Transcript Slide 1 - Russian American Chamber of Commerce in the USA

Russian-American Chamber of Commerce in the USA
Business opportunities for Georgia-Pacific Corporation
in the Russian Federation and CIS countries
Benefits for Georgia-Pacific Corporation
• Access to new markets in the field of U.S.-Russia and
U.S.-CIS economic, investment and trade relationship:
Ukraine, Komi Republic, Kirov Region, Belgorod, etc.;
• Organization of meetings with Russian counterparts:
government officials, business executives from
lumber, wood production & timber industry;
• Sochi-2014 winter Olympic Games.
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RUSSIA
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Geography
Area: 17 million sq. km. (6.5 million sq. mi.); about 1.8 times the size
of the United States. Cities: Capital--Moscow (pop. 8.3 million).
Other cities--St. Petersburg (4.6 million), Novosibirsk (1.4 million),
Nizhniy Novgorod (1.3 million).
People
Population (2007 est.): 141.4 million.
Annual growth rate (2007 est.): -0.484% (population declining)
Education (total pop.): Literacy--99.4%
Health: Life expectancy (2007 est.)--59.12 yrs. men, 73.03 yrs.
women
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I.
RUSSIAN ECONOMY
• GDP (official exchange rate): $1.286 trillion (2007 est.)
• GDP - real growth rate: 8.1% (2007 est.)
• GDP - composition by sector: agriculture: 4.6% ; industry:
39.1% ; services: 56.3% (2007 est.)
• Labor force: 75.1 million (Nov. 2007 est.)
• Investment (gross fixed): 19.4% of GDP (Jan.– Sept. 2007 est.)
• Stock of direct foreign investment - at home: $271.6 billion
(2006)
• Stock of direct foreign investment - abroad: $209.6 billion
(2006)
• Russia possesses one-fifth of the world's timber reserves
• 3 % of foreign investments goes to the timber industry
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The Chamber:
• Serves as an umbrella organization for promoting trade
and commerce between the USA and the Russian
Federation and the CIS countries;
• Serves as an advocacy group for the American and
Russian businesses;
• Over 200 corporate members in the USA, Russia, CIS
and Baltic States.
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RACC Services
Advisory Services
• Investment consultancy, market research,
implementing an effective action plan, data and
information research;
• Representation to federal and regional administrations
and representation of American investors to corporate
boards of Russian counterparts;
• Proprietary computerized databanks of American,
Russian, and CIS countries companies and
individuals.
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RACC Services (Cont.)
Transactional Support
• Evaluate and assist in the implementation of business
deals;
• Investment and business partner search;
• Assist in in gaining access to the Russian regional
markets
• Visa and passport services, incorporation, registration,
accreditation, representation, negotiations,
confidentiality, translations.
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RACC Services (Cont.)
Corporate Intelligence
• Background check;
• Corporation and corporate executives intelligence
reports;
Trade Show and Business Meeting Services
Educational Services
Language courses and cross-cultural trainings
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Current Sponsors and Clients
Total number of corporate members: over 200
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The Coca-Cola Company
Delta Air Lines, Inc
American Airlines
Smith, Gambrell & Russell, LLP
Delloite
Gazprombank
Arnall Golden Gregory LLP
InterContinental Hotels Group,
Rosneft
The Related Group
The Trump Organization
etc.
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Chamber’s Key Events
• International conference "Russia & WTO“;
• Sochi-2014 winter Olympic Games Russian Government
roundtable,
• Ambassador reception;
• Delegation of Real Estate Developers & Constructors
from St. Petersburg, Russia to Chicago, IL;
• Official visit of Belgorod government officials and
corporate executives to Atlanta, GA;
• US-Russia Energy Conference in Houston, TX, in March
of 2010;
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Business Opportunities in Russia
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Russia possesses one-fifth of the world's timber reserves, and
increased world demand for paper will lead to growth in both domestic
and foreign investments in Russia's timber industry.
Because the finished product is inexpensive and bulky, transportation
costs can be a significant part of the total delivered cost. Due to high
transportation costs, small manufacturers can compete effectively with
big producers in their local market. The effective sales area for
corrugated boxes, for example, is only about 150 miles from the
production plant.
Business connections with wood suppliers in Komi Republic, Kirov and
Belgorod Region, the Ukraine and Belarus.
Delegation of Builders and Real Estate investors from St.
Petersburg, Russia to Chicago, IL.
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Investment Climate in Russia
• According to the Economist Intelligence Unit, Russia is
one of the most attractive nations for foreign
investment among transitional economies.
• In particular, Russia is expected to become a leader
in raising direct foreign investment in 2006–2010
among ex-USSR states and Eastern European
countries.
• By the end of September 2006, cumulative foreign
investments in the Russian economy came to
approximately USD130 billion.
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Foreign Investment in Russia:
Top Sectors (Amounts in percent)
Trade
3% 3%
3%
13%
Extraction of Fuel
21%
Communications
5%
6%
20%
6%
Real Estate and Related Services
Metallurgy
9%
11%
Finance
Production of coke and oil products
Chemical Industry
Food industry
Lumber Industry
All others
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The role of the timber industry in Komi
Republic
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Second biggest output of the industrial products
Export, 431 million dollars(39%)
Total size of production, 1.1 billion dollars (24%)
Employment of the population, 28,7 thousand people
(32%)
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Timber industry in Komi Republic
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Profitableness of various fields of timber
industry
Values — millions of rubles
In blue — forest harvesting
In violet — wood processing
In light yellow — pulp and paper
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The field structure of the timber industry
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RussianAmericanChamber.com
[email protected]
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