UBCCE QUARTERLY WINTER 2011 No. 16

,17+,6,668(« WELCOMING THE NEW YEAR« P.1 Having left behind another challenging year since the break out of the WELCOME ADDRESS global financial crisis, our Union has started 2011 with a cautious By 0XUDW=|QJU, optimism basing on a quite productive 2010. UBCCE Secretary General

We have to admit that despite our limited resources and the ongoing P.2 / 3 effects of the crisis, we have managed to focus our efforts on activities UBCCE EVENTS which served us to increase our visibility in the international arena, to Workshop on ´Perspectives prove ourselves as a reliable partner for other organizations. Some of Green Economy & Green tangible steps have been taken in this sense by concrete cooperations Business Applications in developed with credible institutions like GTZ - German Technical Azerbaijanµ Cooperation Agency (now GIZ), EU Commission East Invest Baku, December 13 ² 14 Programme, EU Eastern Partnership Civil Society Forum and OECD Eurasia Competitiveness Programme, on which our members were P.4 / 7 informed on regular basis. I am pretty confident that more actions will BLACK SEA & be taken in 2011 to the benefit of our members and our partners in the CASPIAN EVENTS widest possible context. P.8 / 21 Being aware of the strategic importance of the Black Sea and Caspian, BLACK SEA & our Union will continue its efforts to bring together the private sector CASPIAN AGENDA of our Region to create a platform of dialogue for our common and shared future welfare. P.22 / 24 REPORTS IN FOCUS Our Secretariat is working on a quite ambitious working calendar to be submitted for the approval of our General Assembly which will be P.25 / 27 held on March 15, in Istanbul. We have to keep always in mind that FROM MEMBERS all we need is to come together, especially at critical times like this, with a strategic view based on "partnership" and "union". P. 28 / 31 POINT OF VIEW I hope that you will continue to enjoy reading our Bulletin with its %\gQGHU$OJHGLN6HFUHWDU\ new format in the new year. General of the Climate Platform 0XUDW=|QJU UBCCE Secretary General P. 32 / 34 UPCOMING EVENTS

UBCCE QUARTERLY BULLETIN Published by the Union of Black Sea and Caspian Confederation of Enterprises (UBCCE) Secretariat 0HüUXWL\HW&DG1R7HSHEDü×,VWDQEXO² Turkey Tel. (+90) 212 249 19 29 Fax (+90) 212 292 53 75 www.ubcce.org $OOULJKWVUHVHUYHG‹8%&&( UBCCE Q ² UBCCE EVENTS

UBCCE - GTZ WORKSHOP ON ´3(563(&7,9(62)*5((1(&2120<$1'*5((1%86,1(66 $33/,&$7,216,1$=(5%$,-$1µ DECEMBER 13 ² 14, 2010, BAKU, AZERBAIJAN

7KH :RUNVKRS RQ ´3HUVSHFWLYHV RI *UHHQ Economy and Green Business Applications in $]HUEDLMDQµKHOGLQ%DNX, on 13 ² 14 December is the third event organized in the framework of the UBCCE ² GTZ Joint Project entitled ´Developing A Green Business Support Strategy for UBCCEµ. The two-GD\:RUNVKRSZKHUHWKHGUDIWEOXHSULQWRIWKH´*UHHQ(FRQRP\DQG *UHHQ %XVLQHVV 6WUDWHJ\ IRU $]HUEDLMDQµ was DOVR SUHVHQWHG ZDV RUJDQL]HG E\ 8%&&(·V Azeri member, Azerbaijan Turkey Business Association (ATIB), with the support of UBCCE and GTZ.

Attended by over 100 delegates, the Baku Workshop brought together not only the task force members of the UBCCE ² GTZ Joint Project but also the representatives of UBCCE member organizations, state and local authorities of Azerbaijan Republic, Azeri businessmen and academic circle, international organizations (such as UNDP, World Bank, etc), non- governmental organizations as well as media.

The Workshop, which also hosted the Award Ceremony of the Essay Competition RQ ´*UHHQ (FRQRP\µ DPRQJ XQLYHUVLW\ VWXGHQWV ZLWKLQ WKH IUDPHZRUNRI´

During the first day of the Workshop, priority issues on green business in Azerbaijan were discussed in three separate panels. The first panel ATIB Honorary President Dr. Ahmet focused on new institutional and legal frameworks Erentok presenting the award to the winner of environmental standards in oil-chemistry of the essay competition on ´Green industry and possible realm for international Economyµ cooperation in these fields; the second one

www.ubcce.org 2 UBCCE Q ² UBCCE EVENTS analyzed the exploration of alternative energy sources in Azerbaijan and the energy efficiency whereas the last one examined the components of waste management system and its commercial effectiveness.

In the second day, technical discussions ZHUH KHOG RQ :RUNVKRS·V FRQFOXVLRQV and the draft blueprint of WKH ´*UHHQ Economy and Green Business Strategy IRU$]HUEDLMDQµZDVSUHVHQWHGE\6DPLU Isayev, national expert of the project strategy document. Following the discussions, recommendations on the draft were elaborated in order to finalize Snapshot from the Workshop the document afterwards.

The Workshop included as well a sight visit on December 14, WR 62&$5·V ecology department laboratory facilities DQG LWV ´(FR3DUNµ WKH ILUVW HFRORJLFDO park project of Azerbaijan, which is planned to be opened by May 2011.

In parallel with the Workshop, the UBCCE-GTZ Joint Project Task Force Group also convened for the second time and evaluated the Workshop held in Baku, the final version of the strategy document prepared for Ukraine, and Sight visit to SOCAR facilities exchanged ideas on the next steps of the Project including its possible extension in the period ahead.

The meeting in Baku is the third leg of the UBCCE ² GTZ Joint Project officially launched in June 2010 with a Kick-off and Training Workshop in GTZ headquarters in Eschborn, Germany. The Project aims to develop a comprehensive strategy that helps private sector associations and enterprises of the Black Sea and Caspian Region to respond to the multiple challenges and opportunities of climate change in an efficient and proactive manner. The project is supported by the German Federal Ministry for the Environment (BMU) within the framework of its International Climate Initiative (ICI).

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BLACK SEA RENEWABLE ENERGY FORUM Black Sea Renewable Energy Forum BUCHAREST,ROMANIA,NOVEMBER 8 ²10 Bucharest, Romania, Nov 8²10

The first edition of Black Sea Renewable Energy Forum 7th Vienna Economic Forum together with the International Fair on Renewables Vienna, Austria, Nov 8 ² 9 Distributor's Day took place on November 8²10, in Second Annual Conference Bucharest, Romania. Jointly organized by Gillier of EaP Civil Society Forum Humanity Foundation and Romanian Associations Berlin, Germany, Nov 18 ² 19 active in this field among which UBCCE member, 14th EU-Ukraine Summit Alliance of RoPDQLDQ (PSOR\HUV· &RQIHGHUDWLRQ Brussels, Belgium, Nov 22 (ACPR), the Forum aimed at becoming, for three days, the voice for renewable energy in the region. It is to be Bulgarian Economic Forum noted that UBCCE was the ´strategic partnerµ of this Sofia, Bulgaria, Nov 24 ² 25 Event. EaP Panel on Trade Brussels, Belgium, Nov 25 - 26

7TH VIENNA ECONOMIC FORUM Black Sea Business Forum VIENNA,AUSTRIA,NOVEMBER 8-9 ´1HZ(UDRI*UHHQ (QWUHSUHQHXUVKLSµ The Vienna Economic Forum was held for the seventh Thessaloniki, Greece, Nov 26 time this year, bringing together around 570 participants from 44 countries throughout the world 26th EU-Russia Summit Brussels, Belgium, Dec 7 and from 15 international organisations. During his inaugural speech, Dr. Erhard Busek, Former Vice 1st International Congress Chancellor of Austria and President of VEF underlined on ´Integration and Sustainable Development the necessity of regional cooperation for the countries in the Black Sea Regionµ of South-Eastern Europe for the future progress of the Burgas, Bulgaria, Dec 4 ² 7 region. Albanian ² Slovenian Business Forum ECOND NNUAL ONFERENCE OF ASTERN S A C E Tirane, Albania, Dec 8 PARTNERSHIP CIVIL SOCIETY FORUM BERLIN,GERMANY,NOVEMBER 18 ² 19 8NUDLQH,QYHVWRUV·6XPPLW ´Realizing its Potential The second annual conference of the Civil Society through New Leadershipµ Forum of the Eastern Partnership (EaP) took place in Kiev, Ukraine, Dec 14 ² 15 Berlin on November 18-19 under the hostage of the EPC Conference German Foreign Office. The Conference aimed to ´Eastern Partnership ² promote contacts among civil society organisations and Taking Stock and Looking facilitate their dialogue with public authorities in Aheadµ Brussels, Belgium, Feb 1 Armenia, Azerbaijan, Belarus, Georgia, Republic of Moldova and Ukraine.

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Like last year, UBCCE was among the invited organizations of this important event which gathered together around 250 participants, mainly from EaP states, but also from the EU. The six EaP states were all fully represented by civil society organisations, including Belarus which is not a full participant in the European Neighbourhood Policy.

The Forum is now structured with a Steering Committee, and thematic Working Groups, which mirror the four official thematic platforms of the EaP for (1) democracy, (2) economics, (3) energy and (4) people. Each has developed sub-groups on more precise topics such as for visa liberalisation, human rights, energy anG HQYLURQPHQW HWF ,Q DGGLWLRQ ´1DWLRQDO 3ODWIRUPVµ have been set up in most states, bringing together around 50 to 100 organisations in each. The Steering Committee had proposed to the German Foreign Office to host the )RUXP WR XQGHUOLQH %HUOLQ·V FRPPLWPHQW WR WKH (8·V (DVWHUQ SROLF\ DQG ZDV PRVW appreciative that this was accepted, thus bringing its work into direct contact with policy makers. The third Forum in 2011 will be in Poland, which has been one of the strongest promoters of the Eastern Partnership and will preside the EU Council of ministers in the second half of the year.

