IN THIS ISSUE:
TH CERBA 12 ANNUAL NATIONAL BOARD OF DIRECTORS MISSION & OBJECTIVES
CHARITY AUCTION Chairman • To serve business in Canada, Eurasia and Russia by NATHAN HUNT Ronald A. Chisholm Limited enhancing and supporting trade, investment and good with VLADISLAV TRETIAK Chairman Emeritus relations between these countries. FOR THE BENEFIT OF CHILDREN'S, SOCIAL AND PIERS CUMBERLEGE – World Economic Forum Directors • Advocate and lobby on behalf of CERBA members to FAMILY INSTITUTIONS IN THE RUSSIAN REGIONS BORIS ARYEV – Stans Energy Corporation the Canadian and Eurasian/Russian national govern RENEE CHERNECKI – Canadian Petroleum Training Institute ments on issues of importance to members; PAUL DRAGER – Fulbright & Jaworski PIOTR DUTKIEWICZ – Carleton University • Serve as a forum for the exchange of essential infor JAMILA EL ASSAAD – SNC Lavalin International mation and insightful views among business, govern THE HONORABLE J. TREVOR EYTON – Magna Corporation ment and non government representatives in Canada, ROBERT FOTHERINGHAM – TMX Group Eurasia and Russia; HANS GJERDRUM – KUDU Industries Inc. MARTHA HARRISON – Heenan Blaikie LLP • Facilitate business development through the provision ROBERT JOHNSTON – Cannon Design Architecture Inc. LOU NAUMOVSKI – Kinross Gold Corporation of selected services including business assistance, JOHN PLACE – Export Development Canada counseling and networking. TERRY POWELL – Chagala Management LLP VENUE: YAR Restaurant (Leningradskiy prospekt, 32/2) PIERRE PYUN – Bombardier DATE: Wednesday, 27 March 2013 CHRISTOPHER WESTDAL – Silver Bear Resources ORGANIZATION TIME: 7pm. – 10pm. DAVID WOODALL – Altynalmas Gold TICKETS: $150 per person or 4,500 Rubles MICHAEL WOODS – Heenan Blaikie LLP REGISTRATION: The Canada Eurasia Russia Business Association has a e mail: [email protected] network of seven chapters located in Moscow, Toronto, MOSCOW BOARD OF DIRECTORS Leo Knaapen Bombardier Montreal, Ottawa, Calgary Vancouver and Almaty, and a LIVE AUCTION LOTS: Chairman Paul Brunette Technology Links membership base of over 200 corporations and individu Nathan Hunt Ronald A. Chisholm International Anis Ouanes Ministere du developpement economique, de l'innovation et de als in a wide range of sectors. As an association, CERBA • The unique 2012 World Championship Ring made in honor of Russian Team winning Directors Neil Withers Promsvyazbank l'exportation du Quebec (Observer) provides an extensive network of contacts with frequent the Championship. The ring is made from white and red gold, and incrusted with 26 Alex Shifrin Saatchi & Saatchi Gilles Breton Consultant (Observer) networking events, informative seminars on pertinent top Rubies, commemorating the number of victories if the Russian team at the World Madina Assylbekova Gowlings International Inc. Championships. The ring also features the logo of the 2012 Ice Hockey Championship, Luc Jones Antal Russia OTTAWA BOARD OF DIRECTORS ics in the Eurasian market for Canadian companies, an and the Russian national emblem encrusted with a diamond. These rings were creat Ron Lewin Terralink Chairman annual National Conference, a quarterly printed News John Place Export Development Canada Michael Woods Heenan Blaikie LLP ed strictly for the members of the Russian ice hockey team, and only 1 ring will be letter, committees of the Canada Russia Business Coun Peter Prabhu Interstice Directors available for sale at the March 27 Charity Auction (Starting Bid 12 000 USD). Sheldon Bennett Board Solutions Konstantin Smolentsev GreenOffOn cil (CRBC), access to annual trade missions, as well as Anatoly Andriash Norton Rose Sam Boutziouvis SNC Lavalin market intelligence, advocacy on government policy, and • Russia 2012 Ice Hockey Team Jersey Autographed by all the players current world Sergey Lobov Barrick Gold Piotr Dutkiewicz Carleton University Lou Naumovski Kinross Gold Corporation Pierre Pyun Bombardier active, Canada focused sector committees. champions! (Starting Bid 3 000 USD) Geoffrey Nicholson PricewaterhouseCoopers Alexandra Logvin Fasken Martineau Andreas Weichert Embassy of Canada DuMoulin LLP • Tickets to 2012 Ice Hockey World Championship (Stockholm, SWEDEN & Helsinki, Larisa Beach Neptec FINLAND quarterfinals, semifinals, finals (Starting Bid 2 000 USD). CALGARY BOARD OF DIRECTORS Mark Cameron RIM MEMBERSHIP Chairman Margaret Skok Norman Patterson Hans Gjerdrum KUDU Industries School of International Affairs Our exclusive SILENT AUCTION LOTS include a variety of hockey memorabilia (auto Directors Christopher Westdal Silver Bear For membership inquires, please contact your graphed hockey jerseys, sticks, gloves, photos, etc.), Dinners hosted by Canadian Ambas With your help we raised over $ 1,200,000 Laurent Auger Alberta International Natalia Shpilkovskaya BLG regional CERBA office: sador and Vladislav Tretiak. In addition, Russian artworks (including Nikas Safronov's USD during the last 11 years to help those Intergovernmental Relations Anthony Finch DFAIT (Observer) painting), fine jewelry, haute couture fashion and fur items, airline tickets, luxurious hotel in need. This year we are hoping to contin Shawn Beamish Canadian Mat Systems Renee Chernicki Canadian Petroleum VANCOUVER BOARD OF DIRECTORS TORONTO CHAPTER – Katherine Balabanova, stays and exquisite dinners and many other outstanding items will also be made available ue this tradition and are looking forward to e mail: [email protected] welcoming you at our event. Training Institute Chairman during the silent auction and raffle to raise funds for the V.Tretiak charity fund. Paul Drager Norton Rose, LLP Sandy Ferguson BC Bio energy Network Phone: 1 (416) 863 4403 Rod Heard Zedi Directors Andy Kavanagh Sage Energy Dr. Rainer Ibowski SNC Lavalin Erkin Atakhanov PWC Observer Roger Richer B2Gold Corp MONTREAL CHAPTER – Sebastien Dakin, Oleg Tchoubarov Sea Green Enterprises e mail: [email protected] TORONTO BOARD OF DIRECTORS Robert Johnston Cannon Design Architects Inc. Phone: 1 (514) 575 6334 IN THIS ISSUE: Chairman Rod Goy BC Institute of Technologies Igor Kovarsky Global Cobalt Corp. Robert Fotheringham TMX Group VANCOUVER CHAPTER – Tatiana Domilovskaya, Directors Bryan Hughes Export Development OPINION LOOKING BACK Boris Aryev – Stans Energy Corp Canada e mail: [email protected] Lou Naumovski – Kinross Gold Corp Phone: 1 (604) 720 2905 Guest Editorial, Dmitri Trenin, Russia's Awakening 4 Past Events and Association Activities 17 Vitaly Paroshyn – Ministry of Economic ALMATY BOARD OF DIRECTORS Chairman's Message 5 Development and Innovation (Ontario) Chairman CALGARY CHAPTER – Frank Kense, Alina Pekarsky – Schulich School of Business Keith Gaebel – Ernst & Young LAW AND LEGISLATION Geoff Rowan – Ketchum PR Directors e mail: [email protected] ASSOCIATION NEWS Transfer Pricing: How to adjust actual profit when 23 Don McCutcheon – Gowlings Terrance Powell – Chagala Group Phone: 1 (403) 218 4164 Jeff Sutton – KPMG Galymzhan Pirmatov – Cameco Kazakhstan Updates 6 it is too high or too low? John Pearson – Centerra Gold Xin Zhonglin, Petrokazakhstan OTTAWA CHAPTER – Anastasia Smolentseva John Coll – Bombardier Steven Basadur – Embassy of Canada New Members 7 e mail: [email protected] Member News 9 Martha Harrison – Heenan Blaikie (Vice Chair) Natalia Kurkchi – Antal Russia Wolfgang Spillner – Albacor Shipping (Vice Banat Ashkenova – Heenan Blaikie Phone: 1 (613) 882 8048 Chair) Yulia Mitrofanskaya – Bakyrchik Mining MAIN STORIES CERBA Quarterly News Venture ALMATY CHAPTER – Taskyn Koshman, MONTREAL BOARD OF DIRECTORS Tatiana Muratova – Norton Rose Spring 2013 e mail: [email protected] Quebec Jumps on Growing Russian Trade Opportunities 12 Chairman Abzal Raimkhanov – SNC Lavalin Celebrating Business and Diplomatic Relations 13 Jamila El Assaad SNC Lavalin International Phone: 7 (702) 888 1319 at the Investment Forum «Whither Russia?» Editor in Chief: Radmila Sionov Directors Design: Dmitry Radomsky Andrei Ivanov MDA MOSCOW CHAPTER – Radmila Sionov, Trade Mission to Ulyanovsk 16 Andre L'Ecuyer Rabaska e mail: [email protected] Bertrand Millot Cordiant Simon Ruel Heenan Blaikie Phone: 7 (495) 762 1240 OPINION OPINION
eign agents." Having adopted a defensive posture, Russian bles, which have been plaguing opposition parties, less rel GUEST EDITORIAL authoritarianism is growing harsher and losing its modern evant. The opposition's Coordinating Committee, elected by CHAIRMAN'S ization credentials. popular online voting, is functioning, while the authorities' A change of personalities at the top, if it happens within the repressive moves help to further radicalize this part of the MESSAGE autocratic system, would not solve but just prolong the cri opposition. sis. An inertial scenario is also possible if people lose faith in The modernization in Russia can only be the work of society CERBA is making a con their capacity to change their lives for the better, but not very as a whole, led by its more active elements capable of put certed effort to convey to likely given the society's recent awakening, though the ting pressure on the recalcitrant elites. The potential ele our government the impor awakening may take a long time to create the critical mass ments of change conservative, liberal, and socialist need to tance of Russia as an emer needed for the real change. narrow their differences and find common ground around ging market. In Russia face some key principles: mutual respect, nonviolence in pursuit to face engagement is more Russia's Political Economy of their goals, dialogue and cooperation, and civic patriotism. important than in most other markets. Our Minister of Inter The rent based socioeconomic system that has supported External Implications national Trade Ed Fast has the regime is also undergoing a crisis. World oil prices are visited all of Canada's major stagnant and possibly falling, putting the Russian economy The challenge to the domestic status quo has forced the partners among emerging at risk. The fundamental principle of fealty toward the Kremlin to look for a new balance in the international arena markets, including Brazil, India, Kremlin in exchange for a license to grow superrich in what in order to protect and support the existing system. China, and Mexico. There is ever way, which has been a mainstay of the "vertical of Moscow's political "decoupling" from the West, which tremendous opportunity for power", has resulted in unprecedented levels of corruption, occurred in the mid 2000s, is being followed by a "pivot" further development of the which breed massive resentment in society. away from Europe toward a more familiar Eurasian vector Canada/Russia relationship, especially in view of Russia's The government's extensive social obligations create a and further in the direction of the Asia Pacific. Relations with chairing of the G20 meetings this year and Canada's two year strain on the economy and threaten a mass popular back the West have grown more acerbic. Yet, this "pivot," which of term as Chair of the Arctic Council, which also starts this year. lash if they cannot be met. Putin's two main constituencies, course does not make Russia any less European, does We see potential in aircraft, engineering, mining, oil/gas, auto pensioners and workers, on the one hand, and military per nothing to address