4th Annual Financial Markets Conference

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• 4th Annual Financial Markets Conference
• Portfolio and Direct Investment in Russia and
  Ukraine
• May 4, 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
• 6 Trade Specialists in Washington, D.C.
• 10 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 Chisinau, Moldova
Russian Federation St. Petersburg (Hiring) Moscow
(Vacant) Nizhny Novgorod Samara Yekaterinburg
(Hiring) Novosibirsk Tomsk Khabarovsk Vladivostok
(Vacant) Yuzhno-Sakhalinsk
Caucasus Baku, Azerbaijan (Vacant) Yerevan,
Armenia (Vacant) Tbilisi, Georgia (Vacant)
Central Asia Tashkent, Uzbekistan Bishkek,
Kyrgyzstan (Hiring) Astana, Kazakhstan
(Hiring) 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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UKRAINE

• Surfing the wave
• The Yushchenko Effect
• (One year later)

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• FDI into Ukraine
• Millions USD

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Major Developments since 2005

• February 17, 2006 U.S. Grants Ukraine market
  economy status
• In March 2006, Congress passed legislation to
  graduate Ukraine from the Jackson-Vanik Amendment
  
• ? Clears path for WTO accession

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Hot Sectors in Ukraine

• Airport/Ground Support Equipment
• Automotive Parts/Services Equipment
• Building Materials
• Computer Hardware, Software, Services
• Contraction and Construction Materials
• Energy, Power Generation and Distribution
• Food Processing and Packaging Equipment
• Medical Equipment and Pharmaceuticals
• Agricultural Chemicals and Agricultural Equipment
• Oil and Gas Field Machinery
• Data 2005 Country Commercial Guide, US Foreign
  Commercial Service http//www.buyusainfo.net/docs/
  x_6979181.pdf

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But Obstacles Remain

• Taxes, VAT return
• Non-tariff Barriers (Certification)
• Ownership Rights (physical, intellectual)
• Soviet Legacy, Bureaucracy
• Lack of Capital
• Accounting
• IPR
• Rule of Law
• Operating Costs /Effort
• Challenges Obtaining Market Information

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More Practical Information

• BISNIS Finance Report
• Ukraine Competing in the global economy
  strategy for success
• Amcham Kyiv
• US-Ukraine Foundation

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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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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

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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