AEB Business Quarterly

Association of European Businesses

Quality Information • Eff ective Lobbying • Valuable Networking Spring 2012 A NEW WIND IS BLOWING IN ENERGY EFFICIENCY

A look at Russia’s Energy Effi ciency sector

with AEB updates on:

Renewables in Russia: A way to go? Promotion of energy eﬃ cient products ISO 50001 to draw energy management roadmap Tax incentives for energy eﬃ ciency: legal opportunities and practical application AEB Networking ... and more

CEO Letter 1

Dear Readers,

According to the World Bank Group report on energy effi ciency in Russia, achieving Russia’s full energy effi ciency potential would cost a total of $320 billion to the economy and result in annual costs savings to investors and end users of about $80 billion, paying back in just four years. Th e energy intensity of Russia’s economy is three times higher than that of the European member countries of the Organisation for Economic Co-operation and Development (OECD) and Japan. Th e climatic conditions are an important contributing factor, but major reasons also include the high share of energy intensive industries and a sizable number of outdated energy equipment. Th e energy saving potential is estimated at 45% of Russia’s current energy consumption. Th e Energy Strat- egy through 2020, which was approved by the Government in 2003, considers the improvement of energy effi ciency as a vital economic policy direction of the state and envisages a 50% reduction of the energy intensity by 2020 as compared to 2000. Th erefore, though relatively new to the Russian Federation, energy effi ciency is an issue that can not be ignored, particularly, now that it is on its way to becoming a full fl edged member of the World Trade Organisation. Increased competitiveness and oil and gas earnings; lower budget expenditures and a considerable reduction in the cost of environmental protection techniques are but a few of the advantages Russia stands to gain through the implementation of energy effi cient practices. An energy effi - cient business environment also serves as a catalyst to the eff ective modernisation of Russia’s economy, and hence, increased foreign investment. Th is issue of the Business Quarterly provides readers with the expert opinions of leaders and in some cases, pioneers in the fi eld of energy effi ciency in Russia. Articles include those from representatives of government agencies such as the Federal Energy-Service Company and Russian Energy Agency, under the Russian Federation Ministry of Energy, and leading companies on the Russian market. In addition, you will, as usual, get a chance to acquaint yourselves with past events organised by the Association and its committees, as well as take a look at our proudly growing list of new members, all of whom it gives me great pleasure to welcome to the AEB. A new year, a new Spring and of course, new beginnings – it is with these words that I welcome you to this edition of the Business Quarterly and wish you all the best in the months ahead.

Yours sincerely,

Dr. Frank Schauﬀ Chief Executive Oﬃ cer Th e Association of European Businesses

AEB SPONSORS 2012

1C:BIT • Allianz IJSC • Alstom • Bank Credit Suisse (Moscow)• Bank WestLB Vostok ZAO • BP• BSH Group• Cargill Enterprises Inc. • Cliff ord Chance • CMS, Russia • Continental Tires RUS LLC • Deloitte • DHL • DuPont Science & Technologies • E.ON Ruhrgas AG • Enel OGK 5 • Eni S.p.a • Ernst & Young • GDF SUEZ • Gestamp-Severstal-Kaluga • HeidelbergCement • In2Matrix, LLC • ING Commercial Banking • INVESTMENT COMPANY IC RUSS-INVEST • John Deere Agricultural • Holdings, Inc. • KPMG • Leroy Merlin Vostok • MAN Truck & Bus AG • Mastercard • Mazars • Mercedes-Benz Russia • Messe Frankfurt Rus, O.O.O • METRO Group • Michelin • MOL Plc • Novartis Group • OBI Russia • Oranta • Peugeot Citroen Rus • Pirelli Tyre Russia • PwC • Procter & Gamble • Raiff eisenbank ZAO • ROCA • SERVIER • Shell Exploration & Production Services (RF) B.V. • Statoil ASA • Telenor Russia AS • TMF Russia • Total E&P Russie • Volkswagen Group Rus OOO • Volvo Cars LLC • VSK • YIT Rakennus Representative Offi ce • YOKOHAMA RUSSIA LLC • Zurich Insurance Company

AEB BUSINESS QUARTERLY • Spring 2012 2 Contents

AEB BUSINESS QUARTERLY, Spring 2012 CEO Letter Introductory words from Dr. Frank Schauff , Chief Executive Offi cer of the Association of European Businesses 1 Russia's Energy EfÀ ciency Sector Introduction and General Overview A new wind is blowing in Energy Effi ciency Jeroen Ketting, Chairman, AEB Energy Effi ciency committee; Founder and Managing Director, Lighthouse Group 4AEB Business Missions, pg. 27 From the RF government Legislative base and created infrastructure lead to practical implementation of the programme for energy saving and energy effi ciency enhancement in the Russian Federation Timur Ivanov, Director General of the Russian Energy Agency of the Russian Federation Ministry of Energy 6 All about the Federal State Unitary Enterprise "Federal Energy-Service Company" Alexander Terekhov, Acting General Director, Federal State Unitary Enterprise ÓFederal Energy Services Company 8 Renewable energy, pg. 14 Partnering Russian energy effi ciency with world best practice Michael Viberg Pedersen, Director and Anna Chelnokova, Energy Effi ciency Advisor, RuDanEnergo 10 A closer look at energy efÀ ciency in Russia Renewables in Russia: A way to go? Patrick Willems, Program Manager, IFC Russia Renewable Energy 12 Renewable Energy – A new reality Aage V. Nielsen, Managing Director, Vitus Bering 14 From Biogas in Russia to Green Gas in Europe: a Business Model for Russian Green Gas Tax incentives for energy effi ciency, pg. 24 Ekaterina Kravetskaya, CFO/Senior Project Manager, Representation of N.V. Nederlandse Gasunie in Russia 16 Promotion of energy effi cient products Alexej Soldatow, Technical Regulation Manager, OOO BSH Bytowaja technika 18 Sector speciÀ c aspects ISO 50001 to draw energy management roadmap Konstantin Timoshechkin, Head of Systems and Services Certifi cation at SGS Vostok Limited (the SGS Group) 20 A new player with great potential Property of Imtech Thomas Oertner, General Director, Imtech Russland AG 22 A new player with great potential, pg. 22

AEB BUSINESS QUARTERLY • Spring 2012 Contents 3

Association of European Businesses in the Russian Federation

Board Cohen Philippe (Deputy Chairman) Fache Dominique Hartmann Reiner (Chairman) Helin Erik Linares Antonio Munnings Roger (Deputy Chairman) Sakuler Gerald (Deputy Chairman) Thomas David Networking, pg. 28 Ziegler Christian Legal aspects of investing in Russia Council of National Representation Austria – Wolfgang Leitner Tax incentives for energy effi ciency: Belgium – Johan Verbeeck legal opportunities and practical application Czech Republic – Alexey Abramov Anastasia Prozor, Associate, CMS 24 Denmark – Aage V. Nielsen Finland – Timo Mikkonen Legal aspects of energy effi ciency in Russia France – Philippe Delpal (Deputy Mikhail Divovich, General Director, ECOTEAM 26 Chairman) AEB Updates Germany – Tiberius Braun Greece – Stefanos Vafeidis AEB Business Missions 27 Iceland – Ingolfur Skulason Ireland – David Gilmartin Networking 28 Italy – Costante Marengo AEB Committee updates 32 Montenegro – Luka Nikčević Netherlands – Lodewijk Schlingemann AEB Member News Poland – Karolina Skrobotowicz Spain – Alina Simonyan Member News 36 Sweden – Jonas Rybring Switzerland – Michael Roedter Appointments 45 Turkey – Ali Tunc Can UK – Don Scott (Chairman) New Members AEB CEO New Members 48 Dr. Frank Schauff Publications Manager Nina Anigbogu Advertising & Sales Olga Pavlyuk Ul. Krasnoproletarskaya 16, bld. 3 127473 Moscow, Russian Federation Tel.: +7 (495) 234 27 64 Fax: +7 (495) 234 28 07 Website: www.aebrus.ru

The AEB Business Quarterly is registered with Rosohrancultura, ПИ No. ФС77-24457 Circulation: 16, 000 copies. All copyrighted images are taken from Katerina Grekova, www.shutterstock.com and www.dreamstime.com.

The opinions and comments expressed here are those of the authors and do not necessarily refl ect those of the Association of European Businesses. Promotion of energy effi cient products, pg. 18

AEB BUSINESS QUARTERLY • Spring 2012 4 Introduction A NEW WIND IS BLOWING IN ENERGY EFFICIENCY Jeroen Ketting, Chairman, AEB Energy Effi ciency committee; Founder and Managing Director, Lighthouse Group ments to reduce the widespread energy ping into the ever increasing demand defi cits resulting from the increasing for advice on energy-effi ciency meth- demand in the residential housing sec- ods, EE business models, improved pro- tor. Large businesses are preparing to duction processes but also legal advice. deal with the consequences of Rus- When you want to go beyond the direct sia’s WTO accession. Th ey understand supply of goods or services by imple- that sustainable competitiveness in the menting a turnkey EE project then there international arena goes hand in hand are also many opportunities. As long with Energy Effi ciency. Small and medi- as you can execute the project within um sized enterprises are discovering a fully controlled environment, giving midst the eff ects of the global that a penny saved is much more than you the level of management control economic, political upheaval and just a penny earned. Cost savings aff ect needed to measure, benchmark and overall uncertainty in Russia there the bottom line much more strongly verify all the relevant energy consumed has been one area that has shown than additional earnings. From regional and saved, you will see that even energy Asteady and positive development in the governments to car manufacturers to performance contracts (with part or last years; the area of Energy Effi ciency your supermarket around the corner, all of the return on the investment in (EE). business success is now directly linked the project depending on the actual About 10 years ago, when I became with energy effi ciency. fi nancial savings achieved) are becom- active in EE in Russia, people would still ing a reality. Projects on - and within look at me as if I were Don Quixote Nowadays, there are ample business - the boundaries, of industrial sites (e.g. fi ghting windmills and chasing unat- opportunities for small, medium any production plant) or commercial tainable dreams. Th e EE community in and large sized businesses off ering sites (e.g. logistics or retail centres) aim- Russia consisted of a handful of enthu- EE solutions. ing at the replacement of compressors, siasts scattered across the country from pumps and heating and cooling systems Moscow, Yekaterinburg and Samara to With energy tariff s in Russia ris- and the installation of combined heat Krasnodar and Cheboksary. Everyone ing and approaching European levels, (cooling) and power systems become knew each other and when speaking and with energy demand increasing ever more attractive. at the early EE conferences we were all while energy supply stagnates there is Th e most diffi cult period in EE is now preaching to the choir. a high potential in Russia for innova- behind us and a steady growth in the EE But things have changed signifi cant- tive EE products and businesses. Today sector lies ahead of us. Th is edition of ly since then, and whereas EE at that in Russia one can capitalize on this the AEB Business Quarterly shows you time seemed to be a hopeless undertak- business potential in EE with simple, how to become part of the exciting new ing, now it has already developed into proven and replicable technology that world of EE in Russia. It contains articles a small market with high potential for can be applied to a mass market and by the leading EE Agencies in Russia on growth. At the same time the EE com- that can be implemented in a closed energy service companies and interna- munity has matured. We used to be a and controllable environment. Some tional co-operation in EE. It also deals motley crew of enthusiasts, academics examples are products that can be used with energy management and with the and thought leaders. Today the EE com- in and around the built environment legal aspects of EE in Russia. Other AEB munity also includes fi nancial institu- such as: insulation materials, energy Energy Effi ciency Committee members tions, businessmen, engineers and con- effi cient heating and cooling systems, share practical EE experience gained sultants. What has also changed is that EE lighting, intelligent control systems, in industry, the built environment and until recently, most EE projects were smart meters and energy effi cient appli- with domestic appliances. And we also subsidised in one way or another. But ances. Another safe bet would be tech- have a look into the future with articles that isn’t the rule anymore. Nowadays, nologies that can essentially be used in on biogas and other renewable energy there are ample business opportunities any industry, such as pumps, electric opportunities in Russia. for small, medium and large sized busi- motors, compressed air systems and Th is Business Quarterly will help nesses off ering EE solutions. Regional measurement and control systems. Also you sail the new wind in Energy Effi - governments are welcoming invest- the service sector can benefi t by tap- ciency!

AEB BUSINESS QUARTERLY • Spring 2012 We’ve made the refrigerator even more beautiful. And your electricity bill, too.

The new refrigerator/freezer combinations in energy efﬁ ciency classes A+ and A++.

For our engineers, a Bosch refrigerator must be able to do more than just cool. Product range 2012 offers appliances with NoFrost and LowFrost technologies, LED light, smart space arrangement VarioXL, new exterior and interior design. Nice looking, roomy refridgerators beautify your kitchen and let your fruits and vegetables stay fresh longer. And it looks just as good on the electricity bill: with energy efﬁ ciency classes A+ and A++. http: //www.bosch-bt.ru

Холодильно-морозильные комбинации торговой марки Bosch реализует в России ООО «БСХ Бытовая техника». Товар сертифицирован. 6 From the RF government LEGISLATIVE BASE AND CREATED INFRASTRUCTURE LEAD TO PRACTICAL IMPLEMENTATION OF THE PROGRAMME FOR ENERGY SAVING AND ENERGY EFFICIENCY ENHANCEMENT IN THE RUSSIAN FEDERATION Timur Ivanov, Director General of the Russian Energy Agency of the Russian Federation Ministry of Energy best programmes were granted subsidies GIS EE is a tool, which enables from the federal budget in the aggregate to aggregate actual and on-the-spot amount of RUR 5.27 bn. Th at money was information on the implementation of used for certain events within the scope energy saving and energy effi ciency of regional energy saving programmes. programmes in the regions. Due to Th e aforementioned events include GIS EE, results of the fi rst monitoring the development of renewable energy of the aforementioned regional pro- sources, solving tasks of energy effi cien- grammes will be published in the fi rst cy enhancement in thermal power gen- quarter of 2012; they will help assess eration and arrangement of the disposal the effi ciency of programme measures n 22nd of December 2011 Rus- system for mercury containing light and follow up their infl uence on the sian power engineers celebrated bulbs. Th e list of events is individual, and decrease dynamics of energy intensity their professional holiday, and on each Russian region acts according to its of gross regional product. the same day the Russian Ener- programme, but in conformity with the Th e federal “hot line” (8-800-2000- Ogy Agency of the Ministry of Energy federal legislative requirements. 261) was put into operation in April of the Russian Federation turned two Th is principle relates to mechanisms 2011; it is intended for any requests and years old. It seems to be proper time to for economic motivation of Russian con- inquiries in connection with energy sum up the performance results of our sumers of energy effi cient equipment. saving. Th e line is operating 24/7. One Agency which acts as the coordinator of Diff erent regions have various models of cannot exaggerate the importance of the governmental programme “Energy such motivation. For example, Moscow this project aimed at increasing the saving and energy effi ciency enhance- authorities consider the programme of awareness of Russian people of energy ment for the period up to 2020”. providing subsidy assistance to individu- saving methods, including the selection Within this period we have made als willing to buy compact, electric and of energy effi cient equipment and tech- signifi cant progress in fulfi lment of the hybrid cars. In other regions priority is nologies. Th e only diffi culty is that we strategic task set by the programme placed on measures aimed at motivat- have to raise the demand for “hot line” –decrease energy intensity of Russian ing citizens to transfer to the renew- services. We will continue working in GDP by 40%. able and local fuel, and in regions with this direction in 2012. It is worth mentioning the con- severe climate the programmes for heat In 2011 we cooperated with the solidation of eff orts made by Russian retention in residential buildings are in Ministry for Industry and Trade for the authorities at all levels in order to create the fi rst place. When preparing regional purposes of composing the Register mechanisms for the implementation of programmes, representatives of regional of Energy Effi cient Equipment. Th is regional and municipal programmes in authorities often base on proposals made Register includes the full list of equip- the fi eld of energy saving and energy by manufacturers and suppliers of ener- ment utilization of which is connect- effi ciency enhancement. gy effi cient equipment, energy service ed with the consumption of fuel and In fact Russian legislative base of and energy consulting companies. power resources – household facilities, energy saving is currently under devel- Informational aspect of our activ- technological equipment, electrical opment. On 5th of September 2011 ity is of great importance. In 2011 we machinery and materials. the Russian Government passed the launched the governmental informa- Th e major selection criteria are the Decree On the Approval of Rules for tion system for energy saving and ener- information on energy consumption the Procurement of Subsidies from the gy effi ciency (GIS EE) which represents category in technical documentation Federal Budget to Regional Budgets for the full information package in the and on the labels. Each element will the Implementation of Regional Pro- fi eld of energy effi ciency. Th e system contain OKP Code (all Russian prod- grammes in the Field of Energy Saving includes the legislative base, technolo- uct classifi er) of the manufacturer (or and Energy Effi ciency Enhancement”. In gies, solutions, the best Russian and the importer). 2011, fi fty fi ve regions of the Russian foreign practices, project cases and Apart from this list, the Register Federation which had developed the sample feasibility studies. will include the classifi er of energy con-

AEB BUSINESS QUARTERLY • Spring 2012 From the RF government 7 sumption categories stated in technical project. As a result of such cooperation, the federal and regional budgets. Rus- documentation and on energy effi cien- demo-auditoria are to be fi lled with sian Energy Agency carries out serious cy labels with comments, instructions modern equipment, multimedia mate- work aimed at providing interaction for equipment selection. rials, information and reference pro- between the government and busi- Th e Register is a subdivision of GIS duction. Th is project will become an ness community. For instance, for the EE. For the sake of convenience, the outstanding example of public-private purposes of small and medium busi- users will be able to choose equipment ness development we have established by manufacturers and trademarks, by On 5th of September 2011 the Rus- the Energy Financial Agency (EFA) in name, OKP code, technical specifi ca- sian Government passed the Decree cooperation with Vnesheconombank. tions and energy consumption category. On the Approval of Rules for the Th is institution will ensure expert eval- Th e Register will become the Procurement of Subsidies from uation of energy service projects and complete database of energy effi cient the Federal Budget to Regional act as the guarantor of their imple- equipment for individual consumers Budgets for the Implementation of mentation at the account of loaned and companies. I hope that the Register Regional Programmes in the Field of funds. Launch of EFA procedures is will be available in full in autumn 2012. Energy Saving and Energy Effi ciency planned for the second quarter 2012. It An important aspect of our activity Enhancement”. is expected that it will provide fi nanc- is the creation of network of regional ing for the projects with the minimum demonstration, education and infor- threshold of RUR 1 mln. Guarantees mation centres, where the individu- partnership involving higher education will be issued in the form of securities als, representatives of commercial institutions, regional administration, which may be used as the cover of cred- and budget-funded organizations can energy companies and manufacturers its issued by other banks. obtain the necessary consultations, of energy effi cient products – all those We have a lot of things to do and learn about energy saving technologies parties which are interested in Russian we strongly hope that we will manage for industrial and household purposes. people developing the habit of reason- to set up a powerful community of Th e fi rst centre of this kind was opened able consumption of non-renewable experts, specialists and businessmen in Krasnoyarsk – one of the biggest natural resources. interested in large-scale introduction cities in Siberia – in winter 2011. In I would like to emphasize once again of energy effi cient technologies in our 2012, similar centres will be opened in that the aforementioned projects are country. We are always open for coop- several other regions of Russia. implemented not only at the expense of eration. Besides it, in the end of 2011, acting in cooperation with the Ministry for Education and Science of the Russian Federation, we started to develop 56 demonstration auditoria on energy effi - ciency in the leading universities of our country. In 2012, we intend to open 40 demo-auditoriums and in 2013 – the remaining 16. Inter-academic demonstration auditoria will be created in the biggest Russian cities; with such a resource by 2015 about three million of students and teachers as well as engineering and technical staff in the fi eld of education will be able to get complex understanding of energy saving methods and technologies. We assume that exhibitions of fully functional samples of the state-of-the-art equipment as well as training sessions conducted with the advanced training methods will facilitate the formation of “energy-effi cient” behaviour model of visitors and develop the skills of reasonable energy and resource consumption. Russian and foreign partners from the list of companies and organizations interested in demonstration of energy effi cient production, materials and technologies are invited to this

AEB BUSINESS QUARTERLY • Spring 2012 8 From the RF government ALL ABOUT THE FEDERAL STATE UNITARY ENTERPRISE "FEDERAL ENERGY SERVICES COMPANY" ("FESCO") "CANNOT PEOPLE REALIZE HOW LARGE AN INCOME IS THRIFT?" MARCUS TULLIUS CICEROA

Alexander Terekhov, Acting General Director, Federal State Unitary Enterprise "Federal Energy Services Company"

Given the diffi culties currently as well as support the development of being experienced by the market, com- scientifi c and technological capacities bined with its low rate of development, and facilitate the development of the the creation of a federal energy-service domestic production of energy-saving company represents the best possible products. solution to overcoming existing bar- In terms of energy services, the riers and improving energy effi ciency operational concept for "FESCO" fea- throughout Russia’s public sector. tures four aspects: the technological At present, the Federal State Unitary solutions lying at the heart of energy- roblems in the area of energy Enterprise "FESCO" is a robustly-devel- service contracts, energy audits, project conservation and energy-effi cien- oping company under the departmen- fi nancing for reconstruction, modern- cy improvements have become tal auspices of the Ministry of Energy ization and the integration of energy- critical issues in today’s Russia. of the Russian Federation. "FESCO" is saving technologies, and supplies. It is PSuch problems include the excessive a company charged with supporting anticipated that "FESCO" will conduct losses entailed in energy production development of the energy services technical assessments and project- and consumption, the failure of our market, fostering the potential and cur- quality monitoring activities aimed at production facilities to conform to rent operations of regional, local and the obtainment of loan guarantees. modern advancements in science- privately-held ESCOs, working within Th e immediate plans of the new and-technology, and our high rate of the sphere of the federal budget and for company include: equipment failure. Th e lack of eff ec- closed enterprises – fi rst and foremost, ■ the implementation of pilot projects tive infrastructure on the market for the military-industrial complex – and involving the rendering of energy energy-conservation services, t he poor easing access to project fi nancing. services for the purposes of their sub- fi nancial solvency of consumers, lim- Th e mission of "FESCO" is to create sequent replication and roll-out by ited budget fi nancing, and the shortfall the conditions necessary for dynamic various energy-service companies; in industry experts specially-trained in development of the energy services ■ the creation of energy-service start- effi cient and rational energy consump- market within the Russian Federation, ups aimed at supporting small- and tion only serve to exacerbate these implement projects within the fed- medium-sized businesses engaged in problems. eral public sector and industry-based the rendering of energy services; At this stage, practical implemen- energy service contracts for projects ■ the development of a bioenergy tation of any program designed to in renewable energy and bioenergy, resource base and the creation of increase energy conservation and effi - ciency is hindered by a number of barriers, specifi cally: the lack of fi nancial and insurance products tailored specifi cally to energy-service contracts, the failure to implement energy-service agreements due to the gaps in the legislative framework, a lack of confi dence in performance contracts, the defi cit of regulatory and oversight agencies charged with monitoring compliance with legal requirements, and the failure to generate interest in the implementation of such measures.

