Russia & Egypt: new age of cooperation

Special edition from Russia

May 2015

IN THIS ISSUE 2 Global Prospects

Global Prospects Russia increasing 3 high tech exports Political & Business Renaissance of Russia-Egypt relations

which prospects of further devel- From mutual trade opment of all complex of the bilat- to mutual investments eral relations, topical internation- al issues were discussed took place. In the presence of heads of states a number of documents on Afrocom bilateral interaction, including 4 is in creative growth about cooperation in nuclear The Coordinating Committee power and attraction of invest- for Economic Cooperation ments were signed. Within visit with Sub-Saharan Africa Vladimir Putin also met the Patriarch Aleksandriysky and Africa Feodor II. The two presidents were dis - “Crane Technologies” cussed ways to advance bilateral 5 entering the market relations, in addition to regional of Egypt and international issues of mutual concern. They will also exchange views regarding the Rostec Corporation developments in the Middle is expanding its presence East, the situations in Syria and in Asian markets Libya and how to push forward the peace process between the Palestinians and Israelis. This will be President Putin’s first EGYPTAIR Prominent visit to Egypt in ten years and it Operation Between Cairo Russia and Egypt endure the renaissance of the relations There are no doubts that the most will follow the meeting presi - and Moscow between two countries — both politic, and economic. The inter- powerful impulse was given to dents held in the Black Sea national situation and global tendencies of the last time prompt development of the relations resort of Sochi, Russia, in only a right way — a way of friendship, cooperation and devel- between two countries during August 2014. opment of mutually beneficial relations. Trade and Industrial Vladimir Putin’s two-day official Russian President Vladimir In the skies of the planet Dialogue Russia — Egypt will take place in Cairo and it will be visit to Cairo invited by the Putin’s visit to Egypt was con - 6 World fleet of Sukhoi Superjet the largest contribution to development of the relations between President of the Arab Republic of cluded with agreements to set up 100 steadily growing two countries. The event will demonstrate the investment and Egypt Abdelfattakh of Sissi in a nuclear power plant, a free export potential of Russia, will contribute to strengthening of February this year. In the first day trade area and the first Egyptian “Russian Helicopters”: business contacts, as well as to the expansion and diversifica- of the head of states visited the sovereign investment fund. tion of trade and economic cooperation between the Russian Cairo opera. Next day the Russian- international projects Federation and the Arab Republic of Egypt. Egyptian negotiations during See page 2

Smart Transfers: 7 those that include Russian KAMAZ in Africa ­bilateral prep 67 KAMAZ trucks have been delivered to the UN World Food Programme in Uganda. The Russian trucks will assist the WFP’s transportation service to pro - vide needy countries with humanitarian aid. Vnesh­econom­bank St.Petersburg International Economic 8 The KAMAZ trucks are Russia’s in-kind contri- Forum, 18-20 June, 2015 bution to the UN World Food Programme. Sergey Shishkin, the Russian ambassador to SPIEF gathers the leading decision-makers of Memorandum Uganda; Musa Ekveru, Ugandan Minister for the emerging economic powers to identify and of Cooperation the Prevention of Disasters; and Michael deliberate the key challenges facing Russia, Dunford, Director of the WFP in Uganda, attend- emerging markets, and the world at large, while ed the ceremony for the transfer of the trucks. engaging communities to find common purpose The CCI of Russia The new KAMAZ vehicles have become part and establish frameworks to forge solutions and the CCI of Benin of the regional fleet for the UN World Food which will drive the growth and stability agen- Programme, which is based in Kampala and car- da. The St. Petersburg International Economic ries out operations in Uganda and neighboring Forum (SPIEF) was founded in 1997 and since countries. 53 KAMAZ trucks were immediately 2006, it has been held under the auspices of sent to help with the supply of products and the President of the Russian Federation. Over humanitarian aid in South Sudan, and the rest the past decade, the Forum has developed into will be used in Uganda. a leading global business network, attracting The Russian government allocated more over 7,500 international and Russian partici- than 720 million rubles from the federal budg- pants, including government and business lead- et to purchase trucks for the needs of the United ers from the emerging economic powers as well Nations. A total of 218 trucks will be trans - as leading global voices from academia, the ferred to the World Food Programme. media, and civil society. 2 Special edition from Russia