14TH EU ² UKRAINE SUMMIT BRUSSELS,BELGIUM,NOVEMBER 22

The 14th EU-Ukraine Summit took place in Brussels on November 22, with the participation of President of the European Council Herman Van Rompuy, President of the European Commission -RVp0DQXHO%DUURVR, and Ukrainian President Viktor Yanukovych. The leaders recalled that EU-Ukraine relations are based on common values and a common history and that the EU has acknowledged Ukraine's European aspirations and welcomed its European choice. They noted that the depth of the EU-Ukraine relationship will be determined by the implementation of reforms and by further consolidation of common values. The leaders took also note of the recent constitutional developments in Ukraine. The EU side encouraged the Ukrainian authorities to undertake constitutional reform in an inclusive and comprehensive manner in close cooperation with the Venice Commission of the Council of Europe.

BULGARIAN ECONOMIC FORUM 2010 SOFIA,BULGARIA,NOVEMBER 24 - 25

Jointly organized by the Bulgarian Economy Ministry, Labor Ministry, Ministry of Regional Development, InvestBulgaria Agency and the Representation of the European Commission in Bulgaria, the Bulgarian Economic Forum focused on the factors for economic growth in Bulgaria in the next decade. InaugurDWHGE\ %XOJDULD·V3ULPH0LQLVWHU %R\NR %RULVRY WKH IRUXPIRUPHGDSODWIRUPWRGLVFXVVWKHFKDOOHQJHVLQWKHDEVRUSWLRQRI(8IXQGV%XOJDULD·V strategy for the new program period of the EU, 2014-2020, the priorities for 2011 on energy,

www.ubcce.org 5 UBCCE Q ² BLACK SEA & CASPIAN EVENTS waste management, the current state and prospects for the road projects in Bulgaria and the region, the investment climate in Bulgaria, broadband communications, quality and safety of foods.

EAP PANEL ON TRADE FIRST BUSINESS TO BUSINESS MEETING OF THE EAP TRADE PANEL BRUSSELS,BELGIUM,NOVEMBER 25 - 26

In conformity with the EaP Trade Panel·VZRUNLQJSODQ the first meeting of the business to business trade representative was held on November 25 ² 26, in Brussels, where up to 6 representatives from businesses and supporting private and public institutions from Eastern Partner countries were invited. European institutions and EU business representative organizations; EuroChambres, BUSINESSEUROPE, EBRD and EIB were also invited to the panel,to involve the business community more closely in the preparation and negotiation of WKH UHJLRQ·V XSFRPLQJ ´GHHS DQG FRPSUHKHQVLYH free-WUDGH DJUHHPHQWVµ '&)7$  ZKLFK will encourage the Eastern partnership countries to move towards harmonisation with the EU acquis communautaire.

BUSINESSEUROPE International Relations Director Adrian van den Hoven who delivered a speech in the panel, underlined the importance of governments listening to and working together with their business communities during the negotiation process to make sure targets and agreements remain feasible and realistic.

BLACK SEA BUSINESS FORUM: ´7HE NEW ERA OF GREEN E175(35(1(856+ú3µ THESSALONIKI,GREECE,NOVEMBER 26

Jointly organized by SEV, the Hellenic Federation of Enterprises and FING, the Federation of Industries of Northern Greece, the ´%ODFN 6HD %XVLQHVV )RUXP The new Era of Green (QWUHSUHQHXUVKLSµ took place in parallel to the meeting of the BSEC Foreign Affairs Ministers, under the auspices of the Ministry of Foreign Affairs of the Hellenic Republic and the Black Sea Trade and Development Bank.

The purpose of the Forum was to point out the sectors and the potentials for cooperation in the markets from Western Balkans to the Black Sea and Caspian region. In the framework of the new era in green economy and innovative entrepreneurship, the Forum focused on energy and renewable sources, constructions and new green materials, financing green projects and research and innovation combined with business initiatives.

Participants in the Forum included 100 delegates from Greece and 60 from the region while more than 70 bilateral meetings were conducted.

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In his inaugural message, Dr. Athanase Lavidas, SEV Vice-Chairman and UBCCE President stressed the strategic importance of the Black Sea markets, which albeit the financial crisis still sustain development prospects. The Black Sea region with its 450 million prospective consumers offers investment opportunities in the fields of energy and RES, construction and materials, IT, health services and pharmaceuticals, transportation and logistics and agro- industry. It should be noted that UBCCE was ´regional business partnerµ of this important gathering.

THE 26TH EU - RUSSIA SUMMIT BRUSSELS,BELGIUM,DECEMBER 7

The 26th EU - Russia Summit took place in Brussels on December 7. Hosted by the European Council and the European Commission, the Summit was also attended by Russian President Dmitri Medvedev and MFA Sergey Lavrov, the High Representative for Foreign Affairs and Security Policy, Catherine Ashton as well as Trade Commissioner Karel de Gucht. Discussions focused on common challenges facing both the EU and Russia, such as the global economic situation and climate change. Bilateral relations were reviewed, including the Partnership for Modernisation. The coordinators of the Partnership, signed off on the first Progress Report during the Summit.

ALBANIAN ² SLOVENIAN BUSINESS FORUM TIRANE,ALBANIA,DECEMBER 8

Albanian ² Slovenian Business Forum took place in Tirane, Albania on December 8 with the participation of the respective Prime Ministers of both countries, Sali Berisha and Borut Pahor. Attended by over 110 Slovenian private sector representatives, the forum was an initiative of the Albanian Ministry of Economy, Trade and Energy and AIDA (former Albinvest). At the conclusion of the Forum a Cooperation Protocol was signed between the two countries, showing their willingness to cooperate in economic sphere.

THE UKRAINE INVESTORS'SUMMIT 2010 ´REALIZING ITS POTENTIAL THROUGH NEW LEADERSHIPµ KIEV,UKRAINE,DECEMBER 14 ² 15

7KH8NUDLQH,QYHVWRUV·V6XPPLWRUJDQL]HGE\WKHEuroconvention Conferences, aimed at attracting new businesses and top quality investors into the country, featuring Ukraine as one of the key investment destinations in Eastern Europe. The Summit, also supported by UBCCE, formed a solid platform for over 200 participants to discuss key topics including privatizations, structural reforms, financing agribusiness growth, funding infrastructure modernization, energy potential, technology parks and IT updates.

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ECONOMY

East European countries recovering slowly from the crisis East European countries are recovering from the crisis more slowly than other countries, showed an analysis prepared by economists from the Bruegel and the Vienna Institute for International Economic Studies. According to the data, the slower recovery of the region is due to the fact that, before the crisis, these countries had different levels of integration in the EU. It took countries in the region a longer period to pass through the crisis and their return to economic growth is significantly lagging behind Central Europe. Experts pointed out that the prolonged decline in industrial production has led to a permanent gap in their trade balances and this is one of the main reasons for slower recovery.

Bulgaria·V Economy to grow by 2.6 percent in 2011 The Bulgarian economy is expected to grow by 2.6 percent in 2011, an analysis of the European Commission reads. The EC forecast for Bulgaria's economic growth over the next two years has been made on condition that there is not going to be a change in the country's financial policy. According to the forecast of Bulgaria's Ministry of Finance, however, the country's GDP growth will not exceed 3.6 percent in 2011 and 4.7 percent in 2012. The unemployment rate at the end of 2010 is expected to reach 9.8 percent.

Kazakhstan ups 2011 GDP forecast to 4-5 percent Kazakhstan expects its economy to grow 4-5 percent in 2011, according to the Minister of (FRQRP\DGMXVWLQJWKHJRYHUQPHQW·VHDUOLHUIRUHFDVWRI percent. The most recent forecast corresponds to the estimate of the IMF ZKLFKH[SHFWV .D]DNKVWDQ·V *'3 WR LQFUHDVH -5 percent this year, fuelled largely by oil revenues. .D]DNKVWDQ·VHFRQRP\JUHZ percent in 2010, according to unofficial estimates. The economy grew 10 percent on average each year between 2000 and 2007, driven by rising commodity prices.

Romania·s economy is expected to grow by 2.5 percent in 2011 Romania's economy will grow by 2.5 percent in 2011 and by 4 percent in 2012, after a 1.5 percent decline in 2010, according to evaluations of the United Nations Conference on Trade and Development (UNCTAD). After the significant economic slump in 2009, the EU new member states in Eastern Europe reported a slight improvement in 2010. The recovery was mainly sustained by the export revival, thanks to a higher foreign demand.

Historical high unemployment rate in Serbia The unemployment rate has reached its historical maximum in Serbia. According to the National Employment Service, there are 730,000 unemployed persons in the country. The NSZ believes it will have more success in finding citizens jobs this year thanks to the planned projects for which they received about RSD 2 bLOOLRQ ½ 19 million) more than last year.

Turkey·Vstrong growth in 2010 is expected to carry over into 2011 In its latest economic report, the EBRD said that in Turkey, the strong growth in 2010 is expected to carry over into 2011. Domestic demand growth will remain the key driver of growth as credit growth will continue to be strong despite recent measures to tighten reserve

www.ubcce.org 8 UBCCE Q ² BLACK SEA AND CASPIAN AGENDA requirements. As a result, import growth is expected to increase, the current account deficit to widen further (increasingly financed by portfolio capital flows), and inflationary pressures to strengthen.

ENERGY

Austrian companies have shown interest in Bulgarian energy sector Austrian companies have shown interest in taking part in the project to build a second Bulgarian Nuclear Power Plant (NPP) in the Danube town of Belene. The information was reported by the Commercial Counsellor of Austrian Embassy in Bulgaria, during a conference dedicated to the competitiveness of Bulgaria's economy. According to the Austrian diplomat, the fact that the new NPP will use secure standards is of major importance to Austrian investors.

Bulgaria and Greece to have full gas interconnection 2013 Bulgaria and Greece have signed on November 30, a contract for interconnection of their natural gas networks that must be built by 2013, according to Bulgarian Minister of Energy Traicho Traikov. 6SHDNLQJDIWHUWKH´(QHUJ\ZLWKRXW)URQWLHUVµIRUXPKHOGLQ6RILD7UDLNRY said that an agreement has been concluded between the Bulgarian Energy Holding and the Greek company, IGI Poseidon. The Bulgaria-Greece interconnection is designed to be 23.8 km long and to have a maximum capacity of 1.5 billion cubic meters of natural gas each year.

AES Corporation and KRo+ROGLQJIRUPHG-9WRGHYHORSSRZHUSURMHFWVLQTurkey US power company AES Corporation has entered into an agreement ZLWK.Ro+ROGLQJRQ December 1, to form a joint venture in Turkey, AES-Entek, that will develop and operate SRZHUJHQHUDWLRQSURMHFWV$(6DQG.Ro+ROGLQJZLOOKDYHHTXDOLQWHUHVWVLQ(QWHNElektik Uretim A.S., which includes 300 MW of natural gas facilities. AES-Entek will diversify into other energy sources by pursuing greenfield projects, acquisitions, and other opportunities through the Government of Turkey's plan to privatize 15 GW of generation assets. The companies will benefit from Turkey's position as an energy corridor for Europe, the Middle East and Russia by collaborating on projects throughout the region.