AEB BUSINESS QUARTERLY • Spring 2012 From the RF government 9

bio-energy clusters in the Russian palities and constituent territories on Note that it is of fundamental regions; the integration of road-tested standard importance not only to arrange for ■ the provision of informational-ana- solutions. At the same time, techno- coordination of the energy-conserva- lytical and methodological support logical, investment and social risks tion measures implemented by all fed- via the creation of an integrated decrease – as do the costs associated eral agencies, but also to consolidate informational system; with project development and imple- the professional opinions of all profes- ■ the creation of a demonstration cen- mentation. Of tremendous importance sional market players. tre for energy effi cient technologies is the organization of comprehensive Unifying energy-conservation and equipment; support by "FESCO" for projects of dif- eff orts on the basis of this business ■ active participation in the creation of fering levels and formats. structure will allow for the: an international science and innova- FSUE "FESCO" strives to develop a ■ Creation of a market instrument for tion centre – “EcoEcology” together mechanism for the support and repli- the implementation of the "Energy with the federal government agency cation of energy-saving programs and Conservation and Energy-Effi ciency “RosEnergoAtom”. Th is centre will be projects, specifi cally: the continuous Improvement Th rough 2020" Pro- formed on the basis of similar insti- selection and implementation of ener- gram adopted on December 27, 2010; tutions within the RF Ministries of gy-conservation programs capable of ■ Swift accumulation of staffi ng and Energy and Agriculture, the Russian being launched as pilot projects, proj- technological potential for the imple- Academy of Agricultural Sciences, ect monitoring, project support and mentation of pilot projects; with the active participation of inter- standardization, as well as support for ■ Gathering of experience in the appli- national companies and organisa- the integration of such projects at the cation of comprehensive and eff ec- tions. municipal and regional level. tive solutions to energy-saving tasks Investments in energy savings truly With respect to securing fi nancing capable of being replicated for swift mean economic savings. Th at’s why it’s for energy-saving projects, "FESCO" implementation across all economic so important to ensure that privately- aims to achieve the following objec- sectors and integration into the mar- held and public organizations alike – at tives: ketplace; all levels – have the opportunity to rely ■ Development and implementation on the standardized organizational, The mission of "FESCO" is to cre- of mechanisms and instruments that fi nancial and technological solutions ate the conditions necessary for increase access to fi nancing , includ- off ered by the real-world implementa- dynamic development of the energy ing, fi nancing through the Energy tion of pilot projects. Th en, millions of services market within the Russian fi nance centre; Russians will be able to reap the ben- Federation, implement projects ■ Formation of an integrated informa- efi ts associated with the implementa- within the federal public sector tion space for energy-effi cient tech- tion of energy-saving programs. and industry-based energy service nologies and products (GIS TEK, Today, a great number of well-prov- contracts for projects in renewable including the normative reference en foreign and domestic energy-effi - energy and bioenergy, as well as system (NRS)); cient technologies and technical solu- support the development of scien- ■ Maximum informational accessibil- tions are on off er for practical applica- tifi c and technological capacities ity of the energy-effi cient technolo- tion in the fi eld of energy conservation. and facilitate the development of gies of foreign and domestic pro- Yet, given current conditions in terms the domestic production of energy- ducers and suppliers to all market of national economic performance, saving products. participants; housing and public utilities, and social ■ Control over the spending of funds services, the practical implementa- earmarked to support energy-con- tion of investment projects conducted ■ Development of standard fi nancing servation projects. within the scope of the energy conser- arrangements; Th us, "FESCO" must emerge as a vation programs under development ■ Preparation and integration of stan- key platform on which all market par- in the regions is hampered by a mul- dard forms of credit fi nancing; ticipants, including international orga- titude of organizational, fi nancial and ■ Organization of forms of coopera- nizations, can join forces. legal barriers, particularly since ener- tion with small- and medium-sized Given its wealth of experience in gy-saving activities require signifi cant regional ESCOs, including various the energy fi eld, close contacts with initial expenditures. Th at said, inferior options: rendering of technical, hundreds of manufacturing plants, project implementation is capable of methodological and informational equipment suppliers, NGOs and asso- undermining the very idea of energy support, joint ventures, equity par- ciations throughout Russia and over- conservation. ticipation; seas, and workforce of highly-qualifi ed Having garnered signifi cant experi- ■ Formulation of most-favorable terms specialists, "FESCO", in close coopera- ence in the implementation of energy- for foreign investors; tion with FGA "REA", international effi cient projects, "FESCO" is well-posi- ■ Formation of the stable pre-condi- partners and regional entities, is surely tioned to systematize both the positive tions necessary for development of poised to become the lynchpin for and negative aspects of project imple- the fi nancial-instrument market for development of the market for energy- mentation and advise Russian munici- the energy-services industry. saving services in Russia.

AEB BUSINESS QUARTERLY • Spring 2012 10 From the RF government PARTNERING RUSSIAN ENERGY EFFICIENCY WITH WORLD BEST PRACTICE Michael Viberg Pedersen, Director and Anna Chelnokova, Energy Effi ciency Advisor, RuDanEnergo

(Russian-Danish plants like Avedore 2, which is a multi- Energy Effi ciency fuel fi red plant that is capable of using Center), which several types of fuel: natural gas, oil, wood is a platform for pellets and straw. Multi-fuel fi red power key stakehold- plants are yet to be seen in Russia and are ers within the an interesting opportunity for providing energy effi ciency power plant owners with a possibility to sector in Russia seamlessly control the type of fuel they and Denmark. use depending for example on market ■ Imagine a 94% energy effi ciency on Th e Center was initiated by the Confed- prices. Another Danish specialty is off - consumed fuel input in a combined eration of Danish Industry with support shore wind turbine production. Denmark heat and power plant. from the Danish Industry Foundation hosts the world’s leading wind energy ■ Imagine being able to switch seam- and leading Danish companies in the companies and has 40 years of accu- lessly between fuel sources. fi eld of energy technology and energy mulated wind knowledge. It should be ■ Imagine wind power constituting effi ciency. RuDanEnergo works with noted that fossil fuels and renewables are almost 30% of electricity consump- a wide range of decision makers from interdependent in the Danish grid and tion, and growing. business, politics, fi nance and academia. allow Denmark to be more energy inde- ■ Th is is already reality in Denmark. Its goal is to facilitate and develop new pendent and environmentally friendly. And now Russia is committed to dra- initiatives between Russian and Dan- A key element of Danish success in matically decrease energy intensity ish stakeholders within energy effi ciency achieving the high levels of energy effi - through a range of measures. and to create mutual understanding and ciency is that purchasing decisions are Th e Russian Energy Agency is work- innovative thinking between Russian based on principles of Best Available ing hard to increase energy effi ciency and Danish actors by enhancing cross- Technology (BAT). BAT is defi ned as in the Russian Federation through joint sector/cross-border/cross-level encoun- the “most eff ective and advanced stage activities with best practice partners ters, by dismantling barriers for energy in the development of an activity and at national, science and commercial effi ciency and supporting cleaner energy its methods of operation, which indi- levels. Denmark is a country with one solutions. Members of RuDanEnergo cate the practical suitability of particu- of the strongest clean tech and energy include companies like BWE, Danfoss, lar techniques for providing, in prin- effi ciency sectors. Th e Danish govern- Eagle Burgmann, Grundfos, FLS, Log- ciple, the basis for emission limit values ment’s ambition is to be completely stor, Ramboll and Vestas with proven designed to prevent or eliminate or, independent of fossil fuels by 2050 and world class energy technologies. where that is not practicable, generally it is very successful in reducing its ener- An area of Danish best practice expe- to reduce an emission and its impact gy consumption and CO2 emissions. rience in energy effi ciency is district heat- on the environment as a whole”, where: In September 2011, the Russian ing, where Danish combined heat and Before implementing such an appro- and Danish Energy Agencies signed power plants are among the most effi - ach throughout state systems, in order to a Memorandum of Understanding in cient globally. More than 80% of district lead to improved energy effi ciency mea- the fi eld of energy effi ciency coopera- heating is co-produced with electricity. sures, it is necessary to review and change tion. One concrete activity within this Denmark has developed and installed incentive structures from power produc- area is the founding of RuDanEnergo some of the world’s most effi cient power ers through transmission and distribution to consumers in order to improve ‘best’ in relation to techniques, means the most eff ective in achieving a high general level of the economic feasibility for buyers. B protection of the environment as a whole Several BAT events are planned by ‘available techniques’ means those techniques developed on a scale which allows imple- the Russian and Danish Energy Agen- cies in partnership with RuDanEner- A mentation in the relevant class of activity under economically and technically viable conditions, taking into consideration the costs and advantages, whether or not the techniques are go throughout 2012 and onwards in used or produced within the state, as long as they are reasonably accessible to the person order to contribute to Russia’s progress carrying out the activity towards increased energy effi ciency and to partnering Russian energy effi - T ‘techniques’ includes both the technology used and the way in which the installation is designed, built, managed, maintained, operated and decommissioned. ciency with world best practice.

AEB BUSINESS QUARTERLY • Spring 2012 From the RF government 11

AEB BUSINESS QUARTERLY • Spring 2012 12 A closer look at energy efficiency in Russia RENEWABLES IN RUSSIA: A WAY TO GO? Patrick Willems, Program Manager, IFC Russia Renewable Energy ditions for the deployment renew- economic benefi ts of cleaner, more effi - able generation, including windswept cient energy consumption. Indeed, effi - steppes, areas of high insolation and ciency measures can play a major role forestation on top of rich geothermal in boosting renewables' overall share of wells. Yet to date this potential remains the energy mix. Th ere is a huge energy almost completely untapped. At the effi ciency potential in Russia, and if end of the same year 2009 a mere Russia manages to reduce its energy 13 MW of wind and negligible solar intensity, it will need much less energy capacity was connected in a country overall. with a total installed generation base But to get renewables off the ground, of 220 GW. Large hydropower exclud- the basics must be in place, beginning here is continuous discussion at ed, less than 1% of Russia's power is with a legislative framework that sup- various levels as to whether Russia currently generated from renewable ports their development. Supportive with its huge oil and gas resources sources. legislation will need to be underpinned needs renewable energy. Th is dis- But where will the money come by rigorous, specifi c guidelines as seen cussionT takes place inside and outside from? Th e choice here is not one of elsewhere. Most European countries of Russia, between various national making major investment in renew- for instance provide priority access to federal and regional players, with dif- ables or of saving the money by main- energy from renewable sources and ferent aspirations ranging from mod- taining the status quo. Russia will have further place an obligation on whole- ernizing the economy to protecting to make substantial investments in its salers to pass on electricity produced local energy providers from Western oil and gas sector anyway, if it wants by renewables to the end consumer. interference. to keep meeting growing domestic A decision on which way to go Energy in Russia is dominated by demand. In dollars and cents, IEA esti- has yet to be made. A Federal law on oil, coal and above all, gas. Th e nation mates that Russia’s power sector will Electricity (FZ-35) amended in 2007 has huge reserves, allowing it to sup- require US$615 billion in investment introduced the legal basis for stimulat- ply its consumers with relatively cheap through to 2035, including US$360 bil- ing renewable energy (RE) by premi- energy and wield the power that comes lion in electricity generation. ums on the wholesale market price; from being a key exporter to Eastern One early win for Russia could the same law was amended in Decem- Europe and beyond. So why would come from the promotion of energy ber 2010, introducing the possibility of Russia even consider to explore and savings as a way of demonstrating the stimulating RE by payments for capac- exploit its renewable potential and what are issues that impede this to date? Russia is the 4th largest emitter of GHGs in the world; its energy intensity is among the highest globally, while existing generation assets are near- ing the end of their technical lifetime. In recent years there seems to be a growing awareness of the need for and related benefi ts of increasing energy effi ciency and deploying a renewable energy sector. According to the Government Order 1-r of January 2009 and the Energy Strategy of the Russian Fed- eration, the country is to reach 4.5% of its electricity generated from renewable energy sources by 2020 (exclud- ing hydro with installed capacity over 25MW). And it does have a suffi cient potential. Russia’s vast geography and topography provides favourable con-

AEB BUSINESS QUARTERLY • Spring 2012 A closer look at energy efficiency in Russia 13 ity, parting from the previously intro- exporter of energy belies the fact that here, especially if subsidies for 'import- duced system of premiums. Another whole regions of the vast country are ed' fuel were removed. amendment of the same law adopted in heavily reliant on 'imports' from other It is also believed that wind has a December 2011 introduced both again. energy-rich regions, especially western tremendous opportunity to make an Th ere are other factors which pre- Siberia. Given the uneven distribution impact within ten years, especially for vent the development of a viable rene- of energy resources across Russia’s ter- the 10% or so of Russians who are not yet wable energy market in Russia, such ritory, there are many regions where connected to the grid. Where allied with as the absence of a one stop-shop with the cost of power supply is very high, state of the art transmission technology, decision making power; the reluctance either as a result of being at the end of the country’s vast geography needs not to adopt new technologies (grid inte- long transmission lines, or in isolated be an obstacle to wind contributing to gration); the meagre appetite of local grids. As an example, the central-Asian the Russian grid system as well. FIs to provide RE fi nancing combined republic of Tyva, deep in the south of To date, more and more, Russia’s with insuffi cient support and training the Russian Federation on the border regions are looking at the possibility for developers (capacity building). with Mongolia, spends more than half of developing local renewable energy Despite these obstacles there are of its budget on fuel. sources to satisfy local energy demand grounds for hope. Renewables can In such cases, even in the absence and as a means to attract investments form part of a general policy designed of any incentives, an appropriate pro- but also, in some cases, to solve envi- to encourage modernisation and tech- gramme geared around local renew- ronmental problems like agricultural nical innovation in Russia’s industrial ables could quickly make an impact. waste. complex. Th e credentials of renewable Biomass deployment in north-western Once a basic framework is in place, energy as a 'new industry' could be a Russia, where the well-established pulp signifi cant progress might be seen signifi cant booster for regional devel- and paper industry ensures favourable within the next two years at a regional opment in many Russian cities, now conditions, is a good example. Regions level. Th ere are viable projects, inter- still dominated by monolithic outdated remote from the power network rely ested project developers, keen inves- industries which often represent the on local petroleum-based generation tors and equipment manufacturers, sole source for employment. systems, with fuel transported by road, all eager to match the potential. A Another factor to take into account rail or even by helicopter. Renewable little push should suffi ce to get the ball is that Russia's national status as an generation could be price competitive rolling.

AEB BUSINESS QUARTERLY • Spring 2012 14 A closer look at energy efficiency in Russia RENEWABLE ENERGY – A NEW REALITY Aage V. Nielsen, Managing Director,Vitus Bering

■ In year 2008 19% of fi nal global ener- mass, bio-fuel and production of solar gy consumption came from renew- photovoltaic panels sectors. able energy and this share is increas- Companies, investors and a number ing; of Oblast administrations are increas- ■ Many countries have renewable ingly interested in energy effi ciency energy promotion policies and pro- and use of local renewable energy grammes in order to reach set-up sources in order to increase their local targets set for renewable energy – value adding and to improve living Many European countries have a tar- standards for their population. get of 20-30% or more by year 2020. However, Russia would need to ■ Most interesting is that a number of catch up on renewable energy pro- renewable energy technologies now motion policies and programmes if un, biomass, water and wind have are being or soon are becoming com- companies and Oblast administrations been used as energy for many cen- petitively priced due to falling pro- are to succeed. Hopefully, the existing turies, millenniums even. duction costs and/or new inventions World Bank Russia Renewable Energy But Since James Watt, fossil improving cost eff ectiveness (e.g. Programme together with improved fuelsS (coal, oil and natural gas) and solar photo voltaic panels, wind-tur- awareness will contribute to adapt after the 2nd World War also nuclear bines, second generation bio-fuels). the necessary policies and regulations power took over. With the big oil price Th e need for public subsidies is needed. increases in 1970s fi rst Western Europe therefore reducing and several renew- In the AEB Energy Effi ciency Com- and Japan started to rediscover renewable energy technologies are becom- mittee we have experienced a number able energies. ing commercially feasible without sup- of barriers to overcome including net- With the additional price increas- port for more and more applications. metering and diffi cult rules for feed-in es of fossil fuels since 2000 and the As a consequence the introduction of tariff s to the grid. increasing concerns of global warming renewable energy capacity will acceler- Th e low hanging fruits of Russian big consumers even including the USA, ate. renewable energy are at this moment: China and India are now also promot- ■ Many cities would benefi t from ing renewable energies. Russia and renewable energy waste sorting, recycling and burning Renewable energy today includes a A number of analyses and reports the remains in CPH plants, which at number of technologies: Hydro power, have documented Russia’s big potential the same time would reduce waste wind power, biomass and bio fuels, within almost all types of renewable dumping and related threats to solar photo voltaic panels, geothermal energy. drinking water sources; . power including heat pumps, and solar Hydropower has for many years ■ Use of waste within the wood and hot water/heating collectors. – Waste been a substantial industry. During the wood processing industries – in sorting, recycling (paper, metals, glass, last years we have seen a number of Northern Europe and around the plastics etc.) and burning the remains initiatives within especially the bio- Baltic Sea there exists a substantial in CPH, Combined Power and Heat, plants are often for good reasons also considered renewable energies. In many respects renewable energy is at a tipping point: ■ Since 2008 renewable power capacity (wind and solar photo voltaic panels) has been more than half of all new installed capacity in the Euro- pean Union and USA;. ■ Since 2009 more money has been invested in renewable energy capacity than in fossil capacity worldwide,; and ■ More than half of installed renewable capacity has been in emerging and developing countries;

AEB BUSINESS QUARTERLY • Spring 2012 A closer look at energy efficiency in Russia 15

commercial market for wood pel- the world and thanks to the competi- lets used in CPH Plants for district tive pressure from smart effi cient and heating; cheap Chinese and Indian producers ■ Th e use of biomass and waste from and manufacturers, renewable energy agricultural production; will succeed and prevail in the coming ■ Photovoltaic power, subject to net- years. metering and rules for feed-in tariff s We have only seen the very begin- as mentioned above. ning of using the genetic code for new It should be mentioned that devel- biomass and bio-fuel technologies not opment of a smart-grid system would to speak about new materials copy- facilitate the advance of photovoltaic ing features from for example insects power and wind-power in Russia. and plants to be used for new energy Recently two ‘Energy Active’ hous- effi cient materials within construction, es of Danish design were construct- buildings, manufacturing and transport. ed near Moscow in order to test and A number of important technolo- demonstrate how a zero-energy house now being or soon becoming competi- gies can assist and contribute to this design with a number of renewable tive in price due to falling production development like sensors, IT & tele- energy features could work under Rus- costs and new inventions , we will see a coms (such as the so-called smart grid, sian climate conditions. Th e housing still accelerating capacity of renewable and intelligent buildings), fuel cell tech- sector represents a substantial potential energy installed the coming years. Th e nology, substantially more effi cient use opportunity and market for renewable main barriers are mostly lack of aware- of fuel, and high capacity batteries. energy technologies, but again depend- ness about renewable energy, rules and A little further down the road, ing on introducing net-metering and regulations and confl icting economic super conductor technology might feed-in tariff system. interests between diff erent sectors in succeed, which would make it possible the economy. to transport power over long distance Perspectives for Renewable Energy Th anks to research inventions from areas with wind and/or daylight Renewable technologies are here within especially biotechnology, solid- and sunshine to consuming areas and today! With some of the technologies state physics and chemistry all over areas in darkness of the night.

AEB BUSINESS QUARTERLY • Spring 2012 16 A closer look at energy efficiency in Russia FROM BIOGAS IN RUSSIA TO GREEN GAS IN EUROPE: A BUSINESS MODEL FOR RUSSIAN GREEN GAS Ekaterina Kravetskaya, CFO/Senior Project Manager, Representation of N.V. Nederlandse Gasunie in Russia there is room for substantial imports of Currently, locally produced biogas green gas from the east. is typically used for local production of Green gas has the clear advantage electricity, sometimes combined with over other forms of renewable energy, heat production. Considerable value such as wind power, that no large new may be added if biogas is upgraded to investments are needed as it is able to green gas and injected into the natural make use of the existing well-developed gas network. It may not be currently gas transport infrastructure. Th e bio- attractive to sell it on the Russian mar- mass can be converted at source and ket given the lower production costs very effi ciently transported, obviating for conventional natural gas as com- he EU Climate and Energy Pack- the need for logistically complicated and pared to green gas. However, there age, which includes the well- huge biomass transport chains. Th e only may be good opportunities for Russia known 20-20-201 targets, sets issue is whether enough could be pro- to enter the EU green gas market and ambitious goals in relation to CO2 duced at a reasonable price. If we look at increase its market share of the EU emissionsT reduction, energy effi ciency green gas not merely from an economic energy market by leveraging off the and renewables. In this context biogas point of view, but also in terms of emo- huge production potential of biogas in gains ever greater prominence as a tions, we observe that green gas is popu- Russia. clean and sustainable energy source lar as a possible alternative, for instance, Green gas is considered a premium which can help to “green” the energy as fuel for transportation. fuel by consumers in the EU, and there supply mix. Russia has an enormous potential is a separate market for green gas. Th e “Biogas” is gas of biological origin for biogas production with many hect- current premium which consumers with a methane content of about 55 ares of fertile land that is suitable and in the Netherlands are ready to pay percent, which is typically produced used for agriculture. According to the may be as high as 30%. Th e current by digestion of organic material such as Russian Energy Agency (REA), the esti- production of green gas in the EU is manure and vegetable biomass. When mated biogas production potential may highly subsidised, with subsidies in the further cleaned and upgraded, biogas reach 66 billion cubic meters per year Netherlands amounting to up to €500 can be processed into bio methane, a if all existing annual agricultural waste per thousand cubic meters of natural high-quality methane fuel that is vir- was to be used for its production. gas equivalent. these subsidies are not tually indistinguishable from conven- sustainable, especially in the current tional natural gas and can be injected economic climate. Th e import of Rus- into the gas grid. Bio methane is also sian green gas at prices which are com- commonly referred to as "green gas". parable to natural gas prices therefore Th ere is a growing market for green gas be very welcome. in the EU, which becomes increasingly In the framework of a Dutch-Rus- attractive to gas companies because sian joint research project we have of its rapid growth and the possibility studied the economic feasibility of the to make use of the existing gas trans- energy value chain of production of port infrastructure. Given the some- biogas in Russia, purifi cation, certifi ca- what limited potential for production tion and injection into the gas trans- of green gas within the EU itself com- port system of Russia with a vision to pared to the total consumption of natu- market this gas in the Netherlands, ral gas in the EU, it can be assumed that and subsequently in other countries of EU. Th e analysis was done on the 1 basis of a typical cattle farm in the 20% reduction of CO2 emissions, 20% of energy consumption from renewables, 20% increase in Samara region capable of producing energy effi ciency by 2020, as compared to 1990. 5 million cubic metre of green gas per

AEB BUSINESS QUARTERLY • Spring 2012 A closer look at energy efficiency in Russia 17 year. As it turns out, the production of recognize the system and international green gas helps to solve the problem trade can fl ourish. Th e active support of agricultural waste streams such as of the governments of both the Russian manure, generating not only a renew- Federation and the Netherlands will be able fuel, but also a high grade organic essential mainly to align the technical fertilizer and, importantly, additional and physical requirements and stan- income for farmers. Th e economic dards, stimulate investment into green viability is supported by the higher gas production and establish condi- price that may be achieved for certi- tions for the international certifi cation fi ed green gas. of green gas. Th e second step in the project is If the business model to create a to develop a business model to allow green gas fl ow from the Russian Fed- green gas produced in Russia to be marketed within the EU. Th e respec- Russia has an enormous potential tive Memorandum of Understanding for biogas production with many was signed in October 2011 between hectares of fertile land that is suit- Gasunie, Gazprom, Samara Eurotech- able and used for agriculture. to make the existing gas network an nika and Biogasenergostroi for the integral part of a sustainable energy development of green gas in Russia. system, where gas is not only able to Th is includes developing a system for eration to the Netherlands proves to play a vital role as a back up, fl exible certifi cation of green gas in the Russian be feasible, Russia may become known source of energy for renewables such Federation, setting up an independent not only as an important fossil fuel as solar and wind power, but where gas certifying body that will be recognized supplier, but an important supplier of is also able to green itself through the by European peers such as the Dutch renewable fuel to the market, mak- production and feed-in of green gas. certifying body Vertogas B.V. Th e main ing a contribution to the realization of International production and fl ows of challenge will be to establish interna- Dutch and European climate goals. green gas will increase both sustain- tional recognition of green gas cer- As a European gas infrastructure ability and security of supply in the tifi cates, so that market parties will company we believe that it is essential European energy market.