may 2015 IN BRIEF Global Prospects STATISTICS For a long period of time Egypt is a leading partner for the USSR and Russia in the Middle See page 1 East and Africa. With the assistance of the Soviet Union 97 industrial objects were built With bilateral relations between Cairo and in Egypt, including the High Aswan Dam, Moscow seeing a closeness that brings to mind Helwan Steel Works plant, Nag-Hammadi alu- their Nasserist-era courtship, the visit of minum plant, which continue to play an Russian President Vladimir Putin show a num- important role in the Egyptian economy. After ber of important economic cooperation deals. the collapse of the Soviet Union the business Topping the list is an agreement in the ener- cooperation subsided but the last years wit- gy sector, where Egypt is currently facing a cri- ness the steady growth. sis that led to recurrent nationwide blackouts According to the Russian customs statistics, last summer. The two sides have agreed to the commodity turnover between the Russian cooperate in the construction of a nuclear Federation and the Arab Republic of Egypt in power plant in Dabaa, on the northwestern 2014 exceeded 4,6 bln $ which is a 80% coast overlooking the Mediterranean. An growth comparing to 2013 (2 bln 945 mln $). Egyptian delegation is scheduled to travel to The Russian exports to Egypt exceeded 4,1 Russia to negotiate the technical and financial bln $ (91% growth comparing to 2013). The terms of the agreement with representatives of main articles of the Russian export are oil and Rosatom, the Russian state nuclear energy cor- petroleum products (26%, 1.1 bln $, 1.5 mln poration. tonnes), cereals (24%, 0.98 bln $, 3.8 mln Putin and Al-Sisi also agreed to create a free dent that this new fund will become an invalu- Abdel-Fattah Al-Sissi, which will attract invest- tonnes), wood (10%, 431 mln $, 0.8 mln trade area between Egypt and the Eurasian able tool to attract foreign investment to the ment,” he said. tonnes), iron (10%, 412 mln $, 0.8 mln tonnes), Customs Union (ECU), which includes Russia, country. Russia provides about 40 per cent of the grain ground transport and spare parts for it (7%, Kazakhstan and Belarus. The agreement would The RDIF was established in 2011 by the consumed in the country, while it imports much 283 mln $), sunflower oil (7%, 288 mln $, 365 allow customs-free export of Egyptian agricul- Russian government to carry out investment of its fruit and vegetables from Egypt. The RDIF thousand tonnes) etc. tural and industrial goods to the ECU, which primarily in Russia, alongside reputable inter- continues to explore power generation projects Egypt delivered to Russia over 520 mln $ of would boost Egypt’s trade. national financial and strategic investors. Egypt in the region, and it has brought companies products (24% growth comparing to 2013). The agreement between the Russian Direct intends to create its own sovereign investment interested in power generation and agriculture The main articles of Egyptian export to Russia Investment Fund (RDIF) and the Egyptian fund in cooperation with the RDIF, following to Egypt. “Our intention to support Egypt in are oranges and other citrus (36%, 182 mln Ministry of Investment to enhance investment in the footsteps of other countries that have establishing its own investment fund does not $, 198 thousand tonnes), potato (34%, 172 cooperation between the two countries was shown an intention to launch investment funds mean we have stopped searching for attractive mln $, 308 thousand tonnes), onion (6,8%, also high on the agenda of the visit. RDIF is a based on Russian experience and to employ the investment opportunities in Egypt,” he clarified. 34.7 mln $, 66.8 thousand tonnes), apparel $10 billion fund established by the Russian gov- co-investment model that RDIF operates under. From the beginning the RDIF has been con- and textile (6,4%, 32.6 mln $) etc. ernment to make equity investments, primarily “We are ready to offer Egypt our full support,” sidering different investment opportunities in in the Russian economy. Dmitriev said. the country, he said, and many Russian compa- The RDIF will support the establishment of Despite the war on terrorism currently nies, especially in the energy, chemicals or an Egyptian investment fund, according to a yet underway in the region, Egypt is well placed to automotive sectors, have shown interest in the another agreement. According to the agreement, attract foreign investment through the new Egyptian market. “We are working on several the RDIF will provide wide-ranging advice to fund. “Through the new Egyptian investment projects and will announce them on completion. the Ministry of Investment, including expertise fund, the government will put money in differ- We are bringing a large delegation of major on setting up the fund, the co-investment model, ent projects, which will encourage foreign Russian companies with us that are very inter- management structure and investment strategy. investors to seek partnerships with the govern- ested in doing business here.” The RDIF will also provide support in attracting ment and to invest their money in Egypt,” “They will discuss a number of specific pro- international investors to the fund through its Dmitriev said. jects in the energy, agriculture and logistics sec- own experience in establishing partnerships Bilateral trade between Egypt and Russia tors, enhancing food security and promoting According to the Russian Federal Agency for with other leading sovereign funds. has increased over recent years, going up by sustainable growth in the region,” he said. The Tourism (Rostourism), in January-September Kirill Dmitriev, CEO of the RDIF, told Al almost half in 2014 over a year earlier and recent decline in the value of the Russian cur- 2014 Egypt was visited by 2.18 mln Russian Ahram Weekly that Egypt was a country with amounting to more than $4.5 billion. Dmitriev rency, the ruble, has also triggered the idea of citizens (in January-September 2013 – 1.65 major investment potential in a number of sec- said that agriculture would likely see the larg- using the national currencies to settle bilateral mln visitors, 32% increase), including 1.89 mln tors and one of Russia’s key economic partners est investment in the immediate future. “Egypt trade debts. Settling accounts in national cur- tourists and 2.5 thousands of business trave- in the Middle East. “The intended fund will is a country with major investment potential in rencies will contribute to creating more favour- lers. The Arab Republic of Egypt keeps its sec- attract international investment from countries a number of sectors and the fund will help to able conditions for the millions of Russians who ond place among the countries of the world other than the Gulf Cooperation Council (GCC) create investment opportunities in these sec- spend their holidays in Egypt, as the decline of most visited by Russians. At the same period to invest in Egypt, as Saudi Arabia, the UAE and tors, including agricultural infrastructure as the value of the ruble has led to reduced pur- only 11761 Egyptians visited Russia. Kuwait already have substantial financial Egypt is the world’s biggest buyer of wheat. We chasing power for many Russians. The intergovernmental Russian-Egyptian investments in Egypt, — he said. — I am confi- see major stability in Egypt under president “This measure will open up new prospects for Commission on trade, economic and scien- trade and investment cooperation between our tific cooperation is co-chaired by the Russian two countries, reducing dependence on current Minister of Agriculture Mr. Nikolai Fedorov trends in world markets,” President Putin said and Egyptian Minister of Trade, Industry, in an interview with the daily Al-Ahram. Small & Medium Projects Mr. Mounir Fakhry Dmitriev confirmed that the idea was being dis- Abd El Nour. Their last meeting was held in cussed by representatives of the two govern- Moscow in September 2014. ments. “I consider it to be extremely helpful for The potential projects of mutual interest the development of bilateral trade between our include the modernization of objects previ- nations,” he said. Russia has already switched ously built with the assistance of Soviet spe- to a similar settling mechanism with China, one cialists, including Aswan hydroelectric plant, of Russia’s main trading partners. establishment of special industrial zone for “The mechanism has already proved its effi- manufacturing Russian agricultural machin- ciency, so I think it’s only a matter of time ery for distribution in the Middle East and before Russia and Egypt use the national cur- Northern Africa. Other projects include activ- rencies to settle bilateral trade. Egypt is our key ity of Russian automotive industry in Egypt trading partner in the region and the largest and Africa, delivery of liquefied natural gas importer of Russian wheat. I’m confident that by Gazprom, further supply of wheat, par- the implementation of the new settlement ticipation of Rosatom in the possible building mechanism will help to intensify bilateral of nuclear power plant. trade,” Dmitriev said.

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may 2015 Russia increasing high tech exports

pared to December 2013 and 109.2% Within the year defense-oriented produced 31 Sukhoi SuperJet-100 as compared to November 2014. enterprises have performed technical short-range passenger aircraft In 2014 as compared to 2013 re-equipment, reconstruction of including 11 for export; five An-148 there was increase in all kinds of some production as well as trial and short-range passenger aircraft; three manufacturing except for textile and engineering facilities. In 2014 76 Tu-214 medium-range passenger air- clothing (97.5%); leather, leather facilities were commissioned includ- craft; 37 helicopters including 20 for goods and footwear (97.2%); wood- ing aircraft industry (11), shipbuild- export. working and woodware (94.7%); ing (15), conventional arms industry A market-geared production of machinery and equipment (92.2%); (6), ammunition and specialty chem- machinery and equipment, electri- electrical appliances, electronics and icals (11), electronic industry (32), cal appliances, electronics and optics (99.5%). metallurgy and heavy engineering optics, agricultural and forestry In December 2014 there was pro- (1). Over 270 industrial technologies equipment as well as vehicles has duction increase in a number of have been developed to produce been developed in a normal pace. industries such as chemical competitive high tech goods. Growth index in these industries has Denis Manturov (100.1%); rubber and plastics Russian shipbuilders have also reached 108.5%. Thus, in 2014 (116.4%); metallurgy and finished shown good results. There are works mainline locomotive units produc- As far back as a year ago Russian President Vladimir Putin ordered metal manufactures (104.4%); underway to build new diesel elec- tion has amounted to 109.1%, pas- to have non-energy products export increased at least 6% annual- machinery and equipment (101.2%); tric ice-breakers of various profiles senger carriage — 107.7%, ly. According to him, to get it done the state economic structure electrical appliances, electronics and and power as well as 22220 60MW earthmovers — 107.2%. must be changed. Statistically there are indeed significant improve- optics (106%). In January-November nuclear-powered ice-breaker. As to power engineering the major ments in high tech production under auspices of Russian Ministry Russian external turnover amounted 20870 floating power unit is still progress has been made in gas of Industry and Trade headed by Denis Manturov. Provided that in to $459.4 billion, wherein $422.7 bil- being built. Mixed navigation tank- (110.8%) and hydraulic (156%) tur- the country a wide range of measures have been created to sup- lion of export and $263.4 of import. ers are being mass produced. The bines production. Heavy engineering port suppliers of knowledge-intensive products it is fair to say that In 2014 the output by military production of nuclear-powered and production output has amounted to shift of emphasis towards high tech export is a steady and long- industrial enterprises has increased conventional submarines, surface 101.3% by 2013. In 2014 production term trend. 15.5% (in comparable prices of 2014) battleships is underway. Thirty civil index of metallurgy and finished mostly due to increase of military ships and offshore marine facilities metal goods amounted to 100.6% as Minister of Industry and Trade Denis been showing stable growth espe- products volume. The gain of produc- have been manufactured and deliv- compared to 2013 including 113.6% Manturov who is the head of Russian cially in engineering, military and tion as compared to the same period ered to customers. About 150 civil of production of specified metallurgy delegation in ‘Russia-Egypt Trade industrial complex etc. of the previous year is seen in all ships are still under construction. goods. The production of cast iron and Industry Dialogue’ business mis- 2014 industrial production index defense industries such as electronic ‘Sevmash­pred­priatie’, JSC has hand- has accounted for 102.9%, steel — sion to be held in Cairo in May 25–26, is 101.7% as compared to 2013. As to (24%), aircraft (17.1%), shipbuild- ed over for commercial use the first 102.2%, primary aluminum — 2015, has recently approved results manufacturing the index is 102.1%. ing (14.4%), ammunition and spe- world ice-resistant platform MLSP 104.4%, finished rolled iron — achieved by the Ministry in 2014. Besides, there was increase in cialty chemicals (13%), rocket and ‘Prirazlomnaia’ in Barents Sea. 103.4%. The production of steel According to these results despite upward trend by the end of the year: space (8.6%), conventional arms Russian aircraft industry has also pipes in 2014 amounted to 113.6%, hard times, Russian industry has 104.1% in December 2014 as com- (5.4%). performed well. Within 2014 it has refined copper — 110.8%. From mutual trade to mutual investments