the issue that Moscow formulated but motive, high tech, agriculture, and space technologies, among Dmitri Trenin, Director of the Carnegie Moscow Center, has sonnel on the other, have been promised rising pensions failed to resolve during the presidency of Dmitry Medvedev: other areas. If we can convince the government to endorse been with the center since its inception. He also chairs the and no increase in the pension age as well as low levels of how to use Russia's foreign policy, above all, as a modern our strategic development plan and support it to the greatest research council and the Foreign and Security Policy Program. unemployment. Simultaneously, a major rearmament pro ization resource. extent practicable, we have a chance at making a difference. gram has been launched. Those promises are in conflict The Russian awakening should not be misconstrued as with one another and exacerbate the economic difficulties. eventually leading Russia into the fold of the political West. Of course the old irritants continue to rear their heads and we Russia's Awakening To improve control and reduce corruption, the Kremlin has Russia's foreign policy, even after systemic transformation, continue to engage them in battle the complex visa system, proposed making businessmen politicians cease actively will likely continue to be based on the notion of great power, an outdated Foreign Investment Protection Agreement, the Russia's crisis is occurring in three areas: the political participating in the operations of their assets while sitting in that is, it will continue to strive to be an independent strate Hague Convention on Apostilles, and rising diplomatic ten regime of personalized power, the socioeconomic system of parliament. However, the principle of fusing power and prop gic player and seek a special co equal role for itself in its sion between Russia and the West, to name a few. By all rent based capitalism, and the predominantly paternalistic erty lies at the heart of Russia's socioeconomic and political relations with the United States and Europe. accounts, however, Russian President Vladimir Putin and pattern of societal behavior that has allowed this system to system, and any meaningful attempt to dilute that link would Yet, a benign external environment will be very important for Canadian Prime Minister Stephen Harper have an excellent function. The crisis reflects the emergence of new social ele dangerously rock the boat in which the entire elite sit. Russia's transformation. Isolating Russia would serve no relationship that bears dividends during their face to face ments within the country which the system cannot properly At the same time, the "federal power vertical" has evidently one's goals. Working with Russia to help it access the meetings. If we can translate this positive human capital into accommodate. run its course. Regional elites that make up the top levels of Organization for Economic Development and Cooperation; legislative action, we will be doing a great service to our mem the power vertical, from Kaliningrad to Vladivostok, have assistance in developing Russia's Far East and eastern bers and the Canada/Russia business community as a whole. The Political Regime become well established and do not want to be too tightly Siberia; cooperation in the Arctic; in depth discussion on The nascent CERBA chapter in Kazakhstan deserves praise for controlled from the capital. global issues and regional contingencies, such as the future their resolve and enthusiasm in creating a vibrant business as The political status quo in Russia that has existed since the of Middle East, Afghanistan, and stability and security in East sociation that highlights Canada's special relationship with Ka early 2000s is over. The means that the authorities have The Civic Awakening Asia; building a genuine security community across the zakhstan. While other CIS markets can command greater atten been using to stay in power no longer work because socie Euro Atlantic; and arranging for U.S. NATO Russian joint tion due to size and history, Kazakhstan is rapidly coming into ty has matured and grown more demanding. The mildly authoritarian political regime built by current efforts in the area of missile defense, would all lead to better its own as a promising trading partner and a legitimate target The Russian political regime has already had to reform, President Vladimir Putin has lost legitimacy in the eyes of prospects for Russia's modernization and help improve the for foreign investment. A dynamic market about half the size of though the authorities have also opted for more repression. more dynamic, potentially trend setting segments of socie foundation for Russian Western strategic relations, which Canada's, Kazakhstan boasts a rapidly developing middle class Gubernatorial elections have been returned, albeit with ty around 15 17 percent of the population. During the past are key to solving some of the world's most urgent issues. and the most stable political regime in Central Asia. I had the important qualifications that make it virtually impossible for a year, tens of thousands of protesters in Moscow and other privilege of attending the Astana Economic Forum in May of non Kremlin candidate to succeed, and even this partial cities throughout the country came out to demand fair elec The Carnegie Moscow Center, established in 1993, is a 2012 and highly recommend it for serious business people measure is being reconsidered now. The process of regis tions, independent courts, and competitive political process. foreign policy think tank within the Carnegie Endowment interested in gaining an understanding of this young and prom tering political parties has been made dramatically easier, For the first time ever, most Russians would accept the rule for International Peace. The Center's scholars produce ising market (This year's forum takes place in Astana May 23 26). though one result has been the emergence of a plethora of of law provided that those who govern them accept it as expert research and objective, nonpartisan analysis to very small groups, diluting the Kremlin's opponents. well. The decision by Vladimir Putin in September 2011 to encourage debate on issues critical to Russia's domestic Thanks are due to Irina Tabarina and Keith Gaebel who, with Repressive measures have included restrictions on rallies reclaim the presidency after taking the role of prime minister developments and its foreign policy. For four consecutive others, helped to register CERBA in Kazakhstan and ensure and heavy penalties for violating the rules. Some websites during the Medvedev years prompted many to denounce years, the Carnegie Moscow Center been ranked number that we have a solid presence there. The new Regional Di can now be "blacklisted" for carrying offensive content, and their noninterference pact with the authorities. one among think tanks in Central and Eastern Europe and rector Taskyn Koshman and Chapter Chair Terry Powell have libel has been reinstated as a criminal offense. Opposition The systematic opposition in the Duma the Communists and the Former Soviet Union by the University of Pennsylvania. shown tremendous energy in their first 6 months on the job leaders have been either charged with common crimes and A Just Russia have been unable to do anything in the face and we look forward to watching the chapter develop and periodically detained or discredited. The members of the of the parliamentary majority held by the United Russia prosper under their joint leadership in the future. punk band Pussy Riot were sentenced in 2012 to two years party. Meanwhile, nonsystematic opposition has moved in jail for their protest performance in the country's central beyond calls for Putin's departure to demand constitutional Nathan A. Hunt Russian Orthodox Cathedral. A law passed in July 2012 reform to replace the czarist presidency with a system that Chairman of the National Board requires nongovernmental organizations that receive foreign balances power between the executive and the legislature. Canada Eurasia Russia Business Association funding and engage in political activities to register as "for Networked forms of political activity make leadership squab
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UPDATES NEW MEMBERS Foster Wheeler CERBA is pleased to welcome CERBA would like to express it's gratitude to outgoing Almaty Regional Director Irina Tabarina, who participated in Neptec our chapter's founding and organized CERBA's activities Taskyn Koshman, new Regional Foster Wheeler is a global engineering and construction here faithfully and professionally for the past three years. company and power equipment supplier, with a reputation Director of the Almaty Chapter Her dedication helped make CERBA a viable entity in for delivering high quality, technically advanced, reliable Kazakhstan and brought value to all members of the new facilities and equipment on time, on budget and with a Ms. Taskyn Koshman brings to CERBA association. world class safety record. Foster Wheeler designs, engi over 12 years of professional NGO neers and constructs leading edge processing facilities and experience protecting political and civil Neptec Design Group Ltd. is an experienced spaceflight engi related infrastructure for the upstream oil & gas, LNG and human rights. In 2004 she founded and CERBA is pleased to welcome neering company. Neptec specializes in the development, gas to liquids, refining, chemicals & petrochemicals, phar since then served as president of the production, integration, operation and support of intelligent Anastasia Smolentseva, new Regional maceuticals, biotechnology & healthcare, mining & metals, national election observer group spaceflight sensors, payloads, instruments and equipment. environmental and power industries. Foster Wheeler owns "RNIM" with 12 regional offices and Director of the Ottawa Chapter industry leading technology in delayed coking, solvent de more than 25,000 local volunteers in Neptec achieved the highest possible contractor perform asphalting and hydrogen production processes, and have Kazakhstan. In 2009 she established Anastasia Smolentseva has ance rating from NASA three years in a row; and in 2011, access to numerous technologies owned by others. It also the "Women's Leadership Fund" to pro joined CERBA as the Regional was recognized with the George M. Low Award, NASA's provides international environmental remediation services mote the participation of women in politics and to increase Director of the Ottawa Chapter. premier award for quality and performance. This marked the with related technical, engineering, design and regulatory women's representation in the Kazakh Government and Anastasia has a Bachelors first time a non American company has won since the award services. We are a recognized world leader in fired heaters Parliament. Taskyn has organized, launched, and managed degree in European, Eurasian, was established in 1985. and delayed coking technology with our Calgary office spe more than 30 projects on social and political issues in and Russian History Studies cialized in design and supply of custom engineered direct Kazakhstan since 2004 and successfully raised millions from from Carleton University. She Neptec is privately