AEB BUSINESS QUARTERLY • Spring 2012 18 A closer look at energy efficiency in Russia PROMOTION OF ENERGY EFFICIENT PRODUCTS Alexej Soldatow, Technical Regulation Manager, OOO BSH Bytowaja technika in 2010 and eff ective since autumn successful promotion of their innova- 2011. Any home appliance being dis- tions at national and global scales. played in the showroom is the subject of energy labelling; energy effi ciency Supporting policies characteristics must be communicated Some countries and regional authori- in web sites, in catalogues and product ties indirectly support manufacturers documentation. Similar regulation has which promote energy effi cient prod- been adopted in the Russian Federa- ucts. Th ere is a variety of mechanisms tion since 1 January, 2011. aiming to bridge the gap between While energy labelling regulations the costly super-effi cient solutions of t is well-known that energy effi cient identify energy effi ciency champions tomorrow and current technological products are reputed to be mod- and makes visible their advantages in levels. It might be tax reduction, sub- ern, innovative and productive. But the market, easy comparable and being vention of the credit interest rate, spe- despite this, it is sometimes a very protected from misleading communi- cial discounts, or a refund of a certain hardI job to make them successful in cation of others, the Ecodesign regu- amount by purchase of a super-energy the market. Certainly, energy effi cient lation targets the minimum accept- effi cient product. Such programmes products are mostly created by using able level of energy effi ciency and per- run in Switzerland, Slovenia, Austria, of high-end technologies; they can formance. Ecodesign regulations set Luxembourg, Spain among others . Th e change perceptions of well-known fea- minimum requirements for products replacement of old washing machines tures, functions and users’ habits. Th e refl ecting the actual technological level and refrigerators by new ones with high Latest innovations and technological in each particular industry and thus energy effi ciency classes is listed along solutions for which production has just protects the market from cheap and with other measures in the Russian begun often frighten some conservative ineffi cient obsolete solutions. Federal programme “Energy saving and users; their costs are initially excessive By participating in relevant stan- increases in energy effi ciency by 2020” due to the pay-back curve of charges dardisation committees, business asso- adopted by the resolution of Russian for patents and licence fees; and the ciations and public councils of authori- Government Nr. 2446-p of 27.12.2009 . newest solutions, materials and tech- ties, manufactures gain control over the nologies are unknown to most of the latest developments, identifying new Visualization of energy effi ciency market players. Should a manufacturer trends and any potential for further For consumer goods it s recommended be wary of launching super energy effi - improvement of their products. Voting to visualise features, making it evident cient products? Defi nitely not. for standards, commenting on drafts of for potential clients no matter which Each market success is the result regulations , and initiating positive acts media is concerned. Some manufactur- of eff ective promotion. Let's talk about manufacturers can lay the basis for the ers introduce their own labels, signs the promotion specifi cs of energy effi - cient products.

Standardization and Technical Regulation Energy effi cient devices, such as home appliances are covered by several regulations. Energy labelling is a regulation enabling the customer to identify the most energy effi cient products and compare diff erent products of each and diff erent manufacturers in an eas and transparent way. Th e European Union has a proven track record of energy labelling since 1995, the latest

signiﬁ cant changes were introduced technika Property of OOO BSH Bytowaja

AEB BUSINESS QUARTERLY • Spring 2012 A closer look at energy efficiency in Russia 19 emphasising outstanding energy eﬃ - ciency characteristics. Manufacturers are free to decide which criteria, limits and environmental protection facts are most important for the assignment of such badges. For example, home appliances with the mark “Green Technol- ogy Inside” were manufactured using the newest technologies, delivering the best performance and low electricity and water consumption values of Bosch products. Criteria for the assignment of special labels might be revised by respected manufacturers faster than the

relevant energy labelling regulation and technika Property of OOO BSH Bytowaja therefore is an effi cient mechanism for cussions related to energy effi ciency. budget, and corporate culture. Most tracking innovation in a market sector. Th e Neutral stance of associations companies issuing corporate maga- Such marks can be effi ciently used as attracts the mass media, independent zines do not miss the opportunity to fi lters on web sites, enable the product experts and regulators which can hardy highlight the latest success stories of search to focus only on super effi cient be achieved if a company appeals to their innovative products. Such events products and so contribute to its suc- the public by itself. By becoming the like a company’s Green Day, Eco Day, cessful promotion via the internet. sponsor of a specialised events compa- or Eco Weekend inspire people to nies can strengthen their image in the create ideas how to improve the prod- Promotion of technologies minds of the participating or visiting ucts they take care of and organise Marketing and advertising activities of decision makers. processes so as to reduce the use of a product is not the only way to secure natural resources. its market success. In parallel, the pro- Partnerships outside own industry motion of the technologies using visual “One man, no man: together is better” External social activities features, makes it transparent, under- is clear in our normal life, but can also It clearly needs to become a trend that standable and touches both current be applied to promotion activities of people and NGOs in Russia realise and future products using the tech- energy effi cient products. Do attract their responsibility for the environ- nology being promoted. Proper intel- the partners which might be interested ment. Several organizations and initia- lectual property protection should not in the issue. A Win-win strategy is tive groups set up numerous actions be forgotten in order to safeguard the benefi cial for all parties involved, like to educate people how to save ener- project’s investment. Products devel- electricity suppliers, education centres, gy, where to drop old batteries, how oped using patents and special know- Federal agencies dealing with energy to collect old paper etc. Sometimes hows are welcomed on the market and effi ciency (e.g. REA), and the business these kind of activities are support- have always a better marketing story associations of allied industries. com- ed by foundations. Th e importance than other. In return, companies hold- ponent suppliers could be asked to par- of governmental support should not ing numerous patents enjoy a glorious ticipate in joint promotion campaigns be underestimated. During the fi rst image of being innovation champions resulting in higher fundraising, shared weekend of June 2010, the Moscow which increases the value of respected costs, and strengthened partnerships City Government organized the Eco- brands. for the future. festival in Luzhniki with free access to all visitors, companies and individu- Association support Internal social activities als involved with ecologically oriented Being placed in this Business Quar- A Key factor for success is the involve- production or services and granted terly this section could have been the ment of one’s own employees. Th is space for exhibition purposes. Besides leading of the article, but is left here can only be guaranteed if they are other exhibitors it was possible to to start the catalogue of co-operation persuaded by the corporate philoso- present to Muscovites energy effi cient options. Previously mentioned tools phy, the importance of energy effi - products like home appliances, energy are referred to as the internal resources ciency for the company, consumers, supply, house insulation and motivate of a company which are always essen- environment and society. Companies them to think about their roles and tial in terms of success and after legis- declaring social responsibility often options. lative infrastructure any kind of busi- organise special events for employ- To summarize, the promotion of ness cannot ignore or change. Effi cient ers, journalists, business partners energy effi cient products and solutions business associations provide support taking them away from the everyday is a modern, reliable and future ori- for their members organising special offi ce atmosphere. Th e Format of such ented strategy for securing a strong events, seminars, round tables and cre- events may vary from a picnic to a position in the market for a company ating a permanent platform for dis- round table, depending on agenda, and its products.

AEB BUSINESS QUARTERLY • Spring 2012 20 Sector specific aspects ISO 50001 TO DRAW ENERGY MANAGEMENT ROADMAP

Konstantin Timoshechkin, Head of Systems and Services Certifi cation at SGS Vostok Limited (the SGS Group)

the next energy audit in fi ve-year peri- systematic approach toward energy od. Th e second option is that concrete management. actions will follow to introduce real In fact, improved technology has changes to energy consumption model a role to play in improving energy and for the organisation to gain sustain- effi ciency. However, successful case able benefi ts. However, due to lack of studies have shown that the most sig- expertise necessary to achieve reduc- nifi cant progress would come through tions in energy costs and wastage many the way in which companies improve companies would need guidance on control of the processes and systems how to do so – best practice, etc. To our they use to manage their energy use. he Federal Law No.261-FZ ‘On view, the way to fi ll in this gap would be Energy conservation technology and Energy Saving and Energy Effi - to adopt international best practices and facility/ equipment are only part of ciency Increase’ has been one of implement the recently launched ISO the strategies to improve energy effi - the long-awaited drivers for intro- 50001 Energy Management Systems ciency. Systematic management and ductionT of energy management in the standard published on 15 June 2011. a behavioural approach have become Russian business environment. Many In many countries, energy concerns the core eff orts to improve energy effi - governments have been tackling the have been included in top priority lists ciency nowadays. Energy effi ciency is issue for a long time already, and by due to both the climate change chal- achieved through changes in how ener- adopting this Law Russia has joined the lenge and a forecast shortage of energy gy is managed. An energy management global trend. resources. To improve security of ener- standard is seen as necessary to achieve Although there have been indi- gy supply and to mitigate the growth major, sustainable increases in energy vidual energy saving initiatives under- of GHG emissions China, Denmark, effi ciency. A management process is taken by some Russian organisations, Ireland, Sweden, USA, Th ailand, Korea, required to proactively assess, man- the role of government in promoting and Spain have developed national age, and measure energy usage. this is energy effi ciency practices is crucial. energy management standards already exactly the problem that we encounter So far, those initiatives have been quite some time ago. A European Union in many Russian organisations trying to haphazard and the motivation of busi- regional energy management standard reduce their energy costs. Th ey often nesses in Russia to invest in long-term BS EN 16001 was published in 2009. carry out ad hoc uncoordinated activi- energy saving projects has been low. In 2008, ISO initiated the work on ties that do not really infl uence the total Th e Federal Law No.261-FZ is the fi rst an international energy management volume of energy consumption due to practical step towards a sustainable standard with preparatory assistance the lack of a systematic approach. management and hopefully will boost from the United Nations Industrial Improvements in energy effi ciency other mechanisms, primarily, develop- Development Organization (UNIDO). will always be the result of managing ment and implementation of the rel- Th is work resulted in the launch of ISO energy performance and optimizing evant tariff policy. In the meanwhile, by 50001:2011 which drew on numerous the energy systems used. An Energy the end of 2012, a number of organisa- national or regional energy manage- Management Standard provides a tions are requested to carry out energy ment standards, specifi cations and framework for understanding signifi - audits to identify energy saving and regulations, including ones developed cant energy use, helps in the creation energy effi ciency enhancement oppor- in the above mentioned countries. of action plans to continually improve tunities and to plan further improve- energy performance and in the elab- ment actions, and the big question is Benefi ts of a systematic approach oration of documentation to sustain what will happen next. ISO 50001 is rather a general standard energy performance improvements. Th ere are two main options. Th e fi rst applicable to any organisation of any On the other hand, system optimiza- one is that energy ‘passports’ drafted as size and it does not give any specifi c tion provides: a method of assessing part of the mandatory procedure set indicators or benchmarks. It does not systems to identify energy performance by Law will be archived and remain describe any particular energy saving improvement opportunities, actions untouched until it is time to conduct technology either, but streamlines the that can provide signifi cant energy sav-

AEB BUSINESS QUARTERLY • Spring 2012 Sector specific aspects 21 ings with limited capital investments tics of its operations and report the opportunities, not least the fact that and, fi nally, more reliable operations. results. of those surveyed, more than 50% are ISO 50001 as the most recent and com- ■ Act: take actions to continually more loyal to brands that can show, at a plete energy management standard is improve energy performance. glance, evidence of action. Report sug- intended to provide organisations with gests that there is a distinct correlation a recognized framework for integrating Complementing corporate between the strongest, most successful energy performance into their manage- management systems brands and those brands which score ment practices. Th e introduction to ISO 50001 includes requirements relat- highly on the categories of Corporate the standard makes it clear that imple- ing to energy supply, as well as energy Reputation, Leadership and Innova- menting ISO 50001: “…should lead to use and consumption. Th ese include tion. Environmental responsibility is reductions in energy cost, greenhouse requirements relating to measurement, one of the top characteristics of leading gas emissions and other environmental reporting, design and procurement companies. impacts, through the systematic man- practices for equipment, systems, pro- Th is correlation would not be as agement of energy”. cesses and personnel involved in the obvious in Russia yet, still companies management of energy. going public and expanding in the glob- Giving guidance not instructions Th e structure of the standard is very al markets increasingly pay attention to ISO 50001 is intended to off er guid- similar to ISO 14001 (environmental corporate sustainability and to the pro- ance to organisations so that they can management) and the standard can vision of evidence of action. Moreover, develop and implement their own be used independently or integrated apart from a reduction of GHG emis- energy policies, objectives, targets and with other management systems (such sions and other environmental impacts, action plans, which take into account as ISO 9001, ISO 14001). Given that the fact that ISO 50001 helps businesses legal requirements and other infor- energy usage is commonly considered to reduce energy costs and wastage mation relevant to their energy use. to have a signifi cant environmental makes this standard ever more appeal- By implementing 50001, companies impact, ISO 50001 is complementary ing to business owners and effi ciency- should make better use of their energy- to ISO 14001 management systems. oriented managers willingly adopting consuming assets by identifying oppor- Th is will certainly be a good starting no-cost and low-cost management tunities for improving effi ciency and point for many Russian companies that approaches during the last few years. reducing waste. are familiar with ,and have ISO 14001 Th ere are three stages on the way Taking the example of AUO, the compliant environmental manage- towards energy effi ciency. Th e fi rst Taiwan manufacturer of TFT-LCD ment systems in place. stage is product energy effi ciency. Th e panels that implemented ISO 50001 Similar to other management system second stage is product system energy to complement its existing ISO 14001, standards such as ISO 9001 and ISO effi ciency, like product carbon foot- ISO 14064 and LEED management 14001 there are requirements relating print analysis, starting from the raw systems: thanks to a systemic energy to management responsibility, policy, material through to fi nal disposal. Th e review they managed to identify 66 document and record control, training third stage is entity energy effi cien- opportunities for improving energy and awareness,and internal audits . To cy, when the principle of systematic performance through both process help understanding and integration, ISO management is applied and the energy improvement and management pro- 50001 includes a table comparing the effi ciency of the whole organisation cedure enhancements. Th ose oppor- requirements of ISO 50001 with other is improved. Globally, the approach tunities should result in saving 55 mil- ISO management system standards. towards energy effi ciencyhas already lion kWh of electricity and reducing moved to the third stage. For those 35 thousand tons of carbon emissions Focus on effi ciency and sustainability Russian companies that will opt not by 2015. And the standard’s imple- With ISO 50001 published less than for gradual climbing each stage but mentation should enable AUO to a year ago, the fi rst certifi cations have for going directly to the third one, ISO achieve those targets, again, through already taken place all over the globe. 50001 is the ideal roadmap. a systematic approach and the Plan- None of the Russian-based organizsa- Do-Check-Act continual improvement tions has yet been certifi ed, but the About SGS framework incorporating energy man- standard is likely to attract the atten- Th e SGS Group is the global leader agement into their everyday business tion of those who search for new ways and innovator in inspection, verifi ca- operations and strategies: of increasing overall effi ciency and tion, testing and certifi cation services. ■ Plan: establish the objectives and improving corporate sustainability. Founded in 1878, SGS is recognised processes necessary to deliver results Luckily, the number of such organisa- as the global benchmark in quality in accordance with opportunities to tions in Russia has been growing. and integrity. With more than 70,000 improve energy performance and Th e UK Carbon Trust survey car- employees, SGS operates a network the organization's policies. ried out in March 2011 suggested that of over 1,350 offi ces and laboratories ■ Do: implement the processes. for those companies able to provide around the world. Operating in Russia ■ Check: monitor and measure pro- credible evidence of improving their since January 1981, today SGS employs cesses and product against policies, environmental impact there are con- a staff of 3,300 people all over the coun- objectives and the key characteris- siderable commercial and reputational try. Web: www.sgs.ru

AEB BUSINESS QUARTERLY • Spring 2012 22 Sector specific aspects A NEW PLAYER WITH GREAT POTENTIAL Thomas Oertner, General Director, Imtech Russland AG ings is optimization of these systems. Th e Solution of two main problems Today an energy passport is mandatory is required within the energy saving for all buildings as energy consumers concept for a stadium or arena: opti- in Germany. It contains information mization of primary energy use and on the energy balance of the building search for additional energy sources. along with the main actions needed to A Strategy of energy effi ciency improve energy effi ciency. potential improvement includes step- Innovative technologies for energy by-step answers to the following ques- saving are more often applied recently tions: how to minimize energy con- besides actions which became tradi- sumption of facilities? Where and how tional: a changeover to energy saving much energy is required? Where can ccording to statistics, actual ener- lighting, use of building management energy be constantly produced? How gy consumption of stadiums and systems and others. More hot water is can the required energy be received multi-purpose arenas divides the produced with solar collectors in Ger- rationally? Integrated analysis and envi- following way: 20% of consumed many. Heat pumps are more often used, ronmental simulation enables engi- Aenergy is due to events running and changeover to low-temperature boilers neers to answer these questions and to 80% is used during periods between and house cogeneration become more develop an optimal concept including a events. Th ese 80% creates a poten- popular and ventilation installations set of actions aimed at an improvement tial for reducing energy consumption are often transformed for the recircula- of energy effi ciency. Modern technolo- which can be fulfi lled today by intro- tion of heat in the system. gies and tools of environmental simula- ducing modern technologies and ener- Th e potential Energy saving in Ger- tion enable engineers to experiment on gy saving materials. many is still rather high in spite of facilities when experiments in reality According to new revision of EPBD more widespread application of energy are not possible or unreasonable. All – Th e Energy Performance Building saving technologies. Energy saving is loads by such experiments are deter- Directive, all new building in Europe especially vital for developing coun- mined based on calculations, results of starting 2020 should have low level tries where energy capacity per unit measurements by taking into account energy consumption – less than 45 of GDP is higher in comparison with metrological dates and the specifi cs kWt/m2 per year - and from 2018 developed countries. Meanwhile such of facility use. Dynamic simulation this requirement should be applied to energy capacious facilities as stadiums, enables maximal accurate determina- all public buildings. Th e requirements arenas, airports, industrial projects, tion of demand for gas, fuel oil, central of the Directive are transposed into offi ce centres have as a rule the highest water supply and other energy sources German law EnEv (Energieeinspar- potential for energy effi ciency. and guarantee that supplied energy is verordnung) which considers a build- According to the fi ndings of exami- rationally used. ing as a single energy system what nations carried out in Germany the Simulation tools include the esti- means that primary energy consump- average energy potential saving of mation of energy saving potential and tion with respective multiplier and stadiums is no less than 15-35%. For assessment of possible re-sue of waste strictly standardised thermal protec- such energy capacious facilities as sta- heat created in production processes. tion of building are taken into account diums it means a considerable reduc- Simulation tools also make it possible to at the same time. According to statis- tion in CO2 release besides signifi cantly fi nd out ways of improvements in ener- tics about 40% of energy used in Ger- reduced costs for energy supply. gy consumption and maximal eff ective many is consumed by buildings and Earlier, when building stadiums the use of specifi c and unique landscapes: facilities. Meanwhile the main energy main attention was paid to comfort: for example, big roof areas can be used consumers in the building are the heat- lawn heating, VIP-lodges with air con- for placement of heat pumps collec- ing and warm water supply system, ditioning, restaurants and other infra- tors or can be transformed into solar ventilation and air-conditioning, light- structure projects. Certainly such facili- power plants. Analysis of environmen- ing and household (offi ce) appliances. ties entailed constantly growing energy tal simulations results enable engineers Heating and water supply take up the consumption. Today the existing inno- to assess the consequences of diff erent lion’s share of energy use: estimated vative technologies allow by integrated technical solutions and to choose the to be from 60 up to 85% of building approach to reach signifi cant saving most ecologically and economically energy consumption or approximate- even at the initial stage of actions. Sta- reasonable variant of energy saving and ly 1/3 of all energy consumed in the diums are considered as energy source sources of consumption. Energy simu- country. Th at is why the main way to what means “zero energy consumption” lation of facilities and systems is aimed improve energy properties of build- to be not only a vision but now reality. to develop the optimal combinations

AEB BUSINESS QUARTERLY • Spring 2012 Sector specific aspects 23 of energy production, energy distribu- ware, re-use of rain water for watering tion and energy use besides control and others. of harmful releases. Technologies and Energy management aimed at tools of environment simulation are improving energy potential implies per- used at all building stages and also for manent control of reasonable sources existing facilities within modernization consumption: what unused rooms are and improvement of energy eﬃ ciency being heated at the moment? Where potential. and how much is water consumed? Th anks to modern technologies Where is the intensity of heating too a number of sport facilities in Ger- high? many were upgraded: “Veltins Arena” Th e Application of special soft- in Gelsenkirchen, “SAP Arena” in ware enables engineers to choose sce- Mannheim, “ISS Dom” in Dusseldorf, narios subject to circumstances and “Imtech Arena” in Hamburg and others. consumption in speciﬁ c settings. For

Integrated analysis and environ- example, at the time when no events Russland AG Property of Imtech ment simulation enable engineers to are running in the stadium lighting and saving water for example owing to spe- develop a maximally eff ective concept heating can be switched to economy cial distribution systems in the ground. of energy effi ciency improvement mode just by “one click”. Th e mainte- All the above mentioned technolo- including actions for short-term, medi- nance programme for daytime or night gies assume ever greater importance um-term and long-term period. For time mode or programme for football for Russia in connection with the Foot- example, application of energy saving matches or concerts can be also cho- ball World Cup 2018. It is planned to actions in German stadiums allows sen. Centralized control of energy con- build not less than 12 super-modern even at the initial stage to reach saving sumers set conditions for signifi cant arenas by 2017. Th e “Luzhniki”, which up to 35% and reduced СО2 release up energy saving and reduction of CO2 was entered by UEFA in a list of fi ve to 1000t per year, what corresponds to release. star football stadiums, will be modern- release and consumption of 200 private Special energy management sys- ized with increasing of capacity up to houses. tems including fi xing devices, meters, 90 000 seats with preparation work With an integrated approach and sensors and others enable analysis for the World Cup. Th e main require- consideration of a multi-purpose sta- and constant optimization of energy ments of FIFA, stated in “Technical rec- dium as a single system the following consumption. Th e Energy manage- ommendations and requirements”, are energy effi cient actions can be implement system collects dates of sources’ high levels of comfort and safety, better mented: consumption and transmits them for access to the stadium, perfect lighting ■ fl oor heating: dividing of heating cir- further analysis and processing. Th is and turf. Sound insulation is manda- cuit in zones with automatic control; allows timely recognition of unwant- tory as well as taking into account the ■ lawn heating: dividing of heating cir- ed and overstated volumes of energy trajectory of the sun. FIFA also forbids cuit in zones and use of natural solar consumption and ensures constant re- building of big light towers which con- heat; checking of all actual data. Constant sume a lot of energy. ■ use of waste heat owing to cooling optimization of energy consumption Modern sport facilities should meet process what can additionally save during life cycle of facility is possible the main requirement – maximal com- water and power; thanks to such energy management fort with minimal energy consump- ■ automatic lighting control by use of system. tion. Special actions and engineered motion detectors; Lawn heating is one of energy costs solutions are required for such energy ■ connection of users to power and item by maintenance of stadiums. capacious facility as multifunctional control system by special software Lawn heating was introduced for the stadiums in order to increase energy which enable automatically switch- fi rst time in the 1970s in Germany in saving potential, to reduce sources of ing subject to activity status; the Olympic stadium in Munich. Since consumption and waste releases. Today environmental simula- 2008 lawn heating has been manda- Th e Speed of modern technolo- tion is used in Russia in the planning tory for all Bundesliga stadiums. Lawn gies’ development is so high that new and building of sport facilities for the heating has a number of advantages built arenas became not modern after forthcoming Winter Olympic Games – including independence from weath- 25-30 years. Th at is why the possi- in Sochi 2014. Olympic projects built er, more safety for players. Th e main bility of further reconstruction and with additional innovative ecological disadvantage is considerable energy modernization should be taken into requirements became “runways” for costs. Th is problem can be resolved account in the planning and building of introduction of modern green solu- in modern stadiums in diff erent ways. sports facilities. Today eff ective energy tions and the application of tech- For example, by use of waste heat from consumption management is a neces- nologies of environmental safety and ventilation installations or pumps or sity because it enables signifi cant sav- reasonable consumption of nature by taking into account peculiarities of ings for owners and investors and also sources, for example, automatic control landscape and natural solar heat. Mod- helps to reduce harmful releases and and dispatching, water saving sanitary ern technologies of lawn care enable improves the environment.