of a number of international unions and thus Let me assume that the relations between business panels. We want to minimize plati- Russian manufacturers get into African and the two countries, Russia and Egypt, have never tude in favor of specific proposals and discus - Arab countries. Meanwhile Egypt is much inter- been so constructive, good minded and long- sions. ested in Russian market though still having lit- term. We have passed some test stage and now —— You have been much cooperating with tle knowledge of it. It is interesting in terms of we are progressing to a new stage of coopera- Egypt. To what extent do they enjoy it? investments among other things. Egypt consid- tion as to different industries and areas. We —— Egypt is a very favorable country for us. ers Russian business not only as a supplier but need as soon as possible to begin seriously con- Russian representatives are much welcomed also as a would-be partner, common projects sidering the existing technical obstacles to rela- and respected there. Moreover, there is no investor, a source of technologies so much tions being developed and help overcome these other country in the world like Egypt, where required in Egypt today. obstacles. Actually for this purpose “Russian- Russian representatives are so kindly dis - —— Are you talking primarily about big pro- Egyptian Dialogue” business mission has been posed. I repeat, today there is a unique situ - jects or medium business? created. Our Russian-Egyptian Business ation when Russia and Egypt could combine —— The situation is unique since today there is Council is fully engaged in it. efforts and develop business on the most space in Egypt for Russian enterprises of any —— Are there any mental obstacles for mutu- active basis expanding its presence in many format. Here everyone wishing to cooperate al understanding? countries of the region. All is open for devel- Mikhail Orlov and evolve can find own niche. Certainly, first —— There are nearly none, but if there are some opment! of all we envisage large-scale projects within they can be easily overcome. The main thing is —— Are there indeed no obstacles? Russian-Egyptian Business Council is the areas in which Russia is a world leader, such that we are both looking forward to establish- —— Of course, there are, even a great deal. one of the sponsors for “Russia-Egypt as nuclear power, power-plant engineering etc. ing new business relations. Meanwhile if you However, all these obstacles can be overcome; Trade and Industry Dialogue” in May 2015. However, let us assume that Russian agricul- look at it open-mindedly we have much in com- these are only technical things. Providing Established less than year ago today it tural engineering can also propose competitive mon. We should not forget that both Russia coordination of efforts of different depart - is a powerful organization of Russian equipment in Egypt. Of course, there is compe- and Egypt are multiconfessional countries, the ments, we are able to solve all problems rath- businessmen committed to develop tition in this regard, world manufacturers are second largest religion in Egypt is Orthodoxy. er quickly. As a matter of fact, our Russian- cooperation with Egypt. We have inter- present here, but today’s market conditions are By the way, there are many orthodox relics in Egyptian Business Council is involved in viewed the Chairman of Russian-Egyptian very favorable for Russian business. Besides, the country. assisting settlement of such technical difficul- Business Council, President of “Ambika” we have real things to offer with regard to wide —— What do you think is the most important ties. Certainly, we have no real power, but Group, Mikhail Orlov. range of products from grains to engineering. thing in business relations development? can advise, suggest, show correct paths of —— What do you mean by favorable condi- —— Now the most important thing is to build development for both government institu - —— Mikhail, to what extent are Russia and tions? “bridges” for dialogue in different industries tions and businessmen of both countries. Egypt interested in each other today? —— Today market conditions are mutually ben- and areas so that Russian and Egyptian busi- —— What is your goal? —— Very much interested. Perhaps, like never eficial for both Russia and Egypt. It is related nessmen could meet, communicate, discuss —— There are several goals. To assist in devel- before in the short history of mutual relations. to many economical and global political factors, possible lines of cooperation etc. Afterwards, oping mutual trade. To assist Russian business- For one thing, these are two very big markets it can be long talked about but the fact is that when the communication comes to a critical men entering Egypt. Meanwhile we understand involving 144 million population of Russia and today the most favorable conditions are avail- point, it will itself turn into certain projects, that commercial relations is just the first step. 95 million in Egypt, meanwhile fast growing. able to develop direct business relations. There contracts, supplies. Generally speaking, the The relations grow and turn into partnership. Besides, entry to Egyptian market gives a is a good reason for Russian business mission May business dialogue in Cairo is also one of The next step is investments. I am looking for- chance of immediate entering the market being established in Cairo, which was actively such bridges dedicated to gathering inter - ward to the soonest establishing both ways involving about 1.5 billion would-be custom- prepared and performed by our Russian- ested people of both countries. That is why investment flow. There will be much to gain ers. This is because Egypt is an active member Egyptian Business Council among others. the program includes primarily industrial from it for all of us.

