Executive
Briefing on Eurasian Business
is organized by the UNLV Center for Democratic Culture and the Department
of Foreign Languages Russian Language Program of UNLV, with the
support of the Las Vegas U.S. Export Assistance Center.
10
Years of Lessons Learned
- U.S. Department
of Commerce BISNIS assistance for your company: information and
business development through Russian-language promotion, Russian-language
information tools, U.S. and Eurasian experts, finance, multimedia
conferencing, reports, and trade & investment leads;
- Geographic
territory/themes to be covered: Moscow retail development, Kazakhstan,
Ukraine, Azerbaijan/Caspian Basin, Moldova and possibly St. Petersburg,
Russia;
- Industries
to be covered: Trade and Project Finance, Energy, Retail —
Real Estate Development, Construction, Gaming, Medical, Agribusiness,
IT;
- Question
& Answer Session to follow presentation.
BISNIS
is part of the U.S. Department of Commerce, and was founded in 1992
to assist in the economic development and transition of the former
Soviet Union states by assisting U.S. companies to export and invest
in the region. Since 1992, BISNIS has helped U.S. companies generate
over $3.212 billion of export and investment transactions. In 2002
BISNIS was recognized by Forbes Magazine as “One of the Best
of the Web” for information on Eurasia. The website that BISNIS
specialists maintain reports, events, and leads is visited by over
1 million viewers each month. Moreover, BISNIS has excited new programs
to help your company create and edit at anytime your own personal
profile used for receiving information on any industry or country
of Eurasia. As well, BISNIS launched ExpoLink Eurasia as a free
Russian-language advertisement tool for U.S. companies to find Eurasian
customers and partners.
Profile
of Speakers
Jeffrey Kamins
has been an International Trade Specialist at BISNIS in Washington,
D.C. since 2000, and has over 5 years experience working in private
sector, non-profit and government with Eurasian countries. Mr. Kamins
holds an MBA in Global Management from Thunderbird, The American
Graduate School of International Management. Mr. Kamins advises
U.S. companies on how to export to the former Soviet Union in the
sectors of aviation, construction, automotive, certification, franchising,
ebusiness, and chemicals. As part of his industry focus he is assisting
in the development of U.S franchising in Russia, as well as working
closely with several Fortune 100 companies in making substantial
investments into Eurasia. Kamins is the co-architect and Program
Manager of the new BISNIS ExpoLink Eurasia Program –—
online catalog of U.S. companies in Russian-language, which is a
very useful and cost-effective tool for U.S. small and medium-sized
companies. He has been Country Manager at BISNIS for Ukraine for
2 years and currently is Country Manager for Kazakhstan and Moldova.
He is also the Founder of the American Chamber of Commerce in Moldova
(1997). Kamins has lived in Belgium, Moldova, Czech Republic and
speaks Russian and Spanish.
-
Andriy
Vorobyov
has been a Representative of BISNIS in Ukraine since 2000. Mr.
Vorobyov advises local companies on how to work with U.S. businesses
and to find U.S. partner and also counsels U.S. companies on
different issues related to doing business in Ukraine. Mr. Vorobyov
graduated from the National Agricultural University of Ukraine
in Kiev, with a Bachelor Degree in Economics. He also had an
internship at the College of Education, Iowa State University.
Mr. Vorobyov has played leadership roles in organizing BISNIS/Commercial
Service product literature shows in several industries in Ukraine,
organizing a small/medium-sized business seminar in Kharkiv,
Ukraine “Generating Trade and Investment Opportunities
for Small and Medium Businesses”, and has recruited/led
a delegation of 30 business delegates from Ukraine to Las Vegas
for the International Builder Show 2003. Covering a market of
50 million people, Mr. Vorobyov has strategically developed
a network for multiplier business associations that help to
procure leads for U.S. companies, disseminate information on
U.S. companies, co-organize events, and contribute to regional
market reports. Prior to BISNIS Vorobyov had international experience
with the Ministry of Agricultural Policy of Ukraine, where he
worked within the Foreign Relations office for two years. His
main responsibilities were developing business relations between
U.S. and Ukrainian businesses and attracting investment to the
Ukrainian agricultural sector. Mr. Vorobyov has been twice to
the United States since 1997 and is fluent in English and Russian.
-
Bakhtiyar
Mamedov
joined BISNIS as the Country Representative in Baku, Azerbaijan
in 2001. He has previous banking experience working for Bank
One in Houston, TX, and is currently responsible for generating
business leads, trades and tenders, as well as writing market,
industry, and regional reports on Azerbaijan. Mr. Mamedov is
closely following the oil & gas infrastructure projects
and developments in Azerbaijan and is fully utilizing his American
education in the service of US commercial interests. He plays
a pivotal role in helping U.S. companies enter the Azeri oil
and gas market, as well as the subcontracting sector for oil
and gas. He has lead a delegation of 9 Azeri construction companies
to the International Builder Show 2003 and helping U.S. companies
here to develop business with them. Mr.
