible 24 hours. Visa and Master Card are most commonly acceptable. They are accepted by many retail outlets, cafes, and restaurants. However, we do recommend that you enquire in advance whether credit cards are accepted; warning customers that cards are not acceptable is not usual in Russia.

Tips

In this respect Russia has an advantage over other countries. Leaving a tip is not mandatory here. Exceptions include expensive hotels and restaurants where there are a lot of foreigners. In other places it is all up to you. A tip of about three Euro would almost always be enough in a restaurant; any tipping at all would seem excessive in a small street cafe. Tipping taxi drivers is not done.

First Time In Russia: Laws, Work Hours, Business, Authorities

2011-01-20T22:48:00.000-08:00

Laws

It has not been that long since the collapse of the Soviet Union. The current Russian legislation is very young and is still under continuous development. There are loads of documents clarifying and amending the effective laws. It is not easy to grasp all these nuances. This is why we recommend, when sorting out any issues concerning law (customs, drafting contracts, buying assets), to resort to the services of specialized Russian companies. There is a large number of legal, consulting, and brokerage companies working in large Russian cities. By European standards their prices are not that high as a rule. All you need to do is choose carefully.

Opening/work hours

In companies not involved in production the working day starts at about 9 to 10 AM. In production plants the day starts about an hour earlier. The majority of Russian managers are fairly easy regarding the upper limit of the working hours: if necessary they can stay at work longer, many are prepared to work on weekends. In Russia a business dinner is far wider spread an occurrence than a business lunch.

There is a wide spread opinion that Russians would rather work long hours very hard for a few days than work monotonously every day for the whole year. It is hard to say whether this can be said only about Russians. Although the colossal amounts of work they can turn out "at the last moment" can be really astounding for a newly arrived foreigner...

Holdings

Foreigners find the Russian holding companies most puzzling. There are vast numbers of them in Russia. Some of them combine companies of similar profile thus forming highly efficient integrated structures. Others may include companies of the most peculiar combination of various industries. Each company seems to have an independent management and the fact that the company belongs to a holding altogether is known to very few people. This may result in rather difficult situations. For example you negotiate, at the production site, the conditions for supplying your product, and at the very last moment it turns out that all the efforts were in vain. The decision regarding the selection of the supplier must be approved by the management of the holding and your yesterday's counteragents do not have the authority even to prepare the draft offer. And - the holding management may be in a city thousands of kilometres away from the production facility itself. This is why prior to negotiations or in the very beginning it would be useful to understand clearly the decision making structure and who are the people you have to negotiate with.

Business and Authorities

Authorities have always had a great influence over business in Russia. Managers of the majority of Russian companies pay attention, to a greater or lesser extent, to the opinion of authorities whose influence on some companies is practically without limits. Do not try to cut down on the time you spend establishing contacts with the representatives of regional authorities and presenting your projects. You can believe that they would gladly hear you out. It is much easier to talk to business people when you have the support of authorities. However, the influence of authorities must not be overestimated either. This applies especially to small townships where leaders of large companies which provide most of the employment locally, hold in their hands almost absolute control of most things.

Fund Skolkovo and Nokia Siemens Networks Will Sign Memorandum of Intent

2011-01-20T04:20:00.000-08:00

On the eve of the signing of a Memorandum of Intent between the Skolkovo Fund and Nokia Siemens Networks there will be a press conference, which will be attended by the President of Fund Skolkovo Viktor Vekselberg and Director on operating interaction with clients, a member of the Board of Nokia Siemens Networks Bosco Novak.
The event will be held at Monday, January 24 2011.

Presentation Of Skolkovo At Asian Financial Forum In Hong Kong

2011-01-19T13:32:00.000-08:00

As part of the Asian Financial Forum in Hong Kong there was a presentation of the Innovation Center Skolkovo.

Head of Department for International Development of the Fund Skolkovo Alexei Sitnikov in the thematic session on innovation, described the activities of the Centre. He stressed that participants of Skolkovo can be not only Russian but also foreign companies including Asia-Pacific region.

Fund Skolkovo's representative said that private investment will be involved at all stages of the innovation process - from creating ideas to running it in production.

"Representatives of the Asian investment companies that were present at this Forum were of potential interest to the Innovation Center Skolkovo. To acquaint the participants of the Forum with the conditions and plans of the Center we have organized an information stand Skolkovo", - said Alexei Sitnikov.

Asian Financial Forum (AFF) is held every year in Hong Kong and is a unique educational platform for financiers and investors. This year's forum brought together over 1600 participants from all over the world, among them - there are representatives of major financial corporations and state organizations, economists and financial analysts.

Japanese Mitsui Co Ltd Bought 14,9% Of Russian QIWI Ltd

2011-01-18T03:03:00.000-08:00

Popular in Russia system of instant payments QIWI gained a new shareholder - a Japanese group of companies Mitsui & Co. Ltd. The Japanese company bought 14,9% QIWI Ltd. (formerly OE Investments Ltd.) in accordance with the agreements dated December 20, 2010. This information follows from the documents released today by the company.

The Japanese company Mitsui & Co. Ltd noted that QIWI is the leader of its market in Russia: about 80% of mobile subscribers use the terminals of this system to pay for services, and the total market share of Qiwi in Russia reaches 45%.

In view of the last transaction control shareholding of QIWI (63,7%) remains in the hands of the management of the company itself. The second largest shareholder is Mail.ru Group with 21.4% share.

VimpelCom Will Buy Wind Telecom

2011-01-17T03:05:00.000-08:00

The Supervisory Board of VimpelCom Ltd. approved the purchase of Wind Telecom S.p.A (formerly Weather Investments) by majority vote, despite the active opposition of its Scandinavian shareholders.

The merger of VimpelCom and Wind Telecom will create the world's sixth-largest telecommunications company providing mobile services in 19 countries with a population of 838 million people and the number of subscribers 173 million. The deal is scheduled for the II half of 2011.

Under the agreement, after completion of the transaction VimpelCom will own a 51.7% stake in the Egyptian telecom operator Orascom Telecom Holding SAE and 100% of Italian Wind Telecomunicazioni S.p.A. For this transaction VimpelCom Ltd (a company of Russian origin) will pay $1.5 billion cash and shares.

VSMPO-Avisma Will Increase Production Output By 20% In 2011

2011-01-16T06:04:00.000-08:00

In 2011 VSMPO-Avisma Corporation will increase the amount of investment in production growth up to $250 million. It is half of the amount intended for investment in renovation by the corporation management till 2015.

As it was stated by Mikhail Voevodin, General Director of VSMPO-Avisma, implementation of many investment projects was intentionally postponed till 2011-2013. Most likely, their revival has been triggered by the Russian government's order concerning establishment of the Titanium Valley, a special economic zone, in the Sverdlovsk Region, with VSMPO-Avisma taking the key role. The corporation is planning to invest $100-150 million in the special economic zone project.

VSMPO-Avisma's press service informed that in 2010 the corporation shrank its credit portfolio by $100 million. The second half of the past year witnessed an increase in orders for the products made by the monopoly manufacturer of Russian titanium.

Mikhail Voevodin anticipates that the corporation's production output will increase at least by 20% in 2011 as compared to 2010, thus making it possible for VSMPO-Avisma to regain its before-crisis production levels.

Based on the official records, over January-September of 2010 the corporation's after-tax profit amounted to 384.75 million rubles at the operating revenue totaling 17,771 billion rubles.