Russia & Egypt: new age of cooperation 4 Special edition from Russia

may 2015 Afrocom is in creative growth The Coordinating Committee for Economic Cooperation with Sub-Saharan Africa

High growth rates of economies of African countries create demand Objectives and missions of the for new technologies, goods and ser- Coordinating Committee are: vices. Demand in Africa in many ••to promote Russian business respects coincides with the speciali- interests to the markets of Sub- zation of Russia's priority industries. Saharan Africa and encourage It is, no doubt, that the African con- interaction of Russian business- tinent is a promising market for sales men with African official and com- of Russian goods and production of mercial institutions; defense, aircraft and pharmaceutical ••to open up new opportunities industries. for establishing and enhancing Obsolete infrastructure mainly in business contacts and mutually transport and energy sectors signifi- beneficial cooperation between cantly impedes business transaction Russian and African Sub-Saharan in Africa. That is why engagement in businessmen; large-scale infrastructure projects is ••to increase the role of interested of immense interest for Russian representatives of Russian busi- companies. In particular, the con- ness circles upon formulating and struction of power plants, distribu- implementing Russia’s govern- tion systems and electric transmis- ment policy aimed at strengthen- sion lines are of great demand in ing Russian-African trade and eco- African countries. Russian compa- nomic ties; nies that have longstanding experi- ••to join efforts and arrange a ence in these areas could actively constructive dialogue of business engage along the line. communities of Russia and Telecommunications sector is one African Sub-Saharan countries of the most rapidly growing markets interested in encouraging and Presently, the African continent Over the past few years, econom- gic projects including infrastructure in Africa. The countries of the conti- promoting Russian-African busi- is regarded as one of the most ic relations between Russia and sectors. The African continent is an nent could become important mar- ness cooperation. dynamically developing regions Africa has been witnessing a signifi- important line of Russia's engage- kets for Russian mobile operators, and also one of the most prom- cant upturn in investment coopera- ment in assisting international mobile network infrastructure and The Coordinating Committee’s ising regions of the world. tion. Russian investors are primarily development. Work along this line internet-providers. Financial sector main lines of activity are: Undoubtedly for Russia, Africa interested in energy and exploring will significantly contribute to in Africa is another potential interest countries are becoming increas- deposits of natural resources. Today, enhancing economic growth and for Russian banks and companies ••to analyze problems typical of ingly important and are viewed major lines of Russia's investment in social well-being of the poorest including those providing mobile bilateral relations; work out rec- as a priority area of foreign eco- Africa include mining, as well as ini- countries of Africa, as well as to sup- payments services. ommendations on removing nomic activities. Rapid growth tial processing of extracted mineral port sustainable development of Indeed, promotion of cooperation obstacles or reducing negative rates of African countries' econ- resources. Admittedly oil and gas infrastructure. between Russia and Africa is regard- impact on these relations; omies, as well as a unique complex, comes top on the agenda of Establishing mutually rewarding ed a priority at the state level. With a ••to detect concrete opportunities resource potential, make the the Russian-African cooperation. political, trade-economic and cultur- view to further strengthen Russian- for expanding and diversifying continent attractive for inves- In future, apart from interaction al relations is essential for ensuring African relations, there must neces- Russian-African cooperation in the tors, and among other things, for in mineral resource and oil areas, for Russia's interests both on the African sarily be favorable economic, struc- business sector including joint those from Russia. Russia, economic cooperation with continent and globally. Major lines tural, material and financial investment projects to be imple- Sub-Saharan countries could serve of Russia-African partnership in the grounds; these have to be laid down. mented on the territory of African The Coordinating Committee for as a strong leverage in overcoming long-term perspective include devel- First and foremost, the protection of Sub-Saharan countries and Russia; Economic Cooperation with Sub- resource-based specialization of the oping investment cooperation, wid- interests of Russian business on the ••to work out a coordinated posi- Saharan Africa (Afrocom) was cre- Russian economy. African markets ening Russian companies' presence African continent should be ensured. tion of Russia’s business commu- ated in 2009 to assist in promoting present a benign environment for in the African markets through A comprehensive state support is an nity on interaction with African Russian business interests in the exports of Russian industrial goods, increased deliveries of industrial indispensable precondition. partners and operation on the African continent. It unites more than machine engineering and defense and food products, enhancing On the other hand, the access to markets of African Sub-Saharan 90 Russian entities including minis- industry produce, as well as for Russia's participation in driving the Russian market for African coun - countries; tries, agencies, organizations and exports of innovative technologies, development of the African conti- tries should be simplified. Russian- ••to establish interaction of companies representing big, small scientific-technical, medical, educa- nent forward. African relations should not be lim- Russia’s business community with and medium business. Afrocom tional and other services. Further development of foreign ited only by trade and economic legislative and executive authori- forms the basis for infrastructure of Presently, a possibility of estab- political and diplomatic ties between cooperation. Similar positions of ties of Sub-Saharan Africa; business ties with African countries lishing a state development institu- Russia and Africa is motivated by Russia and Sub-Saharan Africa ••to participate in preparing and and encourages interaction between tion designed to support Russian mutual interests as well as similar, to related to foreign political issues implementing agreements the state and business to expand business in Sub-Saharan Africa and a great extent, positions regarding create preconditions for strength- between Russia and African Sub- Russia’s economic presence in Africa. to develop Russian-African trade global challenges such as interna- ening multifaceted partnership Saharan countries and programs Vnesheconombank Chairman V.A. and economic relations is under con- tional security, counter-terrorist relations including those in the in trade and economic ties, in Dmitriev is also the Committee’s sideration. The given entity would activities, eliminating poverty, envi- areas of healthcare, education and developing appropriate legal reg- Chairman. encourage investment in key strate- ronmental problems. culture. ulations; ••to establish contacts and engage in joint operation with non-gov- ernmental associations of Russia and African Sub-Saharan countries playing an active part in enhanc- ing bilateral trade and economic cooperation; ••to create additional opportuni- ties for a dialogue and contacts between representatives of Russia’s and African Sub-Saharan countries’ business circles by way of organizing meetings, confer- ences, workshops and working groups; ••to provide information services and consulting support to inter- ested Russian and African busi- nessmen.

Russia & Egypt: new age of cooperation Special edition from Russia 5

may 2015 “Crane Technologies” entering the market of Egypt

“Crane Technologies” has been dom- inating for many years in terms of quantity of cranes produced and sold as well as providing customers with full service. Lifting cranes made by “Crane Technologies” company have been used to build many high-priority facilities such as Summer Youth Universiade-2013 in Kazan, Olympic Games facilities in Sochi. Today these cranes are being also used to build World Football Championship 2018 stadi- ums, subway facilities etc. “Crane Technologies” produces a wide range of lifting machines such as TDK flat top slewing tower cranes with a maximum capacity of 8–20 tons, SMK-10.200 cat-head tower cranes with a maximum capacity of up to 10 tons, SMK-5.66, SMK-3.33 fast-erecting cranes with a maximum capacity of up to 5 tons, portal cranes for manufacturers, warehouses and terminal facilities. The designing of cranes is con - trolled by leading European engi - neering centers, which help create designs of modern world-class lift- ing machines. The tower cranes being produced are unique and innovative, and have highest speed performance. TDK cranes are equipped with NTK single cabs fea- turing the newest patented safety and intelligent control systems. The leading manufacturer of fast-erecting and tower cranes in Thanks to unique software, the Eastern Europe company “Crane Technologies” has plans to cranes have integrated self-test sys- enter Egyptian market within the next year and is already active - tem allowing to remotely monitor ly negotiating with the local businessmen. “Crane Technologies” crane operation via GPRS channels is considering the possibility of both direct supplies of lifting in on-line mode. machines and development of tower cranes rental procedures The entry of “Crane Techno­ as well as dealer-assisted work. However, the major attention is logies” to Egyptian market will not but also will make an additional being paid to production localization, i.e. creation of a joint pro - only allow local construction com- contribution to the development of duction center for manufacturing metal structures (crane com - panies to purchase high-quality lift- bilateral turnover of Russia and ponents) and final assembly of the equipment in Egypt. ing equipment on beneficial terms Egypt. www.crantec.ru Rostec Corporation is expanding EGYPTAIR Prominent its presence in Asian markets Operation Between