held and operates as Neptec Design Group fired Process Heaters. With other flexible engineering cen the private sector to support her NGO activities. previously worked for World Ltd. which develops innovative technologies and systems for ters in the US, UK, Italy, Spain, France, Thailand, Singapore, Taskyn also worked as a political analyst for the OSCE and Hope International's LifeStart the Space market, and Neptec Technologies Corp., an affiliat South Africa, Turkey, Chile, Malaysia and China we can took part in ENEMO assessment and observation missions Project in Odessa, Ukraine. In ed company, that focuses on the migration of Neptec's tech undertake all types of projects from feasibility studies to to Italy, Belgium, Kosovo, Scotland, Macedonia, Ukraine, the private sector Anastasia was nology to terrestrial markets. large complex EPC contracts. Kyrgyzstan, Georgia, Kazakhstan, and Moldova. She recei a Project Coordinator at SMO ved appreciation letters and recommendations from the LENTSEV & Partners, working on investment projects in OSCE, NDIMO, NED, Freedom House, FSK, USAID, and a Russia and Europe. In October 2011 Anastasia joined the Webis Group IMAX number of Ambassadors. CERBA team as a volunteer Regional Coordinator. Taskyn's educational background is in law and philology. Presently Anastasia is a Business Developer for a start up She holds a Master of Jurisprudence degree and a teaching company GreenOffOn, a Consultant for projects sponsored degree for the Kazakh language. She completed the Che by the World Bank and the International Bank of Recon vening Fellowship in Birmingham UK in 2007 and the USA struction and Development, and starting September 2012 Webis Group was established in 2000. Our core competence is Leadership program in 2010. the new Regional Director of the CERBA Ottawa Chapter. creating and deploying complex internet advertizing cam IMAX, an innovator in entertainment technology, combines paigns, from internet marketing to developing web projects as proprietary software, architecture and equipment to create Taskyn can be reached by phone at +7 702 888 13 19 or by Anastasia can be reached by phone +1 613 882 8048 or by well as creating our own software products. Webis Group experiences that take you beyond the edge of your seat to e mail at [email protected]. The address remains c/o e mail at [email protected]. employs highly skilled professionals with many years experience a world you've never imagined. Top filmmakers and studios Ernst & Young, Esentai Tower building, 6th floor, 77/7 Al The address remains c/o Heenan Blaikie LLP, 55 Metcalfe in this area. Our clients are businesses, non profit organizations, are utilizing IMAX theatres to connect with audiences in Farabi Ave, Almaty, Kazakhstan. Street, Suite 300, Ottawa, Canada. holding companies and international corporations from Russia, extraordinary ways, and, as such, IMAX's network is among Canada, US and Western Europe. the most important and successful theatrical distribution platforms for major event films around the globe. Through the years of successful work in different markets we CERBA has many offers for its members including discounts at have achieved the level of experience that allows us to work IMAX is headquartered in New York, Toronto and Los hotels, conferences, events, and airlines. on web projects in any markets around the world. Webis Angeles, with offices in London, Tokyo, Moscow, Shanghai Group pays special attention to businesses planning to enter and Beijing. As of Sept. 30, 2012, there were 689 IMAX the Featured in this issue is Transaero Airlines' Offer for the Russian market. atres (556 commercial multiplex, 20 commercial destination CERBA members: and 113 institutional) in 52 countries. Webis Group has worked with world famous companies such For CERBA members Transaero offers a 7% discount off published as Halliburton – global solutions provider for oil production Junior Hockey Business Class fares and a 5% discount off published Economy companies, Contura a well known Swedish manufacturer of Class fares on all Transaero scheduled route networks. The benefit hi tech fireplaces, Atlantis Yachts the Italian shipyard, and Q League with Transaero can be obtained through Canadian Gateway Matic – the world leader in Customer Flow Management solu (Tel: +1 905 660 1100, http://www.canadiangateway.com). tions. Webis Group grows its cooperation with well known Non commercial partnership "Junior global companies already present on the Russian market, Hockey League" ('Molodezhnaya Transaero Privilege for Frequently Flying Passengers such as Jones Lang LaSalle a worldwide operator of com Hokkeynaya Liga' or MHL) was mercial real estate, and FANN an oil services company. Our established on 26 March 2009. 20 Transaero's frequently flying passengers may become members portfolio includes works for such famous Russian organiza professional clubs of the Conti of the airline's loyalty program, Privilege FFP, and earn points to tions such Russian Broadcasting Company (VGTRK), Mariin nental Hockey League ('Kontinentalnaya Hokkeynaya Liga' or enjoy free tickets, class of service upgrade and other benefits. To sky Theatre, Drofa Publishing House, Sofrino Bank, Fix Price KHL), KHL Holding and Russian Ice Hockey Federation acted become a member of Privilege FFP is quite simple one just stores network, Delta Plaza Business Center and many oth as founders of MHL. So far, this is the only long term youth needs to fill in a registration form on Transaero's official site: ers. Webis Group has fulfilled many web development tasks project of such scale in Russia. for Russian, European and North American markets. Mr Alexander Medvedev is the Chairman of the Board of MHL. http://transaero.ru/en/privilege/priv reg. Mr Dmitry Efimov was appointed Managing Director of the
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Junior Hockey League, Mr Alexey Antonov was appointed Marinvent Corporation Russian Federation), Mr. Dobrovolsky worked in the prosecu Executive Director. tor's office, headed the legal departments of the three com Currently, the League unites 64 clubs representing cities of MEMBER NEWS mercial banks in the period from 2001 to 2005, was a judge of Russia, Belarus, Czech Republic, Hungary, Kazakhstan, Latvia, the Moscow City Arbitrazh (commercial) Court, and later Would you like to see your news featured in our News Section? Lithuania and Moldova, which means more than 1000 hockey became a private practicing lawyer. In addition, for many Make sure your company's achievements are being noticed. players aged between 17 and 21 years. MHL's major goal is to years, Vladislav Dobrovolsky lectures on commercial pro Contact us at [email protected] or call +7 985 762 1240 promote, develop and bring Russian junior hockey to a new ceedings at the leading law schools and conducts author's to discuss the inclusion of your news in the next edition. quality level. In accordance with an agreement with the Russian workshops. Marinvent is a Canadian company founded in 1983 for the pur Ice Hockey Federation, MHL owns the rights on the organizing pose of undertaking aerospace and defense research, devel of the Championship. Beyond all doubt, the extensive experience of Vladislav opment, and program risk reduction. Marinvent offers expert Ernst & Young Releases Dobrovolsky, including his work in private and public institu ise, technologies and services to many of the leading tions, as well as its excellent reputation and knowledge of the Canadian and International aerospace companies and Compensation and Benefits legal market, give us reason to believe that in the short term, Troy Group Government Agencies. we'll greatly strengthen our position especially in the area of Marinvent has a stellar track record of success with its cus survey 2012/2013 corporate and commercial law, Sergey Lazurenko says. tomers and has won numerous awards in recognition of that Ernst & Young in Kazakhstan has carried out the 2012/2013 fact. Marinvent helps its customers innovate quickly and helps Compensation and Benefits Survey and is glad to present the them save time and money. Marinvent is constantly innovating following survey reports: General Industry Report (all indus with cutting edge technologies and methods which include tries, 83 participants), Oil and Gas, Mining, FMCG, Banks, some of the most advanced flight test research and develop Financial sector. Troy Group is a multi disciplinary group of companies special ment platforms in the world. Content of the Survey: izing in the construction, manufacturing, technology and real Salary and compensation levels for particular job positions in estate segments. With over 30 years of experience working on Astana, Almaty and 14 regions of Kazakhstan varied projects across multiple domains, Troy Group is well CIS Navigation Level of salary increase in 2012 and forecast for 2013 poised to meet your requirements, however complex they may Benefits package be, successfully. Types of allowances and payments most widely used in Troy Group's clientele includes blue chip companies, private Kazakhstan developers and municipalities. It has a high percentage of Short term and long term incentive programs used to retain returning clients (85%), which is testimony to the excellent serv and motivate key personnel and raise employee productivity ice levels and the high value that the conglomerate delivers. CIS Navigation Inc. is the commercial management center for HR function metrics. Troy Group maintains a presence in seven countries across Atlantic Ro Ro Carries (ARRC) Line which for the past 20 years If you are interested in purchasing reports or you have any Eurasia, the Middle East and Africa. It has an extensive net was and is the only direct transatlantic line linking Canada, the questions, please contact us at +7 (727) 258 5588 (direct line), work of offices distributed around the globe, in Russia, US East and Gulf Coast ports and St. Petersburg, Russia. or by email at [email protected]. Kazakhstan, Turkey and UAE. Collaboration is the key to suc ARRC's fleet of ice classed multipurpose vessels carries close cessful project delivery, and Troy Group's sizeable resources to one million freight tons annually including bulk, break bulk, and consummate knowledge enable it to realize clients' vision specialized projects, rolling stock, shipper owned and liner on time every time. owned containers. Vladislav Dobrovolsky appointed Offering a vast network of intermodal services on both sides of the Atlantic our company provides a one stop solution for ship head of corporate practice, IBS ping goods from or to their Canadian origin and destination. Yakovlev and Partners Founded in 1992, IBS Group InterContinental became a leading software devel The Law Group "Yakovlev & Partners" rendering services in the opment and IT services provider in Moscow field of legal support for business, has announced the appoint Kinross co sponsors the 5th Central and Eastern Europe. On 9 Tverskaya ment of Vladislav Dobrovolsky as head of corporate practice Annual Charitable Christmas November 2010, the Global Depo sitary Receipts of IBS Group Hol (corporate and commercial law). Bazaar in Moscow ding Limited were listed on the Re This modern, luxury hotel is located on Tverskaya, the