Mamedov earned his BA in International Law from Higher Diplomatic
College, (HDC), Baku, 1997, and sponsored by SOROS Scholarship
came to Southeastern Louisiana University, (SLU), where he received
his MBA, May 2000. While at HDC, he served as President of the
Students Body, and received the University President’s
Award for Excellent Diplomatic Skills. At SLU Mr. Mamedov developed
marketing plans for Louisiana businesses and has seen his ideas
utilized and adopted. Mamedov is a Member of the MBA Society
at SLU College of Business.
-
Dr.
Irina Belinskaya
has been General Director of the St. Petersburg, Russia Construction
Centre since 1995, and is Member of Construction Committee of
Association North-West, Member of Inter-regional North-West
Construction Chamber, Member of Expert Council of International
Union of Building Centres (UICB). Dr. Belinskaya holds is a
Doctor of Economic Science. Her prior work experience includes
being Deputy Director of scientific-innovation association “DELO.”
She has led a Russian delegation of construction companies to
Las Vegas for the International Builder Show.
Market
Information
Ukraine (48.416 million people) is a country of nearly 50 million
people in close proximity to the markets of Central and Western
Europe and the Middle East. The country's vast agricultural potential,
its highly educated population, its transportation networks and
the technological infrastructure it inherited from the Soviet Union
provide Ukraine with excellent preconditions for strong economic
growth. Upon gaining its independence in 1991 Ukraine
focused attention on consolidating its nascent state and did not
implement the types of deep structural reforms that laid the basis
for rapid economic growth in some parts of Eastern Europe. Instead,
it adopted a "go slow" approach to economic reform that
led to nine years of successive economic declines. However, the
pace of reform in Ukraine has accelerated since 1999, and the economy
has realized unprecedented growth of 5.8% in 2000 and 7% in 2001.
Moreover, Ukraine has managed to restructure its Paris Club debts,
and overall international credit rating agencies have given Ukraine
successive increases. U.S. Export-Import Bank is open for medium-term
trade financing again, after being closed in Ukraine for over 3
years. Ukraine is becoming a much more enticing place for U.S. exporters
to look at for market penetration. Leading
sectors for U.S. exports include: Agricultural machinery, equipment,
and chemicals; electrical power systems efficient energy products,
automotive parts and components; medical equipment; building materials;
air traffic control equipment; oil and gas field machinery; pharmaceuticals;
food processing and packaging equipment; agriculture chemicals,
construction materials, food processing and packaging equipment,
various industrial machinery, computer hardware, peripherals, software,
telecommunications equipment, wireless and cellular.
The
Russian Federation (144.8 million people) economy is increasingly
producing good news: strong GDP growth, burgeoning foreign exchange
reserves and trade surpluses. Inflation is moderate by earlier standards,
the currency is stable, reform of the tax code is well advanced
and beginning to show early positive results, and the regulatory
framework is improving. By mid 2001 Russia showed strong signs of
continuing its economic growth for the third consecutive year. GDP
for 2000 was around USD 251 billion, and official estimates cite
GDP growth of 3-4 percent for 2001. What is known is that the pent-up
demand for a wide range of capital equipment is enormous. Should
Russia's economic growth continue - and the scenarios under which
it will continue grow more numerous — then at some point,
major purchase contracts will be signed. Moscow Retail Development
(almost 10 million people) - The Russian retail market will grow
8 percent in 2002. The Moscow retail market will grow faster to
Rb 1.3-1.5 billion ($40-50 million) expected for 2002 versus Rb
886.4 million reported for 2001. Retail space in Moscow doubled
last year, reaching 438,500 square meters, with expectations of
doubling again in 2003 according to Styles & Ryabokobylko www.snr-realty.com
Moscow went from updating individual stores to groups of stores
like TsUM and Petrovsky Passazh. Then big stores like IKEA and Ramstore
appeared, drawing customers to certain locations rather than relying
on passers-by. Now Moscow is ready to support malls offering restaurants,
entertainment and sports. The largest mall in Eastern Europe opened
in southern Moscow this December housing IKEA Russia, the local
division of Swedish furniture maker IKEA, among other major retailers
in the new 150,000-square-meter shopping center MEGA. IKEA www.ikea.com
has recognized its Moscow stores to be the largest and most profitable
in the world. Leading sectors for U.S. exports include: construction
materials, do-it-yourself products, and equipment; high-fashion
apparel and consumer electronics, home entertainment systems, drugs
and pharmaceuticals, beauty and health products, franchising opportunities
in multiple-industry service sectors, packaging equipment, grocery
fresh and frozen foods; furniture, computers, peripherals and computer
software; automotive aftermarket parts and services equipment.