Viktor Kladov, head of the International tional standards. Shvabe’s medical Cairo and Moscow Cooperation Depart­ment of Rostec products reflect the maximum level of Corporation. The equipment will be care for people all around the world delivered to the Bangladesh clinics as who turn to doctors for help,” said EGYPTAIR, the leading airline in currently being operated between soon as possible. By April of this year, Sergey Maksin, Shvabe CEO. Africa and Middle East, has been Cairo and Moscow offering the the equipment will be ready for use in Rostec Corporation has a long his- consistent since its establish- Russian customers a wide variety of the treatment and care of newborns. tory of cooperation with Bangladesh. ment in 1932 on providing high destinations in Africa and the Far According to the World Bank, For example, one of the enterprises of quality services, added values East in addition to more than 1000 infant mortality in Bangladesh has the holding company Prominvest, and ensuring the best connec- destinations around the globe Shvabe Holding has won two ten- decreased by more than 70% over the which is part of Rostec Corporation, tion to the valuable customers through the integrated network of ders to supply medical equip- past 25 years but still remains at a high has worked in Bangladesh for over 35 over the globe. Star Alliance. " ment for clinics of the People’s level, with 33 out of 1,000 infants years, in which time it has commis- Mr. Sherif El Maghloub, VP Republic of Bangladesh. As part dying in their first year. Based on this sioned seven power reactors, which Capt. Hisham El Nahas, Chairman Commerce, stated: "EGYPTAIR is of the contracts, the equipment indicator, Bangladesh still remains far make up the backbone of the country’s and CEO of EGYPTAIR Airlines, now reaching more than 70 destina- to be installed includes infant behind many developing countries, so power grid. declared: "Both Egypt and Russia are tions over the globe, launched two incubators, neonatal photothera- the government is taking steps to mod- Shvabe is the only manufacturer of eager to cooperate in different fields new destinations during 2014; which py irradiators, and tables with ernize the health care system and neo- the full range of neonatal equipment provided that the Russian Market is are N'djamena, Jakarta and soon automatic temperature control. natal medicine. in Russia and has a 50% share of the regarded as one of the vital markets operating to Abha, Saudi Arabia and This technology will facilitate the “The supply of neonatal equipment Russian market for such products. The for EGYPTAIR. Cairo hub is situated Manchester, England. EGYPT­AIR ideal conditions for newborn care to the People’s Republic of Bangladesh holding company exports its products at the crossroads of the world, we ensures providing added values, opti- and timely support for children is the result of systematic work to to more than 60 countries, including are excited to serve our customers mum connections with Egypt's lei- with critically low body weight. enter new markets. The production of those in South and Southeast Asia. For through meeting the demands of sure destinations, such as Sharm El all types of neonatal equipment allows several years, Shvabe has been devel- business travellers seeking commer- Sheikh, Hurghada, Luxor and Aswan". “This deal is another breakthrough for us to equip ready-to-go perinatal cent- oping partnerships with the Kingdom cial opportunities and onward flight Rostec Corporation into the medical ers of any level. All of the holding’s of Bhutan and Thailand. Since 2012, connections; as well as leisure trav- equipment markets of South and products are created in consultation Indonesia has been purchasing neona- ellers looking for world-class accom- Southeast Asia, where in recent years with the European and Russian medi- tal equipment from Urals Optical and modation and entertainment we have expanded our presence,” said cal communities and meet all interna- Mechanical Plant. options. Three weekly flights are

Russia & Egypt: new age of cooperation 6 Special edition from Russia

may 2015 In the skies of the planet World fleet of Sukhoi Superjet 100 steadily growing

investment fund, Russian “Sukhoi Yuri Slyusar. “The agreement to Civil Aircraft” company (UAC mem- establish a Russian-Chinese lease ber), Administration Committee of company is a historical event in New Region Xi xian (China), and terms of both scale and challenges Chinese New Century International offered for national civil aircraft Leasing company. The agreement industry. Together with our Chinese has been signed under auspices of partners we will formulate a highly Russian-Chinese intergovernmental competitive leasing proposal to panel. ensure that SSJ100 aircraft take the According to the agreements significant share in fast-growing air- within three years the Russian- craft markets of China and Southeast Chinese leasing company should Asian countries.” purchase up to 100 Sukhoi Superjet The new approach by “Sukhoi 100 aircraft valued at about $3 bil- Civil Aircraft” to promote Sukhoi lion. The new leasing company will Superjet 100 to markets of China and be headquartered in Russian- Southeast Asian countries is made up Chinese technology park in Xi xian of five components, they are cost effi- (the province of Shanxi, the capital ciency superior to competitors, crea- of Chinese aviation cluster). The tion of a big maintenance center with Russian “United Aircraft Corporation” (UAC), which under one com- town administration will also assist spare parts warehouse and flight pany represents the most well-known Russian aviation brands in providing sites for necessary infra- crew training center in Xixian, pos- Yuri Slyusar Sukhoi, MiG, Tupolev, Yakovlev and others, is today among the structure to accept and prepare sibility of creating customer-tailored world’s biggest manufacturers and suppliers of aircraft, both mili- Sukhoi Superjet 100 aircraft for individual interiors and on-site many world’s airlines. UAC is intend- tary and civil. Thanks to Corporation’s success in international busi- delivery. painting. ed to focus on further development ness activity among other things UAC is in the “Forbes”-rated list “The agreement undersigned is Today UAC production capacities of Sukhoi Superjet 100 family. of the world’s biggest public companies. In 2014 UAC revenues one of solutions for the task to recon- allow producing up to 50 Sukhoi Meanwhile UAC keeps working have grown 34%. Sukhoi Superjet 100 civil airliner, Su-30 and MiG- sider our approach to promoting Superjet 100 annually. The Russian on creating 150-210-seater MS-21 29 fighters, Yak-130 operational trainer are among the most popu- Sukhoi Superjet 100 to international aircraft sparkles profound interest in narrow-bodied aircraft family. lar aircraft exported by UAC. markets. Agreements have been Southeast Asia, Latin America and so Estimated volume of production is developed in a very short timeframe, on. Experts confirm that in the con- up to 72 aircraft per year. Currently Among Russian civil aircraft Sukhoi antee of residual value is also worth for which we are thankful to the text of 70-100-seaters this aircraft is the aircraft’s orderbook is 175 air- Superjet 100 regional aircraft of the taking into account. Chinese part”, said UAC President becoming the most attractive for craft. There is also interest towards new generation is the most popular According to “United Aircraft” this advanced aircraft in foreign mar- in foreign markets. The aircraft com- President Yuri Slyusar, UAC has kets. “We should sell internationally bines new aircraft engineering tech- established a steady rate of Sukhoi hundreds of aircraft. This is our goal nologies, passenger comfort, signif- Superjet 100 serial production. as to civil segment is concerned”, icant economic advantages for Today over fifty SSJ100’s are being emphasized Yuri Slyusar. airlines, proper environmental spec- operated in a number of regions, Large technological upgrades to ifications. from South America to Southeast be performed correspond to the The key advantage of Sukhoi Asia, among other regions. plans of sales growth in foreign mar- Superjet 100 is the lower operational Meanwhile the international suc- kets. Experts are sure that the techni- cost compared to its 100-seat com- cess of Sukhoi Superjet 100 pro - cal re-equipping being underway in petitors. Operational costs are also gram is evidently increasing. Thus, Russian aircraft industry will allow minimized due to higher fuel effi - recently a framework agreement on in to bring enterprises to a new tech- ciency and lower take-off weight. establishing a leasing company to nological level and improve automa- According to the aircraft operation support Sukhoi Superjet 100 sales tion of production processes. Thus, study, its ownership cost is averagely in China and Southeast Asian coun- according to Yuri Slyusar, “thanks to 15-20% lower than of other similar tries has been signed in Moscow. technology upgrades UAC enterpris- class aircraft. The highly competitive The parties to the quadripartite es annually increase labor efficiency lease rate supported by a state guar- agreement were Russian-Chinese by 15-20%.” “Russian Helicopters”: international projects