main gulated Market (General Standard) of the Frankfurt Stock street of Moscow, leading straight into the Kremlin. The priority activity of Mr. Dobrovolsky will be corporate dis On December 13th, 2012 Kinross co sponsored the 5th Annual Exchange. Today through its two principal business seg Contemporary design meets contemporary Russian cuisine at putes relating to the protection of rights of participants of Charitable Christmas Bazaar in Moscow organized by the non ments, IT Services (operating under brand name IBS IT Chekhonte Restaurant, serving the finest dishes from its unique economic entities, unfair issue, theft of stocks (shares), illegal profit organization – United Way of Russia. The event provides Services) and Software Development (operating under show kitchen. Well appointed luxury suites include private ter meetings of shareholders, the commission of deliberately an opportunity to buy ceramics, paintings, batik items, Christ brand name Luxoft), it offers a wide variety of information races overlooking the vibrant cityscape. Ideally situated, this losing trades, hostile takeovers (raiding), deliberate bank mas decorations, unique crafts handmade by foster kids and technology services, such as software development and IT Moscow hotel is within walking distance of Red Square, Christ the ruptcy, etc. kids in need. All of the proceeds go towards charity projects run services outsourcing, IT consulting, business applications Saviour Cathedral and business districts. by the participating organizations. implementation and IT infrastructure. It can count 72 of Recent years have seen a significant step in our develop Russia's top 100 companies and many international corpo Features ment, said the President of the Board of Partners of the Law For the third consecutive year, Kinross presented indigenous rations as Boeing, UBS, Deutsche Bank, Ford amongst IBS A modern hotel for a modern city! Located in the heart of Group "Yakovlev and Partners" Sergei Lazurenko. And the peoples' crafts made by children from the Chukotka region, Group's customers. In the fiscal year ended on March 31, Moscow's business and historic centre, InterContinental appearance in our team of such well known expert as where Kupol and Dvoinoye mines are located. The money col 2012, IBS Group reported US GAAP consolidated revenues Moscow Tverskaya blends comfortable, modern design with Vladislav Dobrovolsky is another confirmation that we are on lected by Kinross shall be used for purchasing learning aids to of USD 816.3 million. IBS Group has more than 20 locations the warmth and friendliness of true Russian hospitality to cre the right path. be further donated to the regional children schools of arts and in 10 countries including Russia, Ukraine, Romania, Poland, ate an unforgettable experience! to the orphanage in Anadyr. the USA, the UK, Germany, Switzerland, Vietnam, and Vladislav Dobrovolsky has more than twenty years of profes Singapore. It employs more than 8,300 people worldwide, sional legal experience. After graduating from the legal depart 62% of which are located in Russia. IBS Group has principal ment of the Military Institute of the Ministry of Defense of the business offices located in Moscow (Russia), Kiev (Ukraine), USSR (now Military University of the Ministry of Defense of the Bucharest (Romania), Krakov (Poland).
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Leading legal practices combine sites on behalf of foreign fashion retailers. Lukx Shades is a sented with a letter of appreciation from the Public Fund "Charity US based retailer of designer sunglasses and will operate an Voluntary Association" for merits in the implementation of social to form Norton Rose Fulbright. online store in Russia at www.lukx.ru. Mariposa Designs is projects. The Fund's Director General, Aruzhan Sain, expressed based near Bogota, Colombia and hand makes unique pine words of appreciation for the support for the Fund and for the International legal practice Norton Rose will combine with lead and leather handbags, offering both a readymade collection Campaign "Give Life to Children." ing U.S. law firm Fulbright & Jaworski L.L.P. on June 1, 2013 as well as individual customization options. Mariposa will oper to form Norton Rose Fulbright. ate an online store in Russia at www.mariposadesigns.ru. These For the first time, in October 2012, Kazakhstan also hosted a Norton Rose Fulbright will have 3,800 lawyers and will be a top 10 new projects will join Interstice's existing stable of brands session of the World Petroleum Council (WPC). The choice of global legal practice by gross revenue and by number of lawyers. which feature women's shoes, garments, lingerie, and acces Astana as the place for the WPC's session is important for pop The enlarged practice will have 55 offices internationally, including sories for mobile devices. ularizing the country's image and demonstrating capabilities of 11 offices and close to 800 lawyers in the U.S., in Austin, Dallas, the republic's oil and gas industry, and undoubtedly speaks to Denver, Houston, Los Angeles, Minneapolis, New York, Pittsburgh The Moscow office of Interstice Consulting specializes in e the growing authority of Kazakhstan within this influential organ Southpointe, San Antonio, St Louis and Washington D.C. commerce, advising and partnering with foreign brands to ization which currently has 65 countries as its members. The practice will have world class expertise in litigation and dis build their Russian presences. The company offers consulting pute resolution, corporate, intellectual property and banking on market entry and strategy, public relations, social media and finance. marketing and online advertising, as well as operational serv By industry sector, Norton Rose Fulbright will occupy a market ices such as business development, customer pre and post leading position in the areas of energy; pharmaceuticals and sales support via call centres and email, assistance with Transaero Airlines Expands life sciences (including healthcare); financial institutions; infra imports and logistics, and payment processing. The Moscow Mr. Wei Yuxiang, President of PetroKazakhstan Company, Its Services from Moscow structure, mining and commodities; technology and transport. office opened in 2008. receives recognition from the Public Fund "Charity Voluntary Norton Rose Fulbright will also establish a global regulatory Association" during KIOGE 2012. Vnukovo Airport and investigations practice. PetroKazakhstan Recognized Joint Venture Awara Group for innovative "Think Green" and Eduhouse Initiative and Charity Work during With a view to enhance its customer services, Transaero is Kazakhstan Oil and Gas week establishing another large and modern hub at Moscow Vnukovo With 2013, Eduhouse Ltd (www.eduhouse.fi), which is one of Airport. The airline will offer its passengers excellent transfer the top corporate training providers in Finland, and Awara Almaty and Astana hosted the Kazakhstan Oli and Gas week in opportunities in terms of schedule and comfort on the flights Group (www.awaragroup.com), a leading business adminis October 2012. Astana met participants and guests of the VII between destinations in Russia, Kazakhstan, Uzbekistan und tration provider in Russia and CIS entered in a joint venture Canadian Architects DIAMOND Eurasian Forum of KazEnergy on October 2 3 in the Palace of Ukraine as well as destinations in the U.S. and Western Europe. partnership to align forces to offer customized business train Independence. The Forum went under the slogan "World in the Transaero's first flight took off from Moscow Vnukovo Airport in ings (Awara Eduhouse Russia Training), seminars and confer AND SCHMITT and Mariinsky Time of Changes: Forming a Stable Energy Future". April 2012. Currently Transaero operates flights from Vnukovo ences with a wide selection of topics for enterprises in Russia. maestro Valery Gergiev build the PetroKazakhstan Company participated in both forum meetings airport to eleven destinations: Paris, Rome, Milan, London, Tel The idea behind this is that we recognized that many of our and the exhibition. This year PetroKazakhstan's stand Aviv, Vienna, Barcelona, Pardubice, St. Petersburg, Yekaterin clients and contacts have specific needs for specialized busi New Mariinsky Theatre in "PetroKazakhstan: Think green" was devoted to environmental burg and Novosibirsk. ness trainings, which we can identify and approach in a very protection and received an award from the KazEnergy tailored way. In order to realize this Awara identified a training St. Petersburg Association for "The most ingenious stand design". Souvenirs Within the summer of 2013 Transaero will launch flights from partner, who has extensive experience in adult training and presented by the company were in the eco style, including tin Moscow based Vnukovo to the U.S. cities of New York and coaching. With this partnership we will bring together top qual St. Petersburg is one of the most beautiful cities in the world. No cans with basil seeds and eco bags specially made for the exhi Miami, and in Western Europe Transaero will operate flights from ity trainings that are renowned in Finland and cutting edge new building can satisfy the demands created by such pride bition from recycled feedstock and were recognized by atten Vnukovo to London, Frankfurt and Venice, while also serving Tel business experience related to Russian topics, delivered by and extremely conservative tastes of those at every level of dees as the most ingenious in the whole exhibition history. Aviv and launching flights to Cancun in Mexico. In the C.I.S. trainers and coaches in both, English and Russian language. power. When maestro Valery Gergiev was in Canada and visit countries Transaero will fly to Kiev, Odessa and Tashkent; and Training courses and seminars are offered in Moscow, St. ed Toronto's Four Seasons Centre, he was impressed by the Almaty hosted the 20th anniversary four day exhibition KIOGE seven Kazakhstan destinations Astana, Almaty, Aktau, Atyrau, Petersburg and other cities in Russia, as well as in the Ukraine. incredible sound, great acoustic detail, unobstructed viewing that convened under the roof of five exhibition pavilions of Karaganda, Qostanay and Shymkent, will also be served. A full schedule of our upcoming trainings and seminars can be from every seat not to mention that the job came in on budget. Atakent KCBC. 600 companies from more than 30 countries of Transaero's passengers traveling between Belarus, Kazakhstan found on our website www.awaraeduhouse.com. In short, he fell in love with Toronto's new opera house and immediately appealed to its architect, Jack Diamond, to create the world participated in the event. As part of KIOGE, Mr. Wei and Russia (member states of the Customs Union), will be able Yuxiang, the President of PetroKazakhstan Company, was pre to take advantage of the airport's special transfer facilities and Please contact us for further details: a vision for the Mariinsky II. To the great surprise of many have a first class experience. In Russia, Transaero will addition Awara Eduhouse Russian authorities and bureaucrats, Diamond won the project. ally serve Krasnoyarsk and Novy Urengoy from Vnukovo Jon Hellevig Valery Gergiev and Jack Diamond have united to bring the mag International Airport. Managing Partner, Awara Group nificent Mariinsky II to fruition. The creation of St. Petersburg's [email protected] newest opera house including the magnificent journey is being The recently opened Terminal A at Vnukovo provides the best Tel.: +7 495 225 3038 captured as a television documentary "The Maestro & The Master". This film will follow these two men as they move heav conditions for passengers. The spacious 270,000 square en and earth to bring what is destined to be one of the world's meters terminal and the airport`s capacity to handle 30 million Interstice Consulting launches finest modern opera and ballet houses to completion. passengers per year is unique, and it is currently one the most Please view this 5 min. promo for the one hour film: high tech airport terminals in Russia. Moreover, Vnukovo is Lukx Shades and Mariposa www.youtube.com/watch?v=tgTZQXBUnn0&feature=youtu.be located closest to the center of Moscow only 28 kilometers Designs e commerce sites in separating the airfield from the heart of Moscow. If you are interested to be a part of this project, provide finan Russia cial support or otherwise assist the production, please contact: Barbara Barde at Up Front Entertainment. Moscow based member Interstice Consulting has recently [email protected] 416 357 3656 signed agreements to launch two new Russian e commerce
