BISNIS office in Lower Volga and Southern Russia

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BISNIS office in Lower Volga and Southern Russia

• Krasnodar Region
• Rostov region
• Kalmykia
• Stavropol region
• Astrakhan Region

• Samara region
• Saratov Region
• Ulyanovsk Region
• Volgograd region
• Penza region

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Industrial Production Structure of the Volga
Region
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Southern Russia- Key Facts

• Total Area- 589,000 sq.km- 8.2 of Russia
  Population- 20,8 mln- 15,4 of Russia
• GRP- 16,1 bln -8,5 of Russia
• Industrial Output- 8 bln- 8,7 of Russia
• Volume of Agriculture- 5 bln- 31.4 of Russia

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Why Southern Russia

• Favorable economic conditions creation of
  Special Economic Zone (Development of Tourism and
  Connected Services) in Krasnodar Region and
  Federal Program for Economic Development
• Direct access to international sea routes via 10
  ports
• 4 international airports
• Developed road and railroad networks
• Fertile agricultural lands
• Abundance of raw materials for processing
  industries
• Favorable natural and climatic conditions
• Qualified labor force.

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Shares in Gross Regional Product ( on the example
of Krasnodar Region)

• agriculture - 17.3 (1/5 of the total of Russia )
• transport and communications - 17.0
• construction - 17.4
• industry - 15.6
• trade and catering - 11.4
• other - 21.3.

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Some facts on foreign activities in Southern
Russian regions

• Over 400 companies with foreign capital
• Major importers USA, Italy, Germany, Turkey,
  Canada, Great Britain, and Ukraine
• Major imports machinery/production equipment,
  food products/raw materials, ferrous/ non ferrous
  metals etc.
• Major investors Klass harvesters production
  plant (Germany), Phillip Morris (USA), Chevron
  Texaco (USA) Bonduel (France), Nestle
  (Switzerland) and others.

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Best prospects for US firms in Lower Volga and
Southern Russia

• Construction
• Tourism and Recreation
• Agricultural and food processing equipment
• Automotive (car parts, after market products and
  services)
• Franchising
• Oil and Gas equipment
• Machine building equipment (esp. metallurgy)
• Medical equipment

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Investment Projects

• Construction of a deepwater berth to transfer oil
  and oil products
• Address Port of Tuapse, Krasnodarskyi Krai,
  Russia
• Freight turnover 9 million tons
• Proprietor of the land plot Federal property
• Land user Public institution Maritime
  Administration of the Port of Tuapse
• Document of title Official Act,granting
  unlimited right of user
• Civil engineering and transport infrastructure
  buildings,water supply,sewerage,power supply,heat
  supply, gas supply, phone line,access drives

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STABILISING THE BUSINESS

• Improvement of Russian Government policies in
  foreign investments attraction
• Re-enforcement of tax legal controls
• Increasing the flexibility of logistics
• Improving business relations and customer
  orientated policies (quality, flexibility,
  vision)
• Gradual growth rather than upward-trend
  volatility.

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Processes that require Special Attention

• Greater emphasis on relationships
• JV Partners
• Government Agencies
• Form over Substance
• Local laws and regulations

Provided by Pamela Smith
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Legislation Conflicts

• Civil Code
• Customs Code
• Tax Legislation
• Russian Accounting Standards (RAS)

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Olga KutuzovaBISNIS Representative forLower
Volga and Southern RussiaTel/fax 7 8462
788203cellular 7 960 8087247E-mail
Olga.Kutuzova1_at_gmail.com
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