Holding “Russian Helicopters” cussed the joint development of the The head of the holding company Ka-32A11BC and Mi-8/17 as well as of the holding company. In 2004, the will develop civilian helicopters Advanced Heavy-Lifter (AHL) civil- said that cooperation with China has heavy transport Mi-26TC helicopters. enterprise delivered nine Ka-31 heli- together with China and has pro- ian helicopter project with partners lasted for dozens of years. Alexander The issue of whether the light copters to India. Six of the vehicles vided maintenance on Ka-31 hel- from the Chinese corporation AVIC Mikheev noted: “They are very well Ka-226T helicopter should be pro- exhausted their capabilities before icopters for India. These pro- and the Avicopter company. China is aware of our helicopters here. They moted is being reviewed. Coope­ the first scheduled maintenance and jects confirm high interest in the well aware of our helicopters, which are robust, unpretentious, easy to ration with China began in the mid- were sent to Kumertau for repairs. Russian helicopters in different are robust, unpretentious, easy to operate and very effective. In recent twentieth century when the Mi-1 The first two of these have been regions of the world. operate and very effective. years, they have proven to be the only models were first mass produced, returned to India for further use. The means of assisting and rescuing peo- and Mi-4 helicopters were already remaining helicopters will be Russian Deputy Prime Minister ple in emergency situations in differ- being assembled under license at returned in the near future. Dmitry Rogozin and Vice Premier of ent regions of China. Chinese author- Harbin Aircraft Manufacturing In total, 14 Ka-31 helicopters were the State Council of China Wang Yang ities and flight operators have highly Corporation, a subsidiary of the produced for India. A special base met in Hangzhou for talks. The praised the performance of Russian Aviation Industry Corporation of was created in Goa to service these Russian delegation also included aircraft. We know that China is con- China (AVIC) under the designation aircraft. Each year, experts from Alexander Mikheev, CEO of the sidering plans to expand the presence Harbin Z-5. The heavy Mi-6, which Kumertau travel to India to organize “Russian Helicopters” holding, which of Russian-made helicopters in the today has been replaced by the maintenance work on these helicop- is part of the Rostec Corporation. The country’s helicopter fleet.” Mi-26TC, was operated in China in ters. The Ka-31 is designed for air and talks were held in preparation for the “Russian Helicopters” may now addition to these models. In the near ground radar surveillance, early next meeting of the heads of Russia also cooperate with foreign customers future, Russian Helicopters is set to detection of surface ships, and detec- and China. The sides discussed issues in the organization of enterprises deliver four new Ka-32A11BC heli- tion of low flying targets across long of cooperation on the development engaged in servicing military helicop- copters to China and to train aircraft distances, such as cruise missiles, hel- of the Far Eastern region of Russia, ters and may also create and equip maintenance personnel. icopters, and airplanes. The helicop- agricultural trade, the construction such facilities in other countries. At And about Indian news. ter’s equipment can identify detected of bridges in the border region, as well the same time the holding company is Russian Helicopters has returned targets, identify the parameters and as cooperation in the fields of civil allowed to import military equipment to India the first two refurbished coordinates of their movement, and aviation and airplane construction. that is required for its own production. Ka-31 helicopters produced by convey information about what is Alexander Mikheev, CEO of the Today “Russian Helicopters” sup- Kumertau Aviation Production being observed on the radar to mili- “Russian Helicopters” holding, dis- plies China with multipurpose Enterprise (KumAPE), which is part tary ships and command centers.