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QUEBEC JUMPS ON GROWING RUSSIAN CELEBRATING BUSINESS AND DIPLOMATIC TRADE OPPORTUNITIES RELATIONS AT THE INVESTMENT FORUM INTERVIEW WITH NICOLAS FRESNE, DIRECTOR, "WHITHER RUSSIA?" QUEBEC GOVERNMENT OFFICE IN MOSCOW
take advantage of the fast growing markets is the most obvi ous. It also must be said in the case of the Quebec Bureau in Russia that the opening is also largely explained by the importance of Quebec in the both commercial and cultural activities of the Canadian Embassy. Our province is very knowledgeable of this situation and wanted to support this special treatment we had here in Russia.
What are Quebec's main areas of trade with Russia and how much trade is conducted annually? Nicolas Fresne, Director, Quebec Government Office in Moscow It is very difficult to have an accurate idea of the real in and With more and more businesses turning to Russia and taking out trade flows, but stats say that we are exporting around advantage of the countries widening market opportunities, the $500 million in mainly frozen pork products. This represents province of Quebec is not one to miss out! Stepping up co oper around 40% of the Canadian total export. But we also know ation with Russia, Quebec has opened an international office in that Bombardier aircraft sales are not fully registered in Moscow. Bureau du Quebec is lead by Director, Nicolas these official numbers and that the trade amounts are much Fresne. In recent years, Quebec missions to Russia have also bigger than the official numbers. increased. Two high profile missions including Apparel Quebec Nevertheless, our big issue is to maintain these levels. From mission to Russia and Quebec Cosmetics mission to year to year flows appeared not to be very stable and reliable. Intercharm (largest beauty products trade fair in Russia and I guess one of our main objectives is at least to stabilize the Eastern Europe) demonstrate the provinces keen interest to commercial activities and in turn make trade flows sustainable. build stronger trade ties. To get better acquainted with Bureau du Quebec, CERBA interviewed Mr. Nicolas Fresne. Our inter What obstacles do Quebec companies face in Russia? Market Open Ceremony at TSX, November 6, 2013 before "Whither Russia?" conference view touches on the Bureau's goals and the challenges and How does the Office help them? opportunities Mr. Fresne sees for Quebec business in Russia. On November 6, 2012, the conference 'Whither Russia?' took I think the main issue Quebec companies are facing in place displaying a range of authoritative speakers in the areas What is the Quebec Trade Commissioner Service? How Russia is following up and supporting their local partners. of political sciences, economy, finance, trade, and industry. does the office co operate with the Canadian Trade Going to Russian is not a big deal, finding opportunities even Over 120 people attended the conference that has become a Commissioner in Russia? less, but being able to take advantage of these opportunities must for business people, whether already in Russia, or loom is another question... you need not only to find a good part ing at its vast market. The goal of the conference was to First of all, Bureau du Quebec is more than a Trade office, it ner here but also to support and communicate with him. encourage an open and sincere discussion on the political, represents Quebec's interests not only in trade and invest Our office and the Canadian Trade Commissioner office legal and regulatory environment in Russia, assess the eco ment but also in cooperation, culture and academic affairs. focuses on this matter: making the Quebec and Russian nomic prospects, show success stories, and examine the We have a very good relationship with the Canadian mission partners efficiently work together at the beginning of their potential for increased Canadian business in Russia. in general. As the opening of the bureau is a response to the relationships. There is a chasm/gap between the signature great job the embassy has made to promote Quebec we don't of a partnership and the first sale, we try to fill this gap. The conference was officially launched in the morning of the want to interfere with what is already well done. We are here 6th when some of the participants gathered at the Toronto to support the Mission to better serve Quebec business and Is there much interest from Quebec companies to come Stock Exchange to open the trading session. Nathan Hunt interest mainly by coordinating and helping with follow ups as out to Russia? (CERBA National Chairman), Robert Fotheringham (Senior it is a critical step in commercial and cooperation relations. Vice President of the TMX Group) John Sloan (Ambassador Canadian and Russian Ambassadors: John Sloan and Georgiy Truthfully speaking, I guess we can do better, Russia is less of Canada in Russia), Georgiy Mamedov (Ambassador of Mamedov How many regional Offices does Quebec have? sexy than India or China among young exporters. That is Russia in Canada), as well as Andrey Varichev (CEO of why I am very cautious in promoting Russia in Quebec to Metalloinvest Holding Company), Vladimir Trifonov (Execu We have more than 30 representations over the world with businessmen. But each time I receive some of them to tive Director, Canada Russia Business). Quebec's closest partners but during the last 8 years Russia, they come to say at the end of their trip that they During the opening session of the conference, Ambassador Quebec has started to open representations in BRIC coun were very positively surprised by Russia and Russian part Mamedov and Ambassador Sloan underlined the potential tries. In China, India and Russia our representatives are ners... I usually ask them to spread the good news at home. for growth in trade and business between the two biggest hosted within the Canadian missions This is the best promotion we could ask for. countries on the planet. Indeed, according to Chris Weafer, Chief Equity Strategist at Sberbank, 'Russia is currently the When did the Russian Office open? Why Russia? Why now? What message would you give to potential investors in 2nd largest consumer market in Europe and it is likely to Russia? take the 1st place by the end of 2013, which would make it The Russian Office opened on September 3rd 2012 follow the 4th most important in the world. Moreover, the average ing the announcement of Prime Minister Charest in 2009 Come here and make your own opinion about Russia... don't monthly wage has gone from $50 in 2000 to $850 in 2012!' during his mission in Moscow. There are many good rea do it alone ask Cerba, Canadian Mission or Bureau du Although Philip Worman, Head of the political risk practice at sons to explain this opening. First the need for Quebec to Quebec for appropriate introductions. GPW Ltd., pointed out that along with opportunities, compa Canadian Ambassador to Russia John Slaon
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Bombardier, with the recent certification of its Q400 turbo The evening featured such prominent Bolshoi stars as Irina prop in Russia, sees important opportunities in this market Dolzhenko, Roman Muravitsky, Lolitta Semenina and Mikhail that has an aging fleet that will have to be replaced in the Kazakov. The Canadian Opera Company's Orchestra accompa upcoming years. nied the performance led by a brilliant Russian conductor Alevtina Ioffe. The concert's MC, Angelina Vovk, a well known journalist Also with income rising and regional poles being redevel on USSR Central Television (Russian TV host for "Good Morning oped, the regional jets have a great future looming in this Russia!") added celebratory flavor to the whole evening. country that crosses 9 time zones. With more integration of Among the themes that sounded that night were: Pyotr Ilyich domestic regulatory agencies, Bombardier's skies would be Tchaikovsky, Gremin's aria from the opera "Eugene Onegin"; even bluer, according to Michael McAdoo, Vice President Giacomo Puccini, Cavaradossi aria from the opera "Tosca"; Don Strategy and International Business Development at the Jose aria from the opera "Carmen"; Giuseppe Verdi, Elena's aerospace division. Bolero from the opera "Sicilian Vespers" and many others. In addition to the traditional investment conference taking November events brought together many important players place annually in Toronto, the 2012 edition added a cultural involved in bilateral relations, whether business, cultural, or program involving ballet dancers and opera singers from the political. Left to Right: Chris Westdal, Lou Naumovski, Mark Trevisiol, world famous Bolshoi Theatre to underline the 70th anniver Michael MacAdoo, Vladimir Trifonov, Robert Fotheringham, sary of diplomatic relations between Canada and Russia. For more information please visit www.cerbainvest.com Left to right: Olga Trofimova, Katherine Balabanova, Angelina Vovk, Sergei Tchetvertnykh The exclusive concert, sponsored by Metalloinvest and Olga Tchetvertnykh, Lolita Semenina, Sergei Tchetvertnykh
Market Open Ceremony at TSX, November 6, 2013 before "Whither Russia?" conference, left to right: Nathan Hunt, Andrey Varichev, John Sloan, Georgiy Mamedov, Robert Fotheringham nies have to face a certain amount of risk such as corrup organized by Canada Russia Business Council impressed tion, corporate governance and compliance, weaknesses in the high level Canadian and Russian guests by flawless per the legal system, uncertainties in the long term economy, formance and highest note of professionalism. and some level of political risk. He noted that generally these risks can be mitigated by following a set of rules such as maintaining good government relations, engaging at the regional level, choosing carefully your business partners, and while always following the law, he suggests to litigate and arbitrate overseas.