Bulgaria and Russia inked long-anticipated deal on South Stream After months of talks, Bulgaria and Russia signed an intergovernmental agreement for the construction of the Bulgarian section of the South Stream gas transit pipeline in the presence of their Prime Ministers, Boyko Borisov and Vladimir Putin, in Sofia, on December 16. The deal stipulates the establishment of a joint venture, South Stream AD, which will manage the construction and the operation of the South Stream gas transit pipeline on Bulgarian territory ² which will be the most crucial land section of the pipe. Bulgarian Energy Holding (BEH) and Gazprom will each have a 50 percent share.

Strategic Parternship on Energy to be signed between Serbia and Russia Russian Foreign Minister Sergey Lavrov and his Serbian counterpart Vuk Jeremic announced on December 15 that a declaration on strategic partnership between the two countries will be signed in 2011 by Presidents Dmitry Medvedev and Boris Tadic.

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Iran boosts investment in SP gas field The Iranian government announced on December 26 that the decision to invest an additional $1.5 billion in developing 9 and 10 of the giant South Pars gas field in an effort to accelerate the implementation of the projects, had been made.

Russia ² China oil pipeline begins operation The first oil pipeline linking the world's biggest oil producer, Russia, and the world's biggest consumer of energy, China, has begun operating on January 1st. The pipeline, running between Siberia and the northeastern Chinese city of Daqing, will allow a rapid increase in oil exports between the two countries. Until now, Russian oil has been transported to China by rail. Concentrated in western Siberia, Russia's network of pipelines for oil exports has so far run towards Europe. Russia is expected to export 15m tonnes of oil through the new pipeline each year during the next two decades - about 300,000 barrels a day.

Austria·V209VHDOVWDNH over of Turkish Petrol Ofisi The Austrian oil and gas firm OMV closed a deal on January 5 to take over the Turkish petrol seller Petrol Ofisi for $1.39 billion. By closing this transaction, OMV significantly strengthened its position as integrated market leader in Central and South-Eastern Europe. Under the deal, which had been announced in October, OMV bought out the Turkish media and energy holding company Dogan, raising its stake in the major petrol retailer from 41.6 to 95.7 percent.

Iran and Iraq reach deal on joint oil fields Iranian and Iraqi oil officials have reached an agreement to develop their joint oil fields on border areas to increase their crude output. The deal was inked during the first meeting of the two countries' joint executive working group in the Iranian capital, Tehran, on January 9. Based on the new deal, Iran and Iraq will set up joint expert committees to finalize technical and financial details of the agreement to develop the joint oil fields. The next round of oil talks between the two countries will be held in the Iraqi capital, Baghdad, in March.

Azerbaijan and Iran signed natural gas agreement Azerbaijan and Iran have signed on January 13, a five-year agreement on the supply of Azerbaijani natural gas to Iran. According to SOCAR (Azerbaijan State Oil Company) officials the agreement envisages the export of 1 billion cubic meters of gas to Iran during 2011, beginning February 1.

European Commission and Azerbaijan sign strategic gas deal 7KH 3UHVLGHQW RI WKH (XURSHDQ &RPPLVVLRQ -RVp 0DQXHO %DUURVR DQG WKH 3UHVLGHQW RI Azerbaijan Republic Ilham Aliyev had signed on January 13, a Joint Declaration on gas delivery for Europe in Baku. Azerbaijan commits to supplying substantial volumes of gas over the long term to the European Union, while Europe provides access to its market for them. This Joint Declaration is an important step in the realization of the Southern Gas Corridor and the diversification of Europe's energy supplies.

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Bulgaria 's National Electric Company will start the export of power to Turkey as of April Bulgaria's National Electric Company (NEK) will start the export of power to Turkey as of April. Sources of the Electricity System Operator confirmed that Turkish power distribution system would be harmonized with the Bulgarian one in about two months. This is the last obstacle before the start of electricity export from Bulgaria to Turkey, which was supposed to start end-2010. Meanwhile, the Turkish national electric company published a report, according to which, the power consumption in Turkey will increase by between 5 percent and 7.5 percent year-on-year till 2019.

Iran, Armenia to boost ties in energy sector Iranian and Armenian officials reviewed ways of transferring oil products from Iran. At a meeting held between an Iranian delegation headed by Oil Deputy Minister, and Armenian Minister of Energy and Natural Resources, the two sides discussed continuation of natural gas and electricity barter and establishment of gasoline and gas oil transferring pipeline between the two countries. Iran and Armenia tend to establish a 365-km pipeline from Tabriz to Yerevan to transfer oil products from the Islamic Republic. The pipeline will go on stream in 2014.

Belarus and Ukraine signed oil-transit agreement VAT UkrTransNafta, 8NUDLQH·V SLSHOLQH RSHUDWRU VLJQHG on January 17, a two-year agreement with ZAO Belarusian Oil Co. to transit 4 million metric tons of oil a year through the Odessa-Brody pipeline. The crude will be delivered to the Mozyr refinery in Belarus, according to Interfax-Ukraine news agency.

New Romanian reactors at Cernavoda to start construction in 2012 The European Commission has recently given the green light for the construction of two DGGLWLRQDOUHDFWRUVDW5RPDQLD·VVROHQXFOHDUSRZHUSODQWLQ&HUQDYRGDRomania, through state-owned nuclear energy company Nuclearelectrica, controls 51 percent in EnergoNuclear, a joint venture set up to build two new reactors. Cernavoda currently operates two reactors of 700 megawatts power each and covers around 18 percent of 5RPDQLD·VHOHFWULFLW\SURGXFWLRQ7KHWKLUGDQGIRXUWKUHDFWRUVZLWKVLPLODUFDSDELOLWLHVDUH set to become operational in 2017.

Azeri SOCAR opens 7 filling stations in Ukraine The State Oil Company of Azerbaijan, SOCAR, has launched 7 new petrol stations in Nikolayev and Odessa oblasts in Ukraine.

Ukrainian Government approves ChornomorNaftoGaz/Lukoil joint venture creation The Ukrainian government approved the creation of a joint venture between ChornomorNaftoGaz and Russian oil company Lukoil to develop offshore oil fields in the Black Sea. The joint venture, in which the state-owned ChornomorNaftoGaz will own at least 50 percent, will focus on developing Odessa, Bezimenniy and Subbotin oil fields.

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Iran's petchem exports to Europe to hit $2 billion Iran's petrochemical exports value to European countries will hit $2 billion by the end of the current Iranian year (March 20, 2011) according to the Iran Petrochemical Commercial Company. The Company officials said 37 percent of the exported petrochemical products from Iran go to customers in the Far East, including China, 25 percent to the Middle East, 11 percent to Europe, 18 percent to the Indian subcontinent, 7 percent to Southeast Asia and Oceania, and 1.2 percent to Africa.

Russian Lukoil spends $6 billion in Kazakhstan /XNRLO5XVVLD·VODUJHVWRLOFRPSDQ\has spent more than $6 billion in Kazakhstan since it began operating in the country. The company plans to launch a gas refining complex in the Aktobe Region in 2011.

Rosneft and ExxonMobil Agreement Rosneft and ExxonMobil have entered into an agreement regarding joint development of oil and gas resources in the Black Sea, which includes an initial focus on oil exploration and production in the Russian Black Sea basin. The agreement signed on January 27 by Rosneft and ExxonMobil Presidents contemplates a joint operating company to conduct exploration and production in the Tuapse Trough, an 11,200-square-kilometers deepwater offshore area along the Black Sea coast of the Krasnodar region. The agreement enables Rosneft and ExxonMobil to consider additional opportunities to expand Black Sea energy sector cooperation in areas such as additional exploration and production, crude oil sales to 5RVQHIW·V 7XDSVLQVN\ UHILQHU\ DQG RWKHU %ODFN 6HD PDUNHWV GHYHORSPHQW RI UHJLRQDO transportation infrastructure, and deepwater offshore technology research and development.

GREEN NEWS

Business Leaders Call for Green Economy at G20 Summit For the first time at a G-20 meeting, more than 100 CEOs met on November 10 - 11, at a business summit and reviewed strategies for advancing a greener global economy. The EXVLQHVVVXPPLWEURXJKWWRJHWKHUWKHKHDGVRIRIWKHZRUOG·VOHDGLQJFRPSDQLHVIURP developed and developing countries. With combined total sales of over $ 4 trillion annually, these companies are in a position to make a difference. A 20-point statement issued at the end of the business summit urged G20 countries to take action on a range of issues including facilitating green growth, improving energy efficiency and creating green jobs.

Bulgaria to boost green employment The Bulgarian government announced on January 24 that companies who offer green jobs and hire unemployed people for an at least 6 month period will be subsidized. BGN 3.2 PLOOLRQ ½PLOOLRQ KDYHEHHQLQFOXGHGIRUJUHHQMREVLQWKHQDWLRQDl plan for coping with unemployment, which will secure 2100 new job places with a monthly salary of BGN 240 ½ IRUKDOID\HDU1RUHVHDUFKKDVEHHQFDUULHGRXWVRIDURQKRZPDQ\MREVPD\EH currently considered green in Bulgaria, according to officials.

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Companies, working in the spheres of waste recycling, environmentally safe transport and all other economical activities which are considered beneficial for the environment, may apply for subsidizing.

Enel GP to develop geothermal power in Turkey Enel Green Power (EGP), Italy's biggest renewable energy company, has agreed a deal to develop geothermal energy in Turkey as the group moves to expand. EGP announced on January 24, that it has reached an agreement with the Uzun group to set up a company that will hold 142 exploration licenses to explore for geothermal resources in the west of Turkey. Installed geothermal capacity in Turkey stands at 86 megawatts and Ankara intends to develop an additional 600 megawatts through 2015. EGP, which started trading last November after what had been Europe's biggest initial public offering for the year, has over 600 renewable energy plants in 16 countries.

INVESTMENT & COMPANIES

British-Swiss Zumax group to build ½ELOOLRQ terminal in Albania Albania has given a 35-year concession to British-Swiss Zumax group for the construction of a ½1.2 billion container terminal for ships in Vlora port which is expected to be the biggest on the Mediterranean sea. The project's construction is expected to begin in May and be completed in 2013.