Russia & Egypt: new age of cooperation Special edition from Russia 7

may 2015 Smart Transfers: those IN BRIEF RUSSIAN & PORTUGAL The signing of the Cooperation Agreement between the Chamber of Commerce and Industry of Russian Federation and the that include bilateral prep Chamber of Commerce of Portugal became a significant result of the visit to Portugal of the delegation CCI of Russia headed by the As innovations and hi-tech production suppliers of the technologies are looking at guarantee of intellectual property rights for suc- President of the Chamber Mr. Sergey Katyrin/ tend to bring more economic benefits and Russia as an attractive market. cess, — he says. — It is a major requirement for April’s visit to Portugal was an important influence, Russia is working on increasing First of all, government has been increasing successful agreement in technology transfer. And breakthrough in the development of Russian- exports of non-raw material sector, includ- its support for innovative small and medium- the cost of IPR is usually quite small in compari- Portuguese business relations. President of ing technological export and transfers. sized businesses according to the state strategy son with the capital investments and risks that CCI of Russia Mr. Sergei Katyrin met the And the current economic situation in for innovative and technological development. are involved.” Secretary of State of Food and Agri-food Russia with sanctions, restricted financial The infrastructure is growing, more and more “There are well-developed internationally rec- Research of the Ministry of Agriculture and support from European banks and weak industrial parks, incubators and funds are ognized mechanisms of sharing IPR. But avoiding Sea of Portugal Mr. Nuno Vieira e Brito. After ruble only comes in flavor for Russian opened across Russia, including specialized and and not securing your rights on the intellectual the meeting they made the conclusion that companies opening opportunities to fulfill narrowly focused technology parks. property is an internationally recognized absurd- the revival of economic cooperation between their potential abroad. So among export- State Corporations such as "Rosnano" and ity.” two countries could be based on shearing of ing companies there are those who aimed major Foundations, including the Foundation for That’s where mediators like Konstantin are the best practices and national technology at foreign markets from the start; compa- Assistance to Small Innovative Enterprises in needed. Businessmen with legal knowledge, and transfers. The parties stressed the importance nies that manufacture unique advanced Science and Technology and the Skolkovo lawyers with business knowledge and experience. of organizing a permanent exchange of busi- technology products with no competitors Foundation presents grants and provide the Konstantin emphasizes the importance of ness information and networking at the in any part of the world; and companies infrastructure for R&D projects. Due to govern- mediators with legal and patent specialty: “Filing regional level. On the same day the Chamber that take advantage of the current eco- ment support of R&D and IPR sectors are devel- for patents issued for practical processes of the of Commerce and Industry of Portugal held nomic situation to expand their markets. oping intensively. intellectual property and making sure that tech- a meeting between Portuguese and Russian Secondly, Russia has a vast intellectual prop- nology transfer or export agreements satisfy both businessmen. During this meeting was signed ENERGOPROM Group has aimed at export from erty reserve. Large part of the potential dates Russian researchers and developers and foreign the Cooperation Agreement between the the start because there is no demand for their back to the Soviet Period, when science and tech- suppliers and partners should be by default part Chamber of Commerce and Industry of technology in Russia. Now the company is a nology industry flourished. And now all the intel- of the preparation for export.” Russian Federation and the Chamber of leading Russian manufacturer of hi-tech elec- lectual property from that time has formed in a Another key point that needs thorough analy- Commerce and Industry of Portugal. The doc- trode, cathode and other graphite and carbon- decent way. Other part of the intellectual prop- sis is the process of the technological transfer. It ument was signed by the by President of the based products. The Group’s products are wide- erty reserve comes from actively developing R&D can involve licensing agreements or technology Russian Chamber of Commerce and Industry ly used in aluminum, steel, silicon, ferroalloys, centers. leasing or setting up joint ventures and partner- Mr. Sergei Katyrin and the President of the chemical, nuclear, engineering, aerospace, elec- In the Skolkovo Foundation there is a project, ships or engineering or spin-outs or technical sup- Portuguese Chamber of Commerce and tronics and power industries. The company "Intersoft Eurasia", which is developing portable port services or personnel exchange or other. Industry Mr. Bruno Bobone. exports more than 50 per cent of its output cov- dosimeters that are compatible with modern Each process depends on the company’s goals ering more than 60 countries around the world. mobile devices. The company has received pat- and specific features of the entering markets. AMUR RAIL BRIDGE The Group has its own R&D Center developing ents in China and Japan, which opens the com- For example, Russia’s state-owned United The Heilongjiang branch of the Export-Import projects for the industrial production of isostat- pany markets in the Asia-Pacific region. Shipbuilding Corporation not only exports licens- Bank of China has allocated over $96.5 mil- ic graphite. Most of the Group’s products will be Furthermore, one should not underestimate es on submarine technology to India, but also cre- lion to construct the Chinese section of the exported because in Russia there are still almost the benefits for foreign suppliers and partners of ates joint ventures in military high-technology Sino-Russian railway bridge. The first railway no consumers of isostatic graphite, the market cooperation with Russian exporters. Such as the sector. And at the same time, United Engine bridge over the Amur River should cut trans- is still very small. price-performance ratio, for example. Building Corporation, another state company, portation times and boost trade. “The Exim Research and Development Center Production Company CJSC "Svetlana- delivered to India more than 100 technology kits Bank has conducted an inspection of the con- "Transkor-K" is one of the exporting companies Optoelectronics" produces lighting products for the production of fighter jet engines on its ter- struction site, determined the demand for with unique products to offer the world. The com- based on LEDs for over 10 years applying its own ritory. This means that the company should ana- financing and issued a loan of 400 million pany specializes in the area of pipeline systems design and technology. Their products meet lyze and assess the most effective and cost-effec- yuan for the project and a loan of 200 million non-destructive testing. One of the company’s international quality standards ISO. Though the tive process suitable for it. yuan to the contractor of the fourth engi- biggest projects was development of submerged price is not as high as the European products “There are a growing number of Russian IT, neering company of China Railway,” the and subterranean pipeline survey technology and not as cheap as the mass Chinese products biotechnology and hi-tech manufacturers that Applied Economics Association of the with Malaysian oil company PETRONAS. In 10 which are twice less energy-effective than the have unique products to offer the world. — he Heilongjiang province. The 2,215-meter year-old history the company has successfully European. Thus the quality of the Russian com- says. — And we also work with foreign countries bridge will link the city of Tongjiang in worked in Uzbekistan, Ukraine, Syria, Argentina, pany’s production is at the same level as and know how consumer mindset differs Heilongjiang Province with Nizhneleninskoye Brazil, Colombia, Mexico, Croatia, Saudi Arabia, Europe’s which is confirmed by European cer- between the countries.” — Konstantin says. in Russia’s Jewish Autonomous Region. A Malaysia, Indonesia, China, UK and the USA. tificate, but the price segment is between Starting partnerships and exporting to foreign project of the Russian-Chinese Investment Moreover, startups are also becoming more Europe and Asia. markets is not possible to form unilaterally, it is Fund, it will be able to handle 21 million tons and more interested in technology export and However, having an idea is not enough, know- a two-way operation joint by mediators, includ- of cargo traffic annually. China has already transfers. ing how to commercialize it, how to earn money ing lawyers, patent specialists and marketing spe- invested about $153.7 million in the project Konstantin Semenko, expert on legal support on it — is the key. As R&D centers and institutes cialists. with its total investment expected to be $425 and mediation of technology transfer, says that thrive with ideas, most scientists lack common Assessing the risks and advantages of entering million. The new route will reduce the dis- Russian companies started to realize that innova- business knowledge. In foundations they can be certain markets, choosing the most effective tance to customers by about 700 kilometers tions bring economic growth and, thus, more and offered to make a practical use of their research method of transfer and providing knowledge compared to other rail routes. more often Russian companies turn to him for and start a business, but nobody will explain to about consumer and supplier mindset of a spe- consultation and support of technology transfers them how it should be done. cific country are few of the components of the BIG DIAMOND to foreign countries. “Not only large corporations “We collaborate closely with scientific soci- chain of actions. A diamond weighing 76.07 carats was mined but also startup projects in Skolkovo seek inter- ety, industry and investors, and we help assess “We seek to foster the growth of high-tech by Russia’s Alrosa, one of the world’s largest national expansion and expect to gain 20% of the practical potential of scientific research or export and technological development. We take producers of diamonds. The company plans income from abroad — he says, — The econom- technology and its commercial value”. — advantage of our close collaborations with both to put the rare gem up for auction at a price ical situation is in fact promising.” Konstantin says. business and scientific societies to develop intel- of more than $430,000. The big diamond, Not only the Russian companies are ready to “And when you know the potential value of lectual property, transfer technology and support found in the Russian republic of Yakutia, has export but also foreign potential consumers and your innovation you realize the importance of partnerships with foreign countries.” been dubbed “70 years since Victory in the Great Patriotic war [the way Russians refer to the conflict between the Soviet Union and Nazi Germany],” as a tribute to the anniver- sary of the defeat of Hitler, which will be cel- ebrated in Moscow on May 9. Despite dia- monds of this size being extremely rare, this is the fourth big stone found in the Yubileynaya diamond field in the last two years. The crystal is transparent with a yellow- ish tinge and has in the form of an octahe- dron, the company reported. The crystal has small inclusions of olivine in the peripheral part and a discoid crack filled with graphite- sulfide composition on its surface. In December 2014 Alrosa sold a diamond weighing 47.5 carats for $1.8 million at Sotheby’s in New York with a starting price of $900,000. The diamond was made of a crystal weighing 128.44 carats, and was also found in Yakutia.