Some of the main companies active in Russia shared their experience in this part of the world. Lou Naumovski, Vice President at Kinross Gold Corporation, expressed that they generally had a good experience during their Russian ven tures and that Kinross' care for the environment and com munities in the region helped them maintain good relation Guests at the reception after the the November 5 2012 Concert dedi ships in Russia and a good business climate. cated to the 70th anniversary of Canada Russia Diplomatic Relations. Bolshoi Opera and Ballet Stars at the November 5 2012 Concert dedi cated to the 70th anniversary of Canada Russia Diplomatic Relations.
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CERBA TRADE MISSION TO ULYANOVSK LOOKING BACK
MONTREAL Over 85 people attended the special session to learn about business opportunities in space and aerospace with Russia Kazakh Ambassador Speaks and Kazakhstan. to the Montreal Business Community Speakers from various areas of the industry shared their experi MONTREAL, November 20, 2012 ence of working with Russia, such as Bombardier, MDA, Ma rinvent, Neptec, and the Canadian Space Agency, among oth ers. Russian organizations such as Skolkovo, Titanium Valley Special Economic Zone and the Central Aerohydrodynamics Institute (TSAGI) described opportunities of collaboration bet ween our countries. During the opening remarks, the Deputy Director for the Americas of the Ministry of Economic Development of the RF, Dmitry Sazhin, said that 'aerospace cooperation between the two countries is constantly growing. Last year, a Memorandum Roundtable between members of Canadian delegation and representatives of Departure V. Tretiak, State Duma Deputy, John MacIntosh, of Understanding was signed between the Russian Union of local business Genesus Genetics (member of CERBA delegation), Sergei Aviation Industrialists and the Aerospace Industries Association Morozov, Governor of Ulyanovsk Region, HE John Sloan, On November 27 29, 2012, CERBA brought a Trade Mission Canadian Ambassador to the RF of Canada (AIAC), the work on the draft agreement on cooper to Russia's Ulyanovsk Region. The mission was organized ation in space is underway, the certification of the Bombardier jointly with Canadian Embassy in Moscow and Vladislav Q400 is completed and it's underway for the CRJ900. Tretiak Foundation, and headed by HE John Sloan, Canadian CERBA organized a luncheon The President of the AIAC, Jim Quick, added that 'We believe Ambassador to Russian Federation, World Famous Hockey seminar at the Club Saint James we can work with Russian Partners in the interest of both Legend and the State Duma Deputy Vladislav Tretiak, and in Montreal with the Ambassa countries. We have signed an MOU last year and we intend to Nathan Hunt, CERBA National Chairman. The delegation dor of Kazakhstan to Canada, build on it and increase collaboration between our industries. included business representatives from the IT, Agriculture, Konstantin Zhigalov. The Ambas Marinvent Corporation, the Platinum sponsor of the event, Construction, and Logistics sectors. sador presented the current explained how it started working in Russia since 1993 and The mission had several objectives including, familiarizing del state of affairs and business this long term relationship is now paying off with contracts in HE John Sloan and John Shreiner, IMAX Corporation, at the press egates with the Ulyanovsk Region and establishing good rela opportunities between Canada the field of avionics certification. It is a rare example of inte tions with the regional government, exploring business oppor conference during the charity event, hold in Ulyanovsk jointly with gration of supply chains between Canada and Russia. IMAX Corporation and "Sinema Park" Movie Theater. and Kazakhstan. tunities, and meeting with local industry representatives to seek The event was attended by 'Russia is an interesting market because it has needs and potential partners and clients. The mission also had another many leaders of the Quebec budgets, but you need to establish relationships and build important objective to demonstrate to the business communi business community such as trust before seeing results, and this takes time', said Phil ty the results of the joint CERBA V. Tretiak Foundation Charity Bombardier, SNC Lavalin, Solmax Cole, VP Business Development. Activity in the region, and to show how funds gathered at the International, Vizimax Inc. CIS CERBA intends to take an active part in developing relation 2012 CERBA Tretiak Charity Auction were used. Navigation, Cordiant, Heenan ships between Canada, Russia and Kazakhstan in space During the mission, participants visited the Zavolzhye Industrial Konstantin Zhigalov Blaikie, Honco Steel Buildings, and aerospace and this was the first of a series of events to Zone and Dimitrovograd City, met with and established good and many more. The academia was represented by Carleton be held in the upcoming years. relations with top level officials of the Ulyanovsk Region University and McGill University. Administration, including Governor Morozov, and met with local Visit to Dimitrovgrad's Public Society of physically challenged people Ambassador Zhigalov highlighted the social and economic business representatives and foreign businesses already suc "Overcoming " one of the beneficiaries of joint CERBA V.Tretiak achievements of Kazakhstan, its large scale Program of cessfully operating in the region. Foundation Charity Program Industrial Innovation and the potential for cooperation in areas Organizing parities also organized a charity fundraising event in such as; uranium and gold mining, shale gas and oil, water screening of the movie "Space Station" in IMAX quality. All pro Ulyanovsk. The event was made possible with the great sup management, agriculture, environment, healthcare, educa ceeds from the event were given to the Tretiak Foundation for port provided by new CERBA Corporate Member IMAX tion and science, as well as tourism. Other promising sectors charity purposes, and a large portion of tickets for the event Corporation and its local partner "Sinema Park" Movie Theater. were underlined such as finance, banking and public services. were provided free of charge to several orphans' houses and The event featured giveaway to attendees the numerous hock The event was sponsored by SNC Lavalin International and similar social institutions in the Ulyanovsk Region. ey memorabilia with V. Tretiak autographs, press conference its President, Ron Denom, made the opening remarks. The mission program also featured an extensive cultural with Canadian Ambassador to RF HE John Sloan and John aspect: the delegation visited the Museum of A.A. Plastov Schreiner, Vice President for Theatre Development in Russia, Conference on Aerospace Collaboration (world famous painter) and Lenin's Memorial. CIS, Middle East, and India, from the IMAX Corporation, and the CERBA would like to express a sincere gratitude to the OTTAWA, Dec. 6, 2012 Governor Sergei Morozov and the Administration of Ulyanovsk Region for the warm welcome of the delegation. We would also TORONTO like to thank our members who joined the mission, and local businessmen of Ulyanovsk Region for their support of CERBA MINING in RUSSIA: Roundtable with activities and active contribution to the development of busi Saint Petersburg Mining Institute Delegation ness relations between the Canadian business community and TORONTO, Oct. 30, 2012 Russian regions. A deep appreciation goes to our partners Canadian Embassy in Moscow and V. Tretiak Foundation for This roundtable provided an interactive discussion with the their dedication and efforts in bringing our joint projects to suc delegation from Saint Petersburg Mining Institute. The perti cess. Finally, we would like to express sincere gratitude to John nent issues brought up at the event were: Government regu Schreiner and IMAX Corporation for the invaluable assistance lation of the renewal mineral base; Problems of licensing and CERBA organized the Canada Eurasia Russia Aerospace and support of CERBA Charity initiatives. financing geological projects; Level of state participation in Nathan Hunt, CERBA Chairman and Vladislav Tretiak, State Duma Conference as part of the official program of the Canadian geological exploration; Experience of junior geological com Deputy, meet Governor of Ulaynovsk Region Sergei Morozov. Aerospace Summit, taking place in Ottawa on December 5 6. panies in Canada; Compensatory arrangement use of natu