Kazakhstan
(14.840 million people) In 2001, Kazakhstan’s economy continued
its robust growth, fueled by increased production of oil, metals,
and grain. GDP grew 13.2% in 2001; lower, but still strong, GDP
growth is expected for 2002. The budget maintained a small surplus
2001, as in 2000. However, the government does expect a small deficit
in 2002 and 2003. In March 2002, the U.S. Department of Commerce
graduated Kazakhstan to market economy status under the U.S. anti-dumping
law. The change in status recognized substantive market economy
reforms in the areas of currency convertibility, wage rate determination,
openness to foreign investment, and government control over the
means of production and allocation of resources. Oil and mineral
exports have driven economic growth and attracted significant foreign
investment — over $16 billion since 1993. The Tengiz oil field,
developed by the TengizChevrOil joint venture, established by the
government and Chevron in 1993 and subsequently expanded to include
ExxonMobil and Lukarco, is the flagship foreign investment project
in Kazakhstan. While Kazakhstan’s current oil production of
almost 800,000 barrels/day (40 Million Metric Tons/Year) is relatively
modest, oil discoveries offshore in the North Caspian combined with
onshore fields currently under development make it a potentially
major oil exporter over the medium term. Improved infrastructure,
including diverse and secure oil and gas transportation routes remains
a prerequisite for the development of these fields. Leading sectors
for U.S. exports include: oil & gas equipment and subcontracting
services and support equipment, electric energy equipment, mining
equipment, construction, engineering, architecture services, products
and equipment; agricultural and food processing equipment; food
products and fertilizers; telecommunications (including communication
systems for oil fields; services (including financial & consulting
services); medical products and supplies. Kazakhstan also has an
advanced franchising law, key to the service sector development,
which is more in line with Western standards.
Moldova
(4.4 million people) After a 4.4 percent fall in 1999, GDP increased
in 2000 to 1.9 percent, or ML 16 billion (over USD 1.2 billion).
Furthermore, the Moldovan government is optimistic and expects a
five-percent GDP growth in 2001. The economy has so far been going
uphill, with industrial output, retail, construction, services and
most notably transportation showing signs of an increase in the
first quarter of 2001. Moreover, experts forecast that in 2001 the
grain crops will be almost double the level of 2000. The cumulative
inflation rate has dropped from 43.8% in 1999 during the Regional
Financial Crisis to 3.8% cumulative January-May 2001. Moreover,
Moldova made expeditious strides to join the WTO in 2000. The current
Communist Government has remained moderate encouraging foreign investment,
yet economic reform has been stagnant in the area of privatization
and legislation. The American
Chamber of Commerce in Moldova is a useful resource for U.S.
companies entering the market. Leading sectors for U.S. exports
include: In 2000, trade between the United States and Moldova more
than doubled, reaching USD 64.6 million. This growth was due to
a three-fold increase in U.S. exports to USD 48.6 million. Leading
U.S. exports to Moldova were products from the following product
categories: chemical products; optical devices and medical instruments;
food products; meats and fats; electrical machinery; textiles; books
and newspapers. These accounted for 90 percent of all U.S. exports
to Moldova. The most notable increase in exports in 2000 over 1999
was recorded in the categories optical devices, medical instruments
and chemical products. This increase is accounted for by an increase
in humanitarian donations of medical supplies and equipment from
the United States in 2000.
Azerbaijan
(7.77 million people) Azerbaijan's macroeconomic picture has improved
in the past year as a result of responsible fiscal and monetary
management and favorable global economic trends. GDP grew by 8.5%
in 2001, and is expected to grow by 9% in 2002. There is the planned
2003 construction of the Baku-Tbilisi-Ceyhan pipeline and sanctioning
of Phase Three of the Azeri-Chirag-Guneshli oil field development
and the Shah Deniz gas field and pipeline. Industry experts suggest
that Caspian reserves as a whole may approach those of the North
Sea, with virtually every major international oil company staking
its interest in Azerbaijan. To develop this potential, the Azeri
government has put in place over twenty Production Sharing Agreements
(PSAs) with international oil consortia. These PSAs have provided
a solid foundation for foreign investment in oil and gas-related
sectors of the economy, and mean big business for U.S. suppliers.
Over $10 billion in energy-related business opportunities are expected
during the next 6-36 months in Azerbaijan and the Caucasus. Leading
sectors for U.S. exports include: oil/gas field machinery and services;
architectural, and construction, engineering services; building
materials; telecommunications equipment and services; food processing/packaging
equipment; and agricultural machinery. A number of “supermarkets”
have appeared on the scene introducing local consumers to Western-style
retailing. |