Vodafone to run the first 3G service in Albania Vodafone Albania has been awarded a license to run the first 3G service in the country, the Authority for Electronic and Postal Communications announced on December 15. Vodafone paid ½31.4million to get the license. The service will launch in March.

Greek (XUREDQNJHWV½ELOOLRQLQIXQGVIRU%DONDQ60(V, including Bulgaria EFG Eurobank Ergasias SA, owner of Bulgaria's Post Bank, announced it has secured a total of ½ 1.4 billion from international bodies to finance SMEs in South-East Europe, including Bulgaria. Eurobank has commitments for these funds from the IFC, a subsidiary of the Wold Bank, (½ 95 million), the EIB (½1.03 billion), and the EBRD (½ 280 million). They will be invested in Greece, Romania, Bulgaria, Serbia and Turkey. The bank said that ½ 600 million will be used for lending Greece, while ½ 805 million will be used to invest in the other four countries in the region.

Turkish Glass Giant Sisecam to open 4 new plants in Bulgaria Turkish glass manufacturer plans to boost its production facilities in Bulgaria by opening four new plants in the country by 2012. The four new facilities will be located in the northeastern city of Targovishte, which is already tKHKHDGTXDUWHUVRI6LVHFDP·VSURGXFWLRQ operations in Bulgaria. According to Sisecam officials, the new production lines, which will manufacture auto glass, household glass, and coated glass for construction projects, will create 200 new jobs in the region in 2011 and 2012 for workers, and 50 jobs for engineers.

www.ubcce.org 13 UBCCE Q ² BLACK SEA AND CASPIAN AGENDA

FYROM·V leading apparel manufacturers to open their factories to European buyers As many as 25 of FYROM·V OHDGLQJ DSSDUHO PDQXIDFWXUHUV DUH H[SHFWHG WR RSHQ WKHLU factories to European buyers in March as part of the third FYROM - EU Apparel Buyers Week. The event, which is likely to be the only one taking place this year, is seen as a cost- effective way to meet new suppliers, build relationships with existing partners, and learn more about why FYROM should be part of a sourcing strategy. One-on-one pre-matched meetings and factory visits are key to its success, with between 8-20 factory visits arranged between participating buyers and manufacturers depending on their procurement profiles.

$200 million FDI funneled into Iran·V%RXUVH Iranian Economy and Finance Minister announced on January 4 that the Tehran Stock Market has attracted a sum of $200 million of foreign investment, given the Iranian markets security for investors. The government wants to encourage Iranians residing abroad to make investments in stocks, trade and the process of privatization.

Russia, Japan and China to built an urea fertilizer plant in Russia Companies from Russia, Japan and China signed on November 13, a $ 1 billion agreement to build an urea fertilizer plant in Russia's Volga republic of Tartastan. The large-scale plant to be located in the city of Mendeleyevsk, some 1,000 km east of Moscow, would be the first in Russia for over 20 years. The deal was inked in Yokohama, Japan by Japanese companies Mitsubishi Heavy Industries and Sojitz, the China National Chemical Engineering Company, and Russian state-owned company Ammony, with the presence of Russian President Dmitry Medvedev. The plant, which can produce ammonia and methanol from natural gas, will launch operation in 2015. The daily capacity was estimated at 2,050 tons of ammonia, or a combined 1,382 tons of ammonia and 668 tons of methanol.

Panasonic to launch facility in Serbia Japanese electronics producer Panasonic established a company in Svilajnac, Serbia in November, investLQJDURXQG½000 for 2010. Mass production has started in January, to enhance lighting device business in Europe, where energy efficiency improvement efforts are well under way.

Iran raises investment in Turkey Iranian investors have entered partnerships with 276 firms established in Turkey in the first ten months of 2010, according to the report released by the Chambers and Commodity Exchanges of Turkey (TOBB). October 2010 alone witnessed a 16.11 percent rise in the number of foreign companies, the report reads. In the same month, 216 firms were established in Turkey with Iranian investment alongside 26 German companies.

EUROPEAN UNION

Visa-free travel for Albania, Bosnia, Herzegovina Citizens of Albania and Bosnia and Herzegovina who possess biometric passports are able to travel without a visa in the Schengen area from mid-December, according to the decision of the Council of the European Union dated November 2010.

www.ubcce.org 14

UBCCE Q – BLACK SEA AND CASPIAN AGENDA

European Commission adopted 2010 Enlargement Package The European Commission adopted on November 9, its Enlargement Package for 2010. The package outlined the current state of preparations, the challenges ahead, and the way forward for the Western Balkans, Turkey and Iceland. The Commission proposed Candidate

Status for Montenegro, and recommended that accession negotiations with Montenegro and Albania should be opened once these countries have met a number of key priorities set out in the opinions.

COUNTRY BOX

13 chapters are opened and 1 provisionally closed. Full implementation TURKEY of the obligations under the Customs Union and progress towards Candidate - normalisation of relations with Cyprus are needed before the country Applied in 1987 can advance more vigorously in its accession negotiations.

25 out of 35 chapters have been provisionally closed. Accession CROATIA negotiations have reached the final phase and should be concluded once Candidate - Croatia has met the outstanding closing benchmarks, in particular in the Applied in 2003 field of judiciary and fundamental rights.

The country continues to sufficiently fulfil the political criteria and the FYROM Commission renewed its 2009 recommendation for opening accession Candidate - negotiations. As a unanimous decision of Member States is required for Applied in 2004 the negotiations to start, a negotiated and mutually accepted solution to the name issue is essential.

MONTENEGRO In its opinion the Commission recommends Candidate Status, and the Potential opening of accession negotiations, if progress is recorded in a number of candidate (PC)- key areas as set out in the opinion. Applied in 2008

ALBANIA In its opinion, the Commission recommends the opening of accession PC - Applied in negotiations, if progress is recorded in a number of key areas as set out 2009 in the opinion.

SERBIA On 25 October 2010 the General Affairs Council forwarded Serbia’s PC - Applied in application to the Commission, which will begin preparing its opinion. 2009

BOSNIA The lack of a shared vision by political leaders on the direction of the HERZEGOVINA country continued to block key reforms and further progress towards PC – Not applied the EU.

KOSOVO* The EU supports Kosovo's efforts to fulfil its European perspective and PC – Not applied launched the Stabilisation and Association Process dialogue in January. *Under UNSCR 1244

www.ubcce.org 15 UBCCE Q ² BLACK SEA AND CASPIAN AGENDA

European Commission presents its new strategy towards 2020 The European Commission presented on November 10, its new strategy for a competitive, sustainable and secure energy. The Communication "Energy 2020" defines the energy priorities for the next ten years and sets the actions to be taken in order to tackle the challenges of saving energy, achieving a market with competitive prizes and secure supplies, boosting technological leadership, and effectively negotiate with our international partners.

EU boosts student mobility and governmental reforms in the European Neighbourhood countries and Russia The European Commission adopted on November 17, the ENPI Interregional Action Programme for 2011 which covers the European Neighbourhood countries and Russia and is ZRUWKDWRWDORI½PLOOLRQ2XWRIWKLVDOORFDWLRQ ½ PLOOLRQ ZLOO VXSSRUW PRELOLW\ RI VWXGHQWV DQG DFDGHPLF VWDII IRVWHULQJ KLJKHU education co-operation between the EU and the neighbouring partner countries (through Erasmus Mundus). ½PLOOLRQZLOOVXSSRUWSDUWQHUFRXQWULHV KDUPRQLVDWLRQDQGDSSUR[LPDWion of their national legislations with EU rules (through TAIEX) ½ PLOOLRQ ZLOO VXSSRUW DGYDQFHV RI JRYHUQDQFH UHIRUPV LQ WKH SDUWQHU FRXQWULHV (through SIGMA).

½PLOOLRQRI(8IXQGLQJWRPRGHUQLVH$OEDQLD·VDLUWUDQVSRUW The EU has launched on November 17, a ½ PLOOLRQ Project, seeking to modernise civil aviation in Albania by improving the free movement of passengers and goods, enhancing access to the air transport market and facilities, including airports, and by achieving operating standards comparable to those in the EU.

EU signs readmission agreement with Georgia The EU and Georgia signed on November 22, an agreement on the readmission of persons residing without authorisation. A visa facilitation agreement with Georgia, opening the way for easier travel and people-to-people contact across Europe, was already signed on June 17, 2010. The two agreements will enter into force once both Parties have completed their internal ratification procedures.

EU signs air transport agreement with Georgia for integration into the European common aviation market EU and Georgia had signed on December 2, in the margins of the EU Transport Council, a comprehensive air services agreement which will open up and integrate the respective markets, strengthen cooperation and offer new opportunities for consumers and operators. The agreement will establish a "Common Aviation Area" between Georgia and the EU based on common rules in important areas such as aviation safety and security.

EU welcomed Cancun Agreement The European Union welcomed the positive results of the Cancun climate conference. The balanced and substantive package of decisions adopted on December 11, known as the Cancun Agreement, represented an important further step on the road to building a

www.ubcce.org 16 UBCCE Q ² BLACK SEA AND CASPIAN AGENDA comprehensive and legally binding framework for climate action for the period after 2012, according to European officials.

%XOJDULDDQG5RPDQLD·V6FKHQJHQ$UHDHQWU\SXVKHGEDFN Admission of Bulgaria and Romania into the Schengen area, originally planned for the end of March, will be delayed until October at the earliest, announced Hungarian Interior Minister Sandor Pinter on January 6. He explained that the two countries still have a number of criteria they have to meet before they can be granted entry into the border-free zone. The criteria in question will likely become clearer by June.

EU and Serbia sign bilateral WTO accession agreement The EU and Serbia had signed on January 11, a bilateral agreement on Serbia's accession to the WTO. The agreement comprises provisions on tariffs for trade in goods and the reciprocal opening of the partner's respective services markets. These commitments will be embodied in the future Protocol of Accession of the Republic of Serbia to the WTO.