AEB BUSINESS QUARTERLY • Spring 2012 24 Legal aspects of investing in Russia TAX INCENTIVES FOR ENERGY EFFICIENCY: LEGAL OPPORTUNITIES AND PRACTICAL APPLICATION Anastasia Prozor, Associate, CMS which is easy to implement and reduc- are established); or taxpayers may apply es tax liabilities. this to facilities included in the list to be However, the Government has not established by the Government. yet confi rmed the list of highly energy Th e matter of actually applying the effi cient facilities eligible for corporate accelerated depreciation mechanism property tax exemption; therefore, in is, basically, the same as in the case the interim, only companies owning of corporate property tax exemption. assets for which energy effi ciency class- Th is relates to the relevant government es are established (such as air condition- regulations not having been adopted ers, computer monitors, and lifts/eleva- yet thereby expanding the scope of this tors) and that are classifi ed in top classes incentive. xperience in the West of imple- (A, to A++, according to classifi cation), menting energy performance proj- may benefi t from this tax incentive. Investment tax credit ects indicates that there are actual Each company that improves the ener- tax and fi nancial incentives which Accelerated depreciation of energy gy effi ciency of production, works or areE considered to be among the key effi cient assets services, or invests in creating facilities factors in determining the attractive- In Russia, taxpayers are required to that ness of such projects for investors. maintain separate accounts for corpo- (i) are top-class energy effi cient; However, although Russian legisla- rate profi t tax purposes, and the depre- (ii) represent renewable sources of tion is actively developing in respect of ciation methodology applied should be energy; energy effi ciency regulations, it still pro- explained in the taxpayer’s accounting (iii) produce thermal and/or electric vides for only a limited number of tax policy. Tax legislation provides for two energy and have a performance incentives for companies investing in depreciation methods: the straight-line level that exceeds 57%; or energy effi cient technology, companies and reducing balance. (iv) other facilities that are highly operating in Russia should undoubtedly energy effi cient as defi ned by the take into consideration the existing tax Russian law has made a vigorous special list adopted by the Rus- incentives when elaborating their tax start in promoting energy effi ciency, sian Government, is entitled to an policies, developing cost-cutting strate- and further developments are investment tax credit. gies, and when negotiating new con- anticipated. Th e investment tax credit mecha- tracts with their respective partners. nism is a tax rescheduling arrange- Currently, Russian tax incentives As a general rule, accelerated depre- ment, under which a company is provided for companies investing in ciation is permitted for both of these allowed to reduce its tax payments energy effi ciency include a corporate methods in a limited number of cases. during a certain period with a sub- property tax exemption, an increased In the energy saving area, taxpayers sequent gradual credit and accrued depreciation coeffi cient and an invest- are entitled to apply a multiplier (coef- interest payment. An investment tax ment tax credit. How and to what fi cient) doubling the amortisation rates credit (up to 30% of the value of the extent may companies apply these opti- in respect of assets in the top energy equipment acquired by the company misations intelligently and effi ciently? effi ciency classes (once these classes and used for the purposes of energy

Corporate property tax exemption As of 1 January 2012, Russian taxpayers subject to corporate property tax are entitled to a three-year exemption for newly introduced assets that are included in the high energy effi ciency category, on special list which the Rus- sian Government plans to adopt. Th is exemption also applies to sites in the top energy effi ciency classes. Clearly, companies that wish to cut costs on booked energy effi ciency assets should take full advantage of this exemption

AEB BUSINESS QUARTERLY • Spring 2012 Legal aspects of investing in Russia 25 effi ciency) is granted on the basis of However, as discussed, the current an agreement concluded between the opportunities provided by Russian tax taxpayer and the relevant tax authority legislation in the sphere of encour- for a period of up to 5 years. Also, the aging investment in energy effi cient interest rate, when taking into account assets and technologies are still limited. the Central Bank’s current refi nancing Moreover, even the current mecha- rate, should be between 4 and 6%. nisms do not work properly owing to In practice, however, the invest- the absence of the necessary detailed ment tax credit mechanism is not regulations, on one hand, and bureau- widely used by the majority of taxpay- cratic procedures established in order ers in Russia. Indeed, companies usually to obtain some of the incentives, on prefer to use banking crediting mecha- the other. nisms, should this necessity arise, rather Th erefore, in order to create an than go through the numerous stages eff ective system of incentives for inves- of the reconciliation procedure to apply Currently, Russian tax incentives tors, it seems sensible fi rst of all to for an investment tax credit with diff er- provided for companies investing develop the current mechanisms (for ent tax administration departments at in energy effi ciency include a example outlining lists of equipment the regional and federal levels – even corporate property tax exemption, eligible for the increased depreciation when the fi nancing conditions (interest an increased depreciation coeffi cient coeffi cient and corporate tax exemp- rate) are less attractive. and an investment tax credit. tion, and simplifying the procedures for granting investment tax credits; but Prospects respect, it is diffi cult to overestimate the also to introduce new ones which may Th e stated objectives of the Russian importance of mechanisms aimed at include, for example VAT exemption legislation on energy effi ciency are rewarding energy effi ciency measures for energy service works. to use energy resources effi ciently, to implemented by the general public, Russian law has made a vigorous support and encourage an increase in business and public sectors, most nota- start in promoting energy effi ciency, energy effi ciency, and to plan and inte- bly through the use of tax and budget and further developments are antici- grate energy saving activities. In this incentives and improved tariff policies. pated.

AEB BUSINESS QUARTERLY • Spring 2012 26 Legal aspects of investing in Russia LEGAL ASPECTS OF ENERGY EFFICIENCY IN RUSSIA Mikhail Divovich, General Director, ECOTEAM ciency for diff erent types of buildings ciency which indeed mostly depends (article 11), energy saving in apartment on the management’s political will. buildings and suburban communities Now in the EHS fi eld of law we see (article 12). Energy service contracts the same trends have already started. also were introduced by a new law in Th ere is a burden of Documentation 2009 (article 19). developing which is obligatory for Features of the new law and espe- enterprises. Systematic inspections are cially the legal introduction of an ener- mandated for state offi cials and inspec- gy service contract gave a real start tion inevitably leads to fi nes. If an offi - to the whole energy effi ciency sector cial did not impose a fi ne he would face whereas the previous law was sadly the prosecutor’s suspicion that he has he Federal law № 261-FZ “On only a false start. been bribed. Th is is of course the com- Energy Effi ciency” was adopted on Law enforcement practice in the plete opposite (or obverse) to fi ghting 23 November, 2009. Th is law sub- fi eld of energy effi ciency is still devel- corruption. stituted one adopted in 1996 (“On oping, but the way it will go can be Real energy effi ciency could be energyT saving”). predicted now. Analysis of the 2009 reached better by civil means. Th e Some measures required by the law’s structure shows its similarity to Smart owner or manager is interested new law in the fi eld of energy saving those in the EHS (environment, health, without outside stimulus to use less and energy effi ciency had already have safety) fi eld. It is especially similar to expensive energy and save money. He been incorporated in the earlier legisla- environmental legislation. Even the ter- does not need any additional admin- tion. Th e Following measures of state minology looks identical : environmen- istrative control. . so far administrative regulation were implemented by the tal effi ciency / energy effi ciency; envi- control measures incorporated in the old federal law (1996) and were among ronmental passport / energy passport, energy effi ciency law look more or less those maintained in the 2009 law: ener- and more. academic articles on energy formalalities, with fi nes. gy inspection of enterprises including effi ciency law are written by estab- Th erefore our recommendations obligatory inspection, and state control lished specialists in environmental law. are: of compliance with the energy effi - So, if the energy effi ciency law goes ■ enterprises need to make energy effi - ciency legislation requirements. the same way the environmental law ciency a part of their EHS sphere In some cases previous legal norms went we can expect similar results. to solve all problems systematically, were adjusted to the present legislation Th en energy effi ciency would be just including their environmental and and became more specifi c and got more another useless burden for the enter- safety aspects. importance. Th us the old law’s require- prise and an additional opportunity for ■ In energy effi ciency law, the practi- ments for avowal or obligatory certifi ca- the offi cials’ corruption. Law enforce- cal reality of enforcement should be tion of energy consumption products ment practice also may follow that of considered carefully. was converted in the new law into a environmental law. activity in the fi eld ■ Any and all unfair formal results of requirement for some products to have of energy effi ciency may repeat the fate state inspections and fi nes should be information regarding their energy effi - of environmental protection activity capable of appeal. ciency class been included in the techni- which is now suff ering from a formal ■ It is essential to work with the legisla- cal documentation and labelling (article but false approach. tors to exclude or at least minimize 10). Article 17 introduced an ‘Energy Th e Implementation of energy effi - the formal part of energy effi ciency Passport’ based on energy inspections ciency law , instead of being a real and law. results as a legal term together with the useful activity will impose additional Th e way the law enforcement prac- rules of collecting and analysis of Energy burdens on enterprises in the forms of: tice in the energy effi ciency will go - Passport data. Article 18 set the require- ■ More Documentation; administrative or civil - depends largely ments for the self-regulated organiza- ■ Inspections bystate authorities; on the effi ciency of businesses includ- tions in the fi eld of energy inspection. ■ Litigation inviting Fines. ing AEB and its members as one of the Some general articles of the 1996 Th ese types of activities are much interested parties in arguing for good, law have been converted into specifi c easier for the state to formalise than to eff ective practice, not burdensome and requirements to provide energy effi - stimulate a real increase in energy effi - ineff ective legislation.

AEB BUSINESS QUARTERLY • Spring 2012 Networking 27 AEB BUSINESS MISSIONS The Brussels Mission A Delegation from the AEB Board visited Brussels on the 21 and 22 March 2012, meeting with representatives from the European Commission, European Parliament and Brussels- based European business associations. More particularly, the AEB Board and Management had the great pleasure to meet with: ■ Mr. Karel de Gucht, EU Commissioner for Trade; ■ Mr. Guenther Oettinger, EU Commissioner for Energy; ■ Mr. Rainer Wieland, Vice-President of the European Parliament; From L-R: Timo Hammaren, EU Commission; Frank Hoff meister, EU Commission; Peter Balas, EU ■ Commission; David Thomas, Volvo cars; Philippe Cohen, Ariston Thermo Rus; Karel de Gucht, EU Mr. Knut Fleckenstein, Chairman of the Delegation to the Commissioner for Trade; Frank Schauff , AEB CEO; Andra Koke, EU Delegation to Russia; Don Scott, Opin EU-Russia Parliamentary Cooperation Committee, Euro- Consulting; Erik Helin, Specta Group; Gerald Sakuler, Bene; Sergey Smirnov, Novo Nordisk Rus pean Parliament; ■ H.E. Mr. Vladimir Chizhov, Head of the Permanent Mis- sion of the Russian Federation towards the European Communities. Th e AEB Delegation had the chance to present the work of the Association and its vision for the future of Russia in the context of Russia’s accession to the World Trade Organisation and the Duma and presidential elections. Th e AEB Board certainly voiced the concerns of the European businesses working in Russia, more particularly, regarding the migration policy and visa issues. From L-R: Marie Rondelez, AEB; Sergey Smrinov, Novo Nordisk Rus; Philippe Cohen, Ariston Thermo Rus; Don Scott, Opin Consulting; Reiner Hartmann, E.ON Ruhrgas AG; Rainer Wieland, Vice-President of the For more information, please contact Marie Rondelez at EU Parliament; Frank Schauff , AEB; David Thomas, Volvo cars; Erik Helin, Specta Group; Andra Koke, EU [email protected] or +7 903 715 42 16. Delegation to Russia Реклама

AEB BUSINESS QUARTERLY • Spring 2012 28 Networking NETWORKING The Third Northern Dimension Forum Human Resources, transport and customs, logistics and clean technology were the main issues discussed at the third Northern Dimension Forum that took place in Saint Peters- burg, Russia on the 29th of March, 2012. Th e Forum began with a welcome address given by Nikolay Vinnichenko, the Plenipotentiary Representative of the Russian Federa- tion President to the North-Western Federal District. Mr. Reiner Hartmann, Chairman of the AEB Board Vinnichenko spoke on the Russian President’s initiative human capital challenges saying that talent acquisition and with regard to the realisation of several projects on energy training was one of the ways these issues could be tackled effi ciency and conservation. He also spoke of the need to successfully. Effi ciency, Mr. Kuula said should be improved in increase human capital, saying that this was a prerequisite all industries and sectors including the Energy sector. to the successful development of all socio-economic pro- Alexey Mordashov, CEO, OAO Severstal and Co-chair- grammes and the Northern Dimension as a whole. Talks man of the Northern Dimension Business Council spoke are already on the way regarding the creation of a Northern next, supporting Mr. Vinnichenko’s view regarding the pos- Dimension institute, which Mr. Vinnichenko said will serve as a powerful incentive to promoting economic development within the Northern Dimension. Mr. Vinnichenko closed his address with a positive outlook on Russia’s membership in the World Trade Organisation (WTO) saying that Russia’s membership will have a positive impact on the overall development of the country’s economy, including that of the Northern Dimension. Nikolay Vinnichenko, the Plenipotentiary Alexey Mordashov, CEO, OAO Severstal and Tapio Kuula, President and CEO, Fortum Corporation Representative of the Russian Federation Co-chairman of the Northern Dimension Business and Co-chairman of the Northern Dimension Business President to the North-Western Federal District Council Council then spoke of the current and future Northern Dimension partnerships. He said current partnerships have already begun to show positive results in the Environmental, Health, and Cultural sectors, with the Environmental partnership being the longest running so far, and having led to a signifi cant reduction in the pollution levels within the Baltic Sea, amongst others. Th e upcoming partnership in Transport and Customs is one that Mr. Kuula believes to be most wel- Tapio Kuula, President and CEO, Fortum come, with very high expectations. He spoke of several chal- Corporation and Co-chairman of the Northern Jyri Häkämies, Minister of Economic Aff airs, lenges currently being faced, such as the demographic and Dimension Business Council Finland

Alexey Kulapin, Deputy Director of the Energy Ivan Soltanovskiy, Director, Department for Effi ciency, Modernisation and Development Pavel Burtsev, Deputy Head, Oktyabrskaya European Cooperation, Russian Federation of Fuel-Energy Complex Department, Russian Railways Directorate of the Russian Railways Paavo Lipponen, Prime Minister of Finland Ministry of Foreign Aff airs Federation Ministry of Energy (RZhD) (1995-2003)

Minna Martikainen, Vice-Chair, Northern Eric Rasmussen, Director, Industry, Commerce Dimension Institute; Vice-Rector for International and Agribusiness, Russia, EBRD Dr. Frank Schauff , AEB CEO Aff airs, Lappeenranta University of Technology Pekka Lundmark, President and CEO, Konecranes

AEB BUSINESS QUARTERLY • Spring 2012 Networking 29

Hosted by sible opportunities following Russia’s sian Federation Ministry of Foreign entry to the WTO. He said it was his Aff airs began his speech by saying that sincere hope that Russia’s membership it was no surprise that Saint Petersburg in the WTO will make the country’s is considered to be the capital of the environment more investor friend- General partners North-Western region, especially, given ly through, among others, increased the caliber of events that have taken investment opportunities and a favour- place here. He said that the Ministry of able investment climate. Silver Sponsors Foreign Aff airs held this Forum in high Th e nest speaker, Jyri Häkämies, regard, further commenting that the Minister of Economic Aff airs, Finland Ministry was committed to promoting then spoke at length about clean tech- socio-economic development within nology saying that energy effi ciency has Official car the North Western region, including, become one of the key topics when it via the support of scheduled, devel- comes to a country’s economic development related projects. Environmen- opment and Russia is not an exception. tal health and safety are important to For the Finnish government, he said, both the city of Saint Petersburg and clean technology is one of the key focus Sponsors the Northern Dimension as a whole. areas for the economy and one the gov- He stressed the importance of partner- ernment is willing to share with their ships with foreign investors, particularly, partners. Mr. Häkämies said that the those who are members of the Northern Finnish government is working closely Dimension, for example, Norway and with the Russian government offi cials, Iceland, amongst others. He also said and in particular, representatives of the that emphasis is now being laid on new Northern Dimension, in creating sever- Info Sponsors and modernised, expert partnerships, al successful partnerships in various key saying that partnerships of this sort are economic areas. Such agreements and already being developed with regard partnerships have so far strengthened to the Health and Pharmaceuticals and Russian - Finnish ties. He talked about Transport and Customs sectors. the Russian Finnish partnership regard- Dr. Frank Schauff , AEB CEO spoke ing water treatment as an example, ernment, citing a signed memorandum next, expressing his confi dence regard- where currently, 94% of St. Petersburg’s of understanding regarding the ship ing positive EU-Russia relations, saying wastewater is being treated within the building sector and saying that this was that this optimism was also shared by framework of the partnership formed. a perfect example of what collaboration EU offi cials visited by the AEB Delega- Mr. Häkämies thanked Mr. Vinnichen- should be all about. tion in mid-March 2012. High ranking ko for his commitment to developing Ivan Soltanovskiy, Director, Depart- offi cials visited during the AEB busi- such partnerships with the Finnish gov- ment for European Cooperation, Rus- ness mission all held high expectations

From L-R: Hans Sohlström, Co-chairperson of the Wood Processing Wilhelmina Shavshina, Legal Director, Head of Foreign Trade Industry Working Group; Executive Vice-President, UPM, Andrey Regulation, DLA Piper and other key participants of the Transport Marja -Liisa Järvenpää,General Director, Sokos Hotels and other Kashubsky, Co-chairperson of the Wood Processing Industry Working and Customs Round Table participants at the Northern Dimension Forum Group; CEO, OOO Sveza Wood Processing Industry Round Table

From L-R: Zakhar Golant, Deputy Chairperson of the Committee of Economic Development, Industry Policy and Trade of the Government of St. Petersburg, Sergey Smirnov, Co-chairperson of the Working Group of Healthcare and Pharmaceuticals of the Northern Dimension Business Council of Novo Nordisk,Chairman of AEB Health and Pharmaceuticals Committee, Chairman of the Board of Directors, NovoNordisk LLC and From L-R: Alexander Bykov, Government Assess and Market Access Director of NovoNordisk LLC (centre), Viktor Dmitriev, General Director of ARFP Henry Fogels, General Director of Oriola Company and other participants

AEB BUSINESS QUARTERLY • Spring 2012 30 Networking

that this is an equal partnership with minimum bureaucracy, if any and maximum results”. He went on to say “We see increased activity in and around the Northern Dimension, with very active involvement from the companies”. Pekka Lundmark, President and CEO, Konecranes spoke about the role of modernisation and maintenance in industrial productivity, while Energy effi ciency and conservation as a basis for an effi cient and competitive economy was highlighted by Alexey Kulapin, Deputy Director of the Energy Effi ciency, Modernisation and Development Roman Volkov, Counselor of the Department of Europe, Ministry of Economic Development of the of Fuel-Energy Complex Department, Russian Federation Russian Federation and other key speakers at the Health and Pharmaceuticals Round Table Ministry of Energy. Pavel Burtsev, Deputy Head, Oktyabr- for future EU Russia relations, especially, following Russia’s skaya Railways Directorate of the Russian Railways (RZhD) accession to the WTO. Mr. Reiner Hartmann, Chairman brought the panel session to a close with an overview of the of the AEB Board while welcoming those present spoke of role of transport infrastructure of the North-West of Russia interdependence as a now rapidly developing phenomenon, in the development of trade and economic relations with welcome by both sides. Mr. Hartmann said that both the EU European countries, the Eurasian Economic Union and and Russia are now looking forward to further fruitful coop- South-East Asia. eration between the two parties through, especially, given Several Round tables were then held on Ecology and Russia’s current membership in the WTO. Environmental protection, Electric Power and energy saving, Other high ranking offi cials that spoke at the conference Health and Pharmaceuticals, Transport and Customs, Voca- included Paavo Lipponen, Prime Minister of Finland (1995- tional education and training and Wood processing. 2003) and Independent consultant, Nord Stream, who talked At the press conference also held within the framework about the Northern Dimension policy as a basis for the stra- of the Forum, questions answered by Dr. Schauff , Mr. Mor- tegic partnership between countries in Northern Europe. dashov, Mr. Kuula and Mr. Lipponen included those related Commenting on the Northern Dimension initiative at the to Corporate Social Responsibility (CSR), the role of Russian press conference held within the framework of the Forum, companies as foreign investors within the EU and the devel- Mr. Lipponen said, “What is fundamentally important is opment of Russia’s transport system.

Vladimir Yakunin, Russian Railways: Developing Economic Partnership with the EU Russian government decided to extend the Structural Reform Programme for the rail transport by 2015, said Vladimir Yakunin, President of the Russian Railways, at the AEB briefi ng. Here are just some structural transformations planned: creating a competitive market for the freight wagon operations; developing a private local carriers market; improving the existing tariff system and selling stakes in the subsidiary companies. Th e RZD management has already approved the Concept Plan for the sale of shares in 2012, including up to 75% in Freight One, Mr. Yakunin noted. He also told the AEB members about the most important initiatives to develop economic partnership between the EU counties and Russia. Th e company is modernis- ing the railway infrastructure of the key international corridors in order to meet the growing requirements for freight transport, effi cient multimodal transport and logistics systems. Th e Russian Railways is also creating an integrated railway Mr. Vladimir Yakunin, President of the Russian Railways infrastructure for the East-West and North-South international transport corridors.

