Presentations of the Russian Federation
Representatives of the Russian Federation ready for international economic cooperation in various areas with Latin American and Caribbean countries made their presentations at the Interregional Forum entitled ‘Strengthening international SMEs alliances between the Russian Federation and Latin America and the Caribbean’.
Alexander Kalinin, President of the All-Russian Non-Governmental Organization of Small and Medium-Sized Businesses OPORA Russia pointed out that the Russian market is currently going through reloading. This process implies strengthening of support for export-oriented enterprises. Russian Export Center and Investment Insurance Agency have been set up.
The particularity of small and medium-sized business is that it’s 60.0% trade and services, 10.0% production, 10.0% construction, and the rest is finance, real estate etc.
The Chamber of Commerce and Industry database accounts for over 4.0 million enterprises available for those looking for new contacts and partners. The OPORA Russia website provides information on all joint project offers. Many Russian markets have fallen vacant recently, and a 145.0 million population is a very attractive market.
Alexander Tarabtsev, Head of Corporate and Investment Banking, UFC Bank PJSC, represented UFC Bank. The Bank is ranked No. 100 among 800 institutions that operate on the Russian financial services market. It is a medium-sized bank with a conservative approach, working with small and medium-sized consumer goods producers.
Valery Filatov, General Director of United Distributors, made a presentation of his company that imports alcoholic beverages, essentially wines (90.0%). The Company has a distribution network in 20 cities and retail outlets in 9 cities. 25.0% of the Russian wine market is covered by import, and the rest is taken by Russian produce. Wine consumption has been declining since 2013. The market is expected to recover by 2020.
Distilled spirits (rums) are imported primarily from Mexico, Puerto Rico and Cuba. Wine supply prospects of Chile and Argentina are assessed as positive. Difficulties are associated with the long distance (over 10.0 thousand kilometres) and delivery time of more than 60 days. Mr. Filatov concluded that support from banks is absolutely essential.
Sergey Movchan, Vice Governor of St. Petersburg, presented on the potential of his city in terms of cooperation with the Latin and Central American countries. He highlighted the ongoing active shaping of a new geopolitical balance in the world. Dependency on US dollar is going weaker.
St. Petersburg is a unique logistic hub, a marine capital of Russia with a 60.0 million tonnes of cargo turnover in 2015. The Port of Bronka is well fit into the motor and rail road infrastructure. It is the most deep-water port on the Baltics. The rail road hub turnover is 52 million tonnes (2015). The local airport is ranked No. 3 after the Domodedovo and Sheremetyevo Moscow airports.
There are 750 medium-sized and large enterprises and 250 thousand small companies in the city. Industrial production exceeded RUB 2.0 trillion in 2015. St. Petersburg accounts for 10.0% of the Russian scientific potential. Industrial parks are arranged at the municipal budget expense. Investments into special economic zones (SEZ) exceed USD 82.0 million. Over 2,000 foreign companies operate in the city.
Maxim Chereshnev, Chairman of the Directional Board, Russian Trade and Economic Development Council, pointed out in his presentation that the Council supports Russian players who operate or plan starting operations abroad. Today, there are 20 priority areas worldwide. 25 representatives of the Council are based abroad. The Council cooperates with 150 partner agencies globally, including in Brazil.
Sergey Korotkov, Director of UNIDO Centre for International Industrial Cooperation in the Russian Federation shared his Centre’s experience in cooperation and implementation of airborne geophysical survey projects in Brazil, as well as new projects in the area of bioengineering and water supply (water treatment technology).
Yevgeny Zhikh, the Official Representative of the National Committee for Promotion of Economic Cooperation with Latin American Countries in St. Petersburg, presented promising projects for an underground nuclear plant and underground water treatment.