&RPPLVVLRQSURSRVHV½PLOOLRQPDFUR-financial assistance to Georgia The European Commission proposed on January 13, to provide macro-financial assistance to *HRUJLDRIXSWR½PLOOLRQZLWh half of the assistance to be disbursed in the form of grants and half in the form of loans. This assistance is part of a comprehensive EU package of up to ½ PLOOLRQ WR VXSSRUW *HRUJLD V HFRQRPLF UHFRYHU\ LQ WKH DIWHUPDWK RI WKH $XJXVW  conflict with Russia and the global financial crisis. It follows the successful implementation during 2009-2010 of a macro-financial assistance of the same amount. It will support the adjustment programme agreed by the Georgian government with the IMF under a Stand-By Arrangement, contributing to cover Georgia's external financing needs in 2011.

Special Report on EU aid instruments in the Southern Caucasus An audit by the European Court of Auditors of the new European Neighbourhood and Partnership Instrument (ENPI) has concluded that both the launch of the ENPI in the Southern Caucasus and its first achievements were varied across the region, suffering from insufficient preparation and the limited use by the European Commission of the financial tools available to it. According to the Court, the lengthy programming and design process did not suit the fast changing and conflict-affected environment of the Southern Caucasus, endangering the relevance of the assistance. Moreover, programming and design of assistance were not sufficiently guided by a structured dialogue with the beneficiary countries, as the process was largely driven by the internal procedures of the Commission.

BUSINESSEUROPE

BUSINESSEUROPE has just published a position paper with ten principles RQ ´6PDUW (8 (QYLURQPHQW3ROLF\0DNLQJµ$FFRUGLQJWRWKHSRVLWLRQSDSHULQRUGHUWREHHIIHFWLYHIDLU and proportionate, Europeǯs future environment policy must incorporate the following broad principles: (1) base actions on science; (2) provide an integrated policy approach; (3) stimulate innovation; (4) secure a global level playing field; (5) target all actors of society;

www.ubcce.org 17 UBCCE Q ² BLACK SEA AND CASPIAN AGENDA

(6) comply with single market rules; (7) ensure cost-effectiveness; (8) guarantee consistency and predictability; (9) promote transparency; and (10) think small first.

EUROPEAN INVESTMENT BANK (EIB)

Bulgaria A number of Bulgaria's key infrastructure projects will be financed by the EIB, Bulgarian Prime Minister Boyko Borisov and EIB Group President Philippe Maystadt have announced on January 21. The EIB head has vowed funding for Bulgaria's share in the Nabucco gas transit pipeline, the Struma Highway, the Black Sea Highway, the Hemus Highway, the second Danube Bridge with Romania, railways, waste plants and other projects. In addition to money, the EIB also promised to help Bulgaria with experts.

Serbia The EIB opened a new representation office for the Western Balkans in Belgrade on November 29, and signed three loan agreements worth ½325 million in support of infrastructure and energy projects. The opening of this office has significance in two respects according to EIB President Philippe Maystadt: to increase EIB activity in the region, and to stress the commitment by European institutions to support the countries in joining the EU.

Turkey Turkish bank Yapi Kredi has secured a ½ 200 million loan from the EIB to be used for clean energy and energy efficiency projects. The 15-year loan is the longest term EIB loan given to a private Turkish bank. Turkey is increasingly turning to renewable sources to meet the JURZLQJGHPDQGIRUHQHUJ\DVWKHFRXQWU\·V(QHUJ\0Drket Regulatory Authority (EMRA) recently approved 16 wind energy projects, worth $2.5 billion.

EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD)

Private Sector Support Facility for Western Balkans The EBRD is in the process of establishing the Private Sector Support Facility for Western Balkans, aiming (1) to increase the capability of SMEs in the Western Balkans to access markets and face competition by improving standards in the areas of environmental protection, occupational health and safety and product quality and safety; and (2) to establish a dedicated financing mechanism for private sector sustainable energy projects using financial intermediation model. In Albania, Bosnia and Herzegovina and Serbia the Facility will consist of two onlending windows through local banks (PBs) to support private sector investments as follows: SME Competitiveness Support window will facilitate financing (up to ½ 1 million per SME) of investments needed to comply with EU Directives in the field of environmental protection, occupational health and safety and product quality and safety, all as transposed or anticipated to be transposed into Albanian, Bosnian and Serbian laws;

www.ubcce.org 18 UBCCE Q ² BLACK SEA AND CASPIAN AGENDA

The facility will support commercial sector investments in energy efficiency and renewable energy (up to ½ 5 million per project) and residential sector energy efficiency investments (up to ½ 75,000 per project).

EBRD invested in record number of new projects in 2010 The EBRD continued its vigorous response to the impact of the global economic crisis on the countries where it invests, financing a record number of projects in 2010 and taking overall investments to unprecedented new levels. The number of project signings leapt by nearly one quarter to a new high of 386 from 311 in 2009 as the Bank worked to boost the process of economic reform especially in the less advanced countries of the Caucasus and Central Asia and in the Western Balkans. Overall, investments totallHG D UHFRUG ½ ELOOLRQ FRPSDUHG wiWK½ELOOLRQD\HDUHDUOLHU

WORLD BANK

Armenia The World Bank Board approved on January 11, a loan of $ 25 million to help Armenia protect the poor and support greater human capital development, and also strengthen FRPSHWLWLYHQHVVDQGSULYDWHVHFWRUGHYHORSPHQW7RHQKDQFH$UPHQLD·VFRPSHWLWLYHQHVVDQG raise its growth potential, this operation helps strengthen the competition framework and implement a new Mining Code adhering to international best practice for fiscal, environmental, social, and licensing standards.

Bulgaria The Government of Bulgaria signed on December 15, a Memorandum of Understanding ZLWK7KH:RUOG%DQNDLPHGDWSURYLGLQJVXSSRUWWRWKHFRXQWU\·VUDLOZD\VHFWRU By signing on to this memorandum, Bulgaria has commited its support for implementing reforms aimed at establishing a financially sustainable railway sector that is aligned with EU standards and policies, as part of prudent fiscal policy. As a result of these reforms, it is hoped that national carrier, BDZ, and national infrastructure operator, NRIC, will achieve higher levels of service, through increased labor productivity and efficiency.

Kazakhstan The World Bank approved on November 16, a $78 million loan for the Alma Electricity Transmission Project to the Republic of Kazakhstan to improve the reliability and quality of electricity supply to consumers in the Almaty region. The Project will expand the capacity of the Almaty Oblast transmission network in an environmentally responsible and financially sustainable manner.

Romania The World Bank approved on January 20, a loan woUWKRI½PLOOLRQIRU5RPDQLDZKLFKis the Second Development Loan to be disbursed to Romania. The program is part of inWHUQDWLRQDO ILQDQFLDO LQVWLWXWLRQV· VXSSRUW SDFNDJH DPRXQWLQJ WR ½ ELOOLRQ WR 5RPDQLD started by the IMF, European Commission and World Bank in May 2009.

www.ubcce.org 19 UBCCE Q ² BLACK SEA AND CASPIAN AGENDA

OECD

OECD urges Ukraine to put anti-corruption declarations into actions The OECD has reviewed 8NUDLQH·VHIIRUWVWRILJKWFRUUXSWLRQDVSDUWRILWV(DVWHUQ(XURSHDQ and Central Asian initiative, called the Istanbul Anti-Corruption Action Plan. (IAP). The review recommends that Ukraine: Adopt fundamental anti-corruption legislation to bring Ukraine in compliance with international standards and obligations; Strengthen public institutions responsible for tackling corruption and establish a dedicated anti-corruption investigative body with specialist prosecutors; Reform legislation relating to integrity of civil service and conflict of interest, and promote its implementation; Review the system of control of political party financing to ensure its transparency; Further develop public dialogue, particularly with business, in the fight against corruption.

LEGISLATION &PRIVATIZATION

Bulgaria's stock exchange started to sell shares Bulgaria's stock exchange started to sell shares on January 6 in order to expand the capital market in Sofia and attract companies from the whole region to list their shares. Bulgaria's only stock exchange became a public company in the middle of December after the Financial Supervision Commission approved its prospectus and the bourse was listed on its own platform. Representatives of the Finance Ministry and the Stock Exchange have commented that the move will give the ministry the opportunity to seek a strategic investor, make the Exchange transparent, increase interest towards the capital market and reinstate the trust in the latter.

Bulgarian Privatisation Agency's 2011 sell-off programme Bulgaria expects to finalise the privatisation of tobacco group Bulgartabac Holding and its remaining stakes in local electricity distribution companies by the end of the year, according to the Finance Ministry. The assets, together with Vazovski Mashinostroitelni Zavodi, building firms Montazhi and Promishleno Stroitelstvo Holding, the duty-free zones of Bourgas and Svilengrad and ten other companies in which the state owns stakes of over 50 percent are part of the privatisation agency's 2011 sell-off programme. The agency also plans to sell another 30 companies in which the country holds below 50 percent this year.

VAT to be charged for all cargos imported to Georgia from January 11 As per the new tax legislation of Georgia, customs offices of the country will charge VAT (18 percent) for all cargos with import mark. According to information placed on the official website of the State Revenue Committee, cargos with Export or Transit mark are tax exempt. If a part of cargo is for import, while a part of it is for export, the cargo is considered to be an imported one, thus, a tax will be charged for it.

www.ubcce.org 20 UBCCE Q ² BLACK SEA AND CASPIAN AGENDA

Iran unveils Kish Stock Exchange Iran has inaugurated the Kish Stock Exchange in the southern Iranian island to facilitate foreign investment and monetary activities.

Turkey to start thermal power plant privatizations Turkey is planning to privatize its thermal power plants, generating more than 16,000 MW. According to the Privatization Administration, the 2011 phase of privatization operations will begin with Hamitabat Thermal Power Plant in Thracia region, part of a batch that consists of four large thermal power plants and a number of smaller plants to be privatized in nine groups.

Turkish parliament approves renewable energy law The long-awaited law governing the generation of energy from renewable resources has passed through the Turkish parliament. The Renewable Energy Law aims to encourage energy production from renewables by providing incentives for the generation of energy from sources such as wind, solar power, biomass, hydropower and geothermals. According WRWKHODZUHQHZDEOHHQHUJ\SODQWVZLOOEHVXEMHFWWRSULFHVRIEHWZHHQ„DQG„SHU kW/h. A hydroelectric power plant will be able to selOHOHFWULFLW\DWDFRVWRI„WKHVDPH as the amount for a wind farm.