From L-R: Dominique Fache, Member AEB Board, Enel OGK 5; From L-R: Gerald Sakuler, Deputy Chairman, AEB Board, Bene Offi ce Vladimir Yakunin, President of the Russian Railways and Roger furniture; Reiner Hartmann, Chairman, AEB Board, E.ON Rhurgas Yekaterina Levochskaya, Esmerk; Paul Bruck, Most Service and Munnings, Deputy Chairman, AEB Board AG and Dr. Frank Schauff , AEB CEO other participants at the event

The AEB Joins the Network of European Business Organisations Th e AEB joined the network of European Business Organi- local economic conditions and opportunities to the Europe- sations (EBOs) that are now playing an increasingly impor- an Commission and the EU member states. Frank Schauﬀ , tant role in addressing the cause of free trade and invest- CEO of the AEB, was appointed Vice Chairman of the ment. Th ey also oﬀ er important and timely insights about network.

AEB BUSINESS QUARTERLY • Spring 2012 Networking 31

From L-R: Chetwynd Bowling, ALinga Consulting;Johan Verbeeck, member AEB CNR, Elan Languages; Anna Brzozowska, Delegation of the European Union and other guests at the event Oleg Babinov, Chairman, SHES committee, Risk Advisory Group plc. and Ruslan Kokarev, AEB COO

Finnish EuroReception Th e AEB cocktail at the Residence of the Finnish Ambassador was the clos- ing networking event in this season. Representatives of the biggest Russia based companies and the Finnish Busi- ness Community as well as European oﬃ cials – Delegation of the EU and European Embassies – have attended the event. Guerlain, Ferrero and Swis- sotel provided some stylish presents for Aage Nielson, Member, AEB CNR, Vitus Bering and Prof. Art Stefan Scholz, Bayer ZAO and Natalia Nurminen, YKK Deutschland the lottery winners. Franczek, American Institute of Business and Economics GmbH

From L-R: Dr. Frank Schauff , AEB CEO; H.E. Matti Anttonen, Finnish Ambassador to Russia; Mr. Reiner Hartmann, Chairman, AEB Board and Eric Michael Byrne, Direct Approach and Richard Magda, PROLOGICS Helin, Member, AEB Board, Specta Group AG

Volker Neuschuetz, Finance Consult Russia Ltd. and Clemens Schlotter, Egorov Puginsky Afanasiev & From L-R: Ekaterina Zhuk, Federal Customs Service; Andra Koke, Delegation of the European Union; Partners Alexandr Smelyakov, Federal Customs Service and Irina Aksenova, AEB

AEB BUSINESS QUARTERLY • Spring 2012 32 AEB Committee Updates AEB COMMITTEE UPDATES Automobile Manufacturers Committee Press Conference “Review – 2011” Th e Automobile Manufacturers Com- mittee (AMC) held a Press Conference on 12th January, 2012, under the title “Review – 2011” at the Ararat Park Hyatt, ul. Neglinnaya, 4, Moscow. Chairman of the AEB AMC Mr. David Th omas introduced results from 2011 for the automobile industry and Chairman of the AEB AMC Mr. David Thomas Dr. Frank Schauff , AEB CEO discussed prospects for the future. In Another speaker at the Press Con- Kia Motors Rus; Mercedes – Benz 2011 the Russian automobile mar- ference was Dr. Frank Schauff , AEB RUS; Mitsubishi / Rolf Import; Nissan ket showed a 39% growth in sales of CEO. Th is highly successful event was Manufacturing Rus; Peugeot Citroen new cars and light commercial vehi- attended by representatives of AMC Rus; Porsche Russland; Renault; cles as compared to 2010. AEB AMC members: BMW Russland Trading; SUZUKI MOTOR Rus; Toyota Motor; announced its forecast for 2012 as 2.8 Chrysler Russia; General Motors CIS; Volkswagen Group Rus; and Volvo Million cars and LCVs. Honda Motor RUS; Hyundai Motor; Cars. Commercial Vehicles Committee Annual Press Conference On the 15th of February, 2012 the committee held its annual 17 973 units to 29 410 units). Th e bus segment increased by press conference where it released fi gures of the commercial 26% – from 9,869 vehicles in 2010 to 12400 units in 2011. "In vehicles sales in Russia in 2011 and described results of the many respects, 2011 became a record year for practically all work of the Committee. manufacturers – members of the AEB Commercial Vehicles Comparing 2011 to 2010, sales of light commercial Committee (AEB CVC). All segments enjoyed a steady vehicles grew by 28%. 174,487 units were sold in 2011 while growth throughout 2011, and for the heavy duty trucks sec- 136,435 LCVs were retailed in 2010. Th e medium duty tor the growth was outstanding and exceeded our most opti- trucks sector sales showed 22% growth, increasing from 7652 mistic expectations” said Andrey Chursin, Acting Chairman units in 2010 to 9,318 units in 2011. Th e heavy duty truck of the AEB CVC.” Th e event was sponsored by the members segment (HDT) jumped 64% over the same period (from of the AEB CVC. Energy Committee Round table "Russian Energy Sector & European investors" On December 7th, 2011 the AEB Energy and worldwide chaired by R.Hartmann, A.Goncharov from Deloitte and D.Fache, Committee has organised a Round table AEB Board and Energy Committee Chair- AEB Board member, to development "Russian Energy Sector & European inves- man, through tax treatment of oil and gas of energy markets from the European tors" which was divided in four sessions projects in Russia, natural monopolies business point of view moderated by going from latest energy news from Russia tariff s dynamic chaired respectively by V.Konovalov from Petroleum Advisory

From L-R: Andrey Duyunov, Head of Tax Practice Group, Pepeliaev Group; Grigory Vygon, Director, From L-R: Wim Groenendijk, Vice-President International & Public Aff airs, Gasunie; Ernesto Ferlenghi, Skolkovo Energy Centre; Andrey Goncharov, Director, Deloitte; Reiner Hartmann, AEB Board & Energy Chairman of the Board of Directors, Federal Grid; Uwe Fip, Senior Vice-President, E.ON Ruhrgas AG; Committee Chairman Vladimir Konovalov, Executive Director, Petroleum Advisory Forum

AEB BUSINESS QUARTERLY • Spring 2012 AEB Committee Updates 33

Forum. A general overview was given by L.Grigoriev, Deputy General Director of Russian Energy Agency. It was rare privilege to see gathered for such an occasion the high-ranking representatives of the biggest energy companies such as BP, EON, Enel OGK 5, Eni, Gasunie, Gaz- promexport, Shell who participated as From L-R: Sergey Tazin, Chairman of the Board Directors, E.ON From L-R: Vladimir Drebentsov, Vice-President, BP Russia; Harry Russia; Sergey Komlev, Head of Contract Structuring & Price Brekelmans, Shell Country Chair; Leonid Grigoriev, Deputy General speakers in the event making it extremely Formation Directorate, Gazpromexport; Dominique Fache, Director, Russian Energy Agency attractive for the audience. Chairman of the Board, Enel OGK 5 Energy Efficiency Committee A round Table on energy effi ciency Industries are the main consumers of sector. Held at the Baltschug Kempin- fi nancing for energy effi ciency in the energy; hence, the need for energy effi - ski on the 17th of November, 2011, industrial sector, while Vincent de Rul ciency in this sector can not be ignored. this round table featured speakers from gave a practical example of a success- Energy effi ciency as a whole presents international organisations, multina- fully implemented energy effi ciency great opportunities for investors and tional corporations and companies, project in the industrial sector. Other solution providers alike. Th e round successfully operating on the Russian speakers included representatives of table organised by the AEB Energy market. Th e message delivered was the companies such as Avtovaz, CMS, Effi ciency committee, titled “Energy same – Russia has everything it takes KPMG and Philips. In all, the event effi ciency in the industrial sector: prac- to successfully implement the concept witnessed a great turnout, leaving all tical solutions”, addressed these and of energy effi ciency to the industrial those in attendance, with a more posi- other issues relevant to the application sector. Pavel Teremetsky, from EBRD tive outlook on the prospect of energy of energy effi ciency to the industrial talked about technical assistance and effi ciency in Russia. Finance and Investments Committee AEB Open Event: Creating and operating joint ventures with foreign investors in Russia: how to avoid pitfalls On 16th February 2012, the tures with foreign investors lution of disputes between Th e audience has received AEB Mergers & Acquisi- in Russia”. Issues addressed shareholders; tax, compli- the most up-to-date infor- tions Working Group held at the conference included ance and fi nancing issues, as mation and practical advice an open event on “Creat- the conclusion of share- well as the analyses of court on operations of joint ven- ing and operating joint ven- holders’ agreements; reso- practices and case studies. tures in Russia. M&A Newsletter In February 2012, the Mergers & Acquisitions Working from professionals on some practical aspects of the M&A Group released its sixth M&A Newsletter, a quarterly e-pub- activities. All interested persons can view the Newsletter lication prepared in cooperation with the Mergermarket (FT on the web-page of the AEB Finance and Investments com- Group) containing the statistical data, analysis of the M&A mittee Working Group on Mergers & Acquisitions: http:// trends and the top deals on the Russian market as well as tips aebrus.ru/committees/sectoral/fi nance/MA/. Health and Pharmaceutical Committee Committee updates On January 31st 2012, the committee, during a regular meeting made a decision to establish three working groups within the committee: Health Policy and Technology; Good Manufacturing Practice; Compliance and Governance. At the committee meeting held on February 28th Vitaly Omelyanovsky, Chief of Expert Group of the committee on Social Policy Federation Council and Director of the Institute of Clinical-Economic expertise, presented the latest initiatives in healthcare policy. IT-Telecom Committee A Round table on the role of the internet in Small and Medium Enterprises (SMEs) Th e Round table was organised by the AEB IT-Telecom committee, together with OPORA Rossii, and supported by Google Russia, a member of the committee. Th e discussion that took place during the event was aimed at analysing new opportunities for the small and medium businesses through innovative technologies and e-solutions and showcasing several success stories from the Russian market. Th e Boston Con-

AEB BUSINESS QUARTERLY • Spring 2012 34 AEB Committee Updates

sulting Group, which conducted the fi rst global study on the Internet economy and Internet’s impact on the national GDP, presented new data for Russia. Victor Klimov, Deputy Chairman of the RF State Duma Com- mittee on the Economic Policy, Innovative Development and Entrepre- neurship participated in the discussion with some interesting remarks on SMEs in Russia. Marina Zhunich, Public Policy Manager, from Google spoke about Google’s experience with SMEs on a global scale and in Rus- From L-R: A. Mazhirin, Free-lance.ru; A. Kotelnikov, Hoteldiscount.ru; M.Zhunich, Google Russia; V. Klimov, RF State Duma; O. Kotsur, Boston Consulting Group; M. Marhuliya, AEB IT-Telecom sia. Th e part devoted to concrete case studies and success stories led to a Committee Chairman, Tele 2 very lively discussion, making this event a crowning success. A briefi ng by Natalya Kasperskaya, CEO of InfoWatch Who best to address mem- the founder of “InfoWatch”. a cloud-based automatic available via an easy-to-use bers of the AEB, particu- Ms. Kasperskaya talked system within the banking web interface. Held on the larly, those operating in the about innovative projects sector, gathers web content 23rd of November, 2011, this information technology within the IT sector, mod- units, where the monitored extremely insightful event (IT) sector, on the develop- ern computer threats and objects are mentioned. It enjoyed an overwhelming ment perspectives within ways to fi ght them. She also then automatically analyses success and members of the this industry, than Natalia addressed the issue of IT-risk and categorizes data, scores AEB IT committee intend on Kasperskaya, co-founder management in the banking sentiments and generates having more of such events of the Kaspersky lab and sector. InfoWatch Kribrum, reports in real time, made to come. Legal Committee A briefi ng on the Law "On the Procedure for Foreign Investments in Business Entities of Strategic Importance to National Defense and State Security” On 2nd February, 2012 top level representatives of the Rus- natural monopolies. Some sectors that have been deemed stra- sian federation Federal Antimonopoly Service briefed AEB tegic have not been relevant to date at all. Th e legal implications members on the recent changes in the Law "On the Proce- of the newly introduced exemption of transactions concluded dure for Foreign Investments in Business Entities of Strategic between the companies under the control of the Russian Fed- Importance to National Defense and State Security” that eration (RF) or Russian citizens that are Russian tax residents came into force on the 17th of December, 2011. were also discussed at the event. Th e Federal Antimonopoly Andrey Tsyganov, Deputy Head of the Federal Antimo- Service acknowledged that they are aware of a possible misin- nopoly Service, Svetlana Levchenko, Head of Department terpretation, and that the regulations should be redrafted. Th is for Control under the Foreign Investments of FAS and her work is currently in process, according to Mr. Tsyganov. Deputy, Armen Khanyan participated in this event. In addition to the Th ird Antimonopoly Package that came As of November, 2011, two hundred and sixty three (263) into force on the 7th of January, 2012, amendments to the Rus- petitions were fi led with FAS for the approval of the acquisition sian Code on Administrative Off enses were introduced. of control over a strategic entity, and one hundred and thirty Th e Association would also like to thank the representatives seven (137) petitions were transferred to the Government of FAS for their willingness to take notice of the foreign inves- Commission. Th e majority of the petitions expressed concerns tors’ concerns. Dr. Frank Schauff , AEB CEO, and Alex Stoljar- regarding the use of the sub-soil, followed by the activities skij, Attorney at Law, BEITEN BURKHARDT and Chairman related to encryption, radio and television broadcast, and also of the AEB Legal committee, moderated the discussion. Machine Building and Engineering Committee A round table on engineering in Russia Defi ning the concept of engineering in events aimed at addressing the issues and the latest trends. Speakers at this Russia is what the AEB Machine Build- within the Machine Building sector in round table included representatives of ing and Engineering committee success- Russia. Th is time around, the commit- Tebodin Eastern Europe, SGS Vostok, fully attempted on the 22nd of November tee gave an overview of the engineer- Spectrum Holding, Siemens, Energo- at the AEB premises. Th e round table, ing services in Russia, while bringing Fichtner, Renault Russia, ABB Russia titled “Engineering in Russia. What is to the attention of those present, steps and Ecoprog. Sponsored by Alstom Rus- it?”, was a continuation of a series of that need to be taken, existing niches sia, the event was very well attended. Migration Committee Open meeting with Mr. Konstantin Romodanovsky, Director of the Russian Federal Migration Service On April 3rd, 2012, the AEB Migration Mr. Konstantin Romodanovsky, Direc- Service. During the meeting, represen- Committee held an open meeting with tor of the Russian Federal Migration tatives of the FMS briefed the audi-

AEB BUSINESS QUARTERLY • Spring 2012 AEB Committee Updates 35

ence on further development of Rus- and other peculiarities of legal status sia’s migration policies. Th e participants of highly qualifi ed specialists and their also discussed recent practices with family members, etc. It was agreed that regards to implementation of Russia's the FMS and the AEB will continue an Konstantin Romodanovsky, Director of FMS Russia; Ludmila Shiryaeva, agreements France, Korea, Belarus and intensive dialogue on migration related Chairman of the AEB Migration Committee Kazakhstan, work permit applications issues. Small and Medium-Sized Enterprises Committee AEB Open Event: SMEs doing business in Russia - how to succeed? On December 8th, 2012, the AEB Small and Medium-Sized Enterprises Committee held its fi rst open session. DHL Express provided sponsorship support for the conference. Th e event provided a platform for the exchange of opinions on peculiarities of operations of foreign small and medium businesses on the Russian market. Speakers representing international and Russian small and medium enterprises shared their views and experience of doing business in Russia and provided analyses of the key challenges and success factors specifi c to the Russian economic and business environment.

From L-R: Leonid Matusevich, Lemax; Dominik Bayvet, B.V. Consult, Avril Conrov, Irish Business Club and From L-R: Steve Brown, Solntse Mexico; Martin Meesenburg and Tatiana Callsen, gb Meesenburg OHG and Orlin Efremov, Manutan Alex Medlock, TMF Russia Taxation Committee Development of the Russian Tax System in 2011 and Prospects for 2012 – 2013. Key developments in Russian tax policy ment of the Russian Tax Systems in 2011 Partner, PwC; Chairman, AEB Taxation in 2011, prospects for 2012 – 2013, trans- and Prospects for 2012 – 2013”. Committee. fer pricing reform, practical questions in Th e event has been opened by Mr. Experts from Ernst & Young, PwC, the area of VAT, changes in compulsory Sergey Shatalov, Deputy Minister of CMS, KPMG, Gide Loyrette Nouel, social contributions and recent trends in Finance, who briefed AEB members Baker & McKenzie, Pepeliaev Group, International Taxation and many other on key directions of the Russian tax Noerr and other speakers presented hot topics were discussed at the AEB policy for the coming years. Th e event their views for the current tax issue Taxation Committee event “Develop- was chaired by Dr. Alina Lavrentieva, development. Transport and Customs Committee Customs Legislation in Russia – Recent Changes and Implementation Th e Customs Union of Russia, Belarus and Kazakhstan, Speakers at this event included: implementation of the legislation and Russia’s membership ■ Fernando Valensuela, Head of the Federal Customs Ser- in the WTO were the key topics for discussion at the AEB vice of the RF conference on the 9th February 2012. ■ Sergey Kouzmin, Head of Trade Facilitation Unit, UN Eco- Speaking at the event, Andrey Belianinov, Head of nomic Commission for Europe the Federal Customs Service of the RF, recognised the ■ Marina Iskoskova, Head of the Department of Commodi- importance of an open dialogue between entrepreneurs ties Declaration of the Main Division of Customs Proce- and state authorities. He also admitted the role of the dure and Customs Control Organisation, FCS AEB Customs conference in building trustworthy rela- ■ Elena Zaitseva, Partner, DLA Piper tionships between the FCS and the European business ■ Vladimir Katushyonok, Head of Commodities Nomencla- community. ture Division, FCS Maxim Medvedkov, Chief of Trade Negotiations at the ■ Egor Smitienko, Head of Department of Commodities Ministry for Economic Development of the Russian Fed- Country of Origin, Main Division of Federal Customs eration, told the audience that Russia, Belarus and Kazakh- Revenues and Tariﬀ Regulations, FCS stan are currently reviewing the import duties in the face of ■ Galina Balandina, Partner, Customs and Foreign Trade Russia’s future entry in the WTO. Th e countries are holding Regulation Practice consultations to be completed in April. Over 140 participants attended the conference.

AEB BUSINESS QUARTERLY • Spring 2012 36 AEB Member News

been added to this already famous address. Along with the renowned and impeccable service, and the subtle combina- MEMBER NEWS tion of fl avours, the highlights of the Baltschug Grill are an open kitchen, a contemporary interior design, and a serious Alinga Consulting Group concern for the intertwining of classic and modern cuisine Alinga creates profi les on Facebook and LinkedIn social media on the menu. Even before one takes delight in the food, one websites can admire the decor of the Baltschug Grill. Th e design of Alinga is pleased to announce that we now have an English- the main room of the restaurant is dominated by warm language Facebook and LinkedIn pages. We’ll be using these tones, from the dominant beige accents to subdued hues of pages as a way to bring you more frequent information on burgundy and olive. For informal get-togethers, the restau- Russian tax, accounting, and legal news, as well as general rant has created a separate wine room. Here, one can enjoy information on Russian business, the Russian economy, and matching some of the fi nest wines from cellars in Europe the occasional "just for fun" post. Our Market Update will and the New World, with the superb food, or explore the continue in the same format, with regular mailings in both world of rare wines by the glass, under the direction of the English and Russian. Of course, our services are still the experienced sommelier Ksenia Karpenko. Open the menu same as well. of the Baltschug Grill, and one's eye is immediately taken by the selection of tasty appetizers, from Russian inspired deli- Baker & McKenzie cacies such as Russian style jelly with crab to must have clas- Baker & McKenzie Receives Managing IP 2012 Law Firm of the sics such as Kamchatka Crab with Wasabi Mayonnaise and Year Award in Russia fresh baguette. Th ere is a selected list devoted to sushi and Moscow, Russia, 20 March 2012 – Baker & McKenzie has sashimi prepared by the chefs from the renowned restaurant been pronounced Law Firm of the Year in Russia at the Shogun. Th e very name of the Baltschug Grill holds the key annual Managing IP Global Awards ceremony. It is the sixth to what makes this restaurant such a special gastronomic time since 2006 that the Firm's Russian IP practice group has experience - the open grill kitchen. Beneath the admiring won this highly-respected award established by Managing looks of the guests, the fi nest steaks and seafood are being Intellectual Property magazine. grilled to perfection. One might say that there is no limit On 15 March, Moscow partners Eugene Arievich, Denis to the list of innovations off ered at the Baltschug Grill! Th e Khabarov and Margarita Divina accepted the award on restaurant has an open Tandoor oven, for the preparation behalf of the entire team at the Managing IP Global Awards of authentic Asian dishes. Th e icing on the cake is how one Gala in London. More than 200 people attended the din- might describe the fabulous desserts from the Hungarian ner at the Dorchester on Park Lane. Commenting on the Chef Patissier Atilla Szabo: raspberry macaroon with rose awards, Eugene Arievich, head of Baker & McKenzie's water or crunchy meringue with cassis sorbet, while the Russian IP practice group said, “We did it again. Winning freshly baked original Vienna apple strudel is a truly irresist- the award for the sixth time illustrates our continued ability ible temptation! to add value to our clients' business and demonstrates the On Sundays one can indulge in the one and only Mag- depth of our experience in handling complex IP issues.” num brunch in the city, with the motto ‘Size does matter’ – With 20 plus experienced IP specialists, the Russian IP free fl owing Louis Roederer champagne from Magnum practice group of Baker & McKenzie has been ranked in the bottles, a parade of oysters, seafood and other delicacies, as top tier for intellectual property law by Chambers, Legal 500 well as live music and special entertainment for kids make and PLC Which lawyer? several years in a row. Th e Manag- ing IP Award is further evidence of the fi rm’s absolute leadership in IP on the Russian legal services market. Our Firm has also been named Law Firm of the Year in Indonesia, Th ailand, and Europe (for copyright). With an audited circulation of 10,000 readers, Managing IP is the leading source of information and analysis in the fi eld of intellectual property. Published online and in-print since 1990 and aimed primarily at in-house IP counsel, Managing IP magazine includes features such as the well- known global IP survey and the annual list of the 50 most infl uential people in IP, as well as news, analysis and inter- views. Baltschug Kempinski Hotel The Baltschug Grill restaurant On the gastronomic map of Moscow the address of the Baltschug has always been synonymous with superb cuisine at some of the top restaurants in the capital. With the Res-

taurant Baltschug Grill, even more gastronomic fame has Hotel Property of Baltschug Kempinski