Russia & Egypt: new age of cooperation 8 Special edition from Russia

may 2015

IN BRIEF

HELLO, INVESTORS! Memorandum of Cooperation Russian President Vladimir Putin has signed a law that allows private oil companies to St. Petersburg International Economic today is only a starting point, together we will carry out oil exploration and develop fields Forum Foundation and the non-govern- be able to contribute more and better for the discovered by them in the Baltic Sea. The doc- mental non-profit international organiza- development of the region. We will look for- ument published Monday lists guarantees for tion Boao Forum for Asia signed a ward to seeing you in St. Petersburg in near getting drilling licenses if the company Memorandum of Cooperation in Boao future”, said Mr. Zhou Wenzhong, Secretary received the right to geological exploration (People’s Republic of China). The sign- General, Boao Forum for Asia. at the site before 2008. Russian legislation ing ceremony was held within the frame- The St. Petersburg International Economic limits the number of enterprises that have work of the Boao Forum. The document Forum is an international economic and busi- access to offshore fields. Only state controlled was signed by Sergey Belyakov, ness event that annually brings together more companies that had at least five years of shelf Chairman of the Board of St. Petersburg than 7,000 representatives of political and busi- drilling experience could previously access International Economic Forum ness communities, leading scientists, commu- deposits in the Baltic Sea. Until now only Foundation, and Wu Jun, Executive and co-operating with we gain a great oppor- nity leaders and media representatives from Russia’s two major energy companies, Rosneft Director of Boao Forum for Asia, in the tunity for understanding Asia better and around the globe to discuss the key challenges and Gazprom, have met those requirements. presence of Zhou Wenzhong, Secretary expanding our potential for economic collabo- that Russia and the international community In late April, Rosneft accused the Russian General of Boao Forum for Asia. Sergey ration. The Forum agenda and the expertise of need to address. The next SPIEF will be held on Ministry of Natural Resources of lobbying in Katyrin, Board Member of Boao Forum its participants are relevant for us and, there- June 18–20 under the slogan “Time to Act: the interest of private companies. The com- for Asia, President of the Chamber of fore, in demand. I am convinced that co-oper- Shared Paths to Stability and Growth”. The pany said that the idea of allowing private Commerce and Industry of the Russian ation between SPIEF and the Boao Forum as SPIEF 2015 programme will be built around enterprises to explore the shelf was geared Federation, Chairman of the Russian part well as entry and presence of SPIEF in the Asia- four main topics: Global Economy: New towards Lukoil (the largest oil company not of the BRICS and SCO Business Councils, Pacific region as a result of this co-operation Challenges and Shifting Horizons, Russia: under state control of Russia). was moderator of the ceremony. will not only improve the quality of SPIEF and Seizing the Opportunities, Human Capital and In 2012, private companies such as Lukoil, the Boao Forum, but also contribute to devel- Talent Development, Disruptors: Trends and Surgutneftegaz and a number of other major Sergey Belyakov, Chairman of the Board of opment of relations between the Russian econ- Technologies. oil and gas companies asked Putin to expand SPIEF Foundation, said “Russia is very inter- omy, China and other Asia-Pacific states.” Boao Forum for Asia is an international their access to shelf exploration, pointing out ested in developing co-operation with the Asia- “China and Russia are two big countries with forum that brings together representatives of that without the involvement of private com- Pacific region. For this purpose, we are devel- good relationship. BFA is based China, aimed governments, business and research communi- panies oil exploration would slow down. oping relations between state and business. at promoting regional economic integration; ties of Asia and other continents to address the Lukoil is already running a project in the Baltic The Boao Forum for Asia is the biggest in the Russia is an import part of Asia, therefore it is economic progress of Asia and the world. The Sea’s Kravtsovskoye field, where production region and one of the most representative in of strategic importance for BFA and SPIEF to mission of the forum is to promote regional eco- began in 2004. the world. By participating in the Boao Forum establish cooperation. The signing of MOU nomic integration of Asian countries. Vnesh­econom­bank The CCI of Russia

insurance is provided by Russian EXAR and the CCI of Benin Insurance Agency, which is a subsidiary of Vnesheconombank. The group also includes the biggest Russian lease company ‘VEB-Leasing’, JSC and agent bank ROSEKSIMBANK, JSC Vnesheconombank issues export loans engaged in state guarantee operations. for foreign customers buying Russian Special consideration is given to facilitating goods, works, services (for noncredit export promotion. ‘Financial Support for organizations), foreign banks lending Russian Export’ dotcom went live in 2014 money to those who buy Russian goods, (https://export.veb.ru) in Russian and English. countries, governments and foreign Thanks to this exporters and foreign customers executive authorities. The bank also pro- are able to file documents and have projects vides pre-export financing. approved on-line within Vnesheconombank group. Along with issuing loans, the bank is engaged To promote the interests of Russian compa- in documentary operations. Thanks to warran- nies abroad the bank is fully engaged in inter- ty cover by Vnesheconombank, Russian com- national exhibitions, seminars, activities of panies are capable of participating in export intergovernmental committees, entrepreneur- projects even in high political risk countries as ial associations as well as heading several busi- well as in places where there are no Russian ness councils. commercial banks represented. Vnesheconombank keeps developing coop- The priority sectors include aircraft industry eration with Egyptian partners. The bank is an and rocket and space complex; heavy, trans- official partner of ‘Russia-Egypt Trade and port, specialty and power engineering; nuclear Industrial Dialogue’ business mission. This industry as well as information and communi- event envisages the signing of an agreement cation systems. with Egyptian Commercial International Bank The Vice-President of the Chamber of The Ambassador of the Republic of Benin in Vnesheconombank group provides Russian to implement promising projects involving Commerce and Industry of Russian Russia Mr. Gabriel Anicet Kochofa in his reply exporters with an integrated package of finan- export of Russian products and services to Federation Mr. Georgy Petrov held a speech said that this day we could call very spe- cial instruments based on best practice. Export Egypt. meeting with delegation of the Republic cial in the history of relations between Benin of Benin. The Ambassador of the and Russia. He noted that diplomatic relations Republic of Benin in Russia Mr. Gabriel between our countries were established in 1963 Anicet Kochofa and the President of the and according to his words the President of the Chamber of Commerce and Industry of Republic of Benin said that the arrival of Benin Mr. Jean-Baptiste Satchivi leaded Russian investors was one of the conditions for the delegation. The main outcome of further development of the Republic. the meeting was the signing of the The President of the CCI of Benin Mr. Jean- Memorandum on Cooperation between Baptiste Satchivi presented the investment the two Chambers. potential of the Republic. He said the number of young population was growing because of In his opening speech the Vice-President Mr. political and military stability in Benin. Georgy Petrov thanked the Ambassador for ini- According to the calculations of the CCI of tiative for the meeting and noted that it was Benin in nearest 25 years the economic poten- important to renew business relations between tial of the country could increase significantly. the CCI of Russia and the CCI of Benin. In his Mr. Jean-Baptiste Satchivi called Africa a con- opinion, trade and economic relations of our tinent of the future. countries had good prospects, especially in The meeting was also attended by the energy sector, infrastructure projects and agri- Director of the International Cooperation culture. He also said that Russia exported cash- Department and work with Business Councils ews and peanuts from Benin, however there Mr. Vladimir Padalko and CEO of the Business were more business opportunities for both Council Russia-Nigeria Mr.Valery Vozdvy­ countries. zhensky.

Russia & Egypt: new age of cooperation