New Turkish Commercial Code aims to boost investment The Turkish parliament voted on a new commercial code on January 11 to replace the current half-century-old version. The new code incorporates internationally accepted accounting standards into domestic legislation, aiming to increase the transparency of enterprises and to bring Turkish legislation in line with corresponding EU legislation. The QHZFRGHLVH[SHFWHGWRLPSURYH7XUNH\·VEXVLQHVVHQYLURQPHQWDQGDOORZWKHFRXQWU\WR UDQNKLJKHULQWKHQH[W:RUOG%DQN·V´'RLQJ%XVLQHVVµUHSRUW.

OTHER

Turkey hosted high profile ECO summit The foreign ministers of countries in the Economic Co-operation Organisation (ECO) met in Istanbul on December 23, to discuss opportunities for cooperation and global economic developments. The regional organisation includes Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan. Turkey took over the presidency of the Council of Ministers, the managing body of the organisation, from Iran.

Turkey, Ukraine agree to debate free trade, visa exemption Turkish 305HFHS7D\\LS(UGRùDQPHWZLWKUkrainian President Viktor Yanukovych during his official visit to Ukraine on January 25. After their gathering and talks between Turkish and Ukrainian delegations, the two countries had agreed to start debating free trade and visa H[HPSWLRQ LVVXHV (UGRùDQ DQG

www.ubcce.org 21 UBCCE Q ² REPORTS

GLOBAL ECONOMIC PROSPECTS 2011

The world economy is moving from a post-crisis bounce-back phase of the recovery to slower but still solid growth this year and next, with developing countries contributing DOPRVW KDOI RI JOREDO JURZWK DFFRUGLQJ WR WKH :RUOG %DQN·V ODWHVW Global Economic Prospects 2011. The World Bank estimates that global GDP, which expanded by 3.9 percent in 2010, will slow to 3.3 percent in 2011, before it reaches 3.6 percent in 2012. In Europe and Central Asia, output is expected to expand by 4.7 percent in 2010, following a 6.6 percent decline in GDP during 2009, as several countries undergo intense restructuring. Output in Bulgaria, Kyrgyz Republic, Lithuania, and Romania stagnated or declined in 2010, and is forecast to expand by only 2 percent in 2011 and 3.3 percent in 2012. Excluding these countries, growth in the rest of the region is forecast to ease to 4.2 percent in both 2011 and 2012. The recovery in the region remains particularly sensitive to the situation in high- income Europe where the sustainability of sovereign debt remains a concern.

THE NEW GROWTH AGENDA COUNTRY ECONOMIC MEMORANDUM FOR ALBANIA

Albania can sustain growth in the future by implementing a new generation of policies and reforms focused mainly on education and skills, ICT development, energy sector, and better governance and rule of law, according to the recent report of the World Bank enWLWOHG´7KH New Growth Agenda: Country Economic Memorandum for Albaniaµ The report explores future sources of growth as Albania enters a new stage of development. The report addresses the investment climate and factors that influence the return on investment while also proposing measures for maintaining macro-financial stability of the economy and elaborates the growth challenges for Albania as an upper middle income country.

THE GREAT RECESSION AND DEVELOPING COUNTRIES:ECONOMIC IMPACT AND GROWTH PROSPECTS

The 2008²09 financial crisis, which originated in the United States and rapidly spread to the rest of world, resulting in the most severe and intense Great Recession since World War II, has posed new challenges for international policy coordination and the management of national economies. Questions are being raised about globalization, which has been a powerful engine of economic growth over the past three decades but exposes countries to more volatility and increases risk. The Great Recession and Developing Countries published by the World Bank, delves into 10 country case studies that explore growth during the precrisis boom, the effects of the crisis, policy responses, and recovery. Looking beyond the crisis, the volume undertakes projections of medium-term growth and explores the possible impact of the global crisis.

www.ubcce.org 22 UBCCE Q ² REPORTS

ENTREPRENEURSHIP SNAPSHOTS 2010: MEASURING THE IMPACT OF THE FINANCIAL CRISIS ON NEW BUSINESS REGISTRATION

The 2010 World Bank Entrepreneurship Snapshots (WBGES) provide a unique indicator of business creation around the world and facilitate the investigation of the factors that foster dynamic private sector growth. Now in its fourth year, the WBGES measure entrepreneurial activity in 115 developing and industrial countries over the six year period 2004-2009. Importantly, the data offer a distinctive and timely snapshot of the impact of the 2008-2009 financial crisis on entrepreneurial activity. There is wide variation in new business creation across countries: On average, about four new firms register every year for every 1,000 working age individuals in industrialized countries, while there is less than one new firm registered in low and low middle income countries. The data show that dynamic business creation occurs in countries that provide entrepreneurs with good governance, a strong legal and regulatory environment, and reduced red tape. The data also show that nearly all countries experienced a sharp drop in business entry during the crisis. However, industrialized countries experienced the crisis more quickly and more severely than other income groups.

DOING BUSINESS 2011: MAKING A DIFFERENCE FOR ENTREPRENEURS

Among the world's economies, Kazakhstan improved business regulation the most in the past year, according to ´Doing Business 2011: Making a Difference for Entrepreneursµ, the eighth in a series of annual reports published by IFC and the World Bank. Globally, doing business remains easiest in the high-income economies of the Organisation for Economic Co-Operation and Development (OECD) and most difficult in Sub-Saharan Africa and South Asia. But developing economies are increasingly active. In the past year, 66 percent reformed business regulation, up from 34 percent six years earlier. In the past five years, about 85 percent of the world's economies have made it easier for local entrepreneurs to operate, through 1,511 improvements to business regulation.

Ranks of UBCCE Member Countries Georgia 12 Kazakhstan 59 Germany* 22 Turkey 65 Austria* 32 Albania 82 FYROM 38 Serbia 89 Slovenia* 42 Greece 109 Armenia 48 Bosnia&Herz. 110 Bulgaria 51 Iran 129 Azerbaijan 54 Ukraine 145 Romania 56 Iraq 166 *Associate members of UBCCE

www.ubcce.org 23 UBCCE Q ² REPORTS

TRANSITION TO A LOW-CARBON ECONOMY PUBLIC GOALS &CORPORATE PRACTICES

$ QHZ 2(&' UHSRUW HQWLWOHG ´Transition to a low carbon economy: Public Goals and &RUSRUDWH3UDFWLFHVµ highlights decisions that companies are taking to fight climate change and recommends government actions to encourage them. The report, which covers OECD countries as well as China, India and South Africa, draws on national experiences and a survey of companies worldwide to assess business strategy on climate change. Today 400 of the Global 500 companies measure and report their GHG emissions. Though this is an important step towards managing emissions, there are no internationally-agreed standards for corporate GHG emission reporting so results are neither comparable nor credible. Governments could solve this problem by agreeing international corporate GHG accounting methodologies. To reduce emissions, nearly all 61 of the 63 companies taking part in the OECD survey said energy conservation was an obvious first step.

OECD ECONOMIC OUTLOOK

The OECD Economic Outlook analyses the current economic situation and examines the economic policies required to foster a sustained recovery in member countries. This issue covers the outlook to end-2012 for both OECD countries and selected non-OECD economies. Together with a wide range of cross-country statistics, the Outlook provides a unique resource to keep a breast of world economic developments.

2011 INDEX OF ECONOMIC FREEDOM

The Wall Street Journal and the Heritage Foundation have recently published the 2011 Index of Economic Freedom, which evaluates the economic openness, the rule of law and competitiveness of 183 countries of the world. The report ranked all Balkan countries slightly below the regional European average and rated Hong Kong as the ZRUOG·V freest economy for a 17th year in a row.

Ranks of UBCCE Countries Austria* 21 Slovenia* 66 Germany* 23 Turkey 67 Georgia 29 Albania 70 Armenia 36 Kazakhstan 78 FYROM 55 Greece 88 Bulgaria 60 Azerbaijan 92 Romania 63 *Associate members of UBCCE

www.ubcce.org 24 UBCCE Q ² FROM MEMBERS

BULGARIAN INDUSTRIAL ASSOCIATION (BIA)

BIA Study on Current Situation on the Labour Market in Bulgaria BIA conducted an ´$QDO\VLVRIWKH&XUUHQW6LWXDWLRQDQG7HQGHQFLHVRQWKH/DERXU0DUNHW DQG :RUNIRUFH LQ %XOJDULDµ XQGHU its Human Resources Development Operational Programme. The analysis relies on data for the period 2005-2009 and aims at researching the current situation and expected tendencies on the labour market in sector and regional aspect, including demographic tendencies, educational and qualification structure. The study shows that lay-offs are not a priority for the Bulgarian business. Most companies no longer plan to reduce the number of employees, but on the contrary there is a trend of employment stabilization,WWXUQVRXWWKDWHYHU\ILIWKHPSOR\HHLQWKHFRXQWU\LV EHORZ WKHFRPSDQ\·V capacity and professional standards. Meanwhile, nearly half of the employers surveyed believe that the preservation of key professionals is a priority of utmost importance to the enterprise.

2010 BBLF Annual Responsible Business Awards On February 17, for the eighth consecutive year, the Bulgarian Business Leaders Forum (BBLF) will hand the most prestigious CSR awards to the companies deemed by the jury to be most deserving in the following categories: Human Capital Investor, Investor in Society, Investor in Education, Investor in Environment, Cause-related Marketing.

Workshop on development of workforce competence A three-day workshop with foreign experts was held on December 15-17, in Sofia. The forum was part of a project "Development of Workforce Competence Assessment System by Sectors and Regions" (CASSY) executed by BIA under 2007-2013 Human Resources Development Operational Programme. Winfried Schwehn from Germany, Stanislav Avsec from Slovenia and Israel Weisman from Israel presented the experience of their countries in the fields of vocational education and training (VET), workforce competence assessment and the possibilities to enhance human resource quality.

HELLENIC FEDERATION OF ENTERPRISES (SEV)

Greek Corporate Governance Code SEV Hellenic Federation of Enterprises has drafted a corporate governance code as part of its mandate to promote the continuous enhancement of the Greek corporate institutional framework and broader business environment as well as the improvement of the competitiveness of its members and of the Greek economy as a whole. In engaging in this initiative, SEV was motivated by the absence in Greece of a widely endorsed and applied ´FRPSO\RUH[SODLQµFRUSRUDWHJRYHUQDQFHFRGHVHWWLQJRXWVWDQGDUGVRI good practice for Greek companies. The Code is inspired by best practice corporate governance as set out in the OECD Principles of Corporate Governance and recommendations of the European Commission, and takes into account both the Greek regulatory framework and established practices and cultural characteristics in Greece.

www.ubcce.org 25 UBCCE Q ² FROM MEMBERS

SERBIAN ASSOCIATION OF EMPLOYERS (SAE)

Study on Conditions and Burdens on Doing Business and Collective Bargaining SAE has released the results of its analysis of business environment in the Republic of Serbia in 2010, done with the support of International Labour Organization (ILO) and Austrian Development Agency (ADA). These results are presented in three publications - one related to the general economy, while the other two are focused on the sectors of agriculture and tourism and catering. The publications illustrate the numerous problems that companies are facing and how those issues affect the capacity of private sector for social dialogue. It also lists suggested measures that need to be implemented in order to improve the business climate and the capacity of employers for tripartite dialogue.