AEB BUSINESS QUARTERLY • Spring 2012 AEB Member News 37 this special occasion a talk of the town. To crown these the long run it may amount to 35 billion cubic metres a year. events are a series of wine get-togethers with worldwide I am confi dent that our joint work on development of this prominent winemakers. Th e Baltschug Grill has already area will contribute signifi cantly to the preservation of the organized unique wine degustations with Martin Pasler and environment and open new horizons for the Russian-EU Ernst Loosen (March 22), with other names to come out energy cooperation,' said Alexander Medvedev. within the year! Gide Loyrette Nouel BDO The Moscow offi ce of Gide Loyrette Nouel (GLN) acted as an BDO confi rms quality of its services again advisor to Rusmolco Outsourcing division of BDO successfully passed annual Th e Moscow offi ce of Gide Loyrette Nouel (GLN) acted certifi cation audit and again confi rmed compliance with ISO as an advisor to Rusmolco, a Russian dairy company, on a 9001:2008 in the sphere of outsourcing of business processes: major investment project between Rusmolco and the Singa- accounting, payroll, HR administration and legal services. pore company Olam International, the largest in the fi eld of After recertifi cation BDO was registered in the list “Inno- dairy cattle husbandry and plant growing. vation management in the sphere of outsourcing” what is Th e project involves Olam International investing in the regarded as proof of continuous activity aimed at business share capital of Rusmolco. It is planned that before 2015, processes improvement. Outsourcing division of BDO passed the aggregate investments will amount to about USD 400 certifi cation for ISO 9001:2008 compliance in March of 2011 mln. and will be used for forming a herd of 20,000 head and the certifi cate is valid through 2014. Receiving confi rma- and increasing the area of farmland to 106,000 ha. During tion of ISO certifi cation testifi es the high quality of the com- the following three or four years, it is planned to double the pany’s services; it’s capabilities to maintain and improve this production volume by way of increasing the herd to 50,000 quality and proves the reliability of the service provider. head, and the area of farmland to 130,000 ha. Th e transaction was signed on 30 January 2012 in the pres- Gasunie ence of Yelena Skrynnik, Agriculture Minister of the Russian Gasunie, Gazprom, Eurotechnika and BioGazEnergostroy Federation, and Andrei Danilenko, Chairman of the Board of Corporation signed a Memorandum of Understanding on the National Dairy Producers Union ("Soyuzmoloko"). “green” gas On 21 October 2011 during the visit of the Dutch economic Gide Loyrette Nouel advises Sistema on Indian bond issue mission to the Russian Federation headed by H.E. Mr. Mark Gide Loyrette Nouel has acted as English and Russian legal Rutte, Prime Minister of the Netherlands, Paul van Gelder, counsel to Sistema JSFC ("Sistema"), the largest diversifi ed CEO of N.V. Nederlandse Gasunie, Alexander Medvedev public fi nancial corporation in Russia and the CIS on a bond the Vice-Chairman of Gazprom's Management Committee, issuance by its Indian telecommunications subsidiary, Siste- Ludmila Orlova, General Director of Eurotechnika, and Ser- ma Shyam TeleServices Ltd. ("SSTL"). Th e bond issuance gei Chernin, Chairman of the Board of Directors of BioGa- closed in January 2012 and resulted in proceeds amounting zEnergostroy Corporation signed a Memorandum of under- to INR 12,800,000,000. standing of the joint project of development of “green” gas. Th e issuance was arranged by Deutsche Bank out of its Th e document refl ects the companies' intention to Indian branch. Th e transaction was initially structured as cooperate in the fi eld of development of "green" gas from in a secured loan. However, due to Indian regulatory consid- Russia and making the benefi ts of this gas available to the erations, the deal was restructured as a bond issuance. Th e European Union. bonds were issued for a term of eight years and are repayable According to the Memorandum, the parties will con- in 2019. sider the possibility of a joint venture in Russia, prepare a business plan, and solve other organisational and legal mat- Gide Loyrette Nouel advised on Deal of the Year ters to implement the pilot project for the development, Trade Finance magazine has named a transaction on certifi cation and export of “green” gas to the Netherlands which Gide Loyrette Nouel advised, the US$175,000,000 and subsequently throughout the European Union. pre-export fi nancing to JSC Acron (a leading global mineral Gasunie CEO, Paul van Gelder: "Green" gas is emerging fertiliser producer), arranged by VTB Bank (Austria) AG, in a number of countries as a real sustainable additional "Deal of the Year" 2011. energy source. It is an effi cient way of making use of renew- Th is transaction was a classic pre-export fi nancing but able biomass, utilising the well-developed natural gas infra- had a peculiar security and coverage ratio structure, one structure that is already in place, and the large potential in unusual aspect being that the coverage ratio was set with Russia for biogas production. In this way we are increasing respect to the ultimate sales contracts whereas a typical the proportion of sustainable energy – in an aff ordable man- pre-export fi nance structure will set the coverage ratios with ner. Th is will also strengthen the pivotal role of natural gas in respect to what is being assigned. the sustainable energy mix of the future”. Grigory Marinichev, the partner in charge of Gide’s Rus- 'Production and use of energy derived from renewable sian fi nance practice who led the team advising VTB on this sources are becoming a more visible segment of the energy fi nancing, commented: "It is an added bonus for us to advise industry. “Green” gas occupies an important place here. Rus- on pioneering deals which subsequently win esteemed sia has a considerable potential for “green” gas production: in awards in the industry."

AEB BUSINESS QUARTERLY • Spring 2012 38 AEB Member News

Hilton Moscow Leningradskaya Imtech Russland AG Hilton Moscow Leningradskaya honored in the 2012 Imtech Russland AG launches additional energy effi ciency TripAdvisor Travellers’ Choice Hotel Awards programs TripAdvisor, Inc., the world’s largest travel website, reveals In January 2012, the Service Department of “Imtech Russ- Hilton Moscow Leningradskaya was chosen as a winner in land AG”, which is part of the European Concern “Imtech” two categories by TripAdvisor in its 2012 Travelers’ Choice® launched additional energy eﬃ ciency programs. awards: Top 15 Luxury Hotels in Russia and Top 20 Hotels in Russia. Now in its tenth year, the annual TripAdvisor Travelers’ Choice awards honor the world’s best hotels, earning their distinction from those who know them best – real travelers. Unlike any other hotel honors, TripAdvisor Travelers’ Choice winners are based on millions of valuable reviews and opinions from travelers around the world. “With the help of millions of travelers around the globe, TripAdvisor is thrilled to recognize the world’s most outstanding hotels for the tenth year of the Travelers’ Choice Awards,” said Christine Petersen, president, TripAdvisor for

Business. “From the best bargain hotels to best luxury hotels, Russland AG Property of Imtech remarkable service, value and quality are the hallmarks of Th roughout the years “Imtech Russland AG” successfully our Travelers’ Choice winners.” implemented a number of projects in the sphere of energy Commenting the TripAdvisor Travelers’ Choice Hotel effi ciency, development of concepts for alternative energy use, Awards, Joerg Beginen, General Manager of the Hilton introduction of “green” building standards and technologies. Moscow Leningradskaya Hotel, said: “ It is a great achieve- Our competence centers allow us carry out integrated ment that our hotel has been chosen by travellers around studies and develop individually-tailored action plans for the world for consistent delivery of excellent service, a great every single project. Th is makes it possible for “Imtech” overall experience and for notable value.” to implement successful projects in the sphere of energy As TripAdvisor has continued its growth globally, featur- audit, modernisation, and retrofi tting of energy consuming ing sites in 30 countries and in 21 languages, the Travelers’ facilities such as stadiums, multifunctional arenas, industrial Choice Hotels awards now highlight a broader range of projects, airports and others. spectacular properties across the globe. Based on advanced developments “Imtech” takes active part in the maintenance of a number of major stadiums in Europe. One of them is “Imtech Arena” in Hamburg. Cur- rently, “Imtech” is examining the energy effi ciency potential for all the Bundesliga Stadiums. Th is year, a set of energy effi - cient measures will be implemented by “Imtech” for “Allianz Arena” - home stadium of FC “Bayern Munich”. Today “Imtech” plans and equips buildings and imple- ments energy effi ciency actions for all types of construc- tions. An energy passport is issued to all the clients within the programs of the Service Department. Property of Imtech Russland AG Property of Imtech Intercomp Global Services Intercomp Global Services has successfully passed SSAE16 audit for the second time. On 15 February 2012 Intercomp Global Services, the lar-

Hilton Leningradskaya Leningradskaya Property of Hilton Moscow gest business process outsourcing provider, announced the

AEB BUSINESS QUARTERLY • Spring 2012 AEB Member News 39 receipt of the Report on the successful passing SSAE16 type Barack Obama and Bill Clinton. Th e topic was the Better II audit (former SAS70) in 2011. Th e Audit Report of the Buildings Challenge, a joint eff ort of the U.S. Department of Company AuditOne Inc. confi rms that the level of services Energy and the Clinton Global Initiative which asks business, provided by Intercomp Global Services in Russia complies academic, and state and local leaders to make a signifi cant with the recognized international standards. commitment to energy effi ciency in the nation’s buildings. Th e annual passing of SSAE 16 type II audit (Statement Before the meeting, President Obama told Dyer, “A good on Standards for Attestation Engagements No. 16.) is a friend of mine, Marty Nesbitt, spends a lot of time with you, planned step from the part of Intercomp Global Services and he tells me great things about your company.” [Mr. Nes- executives in order to get an independent expert appraisal of bitt is a member of the Jones Lang LaSalle Board of Direc- the level of risks management, effi ciency of the internal con- tors.] President Clinton said, “I got to know of your company trol system, as well as the degree of reliability of the services during the Empire State Building project. You guys are doing rendered. During the audit there was a review of the busi- terrifi c work in the energy area.” ness activity of the company’s offi ces in Russia within the After the event, Dyer said, “I got to represent the fi rm at provision of payroll and accounting outsourcing services. the White House, but it was the outstanding work of people “Th e Report on passing SSAE 16 type II audit is an like Lauralee Martin, Ray Quartararo, Dan Probst, Dana important fact for our existing clients and potential business Schneider and the rest of our energy and sustainability ser- partners. At Russian market there’re just a few companies vices team that earned us the respect of two U.S. presidents.” working in fi nance areas those decided to pass SSAE 16 type During the meeting, President Obama announced near- II audit. We are the only one among the business process ly $4 billion in combined federal and private-sector energy outsourcing providers. Our clients may be absolutely sure upgrades to buildings over the next two years. “Making our that we’re paying due attention to their data processing, buildings more energy effi cient is one of the fastest, easiest make investments to our business processes and infrastruc- and cheapest ways for us to create jobs, save money, and cut ture so that to provide services of the highest level” – com- down on harmful pollution.” Obama said. “It is a trifecta, ments Sergey Buchin, General Director Intercomp Global which is why you’ve got labour and business behind it. It Services Russia and CIS. could save our businesses up to $40 billion a year on their In 2010 Intercomp Global Services already had an expe- energy bills – money better spent developing the business rience of a successful passing SSAE 16 type II audit. Th e and hiring new workers.” reports of AuditOne Inc. confi rm that Intercomp Global President Clinton added, “Energy saving is the nearest Services suffi ciently manages risks, whereas the processes thing the country has to a free lunch.” and procedures of the company’s internal control comply Jones Lang LaSalle’s commitment to the Better Buildings with the requirements of the standards presented to the Challenge includes developing action plans which, by 2020, companies of an international level. will improve energy effi ciency to reduce energy usage by 20 percent at 98 million square feet of large properties the fi rm Incor Alliance Law Offi ce manages for clients in the U.S. Th ese eff orts will highlight Incor Alliance Law Offi ce to open three affi liated offi ces in the innovative strategies that have been developed to iden- India tify energy savings and their costs in ways that make a solid Th e business year 2012 started for international law fi rm business case for ongoing investment. Incor Alliance Law Offi ce and leading Indian law fi rm Vaish Associates Advocates with the signing of a cooperation agree- Jones Lang LaSalle reappointed as European real-estate ment, which resulted in Incor Alliance Law Offi ce acquiring adviser for UBS affi liated offi ces in New Delhi, Mumbai and Bengaluru. Jones Lang LaSalle has announced its reappointment as UBS’s Th e Partnership of Incor Alliance Law Offi ce and Vaish real-estate adviser for the fi rm’s North East and South West Associates Advocates was dictated by the needs of Russian Europe region. Th is covers 27 countries including Austria, and CIS clients interested in Indian businesses as well as Germany, Greece, Bahrain, Channel Islands, Czech Repub- Indian clients looking to invest in Russia. lic, Egypt, France, Hungary, Italy, Ireland, Israel, Kazakhstan, Igor Basargin, Managing partner, and Head of Incor Kuwait, Luxemburg, Lebanon, Netherlands, Poland, Qatar, Alliance International practice, noted: “Having international Russia, Spain, Saudi Arabia, South Africa, Sweden, Ukraine, expertise in Corporate/M&A, Tax, IP and Litigation Incor United Arab Emirates and the United Kingdom. Alliance Law Offi ce is presented in 34 economical centres worldwide and commits itself to meet all aspects of clients’ Marriott International needs. As Indian market is booming and looks attractive for Courtyard By Marriott Moscow Paveletskaya opens some of our clients it was critical for us to strengthen our On the 13th of December, 2011, Marriott International presence in there with three affi liated offi ces.” (NYSE:MAR) opened a 171-room Courtyard by Marriott Moscow Paveletskaya. Centrally located in the heart of Jones Lang LaSalle Moscow’s business district and within a fi ve-minute walk of Jones Lang LaSalle recognized by two U.S. Presidents at the Paveletskaya railway station, the hotel off ers easy access to White House Domodedovo International airport. Jones Lang LaSalle CEO Colin Dyer joined 30 business lead- Th e Courtyard by Marriott Moscow Paveletskaya is ers at a White House roundtable meeting with Presidents Marriott International’s sixth Courtyard in Russia.

AEB BUSINESS QUARTERLY • Spring 2012 40 AEB Member News

“We are excited about the expansion of our Courtyard by industry. In 2010, Marriott’s worldwide charitable contribu- Marriott brand in Eastern Europe and see strong opportu- tions totalled $34.6 million from donations of cash, in-kind nity to continue to grow the brand here in Russia,” said Amy and volunteer time. For more information about our cor- McPherson, president and managing director for Marriott porate social responsibility eff orts visit www.marriott.com/ International in Europe. socialresponsibility For meetings and events, the hotel off ers two meeting Marriott’s “World of Opportunity” to Raise Funds to Help rooms with a total of 191 square metres of conference space. Tackle Youth Unemployment Across Europe Courtyard by Marriott hotels feature a refreshing environ- On 10 January 2012, Marriott International, Inc. (NYSE: ment that helps guests stay connected and productive. Intui- MAR) launched the “World of Opportunity” charity pro- tive services and design accommodate guests’ desire for choice gramme for Europe, which aims to help young people from and control and allow them to use the public space and guest disadvantaged backgrounds expand their horiszons by pro- rooms to meet all of their needs while on the road. With more viding life skills and vocational opportunities. than 910 locations in 36 countries, Courtyard is Marriott’s Th rough “World of Opportunity,” Marriott Interna- largest brand; 200 additional Courtyard by Marriott hotels will tional’s more than 280 hotels across Europe will raise open around the world over the next three years. money, facilitate in-kind donations and volunteer with two Th e Courtyard by Marriott Moscow Paveletskaya, along charitable partners, SOS Children’s Villages in Continental with more than 3,500 Marriott-affi liated hotels worldwide, Europe and Th e Prince’s Trust Fairbridge programme in the participate in Marriott Rewards, the guest reward program United Kingdom. that allows its more than 33 million members to earn points “Considering the sharp increase in youth unemploy- or airline miles for each dollar spent during each stay. ment across Europe, we feel ‘World of Opportunity’ can help off er a real solution and be potentially life-changing for The Polo Club restaurant of the Marriott Moscow Royal Aurora participants,” said Amy McPherson, president and manag- launched a new menu ing director for Marriott International in Europe. McPher- Th e menu of the award winning Polo Club was considerably son added, “Marriott strongly believes that our business renewed and extended. Th e award-winning premier restau- should be aligned with what is most important to the com- rant Polo Club serves the fi nest U.S. prime and Australian munities where we operate, and we hope that through this steaks as well as wonderful seafood. Opened in 1999, it new initiative we will help make a positive impact in the celebrates stability and excellence. Th e new menu launched lives of young people across Europe.” in March is a good confi rmation of that. To help launch the programme, throughout the month Th e cooking style of Executive Chef and F&B Director of February one Pound Sterling or Euro (or equivalent) will Th omas Koessler is well known to the Moscow public for be donated for every lunch and dinner served at participat- its fi nest fl avours designed to excite and delight the most ing Marriott-branded hotel restaurants in Europe. Funds sophisticated of palates. Executive sous-chef Karl Damegger, raised will help tackle youth unemployment by sponsor- co-author of the new menu, is clearly on the same wave- ing Th e Prince’s Trust Fairbridge programme’s “Employ length with the Chef. His sensitivity to ingredients results in Me” course in the U.K., and by supporting SOS Children’s harmonious dishes, where every fl avor is in balance. Villages Youth programme, focusing on education and Th e main stress in the new menu is still on the excellent employment, in Continental Europe. steaks which won the Polo Club its well-deserved reputation. Steaks from US Prime Grade and US and Australian KOBE & WAGYU Grade beef with multiple side dishes continue to delight meat afi cionados. Th e prices start from Rub. 1,900 depending on the size and type of meet. Another popular meat option Tartar, a raw beef delicacy, is cut by hand to preserve the original texture of the meat. A newcomer to the section, Slow Roasted Prime Beef Filet Property of Marriott International

Marriott's commitment to society blends corporate ﬁ nancial contributions with giving in kind and the volunteer services of our associates around the world. Th e company participates in eﬀ orts to provide shelter, food, and children's health, while creating career opportunities for associates in

the workplace and supporting education in the hospitality Aurora Royal Property of Marriott Moscow

AEB BUSINESS QUARTERLY • Spring 2012 AEB Member News 41

(Rub.2,900), has to be ordered one day in advance. Th e Pepeliaev Group’s website was completely overhauled in process of slow roasting and smoking with oak wood chips mid-2010 in the context of the fi rm’s overall rebranding. Th e takes about 12 hours to result in a masterpiece that literally site was created on the modern Bitrix platform, and, along melts in your mouth. Each of the menu’s seven sections was with information about the fi rm, its employees and prac- reinforced by many dishes with Asian infl uences. tice areas, is regularly updated with, among other things, information about new legislation, trends in the case law of Michael Page the commercial courts, analytical reviews and newsletters, A Michael Page International roundtable – "Reduce or articles and comments from our lawyers, and information hire: the practice of fi nancial departments of Russian and about seminars and conferences in which our lawyers are International companies." involved. Th is has helped us to attract around 4 million visi- On February 22nd, Michael Page, in collaboration with the tors to our site in 2011 alone. Institute for the Development of Financial Markets and the Community of Financial Professionals "Sapfi r" held the round Pepeliaev Group managers lead the way in the ‘TOP-1000 table "Reduce or hire: the practice of fi nancial departments of Russian Managers’ ratings Russian and International companies." Th e event was held in Alexander Nuzhdin, the Finance Director of law fi rm Pepeliaev the conference hall of the MICEX-RTS, and brought together Group, Ekaterina Kleimenova, the fi rm’s Marketing Director, representatives of the stock market, recruitment agencies, and Alexander Vinogradov, its Deputy CEO, have been named business and universities. Olga Emelyanova, Executive Man- among the best managers of 2011 in the annual ‘Top-1000 Rus- ager (Finance & Accounting Division of Michael Page) acted sian Managers’ survey carried out by the Association of Russian as a moderator of the round table. Th e speakers were Olga Managers and publishing house Kommersant. Zaharyascheva, "A&Z Securities", Irina Korableva, Musa Candidates are selected by an exacting panel based on Motors and Natalia Annenskaya, "Metropol". Th e honored several criteria, the main ones of which are professional guest was Anatoly Gavrilenko, Chairman of "ALOR." eff ectiveness, leadership qualities, and personal and business During the event, participants discussed the most popu- reputation. More than 500 experts were involved in putting lar jobs in the fi nance sector in 2012, among them are Head the ratings together, including representatives from key of Shared Service Centre and Tax Manager. Concerning the government institutions, business associations, and leading choice between hire or fi re, speakers and listeners came to Russian companies. Also canvassed were the representa- the conclusion that developing companies should keep only tives of federal and regional authorities, non-commercial productive workers. Herewith, the manager should be a sector groupings and regional business associations. coach for his employees and build a proper personnel policy, Th e annual research undertaken by the Association of helping his subordinates become his business partners. Th e Russian Managers aims to obtain an objective, independ- round table participants discussed methods to improve ent and wide-ranging assessment of the abilities of Russian the effi ciency of employees, among them are: relocation managers, fully refl ecting their professional standard and of employees, joint career planning and transparent bonus taking into account the features of today’s Russian business. systems. Th e main goal of the Ratings is to assess those within the Russian business community whose activity is nationwide Pepeliaev Group in its character and has the greatest eff ect on the Russian Pepeliaev Group has the most cited website economy. Th e website of Pepeliaev Group at www.pgplaw.ru has Th e fact that managers from Pepeliaev Group regularly topped the 2011 charts for the most cited law fi rm website. appear in the ratings of the Association of Russian Manag- Th e ratings were issued in November 2011 by the Russian ers means that their professionalism is highly rated by the Agency for Legal and Judicial Information (RALJI) (http:// business community, as is the high quality of the services infosud.ru/social_ratings/citation-index/). the fi rm off ers. Th e purpose of RALJI’s ratings research was to determine the most frequently visited and cited websites among Valentina Orlova speaks on the enforcement of intellectual those of the leading law fi rms on the Russian market. More property rights at RussiaTALK 2011 than 100 law fi rms fi gured in the rankings, among them Valentina Orlova, head of Pepeliaev Group’s intellectual prop- Baker & McKenzie, White & Case LLC, Salans, Magisters, erty practice, told the RussiaTALK 2011 investment forum Cliff ord Chance, Allen & Overy, Chadbourne & Parke LLP, about the prospects of enforcing intellectual property rights Akin Gump Strauss Hauer & Feld LLP and Linklaters. in Russia. Th is annual forum hosted by the Russo-British To identify the list of companies involved in the rat- Chamber of Commerce brings together delegates from lead- ings, RALJI created a focus group made up of independent ing British and Russian companies and the public authorities. practising lawyers, PR specialists focusing on the legal mar- Th e UK is one of Russia’s main commercial and invest- ket and journalists specialising in arbitration proceedings. ment partners. ‘In 2010, the UK was the largest investor in Tools of the Yandex search engine were used to undertake the Russian economy’, said Sergey Katyrin, head of the Rus- the research. Th e methodology used in putting the ratings sian Chamber of Commerce and Industry. Over 600 British together comprised RALJI know-how previously employed companies currently operate in Russia. Th e UK’s investment in compiling ratings of arbitration courts. Th is methodology in Russia in 2010 was USD 40.8 billion, with its cumulative was highly regarded by the courts and other offi cial bodies. investment totalling USD 21.6 billion.