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ral resources. Also discussed were: Gold and silver produc «ENERGY SECTOR: Roundtable with the The Chapter hosted two lunches one in Edmonton and the tion companies; Strategies of development; Advanced tech Management of the Leading Ukrainian Energy other in Calgary on this increasingly important subject. The nologies in exploration, production and commercialization. Company, DTEK» current status, challenges and practical examples of what was done nationally and internationally to overcome bribery CERBA INTERNATIONAL TORONTO, Jan. 21, 2013 and corruption practices through legislation in several coun CONSTRUCTION CONFERENCE tries was reviewed. The impact of these developments on Canadian companies doing business in Russia and other TORONTO, Nov. 27, 2012 former Soviet countries is often not given proper attention. The two seminars dealt with these and related issues at CERBA brought together a most authoritative group of inter these presentations by a leading expert, Maggy Deacon of national trade and construction lawyers, architects, design Forensic Risk Alliance. ers, infrastructure and development experts in order to encourage a productive discussion on the current state of CRUCIAL INSIGHTS FOR SUCCESSFUL the construction/infrastructure industry and cooperation This event was dedicated to outlining the opportunities in the INTERNATIONAL BUSINESS EXPANSION opportunities, present success stories, share the solutions AND CROSS CULTURAL INTEGRATION for the Arctic and Northern environment relevant for Canada Ukrainian energy sector in general and discussing possible and Russia, and examine the potential for increased Cana partnership projects with the country's industry leader, EDMONTON, Nov. 13, 2012 dian business in the markets of Russia and Eurasia. DTEK, a largest privately owned vertically integrated energy company in Ukraine, core businesses of which are coal pro Our Speakers, founders of Alpha Global Xperts Inc, Pre The program of the conference featured among others the duction and processing, electricity generation, transmission sident Michele Hecken and Vice President Global Opera presentations of the following companies: ACM Lindal, and sale. tions, Dr. Usukuma Ekuere, provided an overview of oppor Diamond and Schmitt Architects; Hopewell Peresvet; Heenan tunities and challenges to doing international business. The Blaikie; International Centre for Innovative Technology Transfer TRAVEL and TOURISM TRENDS in MODERN presentation highlighted the importance of cross cultural com RUSSIA: Presentation by the Deputy Head of munication and its effect on a company's success. The Special thank you to our supporters and partners: the Russian Federal Agency for Tourism Speakers also shared insights from local experts and con cluded with a comprehensive checklist for successful mar TORONTO, Jan. 21, 2013 ket entry and cross cultural integration. MOSCOW OPPORTUNITIES ARISING FROM RUSSIA JOINING THE WTO MOSCOW ANNUAL CHRISTMAS COCKTAIL
CALGARY, Dec. 5, 2012 MOSCOW, Dec. 6, 2012 The Canada Russia business community gathered together Russia's membership in the WTO is good for the global to celebrate the holidays and ring in the New Year at the fab economy, for the WTO, for Russia, and for Canada. Mem ulous Baltschug Kempinski Hotel. Guests networked and bership will increase foreign investment in Russia, and as a socialized while looking over the Kremlin view, listening to logical and somewhat familiar trading partner that includes lively jazz band Vadim Ivashenko and the Boneshakers. us, with Canadian investment in mining, agriculture, infra The special event could not be possible without our event structure, housing, aerospace, biotech and other fields. Ca nada, and Alberta, has a unique opportunity to benefit from Russia's acceptance into the WTO. We were pleased to wel come Mr. Daryl Hanak, Executive Director, Trade Policy – International in the Alberta Ministry of International and Inter governmental Relations for an informative and interactive luncheon on the coming changes.
UKRAINE DOUBLE BILL: "OPPORTUNITIES FOR CANADIAN BUSINESS IN UKRAINE" AND "DTEK: UKRAINE'S COAL & ENERGY During this luncheon, the Deputy Head of the Federal Agency MARKET LEADER" for Tourism «Russiatourism», Nikolay V. Novichkov, presented CALGARY, Jan. 23, 2013 CERBA Toronto Holiday Reception Russia as a tourist destination in North America for the first time, and gave details about cultural and tourist potential, We are pleased to welcome Mr. Kirill Ermichine, Head, De TORONTO, Dec. 20, 2012 travel and logistics trends in modern Russia. Igor Kiykov, Se partment of International Public Affairs, DTEK who will speak nior Consul of the Russian Consulate General provided de to DTEK: Ukraine's Coal & Energy Market Leader and Ms. Toronto Chapter welcomed over 90 members and friends to tailed information about the visa issues. Special thanks goes to Christina Bilyk, Commercial Counsellor & Senior Trade the holiday season celebration in an informal and festive set Canadian Gateway for the support of this event. Commissioner, Embassy of Canada in Ukraine, who is ting at TSX Gallery. The event was sponsored by the Toronto accompanying the DTEK delegation to Calgary. Ms. Bilyk Stock Exchange and Uniglobe Capital Trust Inc. CALGARY will talk about Opportunities for Canadian Business in Uk raine. This luncheon seminar provided an excellent oppor TRADE AND INVESTMENT IN OVERSEAS tunity to hear about current developments in the Ukrainian MARKETS: CHALLENGES AND IMPLICATIONS energy sector and to hear from its leading private energy OF PRACTICAL COMPLIANCE company about it's plans for development in the coal sector IN THE CONTEXT OF ANTI BRIBERY AND coal bed methane extraction. AND CORRUPTION
CALGARY, Oct. 30, 2012
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CERBA together with the French Chamber of Commerce held CERBA together with Heenan Blaikie LLP organized an Infor a Riedel Glass Wine Tasting and reception to offer a unique mation Management seminar for a delegation of 24 people networking opportunity and celebrate the start of a new busi from Ukraine who came for a study tour to Canada under the ness year. Over 100 Canadian and French business people loan of the International Bank of Reconstruction and Deve attended the event to taste wines using various forms of lopment (IBRD). According to the Loan Agreement, the Inter glasses to see how perception of taste changed based on national Bank for Reconstruction and Development granted a glass dimensions. Guests identified their personal wine styles. loan to Ukraine with the purpose of funding of implementation Following the tasting the Canadian, French, and Russian of the Social Assistance System Modernization Project. guests mingled at a reception put on the Intercontinental Moscow Tverskaya Hotel. The wine, food, venue and guests Under supervision of the IBRD, the Ministry of Social Policy made the event a fabulously unforgettable time! of Ukraine manages activities under the Project, including those related to procurement of goods, works and services.