TURKISH INDUSTRY AND BUSINESS ASSOCIATION 7h6ú$')

7h6ú$'represented Turkish private sector in G20 Business Summit 7h6,$' UHSUHVHQWHG WKH 7XUNLVK EXVLQHVV FRPPXQLW\ LQ WKH % 6XPPLW KHOG RQ WKH sidelines of the G-20 Summit in South Korea's capital Seoul on November 11-12, 2010. The summit was hosted E\7h6,AD's Korean counterpart, the Federation of Korean Industry, (FKI), along with the Korean Chamber of Commerce and Industry, the Korean International Trade Union, and the Korean Federation of Banks. 7h6ú$'&KDLUZRPDQ8PLW%R\QHUWRRNSDUWLQVHYHUDOURXQd-table meetings and a closing dinner with the participation of the heads of state of the G-20 member countries. Under the umbrella theme of "The Role of Business for Sustainable and Balanced Growth", four central agenda issues and 12 reports previously prepared by working groups were discussed at these roundtables. As a participating member, Chairwoman Boyner contributed to the Foreign Direct Investment Working Group report. The B20 Summit participants made a joint declaration based on the reports of the working groups presented to the heads of state at the end of the summit. The B20 summit in Seoul is the second following Th6ú$' VSDUWLFLSDWLRQ in the March 2009 summit in London.

2010 Foreign Policy Awards 7KHHGLWLRQRI7h6ú$'%RVSKRUXV3UL]HIRU European Understanding was presented on November 4 to Dr. Arend Oetker, the Chairman of German Council on Foreign Relations (DGAP) & Arend Oetker Holding and Vice Chairman of German Industry Federation (BDI) E\DFHUHPRQ\DOVRDWWHQGHGE\&HYGHW<×OPD]7XUNLVK0LQLVWHURI6WDWH7h6ú$'GHFRUDWHV this award since 2003 to EU citizens or institutions who contribute on positive basis to discussions over Turkey's EU accession process.

7h6ú$'KRVWHGWKHODXQFKLQJRI´:RUOG(QHUJ\ 2XWORRNµ5HSRUWLQ7XUNH\ 7h6ú$' V(QHUJ\:RUNLQJ*URXSKRVWHGRQ1RYHPEHUDPHHWLQJIRUODXQFKLQJRI:RUOG Energy Outlook 2010 report which is a reliable source on global energy trends published by the International Energy Agency (IEA). The opening speeches of the meeting were made by 7h6ú$'&KDLUZRPDQhPLW%R\QHUDQG0LQLVWHURI (QHUJ\DQG1DWXUDO 5HVRXUFHV 7DQHU <×OG×]

www.ubcce.org 26 UBCCE Q ² FROM MEMBERS

In her speech, the Chairwoman underlined the fact that the necessary strategy which would enable the realization of crucial reforms in the country could only be realized by taking into consideration the views of the private sector which is expected to invest $ 100 billion in the sector. She also expressed that a full competitive and functioning market makes imperative efficient mechanisms of inspection and control. Subsequently, Dr. Fatih Birol, Head Ecoomist of IEA made a presentation of the report and a panel entitled "Perspectives of Energy Market Policies on the way to become a regional power".

41st General Assembly 7h6ú$' VVWAnnual General Assembly convened in Istanbul on January 20, 2011 with the participation of PM Recep Tayyip Erdoùan, as guest of honour. Within the framework of the Assembly, WKHQHZFKDLUPDQRI+LJK$GYLVRU\&RXQFLOZDVDOVRHOHFWHGDQG(UNXW<FDRùOX RQHRIWKHIRUPHU3UHVLGHQWVRI7h6ú$' UHSODFHG0XVWDID.RoZKRKDVEHHQUXQQLQJWKLV mission for the last six years. The Assembly was also the occasion to announce the 40th anniversary activities of the association.

TURKISH CONFEDERATION OF EMPLOYERS ASSOCIATION (TISK)

TISK 24th General Assembly The 24rd General Assembly of TISK took place on December 11-12, in Ankara. The General Assembly was attended by Minister of State Zafer Caglayan, Turkish Labor and Social Security Minister gPHU 'LQoer and representatives of political parties and NGOs. Presidential election of the General Assembly of TISK were held on December 12 at TISK HeadquartHUVDQG7XùUXO.XGDWJRELOLNZDVre-elected DV3UHVLGHQWZKHUH+DNN×0DWUDüand 7DQGRùDQ7RNJ|]ZHUHHOHFWHGDV9LFHPresidents.

CONFEDERATION OF EMPLOYERS OF UKRAINE (CONFEU)

,QWHUQDWLRQDO FRQIHUHQFH ´*UHHQ HFRQRP\- (XURSHDQ FKRLFH RI 8NUDLQHµ WRRN SODFH LQ Ukraine on December 16, 2010 Under the auspices of Embassy of Switzerland in Ukraine, European Programme of International Renaissance Foundation and Heinrich Boll Foundation the International FRQIHUHQFH ´*UHHQ HFRQRP\- (XURSHDQ FKRLFH RI 8NUDLQHµ WRRN SODFH Ln Ukraine on December 16, 2010. The Conference general objective was to enhance the public awareness in Ukraine on policy for greening EU economy as well as modern trends of a low-carbon society. The Conference was attended by the Confederation Advisor Rodion Kolyshko who informed on thHQDWLRQDOHPSOR\HUV·RUJDQL]DWLRQVDQGDVVRFLDWLRQV·YLVLRQRID´JUHHQLQJµHFRQRP\·V issues and also informed on results of seminar held in collaboration with UBCCE and GTZ which took place in Donetsk on October 7-8 and dedicated to the role of business DVVRFLDWLRQVLQWKH´JUHHQLQJµHFRQRP\SURFHVV

www.ubcce.org 27 UBCCE Q ² POINT OF VIEW

DE-CARBONIZING THE ECONOMY! BY ONDER ALGEDIK,SECRETERY GENERAL,CLIMAT CHANGE PLATFORM &SENIOR CONSULTANT,REC TURKEY

Recent climate catastrophes show strong signal of the current potential of climate change. The floods in Pakistan and Australia, forest fires in Russia are the latest examples of extreme climate events. There is a rising question in our minds: What is the difference between the past and today?

The CO2 concentration was 280 ppm (part per million) before industrialization. Today, the concentration is 388 ppm and the globe average temSHUDWXUHKDVLQFUHDVHGDURXQGžC as compared to pre-industrialization level. Because of the greenhouse gases generated, global temperature is rising and the climate is much more unstable than ever.

According to the 4th Assessment Report of the Intergovernmental Panel of Climate Change (IPCC), that was released in 2007, if we can not manage to keep temperature increase below 2žC (equal to 450 ppm CO2 concentration), this will cause tipping point of climate which means global warming could run out of control. Even the world stops emitting greenhouse gas emissions right now, the next stop will be somewhere around 6žC of global warming, which means climate catastrophes would become an ordinary part of climate.

,3&&·VV\QWKHVLVRIDVXLWHRIFOLPDWHPRGHOVLQGLFDWHVWKDWGHYHORSHGFRXQWULHVQHHGWR reduce emissions by 25-40 percent below 1990 levels by 2020, and 80-95 percent below 1990 levels by 2050, in order to stabilize atmospheric greenhouse gases to 450 ppm CO2-eq. That concentration, however, would only provide a roughly 50/50 chance of staying below a catastrophic global average temperature rise of Ý&DERYHSUH-industrial level. Another study announced by James Hansen, head of the NASA Goddard Institute for Space Studies, just after the 4th Assessment Report, stated that safe concentration that will not cause tipping point of the climate is 350 ppm which is lower than toGD\·VFRQFHQWUDWLRQSSP

Such a picture is threatening the existence of humanity and risking human based activities such as the economy. Since the first UN Climate Conference in 1979, scientist and government representatives have been negotiating on the international framework of tackling climate change. There were two main outputs of these negotiations: UNFCCC- United Nations Framework Convention on Climate Change effective since 1994 and the Kyoto Protocol effective since 2005.

Climate Change behind the Economy The last decade shows so many scientific results and negotiations outputs on climate change. This picture reflects adaptation of political platform in respect to concerns on climate change. The economy is also not free from these scientific and international decisions. As the risk is big and as the stakeholder engagement is the crucial part of the global solution, economy

www.ubcce.org 28 UBCCE Q ² POINT OF VIEW should take exact position by de-carbonizing the economy. The model of de-carbonizing economy is known as low carbon economy.

$FFRUGLQJ WR 7XUNLVK %XVLQHVV &OLPDWH 3ODWIRUP·V UHSRUW ´&DWFKLQJ XS WKH VW &HQWXU\ Technology, Finance and Supply Chain in TraQVLWLRQ WR /RZ &DUERQ (FRQRP\µ global market size of low carbon economy is reaching up to ½3,65 trillion in 2008, which is almost equal to 5,6 percent of global gross product. Emerging low carbon economy sub-sector is main and developing part of the market compared to renewable energy and environmental sub-sectors (see Graph-1).

Graph 1: Low Carbon Market sub-sector market size for 2008

The main driving force of the low carbon economy is reducing GHG emissions in each economic activity, shortly de-carbonizing economy. A simple example of such activities could be calculating GHG emissions of the product/service covering whole life-cycle, from raw material to end product, usage to disposal, and then optimizing the emissions in terms of carbon footprint. Another example for the company is also calculation of GHG that comes from company activities and reduction in emission.

Positioning in the new market One of the remarkable questions is taking position in emerging low carbon economy. The risk of loosing stability of climate would risk our lives as well as business suppliers and

www.ubcce.org 29 UBCCE Q ² POINT OF VIEW customers. Business can position itself in an active manner. The best instrument for the direct action of companies is to determine their GHG emissions in the supply chain, to determine the financial models and opportunities and to discover available technologies including climate friendly innovation.