AEB BUSINESS QUARTERLY • Spring 2012 42 AEB Member News

Instrumental in securing foreign investment is the Ron Arad and Javier Mariscal jumped the gap playing ping enforcement of intellectual property rights. Th is was the pong in a successful award ceremony full of surprises in the subject of a special discussion at the forum. Valentina Orlo- fascinating environment of the Roca london gallery va, head of Pepeliaev Group’s intellectual property practice, Ron Arad and Javier Mariscal invited the winner of the 4th told the audience that Russian intellectual property legisla- Edition of the international competition, Jump the Gap, tion is in full conformity with global standards, including EU Michael Warykiewicz, to join them in the mad Gala Cer- law, TRIPS and other international treaties on intellectual emony created by Roca for the Award Ceremony, which property. However, she stressed that there was a need to brought together VIPs from the media and the design and improve the legal protection of intellectual property and architecture world. to make eff orts to expand its use in the Russian economy, Following a diffi cult voting process due to a hugely including by boosting research. ‘Neither Russian nor inter- successful level of participation at this year's edition (3,004 national companies always fully comply with these protec- entries from 92 countries), the judges panel for the 4th edi- tive provisions of intellectual property law, which gives tion of Roca's ‘Jump the Gap International Design Competi- rise to signifi cant legal risks’, said Ms Orlova. In her view, tion’ has chosen the project ‘In&Out’, created by the young creating an Intellectual Property Court would facilitate the 27 year old Polish designer, Michal Warykiewicz. enforcement of rights to intellectual property. Roca Roca Group brand Santek equips bathrooms of the FREEDOM "green house" A sanitary ware brand Santek widely known in the Russian market has become a participant of FREEDOM project for construction of an ecological residential house in Moscow region, having supplied stoneware and acrylic bathtubs, to equip bathroom spaces. FREEDOM is the Russian project aimed at development of the aff ordable and eff ective construction technology of ecological energy-effi cient low-rise buildings. Th e fi rst demonstrational house - the prototype of serial modular prefabricated energy-effi cient house – has been constructed

in the territory of cottage village in Novorizhskoye highway, of Roca Property 35 km from MKAD ring road, and was commissioned in January, 2012. Michal Warykiewicz's proposal consists of a highly inno- Since August, 2007 Santek has been a part of Roca Group – vative solution for the bathroom ; an original shower unit the world's leading manufacturer of products for bathrooms. which can be used in the house as well as the garden. To Commitment to keep the nature safe is among the basic prin- achieve this function the shower is built on a circular base ciples of this company's development. Roca regularly improves with two columns that hold semi-circular screens or parti- its products and introduces lots of new initiatives directed tions. A noiseless hydraulic engine allows the shower unit at raising awareness of the population in shortage of natural to revolve 180º so that it can be used both as a refreshing resources. Supporting the FREEDOM project, the company is garden shower and as a normal shower inside the bathroom sharing the ecological concept of the program. space itself. In both cases, a liquid crystal system provides Santek solutions for bathrooms are ideally designed for opacity to the shower screens, thus allowing for complete creating a comfortable, ecological, and at the same time privacy. cost-aﬀ ordable bathroom space. As is already tradition in this competition, the awards ceremony was held in London. On this occasion however, the ceremony has been held in a refreshing and unique framework; the Roca London Gallery. Th is gallery, designed by the Zaha Hadid Architects studio, is not just a visual space but instead uses precision and control to help visitors better understand the relationship between the architecture of the space itself and the design of Roca bathroom products. Th e awards ceremony marks the climax of the 4th such event which, thanks to the high number of submissions for the competition, reaﬃ rms this initiative, promoted by Roca in conjunction with the BCD (Barcelona Centre de Disseny), as one of the most relevant design competitions worldwide. Roca has already started preparations for the th Property of Roca Property 5 event !

AEB BUSINESS QUARTERLY • Spring 2012 AEB Member News 43

Salans Bright orange-colored banners the bearing “Business Salans joins forces with new fi rm in Turkey Class” inscription are located in Terminals E, F and C within Salans is linking with local fi rm Balcioglu Selcuk Akman in the departure and arrival areas before the passport control Istanbul; Partners have transferred from the previous associ- booths. ated Istanbul offi ce to create Balcioglu Selcuk Akman Keki Separate passage of passport control organized by (BASEAK); Th e New structure will broaden the practice Sheremetyevo for business class passengers will ensure areas in Turkey to include banking & fi nance and litigation; considerable enhancement of the quality of service of air Th is will complement existing expertise including in travelers valuing their time and comfort, to guarantee them M&A, real estate, private equity and PPP. International law fast completion of departure formalities and a high quality of fi rm Salans has announced it is joining forces in Istanbul servicing meeting the world standards. with local fi rm Balcioglu Selcuk Akman, and transferring Sheremetyevo Airport off ers business class air travelers two existing partners from its existing associated Istanbul a comprehensive range of services. Th ere are check-in coun- offi ce, Selim Keki and Goksan Gurel, to create a local part- ters dedicated for this category passengers which enables nership which will be known as Balcioglu Selcuk Akman them to pass the fl ight check-in as promptly as possible. Keki (BASEAK). BASEAK will have 5 partners and 29 Additionally, there are several premium comfort lounges associates in total. Salans has provided services in Turkey continuously operating at Sheremetyevo where business for over eight years, previously in conjunction withlocal class passengers can pleasurably while away the time, await- partnership Ozel & Ozel. From 1st January 2012, Balcioglu ing their fl ight loading to begin; those are: in Terminal Selcuk Akman Keki handles Turkish law requirements for Е – “Galaxy” lounge, in Terminal F – “Classic” and “Amber clients. Clients will also continue to be able to access Salans’ Lounge” lounges as well as a lounge in Terminal С. Th e network of 22 offi ces worldwide for foreign and internation- VIP lounges are freely available to business class passengers al law requirements.Commenting on the changes in Turkey, while economy class ones can purchase a non-recurrent Salans’ Global Managing Partner Dariusz admission voucher for an extra fee. Additionally entitled to use the VIP lounge services are Sheremetyevo International Airport participants of “Aerofl ot Bonus” program and holders of FF Sheremetyevo expands unique innovative services for its cards (for detailed information on access to the VIP lounges passengers the card holders should contact their air carriers). Sheremetyevo International Airport has launched the new e-service for its passengers – the mobile fl ight check-in via Sheremetyevo Launched an Automated System for Skype, the largest Internet telephony operator. Th e service Information on Flight Status is to register the fl ight using any mobile device with Skype Open Communications CJSC, a subsidiary of Central Tele- installed. graph JSC, has developed the EasySpeech automated system “Th e development of the self-service registration is the and introduced it at Sheremetyevo International Airport. global tendency for the passenger service quality improving. Th e system is based on speech-recognition technology and Th e main goal of Sheremetyevo is to become the best air makes it possible to automatically inform passengers about hub in Europe in terms of passenger service quality by 2015. the current status of a fl ight. We reach the aim by implementing unique services, equal EasySpeech employs the most up-to-date voice recog- to the ones in the best world airports. So Sheremetyevo was nition technologies, which enables the system to respond the fi rst in launching the innovative service with Skype — the to clients’ requests within several seconds. However, if the mobile fl ight check-in”, — as noticed Andrey Nikulin the Direc- system fails to determine what a client needs, the request tor for Passenger Service Department in airport Sheremetyevo. will be automatically transferred to a call center operator for Th e Skype calling service allows passengers to save time subsequent servicing. using a unique opportunity to register on the fl ight being To learn the current status of a fl ight handled by Sherem- at home or on the road to the airport. To use the mobile etyevo, simply dial the universal number (+7 (495) 956 46 fl ight check-in the passenger should call the operator (log in: 66) and name the destination point or fl ight number. If no svo_checkin), advise us the family name, passport and fl ight fl ight number is named, the system will off er you to choose details. As the next step the operator will send a message from actual fl ights that fall within a time interval of plus / with a unique 2D code to the mobile phone to confi rm the minus two hours from the request. registration. On arrival to Sheremetyevo airport the passen- “Th e EasySpeech system makes it possible to automati- ger should only put the cell phone to the special scanner that cally process the types of fl ight status requests that are most reads the QR Code, and in few seconds it prints the Board- commonly accepted by call-center operators. Now passen- ing pass. For passengers departing with the luggage we off er gers and those who wish to meet them may receive prompt special luggage counters Drop-off . information about the status of their fl ights,” said Aleksei Shcheglov, the Director General of CJSC Open Commu- Sheremetyevo having dedicated separate passport control nications. counters for business class passengers “Sheremetyevo Airport is constantly increasing the Sheremetyevo International Airport has dedicated special number of passengers it serves. In the conditions of rapid counters meant to accelerate business class passengers pass- growth in passenger traffi c, the voice services signifi cantly ing passport control. accelerate the delivery of information to those who use the

AEB BUSINESS QUARTERLY • Spring 2012 44 AEB Member News airport. Th e new service will reduce the workload of the nology enables the customers to be connected also when call-center’s operators and save clients a great deal of time, they are exercising – to surf in the internet, watch tv and since they will not need to wait for an operator’s response”, play games or be in touch with Personal Trainers. said Konstantin Vlasov, the Head of Information Service at Both fi tness centers off er group training exercises, “tra- Sheremetyevo Airport. ditional” training classes with an instructor but also virtual training. Th is gives the opportunity to start a training pro- Sheremetyevo Opened SVO-watcher, the First Russian Airport gram with a virtual trainer whenever one wants including Fan Club and Presented Exhibitions entitled “The Polar World” ie. Stretching and Spinning classes. Lady Line off ers great and “The Night Flight” variety of group training including. Hot Yoga and Hot Pilates On February 17th 2012, Sheremetyevo International Airport Classes. Spa area has eight saunas and six pools for members presented its passengers and guests with two exhibitions, and quests to enjoy their visit. entitled “Polar World” and “Th e Night Flight,” displayed at For more information www.clubeasyfi t.ru or info@clu- Terminal E. beasyfi t.ru Th e Polar World, an exhibition held in association with GEO Magazine, consists of 15 unique works by Th orsten Welcome to a truly human and sensory culinary experience! Milse, the world-renowned German photographer, who Th e newest Dans le Noir – was awarded the Grand Prize of the American nature photo restaurant has been ope- contest Nature’s Best, and the title of BBC’s Wildlife Photog- ned at Sokos Hotel Palace rapher of the Year. Bridge Hotel in St. Peters- Visitors to exhibition can enjoy viewing the original burg. beauty of the harsh Polar regions and the wild fauna of the Dine in the total darkness, guided and served by blind Arctic and Antarctic. When he opened the exhibition, Mr. people, is a unique experience that changes our perception Milse told the visitors about his impressions of working in of the world by reversing point of views: A sensory experi- the Polar regions, where icebergs may be 300 km long and ence that awakens the senses and allows us to completely the winter lasts all year. re-evaluate our perception of taste and smell. A social experience where darkness brings relations free SVO registers passengers via Skype of any preconception and protect us from shyness. Dive SVO became the world’s fi rst to launch the service of pas- into your imagination to rediscover your senses. Th is place senger check-in via Skype. is totally devoid of vanity. Th e project started in December 2011 has been already Enjoy the famous surprise menu at “Dans le Noir” cre- supported by 20 SVO airline-partners whose passengers ated with the help of the Sokos Hotels chef Zsolt Pleszinger, can check-in for the fl ight using there Skype accounts. Th e with the fi nest selection of wines by our wine expert. process takes a few minutes and closely followed by dis- Sokos Sokos Hotel is situated on the quiet Vasily Island, patcher to provide necessary assistance. just a short walk away from St. Petersburg's main sights and attractions. Sokos Hotel Palace Bridge is an entirely new 2012 – starting from records already style spa hotel, off ering luxury treatments in a wonderfully Sheremetyevo infrastructure development, eff ective traffi c calm and serene setting. planning created proper base for airlines expansion what Book your table by email [email protected] or by resulted in high rates of traffi c growth already in 2012. phone +7(812) 335 22 12 In March 2012 SVO became the leader on international routes among Moscow airports, having served 1 167 178 Tebodin passengers, which is 22% more then in previous year. Opening of new Tebodin offi ce in Moscow In Q1 2012 5,2 million travelers chose SVO for their On 20 March the Ambassador of the Kingdom of the journey what excided the result of last year on 21%. Netherlands in the Russian Federation His Excellency Ron Keller offi cially opened the Tebodin offi ce in Moscow at the Sokos Hotel Palace Bridge new address: Moscow, Letnikovskaya Street, 10, building 4, Sokos Hotel Palace Bridge has opened the biggest SPA and 8 fl oor (Svyatogor business center). Th e event will be part fi tness center in St. Petersburg of the traditional Dutch Business Drinks organized by the Club EasyFit fi tness and Netherlands Embassy. spa is a new and dynamic Th e offi cial opening ceremony started at 19.00. Present fi tness club, which is using were the representatives of the Dutch Embassy, Dutch busi- the latest technology to make training easier and more fun. ness community in Russia and the clients of Tebodin, among State of the art gym has a free weights area and a wide range other guests. of cardiovascular and resistance machines as well as equip- Because of its sustainable growth and new requirements ment for crossfi t training. Th e fi tness club off ers also Lady regarding the working environment the company moved Line concept with gym and group exercise training exclu- to the new location. Th e new premises are better equipped; sively for women. facilitate internal logistics and communication between the Both EasyFit and LadyLine are equipped with the most departments, thus helping us to continue providing a high modern gym technology by Technogym. Th is latest tech- level of service to our clients.

AEB BUSINESS QUARTERLY • Spring 2012 AEB Member News 45

Alex has over ten years’ experience in the Relocation and Moving industry. Alex began APPOINTMENTS his career in London in 2000 as Operations Manager for Crown where he gained signifi - Goltsblat BLP cant experience in managing operations A new Senior Partner at Goltsblat BLP crews, planning the diary and co-ordinating Goltsblat BLP is pleased to announce that Andrei Baev is operations. joining BLP as a Senior Partner to strengthen further the In 2002, Alex joined Interdean. His fi rst role with us fi rm’s energy & natural resources practice and its Russian saw him managing packing crews, monitoring quality and off er to clients. performance on site and conducting warehouse checks in Th is appointment is in response to the increased demand order to maintain high quality standards. by Russian clients and those investing in Russia for high- In 2005 and 2006 he worked as General Manager of a quality fi nance advice, in particular in the oil & gas, energy removal company in Cambridgeshire, UK, managing the and infrastructure sectors. sales and operations teams, developing business and build- Previously a partner in Allen and Overy (A&O) in Lon- ing up strong client relationships. don, Andrei has also worked for the A&O offi ces in Moscow In 2006, Alex relocated to Kiev, Ukraine, to take on a and New York. He has signifi cant expertise in multi-jurisdic- new role as Branch Manager of Interdean Ukraine. Alex tional deals, with a focus on the development and fi nancing found this experience challenging, interesting and exciting; of major oil & gas upstream, midstream and downstream combining his cultural understanding and a new way of projects, independent power projects, nuclear power proj- developing business which he learned whilst working in the ects, mining, telecommunications and infrastructure proj- UK. During his time in Kiev, Alex managed to build a strong ects throughout the world, in particular cross-border proj- team, with quality oriented-operations and solid sales. ects in Russia, CIS, Eastern and Central Europe, Turkey and Under his leadership, Interdean Ukraine has strengthened Asia. Prior to A&O, Andrei worked at Sullivan & Cromwell its position in the marketplace and is now the only FIDI in New York and Mayer, Brown & Platt in Los Angeles. accredited Relocation and Moving Company in Ukraine. Most recently Andrei represented Gazprom in connection with the South Stream Gas Pipeline Project; Trans- Jones Lang LaSalle Balkan Pipeline B.V. in connection with the construction Mark Wynne-Smith to become CEO for Jones Lang LaSalle and project fi nancing of the Burgas-Alexandroupolus cross- Hotels border oil pipeline project; Atomstroyexport in connection Jones Lang LaSalle announced that Mark Wynne-Smith with newly built nuclear power plants in Akkuyu, Turkey and is to become the new global CEO for Jones Lang LaSalle Belene, Bulgaria; Taneko and Tatneft on the construction and Hotels with eff ect from 1 January 2012, promoted from his fi nancing of a large refi nery and petrochemical complex in current position as EMEA CEO for the Hotels business. Nizhnekamsk, Tatarstan; Macquarie Renaissance Infrastruc- Arthur de Haast, who currently combines the Hotels Global ture Fund in connection with the tender for the concession of CEO role with a number of other leadership remits, will Samara airport in Russia and InterRAO UES and RusHydro become Chairman of the Hotels business, which specialises on several acquisitions of energy companies. in hotel investment transactions and real estate services for Andrei will work closely with the combined English and hotel owners and operators. Both will be London-based Russian law capabilities of the London and Moscow offi ces roles. in executing major regional transactions and he will spend Th e moves follow strong and consistent growth in the signifi cant amount of his time in Goltsblat BLP, the Moscow fi rm’s hotels business, despite the challenging broader eco- practice of BLP, and in the London offi ce to support the Rus- nomic climate, and an assessment of favourable medium sian/ CIS clients and others on their needs. and longer-term business opportunities across the sector Andrey Goltsblat, managing partner of Goltsblat BLP, generally and for the fi rm’s Hotels business in particular, comments: “I am sure that Andrei’s arrival will further once the near-term pressures on Eurozone and other econo- expand our international capabilities and expertise in sup- mies have abated. porting of cross-border transactions in Russia and the CIS. Arthur de Haast commented: “We have an excellent His extensive experience in the region will help broaden our hotels business supported by a fi rst-class platform right off er to clients in the Russian market.” around the world. Th ere are some challenging market con- Matthew Kellett, the managing partner of BLP’s fi nance ditions out there at present, but looking both at our track department, said: “Th e Russia and CIS markets are growing record and the longer-term view, we see a great opportunity strongly, particularly in the sectors in which Andrei special- to continue to build our client relationships, keep on deliver- ises and him joining the team will ensure we have the capac- ing the highest standards of advice and drive further growth ity and skills in place to meet future needs across the region.” in this business. Mark is very highly respected across the hotels sector and is the ideal person to lead the next step in Interdean the evolution of our hotels business.” A new Regional Sales Director at Interdean Moscow Mark Wynne-Smith added: “I am excited by the oppor- Interdean Russia is appointing Alexander Sikorsky as tunity to lead our Global Hotels business after several years Regional Sales Director for Moscow. in my current EMEA role. I believe we have an unrivalled

AEB BUSINESS QUARTERLY • Spring 2012 46 AEB Member News mix of expertise in all the aspects required to deliver the Radisson Royal Hotel very best real estate advice to our clients across their inter- General Manager – Radisson Royal Hotel, Moscow national hotel portfolios.” Mr. Jesper Henriksen has been made General Manager of Jones Lang LaSalle Hotels also announced that Chris- the Radisson Royal Hotel Moscow in Russia, with immedi- toph Härle and Jon Hubbard will share the EMEA leader- ate eff ect. Jesper succeeds Mr. Wolfgang Nitschke who will ship remit, expanding on their existing management roles, retire.We thank Wolfgang for his many contributions to the with both joining Jones Lang LaSalle Hotels’ Global Board. company during the past eight years and wish him and his Alongside them will be another new Hotels Board member, family all the best for the future. Th ierry Loué, who will add strategic business development Jesper, a Danish national, has an international hospitality advice, while also continuing in his existing role as chairman background, having held numerous management positions of Jones Lang LaSalle’s Middle East & North Africa business. in various countries. He joined Rezidor in 1997 as opening Arthur de Haast will combine his own chairmanship Director of Sales at the Radisson SAS Residence in Abu of Jones Lang LaSalle Hotels with his ongoing lead role Dhabi, United Arab Emirates, before transferring to the for Jones Lang LaSalle’s International Capital Group and Radisson SAS Hotel in Nice, France as Director of Sales. as chairman of the fi rm’s Global Capital Markets Strategy Two years later, he was appointed District Director of Sales Team, along with his client work. for Southern France. In 2001, he took on the position of Executive Assistant Manager of the Radisson New Head of High Street retail department SAS Montfl eury Hotel in Cannes, France and was pro- Svetlana Yarova joins Jones Lang LaSalle’s professional team moted to General Manager of the Radisson SAS Park Lane Jones Lang LaSalle is glad to announce a Hotel in Antwerp, Belgium in 2002. Th ree years later, he new appointment in the high street retail took on the position of General Manager of the Radisson department of their retail agency. Svetlana SAS Royal Hotel in Brussels. In November 2006, Jesper was Yarova, a professional with a unique experi- appointed General Manager of the Radisson Blu Hotel at ence on the retail property market, is Disneyland Resort Paris in France. Jesper has been working appointed as the department’s Head. Prior as General Manager of the Radisson Blu Gautrain Hotel, to joining Jones Lang LaSalle she was work- Sandton Johannesburg in South Africa since August 2009, ing in Astera Group for 8 years. which is his most recent position. His successor will be Svetlana Yarova will be strengthening Jones Lang LaSal- announced shortly. le’s high street retail department and will manage relationship with landlords, tenants and investors. Salans Maxim Karbasnikoff , European Director, Head of Retail Florian Schneider elected Managing Partner of Salans Moscow Department, Lang LaSalle Russia and CIS, commented: “In offi ce the current market situation, street retail is becoming an Florian Schneider has been elected the Managing Partner increasingly important real estate segment. Due to a limited of Salans’ Moscow offi ce. He is also the head of Salans Glob- supply of shopping centres in 2012-2013, retailers are now al Retail Practice Group. Florian specialises in real estate and searching new high quality space for development within corporate law, assisting clients in the retail, food, real estate Moscow borders and street retail is one of the options. Jones development, construction and investment banking indus- Lang LaSalle is an expert in high street retail in key markets, tries. His real estate background includes structuring acqui- such as Paris, London, Munich. We are now providing the sitions of rights to land plots and purchases of buildings, same level of services in Moscow, St. Petersburg and Kiev.” offi ce premises and acquisitions of real estate portfolios, Svetlana has long standing real estate experience. Since as well as drafting construction contracts and lease agree- 2003 she was working in Astera Group having started from ments and the establishment of real estate joint ventures. a position of commercial real estate consultant. In 2006- Florian has been working on construction and real estate 2008 Svetlana held senior positions in that company’s plan- matters in various Russian cities and regions, including ning department, and since June 2008 she has been head of Moscow, St. Petersburg, Rostov-on-Don, Krasnodar, Kaluga, their retail agency. Ryazan, Cheliabinsk, Nizhni Novgorod, Veliky Novgorod, Svetlana’s professional successes include the attracting of Cherepovets, Tver and Volgograd. retail portfolio holders, as well as shopping centre owners to Florian Schneider is ranked as a top corporate/ M&A the company, negotiating retail lease deals with such compa- lawyer by Chambers Global (Germany Focus) and Europe- nies as MVideo, O'STIN, ION Centre, Adidas, Renaissance an Legal Experts, and as a leading real estate expert by Legal credit bank, etc. Svetlana Yarova has concluded lease and 500, Commercial Real Estate (CRE – among the top seven acquisition deals for more than 200 retail units in Moscow real estate lawyers in Russia), and Best Lawyers. and regions. Florian has also advised on general Russian corporate, High street retail is one of the top priorities of Jones Lang tax, labour and IP law matters, as well as tax compliance and LaSalle’s retail agency. In street retail lease and acquisition preparing tax fi lings for foreign entities operating in Russia. deals Jones Lang LaSalle represented the biggest companies, Florian participates in German trade delegations and such as Sberbank, VTB, Massimo Dutti. In September 2011 speaks frequently on Russian real estate law, Russian and one more high street retail department was created in Jones German contract law and related matters. In addition to his Lang LaSalle’s St. Petersburg offi ce. responsibilities as Chairman of the Real Estate workgroup