ROUND TABLE WITH THE NEWLY ARRIVED AMBASSADOR OF UKRAINE TO CANADA cussion of Uzbekistan's economy, political situation, invest ment opportunities, as well as facilitation of business coop OTTAWA, Dec 19, 2012 eration between Canada and Uzbekistan through CERBA. CERBA was pleased to host with PARTNERSHIP EVENT WITH ORGANIZATION bread and salt the new Ambas OF WOMEN IN INTERNATIONAL TRADE sador of Ukraine to Canada His (OWIT OTTAWA) "HOLIDAY SOCIAL" Excellency Vadim Prystaiko. After a productive round table discus OTTAWA, Nov. 29, 2012 sion on Canada Ukraine business relations, and cooperation with CERBA, a wine and cheese recep tion was held for the Ambassador and diplomats of the Embassy of Ukraine in Ottawa. sponsors Kinross Gold, PricewaterhouseCoopers, and Barrick Gold! A very special thank you to all who came out VANCOUVER and celebrated with us! METALLOINVEST MINING HOLDING LUNCHEON WITH DMITRI TRENIN, IN VANCOUVER RUSSIA AWAKENING ONE YEAR OLD: Where are things heading VANCOUVER, Nov. 1, 2012
MOSCOW, Dec 12, 2012 Anastasia Smolentseva (CERBA) with Vlada Shilina, Associate Vice President, International Strategy & Business Development, CERBA hosted a luncheon seminar at the Moscow Carnegie Aerospace Industries Association of Canada (AIAC CERBA's Centre with Dmitri Trenin, Director of the Carnegie Moscow KAZAKHSTAN newest partner to develop the Aerospace direction) Centre and one of the most well known political analysts in Russia. Mr. Trenin presented a new major paper, The Russian CERBA Ottawa was pleased to invite its members, partners, and friends to a Holiday Social organized with the Organization Awakening. The paper is a joint effort by Carnegie Moscow CANADIAN END OF YEAR PARTY scholars which details the growing Russian crisis under of Women in International Trade (OWIT Ottawa) at the Royal Canadian Mint. Putin, as well as the responsibilities of Western policymakers KAZAKHSTAN, Dec. 6, 2012 to help the transformation. This party gathered all Canadians working in Kazakhstan, as SEMINAR ON INFORMATION MANAGEMENT CERBA CCIFR WINE TASTING AND BACK well as friends of CERBA, representatives of Canadian and FOR A DELEGATION OF 24 PEOPLE TO BUSINESS RECEPTION international, local companies. After welcoming remarks and FROM UKRAINE UNDER THE LOAN OF THE introduction Chapter plans for the coming New Year by the INTERNATIONAL BANK OF RECONSTRUCTION MOSCOW, Feb. 6, 2013 Chairman of the Almaty Advisory Board Mr. Terrance Powell, AND DEVELOPMENT (IBRD) CEO Metalloinvest Andrei Varichev (left) and President of AME BC members and friends of CERBA in Almaty continued enjoy Gavin Dirom (picture by Jenny Wagler, Business in Vancouver) OTTAWA, Nov. 30, 2012 ing wonderful music, food and drinks. The CEO of Metalloinvest Holding Company Andrei Varichev OTTAWA and CEO of Canada Russia Business Council Vladimir Trifonov met with Vancouver mining exploration, consulting and engineering companies hosted by CERBA and the As ROUND TABLE DISCUSSION WITH DILYOR sociation of Mineral Exploration BC (AME BC). KHAKIMOV, DIRECTOR, AMERICAS DEPARTMENT, MFA, UZBEKISTAN Mr. Varichev and his team were visiting Vancouver for a meeting OTTAWA, Nov. 22, 2012 with Vancouver based engineering company Flour Canada to discuss cooperation on the Russia – Udokan Copper deposit. CERBA Ottawa was pleased to host a delegation of four The visit brought together a number of mining, engineering and people lead by the Director of the Department of Americas, hi tech companies such as Global Cobalt Corporation, MDA, MFA, Uzbekistan Mr. Dilyor Khakimov for a round table dis GEMCOM Software International, Fluor Canada. Brief welcome remarks made by President of AME BC, Gavin Dirom, and a
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members of CERBA Vancouver board of Directors Erin Chutter The Vancouver Mining Conference 2013 became a venue for (president of Global Cobalt Corp.) were followed by an excep sharing experience and discussing untapped opportunities in TRANSFER PRICING: tional presentation of Udocan Copper deposit by Andrei Russia, Kazakhstan and the other CIS countries. Progress of Varichev. Canada Eurasia Russia collaboration in the mining industry, new How to adjust actual profit when it is too high or too low? and developing investment projects, issues of the market pene CHRISTMAS SOCIAL WITH KLAUS BUTTNER tration procedures and how to overcome them, new exploration New Transfer Pricing (TP) rules were recently implemented • The new TP rules allow correlative adjustments only between technologies and experience of their application in Russia and in Russia. Information that is crucial for understanding the domestic Russian entities. VANCOUVER, Dec 12, 2012 CIS – all these and many other subjects were highlighted at the rules and their impact on businesses is presented below. plenary session and panel presentations by 15 speakers repre • Changes/improvements to the structure of intercompany The former Minister Counsellor and Senior Trade Commis senting government and private sector. Over 80 participants Is my business affected by the new Russian TP rules? transactions that are made to decrease TP risks may result sioner at the Canadian Embassy to Moscow, now Executive came to Vancouver from Canada, Russia, Kazakhstan, Mon in unexpected tax obligations, e.g. withholding tax on newly Director International Market Development at the BC Ministry golia, China, Belgium, Poland and Australia. Yes, if you have any cross border transactions between group introduced royalties or fees. of Jobs, Tourism and Skills Training, Mr. Klaus Buttner was an entities that include a Russian company. Russian compa exceptional speaker at the CERBA Vancouver Christmas Party The event was sponsored by the long term members B2Gold, nies' transactions that involve commodities quoted on As everyone prepares for the new Russian transfer pricing on December 12th at the beautiful Vancouver Terminal City Global Cobalt Corporation, CWS Industries, Hennen Blaikie LLP, exchanges and transactions with legal entities residing in rules, it is apparent that a TP plan which only includes TP Club. With over 2 years of experience in Russia Mr. Buttner is DFAIT Vancouver regional office, as well as Titanium Valley «blacklisted» offshore jurisdictions could also be subject to analysis and drafting TP documentation is not enough. a great source of information and advice to any company and Special Economic Zone (Russia) and supported by many oth TP audits. In addition, the tax authorities could audit domes individual who is planning to expand or enter the Russian market. ers. The Russian Mining Company Metalloinvest took the impor tic Russian transactions between related parties. Whether or Often, the chosen profit level indicator (PLI) and the actual The audience was also happy to welcome a newly appointed tant role of Patron Sponsor and an Honorable Speaker. not these transactions are subject to TP audits depends on profit at year end, can significantly differ from the target (arm's Director of Department of Foreign Affairs and International various thresholds and exemptions. Therefore, the applica length) PLI range identified during the benchmarking study Trade (Vancouver regional office), Allan Minz, who is posted in Vladimir Trifonov, bility of TP rules must be determined on a case by case (i.e. your company's profit is too high or too low). BC after over two years of diplomatic work in Germany. The CEO Canada Russia basis. Transactions, subject to the new TP rules are referred event was very well attended by CERBA members and asso Business Council to as controlled transactions. In these cases, there is a need to identify appropriate meth ciates. The program included a concert co organized by the speaking at the ods for adjusting actual 2012 profits. How a company with Kazakhstan Society in Canada and featured talented opera plenary session What a company with controlled transactions should do to controlled transactions can save on costs for compliance? singer Andrei Andreychik. comply? What happens if it does not? What are the risks? • Perform TP diagnostics on time (identify and evaluate TP 2ND VANCOUVER INTERNATIONAL MINING Companies with controlled transactions must: risks, assess whether transfer prices are at the arm's length CONFERENCE AT THE AME BC ROUND UP level) because year end TP adjustments cannot be made. VANCOUVER, Jan. 29 • Notify the Russian tax authorities of controlled transactions • Develop/adjust a transfer pricing policy in line with the new by 20 May of the following year. TP rules. In collaboration with the Association of Mineral Exploration BC • Documentation for prices used in controlled transactions • Mitigate identified TP risks (e.g. discuss issues with parties (AME BC), CERBA held its second annual International Mining should be prepared before 1 June of the following year – as and amend agreements). Conference in Vancouver. Established in 1912, AME BC rep the new TP rules provide for a specific TP audit including a • Prepare/adapt TP documentation to support the chosen resents 4,000 Individual and 360 Corporate Members and is request for TP documentation to be available after that date. TP method and prices used. Conduct benchmark studies the predominant voice of mineral exploration and develop • Provide TP documentation (based on the new TP rules re based on Russian databases, reflecting data for the year in ment in British Columbia. quirements) within 30 days from the tax authorities' request. which the transaction occurred. During his visit to Vancouver, the CEO of Metalloinvest Holding • Develop a system for setting up and monitoring intra Company Andrei Varichev stated, that "there is wider potential «Missing» the target profit range could result in risks for your group prices that reduces TP risks and automates future for deals between the mining sector of Russia and British Co Russian company and related foreign counterparties, data collection and reporting. lumbia for utilizing BC expertise in mining technology and engi including: • Consider concluding an advance pricing agreement. neering". It becomes obvious, that business ties between the BC and Russia mining sectors are strengthening. Canadian • Unpaid tax by not following TP rules is subject to a 40% About KPMG mining companies in Russia range from junior explorers to penalty (although not until 2013, and for 2014 2016 20% KPMG is a global network of professional firms providing major miners as well as consultants and suppliers that are applies). A late payment interest may also be due. audit, tax and advisory services. The company employs offering technical, legal and financial expertise. Given that 152,000 outstanding professionals working together to deliv almost 75% of business in British Columbia is related to the • Adjusting prices for TP purposes can affect other taxes er value in 156 countries worldwide. KPMG has been working mining sector it is difficult to overestimate the significance of and duties (e.g. WHT, VAT, customs duties), which could for more than 20 years in Russia and has more than 3,800 developing stronger links between Canada and Eurasia cause partially non deductible/nonrefundable costs. The tax professionals working at 19 offices in seven CIS countries. Russia regions in the area of industrial development and tech authorities could also challenge costs previously used for KPMG was rated the No. 1 audit and advisory firm in 2009 nology transfer. tax and customs purposes (if prices of imported goods 2011 by Expert RA and was named Tax Firm of the Year 2012 Left to right: Robert Johnston (Chair, Vancouver Chapter), should actually be lower). in Russia by the International Tax Review magazine. Alan Minz (DFAIT Vancouver Regional office), Vladimir Trifonov (Metalloinvest) and Maxim Kopylov (Russian Trade Representation) • Tax compliance obligations may not to be fulfilled or fulfilled late without proper planning because: Sergei Schelkalin a significant number of transactions could be involved; Partner, Tax and Legal, complicated or insufficient contract documentation is in KPMG in Russia place or documentation is unavailable; and the CIS responsible persons have limited experience. +7(495) 937 44 77 spending more time with the tax authorities during TP audits especially if TP documentation is unavailable or insufficient (not meeting statutory requirements); preparing and updating required TP documentation. Pavlo Myronov Senior Manager, Tax • Russian legislation prohibits year end TP adjustments. Thus, and Legal KPMG in Russia Left to right: Vladimir Trifonov (Metalloinvest), Klaus Buttner (BC Right to left: John Wiebe( GLOBE Group), Alexander Nistratov, Government), Erin Chutter (Clobal Cobalt), Dennis Bergen (RPA) appropriate prices should be determined and applied from and the CIS Roger Morin (MDA), Kim Swanzey (ERM), Gaston Remenants. and Jonathan Lotz (HB) the beginning of the period/year. +7(495) 937 44 77
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