According to surveys, 70 percent of carbon emission reductions are achievable by using available technologies. On the other hand, 30 percent of reduction potentials are the cost negative projects, which results in savings in carbon and cost. These facts give business new potential for the climate friendly market.

On the other hand, the current dynamics of the market requires an upgrade of the LQYHVWPHQW DOPRVW HYHU\  \HDUV 7RGD\·V LQYHVWPHQW ZRXOG GHILQH WKH FRPLQJ \HDUV· market potential as well as low carbon path to companies. Therefore, for today, one of the main risks for the business is the lack of agreement on post-2012 in Kyoto Protocol. In any case, business has to calculate risks that come from international agreement and climate change, estimate potentials and act for mitigating risk as well as GHG emissions.

Strong Platform For the Business The reaction of companies in the market is uneven. There are leading companies with high motivation to transition to low carbon economy. These companies have generated low carbon goods and services and minimize their risks for the future But, in any case, a joint effort would lead good leadership in transition to a low carbon economy.

The Regional Environmental Center - REC Turkey and Turkish Industry and Business Association ² 7h6ú$'HVWDEOLVKHGWKH7XUNLVK%XVLQHVV´&OLPDWH3ODWIRUPµWRVXSSRUWWKH activities in the combat against climate change carried out by the business community, and to assist in the transition to a reduced carbon economy. In an era where a new carbon- focused economy model is emerging, the platform has been developing tools to assist companies in adapting to this paradigm shift in a more rapid, efficient and cost-effective way.

The main activities of the Climate Platform are: Developing tools for strengthening institutional capacity on climate change and risk management, Providing information on the use of low carbon technology options in the transition to the new economic model, Ensuring participation in national and international meetings and activities, Supporting the development of national climate change policies, Enabling the active participation of the business world in international negotiations.

According to the recent study conducted by the United Nations Framework Convention on Climate Change, 75 percent of all investments to be made for combating climate change are expected to be covered by the private sector. Such a investment requires new economy and

www.ubcce.org 30 UBCCE Q ² POINT OF VIEW

LQWHUQDWLRQDO SDUWQHUVKLS EDVHG RQ VKDUH RI H[SHULHQFH 7KDW·V ZK\ 7XUNLVK %XVLQHVV ´&OLPDWH3ODWIRUPµLVDSDUWRI,QWHUQDWLRQDO&RUSRUDWH/HDGHUV*URXSRQ&OLPDWH&KDQJH which is coordinated by Prince of Wales HSS Charles. Climate platforms of UK, EU, Ireland, USA, Chile, Singapore, Brazil, Hong Kong, South Africa, South Korea and Turkey are working closely to support strong activities.

Opportunity to save future! 16th Conference of Parties (COP 16) on Climate Change held in Cancun, Mexico did not give a clear roadmap for post-2012 climate change regime. On the other hand, instead of losing time by waiting for a binding and ambiguous agreement outcome, there are some countries, municipalities, companies and also private sector leaders who are looking for pioneering steps to mitigate risk of climate change. The main actors in economy now have realized the risks, we would be facing both environmentally and economically if the issue of climate change is not tackled in a sustainable manner.

The Climate Platform and other similar structures are taking into account the risks of climate change and opportunities in low carbon economy that can save both human lives and human activities by working hard for the business to take exact position for the de-carbonization of the current economy.

The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to UBCCE.

www.ubcce.org 31 UBCCE Q ² UPCOMING EVENTS

AZERBAIJAN INVESTORS'SUMMIT 2011 Azerbaijan Investors' CONNECTING CASPIAN SEA REGION AND CAUCASUS Summit 2011 TO EUROPE AND BEYOND Connecting Caspian Sea BAKU,AZERBAIJAN,MARCH 2 ² 3 Region and Caucasus to Europe and Beyond Euroconvention Conferences, the American Chamber of Baku, Azerbaijan, March 2-3 Commerce of Azerbaijan, the European Azerbaijan Society, Azerbaijan Turkey Business Association and the 11th Bulgaria Building Week - Technologies, Union of Black Sea and Caspian Confederation of Equipment and Enterprises (UBCCE) are pleased to announce the Materials ² A New Azerbaijan Investor's Summit, firmly scheduled for Vision to Construction March 2 -3, in Baku. Sofia, Bulgaria, March 8 ² 12

Azerbaijan's economy is thriving, credit ratings are UBCCE Fourth General improving, its focus on non-oil sector industries is taking Assembly root and slowly substituting imports with local sourcing ´6$9(7+('$7(-FOR 8%&&(0(0%(56µ and the Country is clearly becoming the preferred hub Istanbul, Turkey, March 15 and location for businesses in Caspian Sea Region and South Caucasus. South-East European Congress on Energy An opportunity to meet with the key Government Efficiency and Officials and relevant decisions-makers in the area of Renewable Energy financial services, alternative energy, agri-business, food Sources & Save the Planet - Waste processing, ICT, telecom not to mention the ever-growing Management and infrastructure sector (air, maritime, roads transportation, Recycling Conference water management, construction, PPP, etc...). and Exbition Sofia, Bulgaria, April 13 - 15 For further information or to profit from special rates available to UBCCE Members please contact Mr. Preslav TREA ALBEXPO Bobev (T. +421 905 107703, [email protected]) Tourism and Real Estate Expo-Conference Tirana, Albania, April 14-15 11TH BULGARIA BUILDING WEEK TECHNOLOGIES,EQUIPMENT AND MATERIALS ² Black Sea Financial and A NEW VISION TO CONSTRUCTION Economic Forum SOFIA,BULGARIA,MARCH 8-12 Burgas, Bulgaria, April 16-17

Second Trabzon Silk Under the auspices of the Ministry of Regional Road Businessmen Development and Public Works of Bulgaria, between Summit March 8 and 12, Sofia will host the most prestigious Trabzon, Turkey, April 27-30 International Specialized Exhibition in the country and the Balkans, ´Bulgaria Building Weekµ.

www.ubcce.org 32 UBCCE Q ² UPCOMING EVENTS

The ambition of the organizers is to promote the exhibition as a center of attraction for all distributors and professionals from the region and provide an opportunity for direct contact and trade negotiation, optimization of business and finding new partners and customers. The whole exposition will be enriched with the conference "Building Green - Stable Construction and Energy Efficiency". For the first time within the framework of the exhibition will be held a conference on "Geodesic Technologies and Markets 2011".

SOUTH-EAST EUROPEAN CONGRESS ON ENERGY EFFICIENCY AND RENEWABLE ENERGY SOURCES &SAVE THE PLANET -WASTE MANAGEMENT AND RECYCLING CONFERENCE AND EXBITION SOFIA,BULGARIA,APRIL 13 - 15

The South-East European Congress on Energy Efficiency & Renewable Energy Sources and ´6DYHWKH3ODQHWµ- the Waste Management & Recycling Conference & Exhibition are great opportunities for the leading players in the sectors to bring modern technologies to the Region and find new partners and clients. The events organized by Via Expo will be held in Sofia, Bulgaria, in the period April 13-15. Over 50 speakers from 18 countries (Austria, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, Germany, Japan, Libya, Lithuania, Poland, Romania, Serbia, Slovenia, Switzerland, UK and USA) will share their experience. The program consists of themes and discussions that are primarily oriented toward investors and municipalities, specialists from different industry branches. EE & Renewable Financing, Energy Efficiency and Decentralized Energy, RES Electricity, Smart Grid Platform, Waste management, Collection and Transportation Technologies and Recycling are the topics to be discussed at the three-day forums. 7KHKRWWRSLFLV´:DVWH-to-(QHUJ\µ. For the fist time there will be held Solar Business Forum for the Balkans co-organized by Via Expo and SolarPV.TV. It will show the opportunities for investment and production of solar devices and plants in the region of South-East Europe. Exhibitors from 10 countries will display their state-of the-art products, solutions and services in the fields of renewable energy sources, energy efficiency, waste management and recycling. Among the participants are well known names like Enercon, Global Wind Power, Fronius, Hyundai, voestalpine Krems, Phono Technologies Switzerland, Franki Grundbau, Eurosol, Siemens, Solea, PowerWind, Srabag AG, Erema Engineering Recycling Maschinen, Sackl Anlagenbau GmbH, A.S.A Bulgaria, Recycling Bulgaria etc. It is to be noted that UBCCE is one of the partner of these important regional events. For more please visit: www.viaexpo.com

www.ubcce.org 33 UBCCE Q ² UPCOMING EVENTS

TREA ALBEXPO TOURISM AND REAL ESTATE EXPO-CONFERENCE TIRANA,ALBANIA,APRIL 14 ² 15

The Foreign Investors Association of Albania (FIAA) with the support of the Ministry of Tourism, Culture Youth and Sports of Albania is organising the second edition of the expo- FRQIHUHQFH RQ 7RXULVPDQG 5HDO (VWDWH LQ $OEDQLD ´75($ $/%(;32µLQ$Sril 14 - 15, in Tirana, Albania. This exclusive event will consist on one rich Exhibition on: Albanian tourism potentials through the Ministry of tourism, National Tourism Agency (AKT), Municipalities and Projects; tourism infrastructure; foreign and domestic companies such as Tourism Agencies, Tour Operators, Airlines, Real Estate, Resorts, Construction companies, Hotels, Brokers, Insurance and Banking; and one International Conference focused on: a program of strategic plans, master-plans, policies, projects and opportunities to increase the development in the country, by a selected panel of experts; legal expertise on property and land registration; various services and meeting opportunities with the right contacts. The bilateral section that will offer an ideal opportunity for business leaders to meet face-to- face and hold substantive discussions, becoming more familiar with one another, eventually leading to the creation of joint ventures and strategic alliances. For more please visit www.albexpotourism.com

BLACK SEA FINANCIAL AND ECONOMIC FORUM BURGAS,BULGARIA,APRIL 16 ² 17

The Black Sea Organization for Integration and Sustainable Development is organising the Black Sea Financial and Economic Forum on April 16 ² 17, in Burgas, Bulgaria. The Forum will be focused on investment attractiveness and economic cooperation in the region. The Forum aims to form a platform to discuss major topics including: investment attractiveness of the region; financial and economic structure of the region; legal aspects of international cooperation; capacity of the bank system to secure investment integration; trade and economic interaction in the Black Sea region; and real estate property. For more please visit www.Congress.BlackSea-online.org

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