AEB BUSINESS QUARTERLY • Spring 2012 AEB Member News 47 of the Russian-German Foreign Chamber of Commerce in while still remaining actively involved in Staff well’s legal, the Russian Federation, Florian lectures regularly on behalf FMCG and retail recruitment sectors. of the University of Magdeburg's MBA programme in Mos- Elena Sidorenko has been promoted to cow. Operations Director and Member of the Florian joined Salans in 2008. Prior to that, he was a part- Company’s Executive Committee. In her ner and head of the Real Estate Practice at Beiten Burkhardt new role, Ms. Sidorenko will be responsible Moscow. He obtained his Master of Laws (Real Estate Law) for leading and developing the offi ce’s from the University of Münster (LL.M. 2009-2011) and Law recruitment consultants’ team, and ensuring Degree from Albert Ludwigs University, Freiburg im Breis- that client projects are completed with the gau, Germany in 1999 and was admitted to the German Bar highest standards of satisfaction. Ms. Sidorenko will also still in 2002. Florian is a native German speaker and is fl uent in remain actively involved in Staff well’s banking, investment, Russian, English and French. and insurance industry sectors. Mathieu Fabre-Magnan was the Managing Partner of Mark Amelin has been promoted to Execu- Salans' Moscow offi ce from 2006 until 2011. Mathieu will tive Director and Member of the Company’s lead the fi rm's strategic development in luxury sector as Executive Committee. In his new role, Mr. the co-head of Salans Global Luxury Practice Group and Amelin will continue to lead Staff well’s French companies sector as the head of Salans' French Desk fi nancial services, consulting, media, manu- in Russia. facturing and conglomerate recruitment sectors, while also focusing on executive Salans welcomes a new Head of Russian Competition Law search projects, and assisting with the company’s strategy, Practice and training and mentoring initiatives. Mr. Amelin was Marat Mouradov has joined Salans’ Mos- Staff well’s top Director in 2011. cow offi ce as a partner and head of the Rus- Inna Alpaidze has been promoted to Exec- sian Competition Law Practice. Marat Mou- utive Director and Member of the Compa- radov, a leading Russian competition law ny’s Executive Committee. In her new role expert, specializes in various competition Ms. Alpaidze will lead Staff well’s legal sector, law related matters, focusing primarily on continue to manage and develop Key structuring of product distribution schemes, Accounts in various other sectors, while also unfair competition practices, advertising legislation and focusing on executive search projects, and other behavioral issues arising in various industry sectors, assisting with the company’s strategy, and training and men- including pharmaceuticals, medical equipment, automo- toring initiatives. Ms. Alpaidze was Staff well’s top Consul- tives, beauty products, food and others. Prior to joining tant in 2011, and was awarded as one of the best headhunt- Salans, Marat was a competition law partner at the Moscow ers in Russia by magazine "Career". offi ce of one of the major international law fi rms. Maxim Kaurov has been promoted to Salans’ Russian Competition Law Practice has been Senior Director. In his new role, Mr. Kaurov developing fast and handles some of the most complex will continue to lead Staff well’s Oil & Gas competition law projects in Russia. Until now, it has been sector, and develop the company’s business co-managed by Moscow partner Mathieu Fabre-Magnan and client base in the industrial, logistics and and Brussels partner Edward Borovikov. IT sectors. Mathieu Fabre-Magnan said: “We are delighted Marat has joined Salans to head our Competition Law Practice in Russia, which we believe he will take to a yet higher level.” Staff well Staff well has Strengthened its Executive Team Staff well, a leading recruitment company in Russia, which provides management selection and executive search services, is pleased to announce that 5 members of its Moscow offi ce have been promoted to new positions. Th ese appointments are in response to the company’s growth plans and the strengthening of its position in the recruitment market in Russia. Allan Sullivan has been promoted to Com- mercial Director and Member of the Com- pany’s Executive Committee. In his new role, Mr. Sullivan will be responsible for leading the offi ce’s Directors Team, business expansion plans, and the further development of all industry sector sales channels,

AEB BUSINESS QUARTERLY • Spring 2012 48 AEB New Members

Elopak Norwegian production company NEW MEMBERS “Elopak” is the international leader in liquid foods packaging and major supplier of fi lling equipment and practical user- AB Services, LLC friendly Gable top package blanks. AB Services, LLC is a British and “Elopak” company understands the scale of Russian mar- American owned and managed company which provides ket potential and plans to expand presence in the market Recruitment and HR Services in Moscow and in Russian with important investment. Th us, new “Elopak” factory in Federation. We are committed to providing exceptional cus- St.Petersbourg area has started its work in December 2011. tomer service, and have built an internal corporate culture It aims for Russian customers to have more fl exibility on to match this commitment. blanks delivery terms. ■ We are easy to work with. Contracts are short and cus- “Elopak” is a company with high level of social respon- tomer friendly; sibility. Еcology protection is one of the company’s key pri- ■ Highly experienced recruiters and consultants who get orities. “Elopak” company is a member of Climate Control results; program at World Wide Fund of Nature (WWF) and is ■ Cost Eff ective. Our fees are reasonable, payment is success recognized as “Climate defender”. based, and we do not require exclusivity. ■ A genuine customer-service culture throughout the orga- Finnish-Russian Chamber of Com- nization. merce You will experience the diff erence in attitude and results! Th e mission of the Finnish-Russian Chamber of Commerce is to promote companies’ business Concept Training and competitiveness as well as economic relations in Russia Concept Training and Development and Finland. (Moscow and Saint Petersburg) is a leading training organiza- Th e FRCC carries out its mission through various ser- tion in Russia, with more than 15 years of experience. Con- vices such as market research, marketing, export promotion, cept Training is part of Schouten Global, a leading provider training, information, and consultation. of Training, Education, Coaching, Research and Advisory, Th e FRCC works in all fi elds of business and serves with headquarters in Th e Netherlands. We help our clients all customers. However, members are special in that they to turn talents and potential of their people worldwide into receive benefi ts denied to others. Th e number of members actual business results: “Result with People”. Schouten Global in Finland and Russia exceeds 850. has over 30 years of expertise in Personal and Organisational Th e FRCC receives its funding from service and mem- Training and Development. It employs over 550 staff spread bership fees (85%) and the Finnish Ministry of Trade and over offi ces in Th e Netherlands, Belgium, Poland, Germany, Industry (15%). Switzerland, China, Vietnam and Russia. We specialize on Th e FRCC serves over 1,000 customers p.a. Leadership and Management Development, Personal Eff ectiveness and Improving Sales. In all our training programmes, Flex we use ‘blended learning’, including an internet based learning Flex, a recruitment company specializing in platform, as part of our deliveries. Assertiveness is at the core traditional and executive search services, focuses on placing of all our training. In cooperation with Schouten University, mid-senior level individuals who will drive a business forward. we provide an on-line MBA, as well as Master Diploma pro- Flex's traditional recruitment search services are designed gramme on Leadership Development. with the objective of fi nding suitable individuals with unique skills and qualifi cations, and its main goal is to transform ECOTEAM initiatives and innovation into jobs and economic growth for ECOTEAM provides diff erent services its clients. Flex maintains an excellent track record of placing in the fi eld of legal EHS (Environment, cream-of-the-crop candidates into top management positions Health, and Safety) consulting. with leading companies in most industry sectors. It provides Our major services are: its clients with the talent that they need to succeed. ■ Legal support of planning and ongoing activities in compliance with Russian EHS legislation (on a monthly basis); Harley-Davidson Motor Company ■ Defense of the client’s interests in court, in prosecutor's Harley-Davidson Motor Company pro- offi ce, and in the disputes with federal or local authorities; duces heavyweight custom, cruiser and ■ Legal EHS audit; touring motorcycles and off ers a complete ■ Developing of appropriate environmental documenta- line of Harley-Davidson motorcycle parts, tion; accessories, riding gear and apparel, and general merchandise. ■ Monthly digest of Russian EHS legislation – ECOZA- Harley-Davidson is the oldest Motorcycle Company in KON (www.ecozakon.ru). the world and will be celebrating 110 years in 2013. Company was founded in 1997. Company’s staff con- Today Harley-Davidson employs nearly 8,000 people sists of the experts of government institutions such as State worldwide and manufactures and sells in excess of 220,000 Duma, the Ministry of Natural Resources, etc. motorcycles in more than 100 countries worldwide.

AEB BUSINESS QUARTERLY • Spring 2012 AEB New Members 49

Th e Motor Company is based in Milwaukee, Wisconsin www.kesarev.com with the corporate headquarters, the product development, Kesarev Consulting – Ukraine the Power Train facility and the Harley-Davidson Museum. 24/11-13v Mykhailivs’ka str. 01001, Kyiv, Ukraine Th ere are additional facilities across the US, including pro- phone/fax : +38 044 200-5559 duction. e-mail: [email protected] For more information, visit Harley-Davidson's Web site www.kesarev.com at www.harley-davidson.com. MAI Insurance Brokers HeidelbergCement MAI CEE is a leading independent insurance HeidelbergCement is the global market leader in aggregates broker and consultant in CEE and CIS region and a prominent player in the fi elds of cement, concrete and established 20 years ago. MAI CEE has wholly other downstream activities, making it one of the world’s owned offi ces in 13 countries in Central and Eastern Europe largest manufacturers of building materials. Th e company (including Russia), with long term partners in a further 7 coun- employs some 52,500 people at 2,500 locations in more than tries and clients servicing capabilities in all 29 countries in CEE. 40 countries. HeidelbergCement has come a long way from MAI CEE has over 200 employees across the region, the foundation of the fi rst cement plant in Heidelberg in has over 1.500 international clients and over 4.000 domestic 1873 to one of the leading international building materials clients in the region. Th e following business practices are group nowadays. established within MAI: Employees Benefi ts, Property & In 2001 HeidelbergCement started its entry to the Construction, Marine and Logistics, Claims, Network. Russian market with the acquisition of the “Cesla” cement Offi ce in Russia (Moscow) was established in 2003 and plant in Leningrad Oblast. Since 2010 the Russian assets provides full scale of insurance broker related services. of the company also include the cement plants in the city of Sterlitamak, Republic of Bashkortostan (CJSC “Con- Th e Port of Hamburg Marketing struction Materials”) and in Tula Region (OOO “TulaCe- Th e Port of Hamburg Marketing ment”). Via cement terminals in Kaliningrad, Murmansk (HHM) representative offi ce in Saint- and Arkhangelsk HeidelbergCement Russia imports high- Petersburg was opened on 2003. Th e quality cement from HC Group owned plants in Swe- Chief-Representative is Ms. Natalia Kapkaeva. Since 2005, den and Norway. Moreover two aggregate productions in we have also represented the interests of the Senate Chan- Voronezh Region (JSC “VRU”) and in Tula Region (JSC cellery of the Free and Hanseatic City of Hamburg. Th e “Gurovo-Beton”) are operated. main brief of the representative offi ce in St. Petersburg is to Th e activities of the Country management, such as establish and broker contacts between businesses in Ham- Finance, Sales, HR, Purchasing and Business Development burg and in Russia, and to provide them with information are directed from the offi ces in the City of Moscow and in about the respective markets. In addition, the Port of Ham- Podolsk, Moscow Oblast. In Russia HeidelbergCement is a burg representative offi ce in St. Petersburg also takes part reliable employer for some 2.300 people. in conferences and other events organized by the transport sector. It also maintains contacts with partners in Latvia, Kesarev Consulting Estonia, Lithuania and Ukraine. About Kesarev Consulting ■ one of the fi rst and among few reputable Russian fi rms to Profi le-Euro LLC provide professional and compliant services in the spheres Profi le-Euro LLC was established in of government relations, lobbying and public aff airs; 1992. We provide customs broker and ■ longtime history of serving multinational corporations; freight forwarding services. Staff of 89 ■ team of 15 professionals (including 6 associate partners people is working in the company, 63 of them take part in and 5 lawyers),who have long-term experience in legal, customs clearance. public and governmental aff airs practice; Our specialization includes the customs clearance of ■ priority practices: customs tariff regulations and protec- perfume and cosmetic products, foodstuff s, pharmaceutical tive measures in international trade; agribusiness/food goods, raw materials, equipment and spare parts to it for sector; health care; fi nancial services; mining/natural plants, products of chemical and machine-building industry. recourses; energy/utilities; mechanical engineering; infra- Th is company is one of a few companies in Moscow that structure; has a rich experience in organizing the projects for customs ■ service regions: Russia, Customs Union (EurAsEC), clearance of plant equipment. Ukraine and CIS; Presently we are organizing customs clearance in Mos- ■ Kesarev Consulting has two offi ces: Moscow (Russia) and cow region, Smolensk, Kaluga, Sheremetevskaya, Domod- Kyiv (Ukraine). edovskaya and Baltiyskaya customs. Contact details: Kesarev Consulting Qoveo 9 Zemlianoy val, 4th Floor, offi ce 4010. 105064, Moscow, Russia Qoveo team consists of experts in the Phone : +7 495 662-9859 management of competencies, which e-mail: [email protected] can be defi ned by the foundation EVALUATE , MANAGE

AEB BUSINESS QUARTERLY • Spring 2012 50 AEB New Members

, DEVELOP ; the team project managers and experienced 1907 as a messenger company in the United States, UPS has engineers who specialize in the creation and management grown into a multi-billion-dollar corporation with one of of signifi cant IT-projects. Each client is unique to us and the most recognized and admired brands in the world. With each of them requires our skill and understanding of his its unmatched array of services in more than 220 countries or her needs. Th is demand stimulates our professionalism and territories, UPS delivers over 15.6 million packages during development, optimization and implementation of every day. UPS started operations in the Russian market in tools as well as on the level of methodological management 1989. It covers the whole territory of Russia and off ers the of competence. Th is dual expertise makes our approach to most comprehensive portfolio of services in the Russian solving problems a particularly important one. market, including worldwide and domestic express delivery, We adapt our solutions to your business ! reverse logistics, contract logistics, freight forwarding, supply chain solutions, as well as customs brokerage services. Renaissance Moscow Monarch Centre For more information visit www.ups.com. Hotel Located in a bustling commercial district of Work Service Moscow, and in close proximity to Moscow Th e Work Service S.A. Capital Group City and the Expocentre, the Renaissance Moscow Monarch is the biggest player on the Polish Centre Hotel allows easy access to downtown attractions and HR services market, which also conducts its business in is a quiet oasis for guests in the midst of a dynamic business fi ve other Central and Eastern European countries: the environment. Being a part of mix-use development the hotel Czech Republic, Slovakia, Russia, Germany and Ukraine. off ers 366 rooms and suites, including long stay service apart- Th roughout twenty years Work Service evolved from a ments, along with all the amenities of a 5 star hotel. Th e hotel company delivering temporary workers to commercial is an unparalleled destination to host corporate business and chains and further providing modern employee outsourc- private events with its one level convention space totaling ing models for the largest production companies to the 2,500 sqm. Th e hotel`s dining venues promise gastronomic position of expert and advisor on the HR market. Annually inspiration at Mozaic Restaurant, fi ne dining Premier Restau- 150 thousand people fi nd jobs due to Work Service. Th e rant and Allegro Lobby Lounge and Sushi Bar. company cooperates closely with over 2200 Clients for THE RENAISSANCE MOSCOW MONARCH CENTRE which it employs and services over 21 thousand Employees HOTEL every day. Anthony Fardon, General Manager [email protected] Ekaterina Saburova, Director of Sales&Marketing [email protected] New Advertising Opportunity 31A Leningradsky Prospect Bld.1. Moscow Russia 125284 on the AEB Website t: 7 495 995 00 09 f: 7 495 995 00 08 The AEB is pleased to offer a new opportunity on the AEB homepage renaissancemonarchmoscow.com www.aebrus.ru – a banner section. renaissancemonarchmoscow.ru The AEB webpages have been viewed over 44,600 times in February 2011 only. THOST Russia Projektmanagement The target audience is unique, by placing a banner you will reach the decision makers of the largest European companies operating OOO THOST Russia Projektmanage- in Russia. ment was founded in 2006 as 100% sub- Companies are welcome to place advertisement banners in the sidiary of THOST Projektmanagement für Bauten und Anla- section next to the Events calendar. There are two possible sizes: gen GmbH, with headquarter in Pforzheim, Germany, who 200x47px or 200x94 px. started with project management services in Russia in 2004. Price List OOO THOST Russia Projektmanagement coordinates and Price Price controls the development, engineering, design, procurement Format and Time 200x47px 200x94px and realisation of complex projects. Our work is independent frame (months) size and leads to the desired results. We create benefi ts and added 1 month 500 Euro* 800 Euro value for our clients from the project idea to its commis- 3 months 1000 Euro 1600 Euro sioning. Unique experiences across industries provide ideal 6 months 2300 Euro 3700 Euro solutions, professional staff ensures the success of projects. THOST Projektmanagement – committed to quality since 12 months (+ 1 month free) 5000 Euro 8000 Euro *All payments are to be made in Rubles according to the daily exchange rate set by the RF 1987. We look forward to supporting your projects in Russia Central Bank on the date of payment. and CIS countries with our services. www.thost-group.com Contact person: For more info and to reserve a space, please contact United Parcel Service Nina Anigbogu UPS is the world’s largest express delivery com- E-mail: [email protected], Tel.: 234 27 64, ext 133.

pany, and is a leading global provider of logistics This offer extends to AEB members only. A 20% premium will be applied to these prices for non-Members. services and supply chain solutions. Founded in The prices given above do not include VAT.

AEB BUSINESS QUARTERLY • Spring 2012 ASSOCIATION ǌǝǝǚǢǔǌǢǔǫ OF EUROPEAN BUSINESSES ǑǎǜǚǛǑǕǝǖǚǏǚ ǍǔǓǙǑǝǌ Russian Federation, Ul. Krasnoproletarskaya 16, bld. 3 Российская Федерация, 127473, Москва, 127473 Moscow, Russian Federation ул. Краснопролетарская, 16, строение 3 Tel.: +7 (495) 234 27 64. Fax: +7 (495) 234 28 07 Тел.: +7 (495) 234 27 64. Факс: +7 (495) 234 28 07 [email protected]. http://www.aebrus.ru [email protected]. http://www.aebrus.ru THE VOICE OF EUROPEAN BUSINESSES IN RUSSIA AEB MEMBERSHIP APPLICATION FORM / ǓǌǫǎǗǑǙǔǑ HA ǣǗǑǙǝǞǎǚ ǌǑǍ Please fill out the Application Form in CAPITAL letters, sign it and fax it to 234 28 07/ Заполните заявление печатными буквами и пришлите по факсу 234 28 07 Calendar year / Календарный год: 2012 (Please check the appropriate box/boxes / Укажите соответствующий год/года)

Name of your AEB Contact / Ваше контактное лицо в АЕБ: ______

1. COMPANY / ǝǎǑǐǑǙǔǫ ǚ ǖǚǘǛǌǙǔǔ Company Name in full, according to company charter. (Individual applicants: please indicate the company for which you work / Название компании в соответствии с уставом. (Для индивидуальных членов – название компании, в которой работает заявитель):

Legal Address (and Postal Address, INN / KPP / ИНН/КПП: if different from Legal Address) / Юридический и фактический адрес, Phone Number / Номер телефона: Fax Number / Номер факса: если он отличается от юридического:

Website Address / Страница в интернете:

2. CATEGORY / ǖǌǞǑǏǚǜǔǫ: THE CATEGORY IS DETERMINED ACCORDING TO THE COMPANY’S WORLD TURNOVER Company’s world-wide turnover Please indicate your AEB Category / Мировой оборот AEB Membership Fee / Отметьте категорию (euro per annum) / Членский взнос в АЕБ компании (евро в год)

SPONSORSHIP / Спонсорство – 8,500 euro/евро

CATEGORY A / Категория А >500 million/миллионов 5,750 euro/евро

CATEGORY B / Категория Б 50–499 million/миллионов 3,500 euro/евро

CATEGORY C / Категория С 1–49 million/миллионов 2,000 euro/евро

CATEGORY D / Категория Д <1 million/миллионов 750 euro/евро

INDIVIDUAL (EU/EFTA citizens only)/ Индивидуальное (только для граждан Евросоюза/ЕАСТ) – 750 euro/евро

Any non-EU / non-EFTA Legal Entities applying to become Associate Members must be endorsed by two Ordinary Members (AEB members that are Legal Entities registered in an EU / EFTA member state or Individual Members – EU/EFTA citizens) in writing/ Заявление любого юридического лица из страны, не входящей в Евросоюз/ЕАСТ, и желающего стать членом АЕБ, должно быть письменно подтверждено двумя членами АЕБ (юридическими лицами, зарегистрированными в Евросоюзе/ЕАСТ, или индивидуальными членами – гражданами Евросоюза/ЕАСТ) Individual AEB Membership is restricted to EU / EFTA member state citizens, who are not employed by a company registered in an EU / EFTA member state / К рассмотрению принимаются заявления на индивидуальное членство от граждан Евросоюза/ЕАСТ, работающих в компаниях, страна происхождения которых не входит в Евросоюз/ЕАСТ Please bear in mind that all applications are subject to the AEB Executive Board approval / Все заявления утверждаются Правлением АЕБ

3. CONTACT PERSON / INDIVIDUAL MEMBER / ǖǚǙǞǌǖǞǙǚǑ ǗǔǢǚ / ǔǙǐǔǎǔǐǟǌǗǨǙǧǕ ǣǗǑǙ

Title, First Name, Surname / Ф.И.О:

Position in Company / Должность:

E-mail Address / Адрес эл. почты: 4. COUNTRY OF ORIGIN / ǝǞǜǌǙǌ ǛǜǚǔǝǡǚǒǐǑǙǔǫ

А. For a company / Компаниям: Please specify COMPANY’S country of origin / Указать страну происхождения компании1

or B. For an individual applicant / Индивидуальным заявителям: Please specify the country, of which you hold CITIZENSHIP / Указать гражданство

Please note that only EU / EFTA members can serve on the Executive Board and the Council of National Representatives/ Внимание! В Совет национальных представителей и Правление могут быть избраны члены, представляющие страны Евросоюза или ЕАСТ. Please fill in either A or B below/ Заполните только графу А или В

5. COMPANY DETAILS / ǔǙǠǚǜǘǌǢǔǫ ǚ ǖǚǘǛǌǙǔǔ

Company present in Russia since: ______/ Компания присутствует на российском рынке с:______г.

Company activities/ Primary / Secondary / Деятельность компании Основная: Второстепенная:

Please do not include this in

Company turnover (euro)/ In Russia / Worldwide / the AEB Member Database/ Не Оборот компании (в Евро) в России: в мире: включайте это в справочник АЕБ

Please do not include this in

Number of employees/ In Russia / Worldwide / the AEB Member Database/ Не Количество сотрудников в России: в мире: включайте это в справочник АЕБ

Please briefly describe your company’s activities (for inclusion in the AEB Database and in the AEB Newsletter) / Краткое описание деятельности Вашей компании (для включения в базу данных АЕБ и публикаций АЕБ)

6. HOW DID YOU LEARN ABOUT THE AEB / ǖǌǖ ǎǧ ǟǓǙǌǗǔ ǚǍ ǌǑǍ?

Personal Contact / Личный контакт Internet / Интернет

Media / СМИ Event / Мероприятие

Advertising Source / Реклама: ______Other / Другой:______

Signature of Authorised Representative of Applicant Signature of Authorised Representative of the AEB / Company / Подпись уполномоченного лица заявителя: Подпись Руководителя АЕБ:

______

Date/Дата: Date/Дата:

1 Location of a parent company or of the main shareholder/ Местонахождение головной конторы или основного учредителя.