4 th Annual Financial Markets Conference Portfolio and Direct Investment in Russia and Ukraine May 4, 2006 - PowerPoint PPT Presentation

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4 th Annual Financial Markets Conference Portfolio and Direct Investment in Russia and Ukraine May 4, 2006 PowerPoint Presentation
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4 th Annual Financial Markets Conference Portfolio and Direct Investment in Russia and Ukraine May 4, 2006
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4 th Annual Financial Markets Conference Portfolio and Direct Investment in Russia and Ukraine May 4, 2006

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  1. 4th Annual Financial Markets Conference Portfolio and Direct Investment in Russia and Ukraine May 4, 2006

  2. BISNIS - Who We Are ! • U.S. Department of Commerce program since 1992 • BISNIS Mission: Facilitate U.S. - NIS commercial collaboration and success • U.S. and NIS - based Trade Specialists • 6 Trade Specialists in Washington, D.C. • 10 Offices Across Eurasia • Expertise in • Each NIS Country & Russian region • Most Promising Industry Sectors and Issues • Local business needs and available resources

  3. BISNISin Eurasia U.S. Department of Commerce Info for Eurasian companies: www.bisnis-eurasia.org Info for U.S. companies: www.bisnis.doc.gov Western NIS Kyiv, Ukraine Chisinau, Moldova Russian Federation St. Petersburg (Hiring) Moscow (Vacant) Nizhny Novgorod Samara Yekaterinburg (Hiring) Novosibirsk Tomsk Khabarovsk Vladivostok (Vacant) Yuzhno-Sakhalinsk Caucasus Baku, Azerbaijan (Vacant) Yerevan, Armenia (Vacant) Tbilisi, Georgia (Vacant) Central Asia Tashkent, Uzbekistan Bishkek, Kyrgyzstan (Hiring) Astana, Kazakhstan (Hiring) Dushanbe, Tajikistan

  4. Market Size- 275 Million Belarus – 11m Ukraine – 51 m Moldova – 4m Russia – 145 m Georgia – 5 m Armenia – 3m Azerbaijan – 8m Kazakhstan – 17m Turkmenistan – 4m Tajikistan – 6 m Uzbekistan – 26 m $4.5 billion in U.S-Eurasia results since 1992 Kyrgyzstan – 4 m

  5. BISNIS Services for U.S. firms • BISNIS OnLine • Unique Russian-language website • E-mail Updates • Leads • BISNIS Search for Partners • BISNIS Trades & Tenders • BISNIS Finance Link • BISNIS ExpoLink Eurasia • Consultations/guidance (phone, e-mail, in-person) • BISNIS Bulletin (monthly newsletter) • BISNIS OnLine • www.bisnis.doc.gov • www.bisnis-eurasia.org • Country Info • Industry Info • Leads • Events • Finance • Resources

  6. U.S. Commercial Service • Presence in 107 U.S. cities • Presence in 145 U.S. Embassies and Consulates • E-mail Updates • Individualized Programs • Gold Key Matching Service • One Year Interactive Promotion • Contact Lists • US Product Literature Centers • Consultations/guidance (phone, e-mail, in-person) • www.buyusa.gov

  7. UKRAINE • Surfing the wave • The Yushchenko Effect (One year later)

  8. FDI into Ukraine Millions USD

  9. Major Developments since 2005 • February 17, 2006: U.S. Grants Ukraine market economy status • In March 2006, Congress passed legislation to graduate Ukraine from the Jackson-Vanik Amendment  Clears path for WTO accession

  10. Hot Sectors in Ukraine • Airport/Ground Support Equipment • Automotive Parts/Services Equipment • Building Materials • Computer Hardware, Software, Services • Contraction and Construction Materials • Energy, Power Generation and Distribution • Food Processing and Packaging Equipment • Medical Equipment and Pharmaceuticals • Agricultural Chemicals and Agricultural Equipment • Oil and Gas Field Machinery Data: 2005Country Commercial Guide, US Foreign Commercial Service http://www.buyusainfo.net/docs/x_6979181.pdf

  11. But Obstacles Remain • Taxes, VAT return • Non-tariff Barriers (Certification) • Ownership Rights (physical, intellectual) • Soviet Legacy, Bureaucracy • Lack of Capital • Accounting • IPR • Rule of Law • Operating Costs /Effort • Challenges Obtaining Market Information

  12. More Practical Information • BISNIS Finance Report • Ukraine: Competing in the global economy – strategy for success • Amcham Kyiv • US-Ukraine Foundation

  13. RUSSIA • Press v. Commercial Reality • PBN Co Survey (One year later)

  14. RUSSIA • Beware of the “strategic sectors” Oil & Gas Defense Aviation Metals Telecommunications Banking

  15. RUSSIA • But know the 4 priority sectors • modern healthcare • high quality education • affordable housing • effective agriculture

  16. Best Prospects in Russia Infrastructure Ports and airports Road construction Telecommunications Logistics (cargo terminals, warehouses, reloading terminals, etc.) Natural resource-oriented industries Wood processing, pulp & paper Metals (steel, aluminum, gold, titanium, nickel, other) Oil & gas Diamonds, amber Chemicals Fishing Environmental technologies

  17. Best Prospects in Russia • Consumer market oriented sectors • Food processing and packaging • Printing • Medical equipment and pharmaceuticals • Textiles • Retail trade and distribution • Healthcare services • Financial services (asset management, insurance, mortgage) • Hotels and, in general, tourism infrastructure • Industry • Ship-building • Construction (Residential and Commercial) • High Tech (software development) • Machine-building (nuclear power stations, electrical generators, optics, trucks and automobiles, other)

  18. Perceptions/Stereotypes and Reality • There are a lot of negative articles in the press about Russia: there must be a reason to it • Russians are crooks • Russia is so far away that transportation costs will eat away my profits • Corruption is pervasive • There is no predictability • I have good buddies in Moscow, I can cover Russia from Moscow • Many have lost their shirts in Russia, I could too

  19. More practical Information • www.bisnis.doc.gov • www.buyusa.gov • www.amcham.ru • www.usrbc.org

  20. Contact Information Philip de Leon Deputy Director Tel: (202) 482-2109 Fax: (202) 482-2293 Washington, D.C. E-mail: Philip_de_Leon@ita.doc.gov Web: www.bisnis.doc.gov www.bisnis.doc.gov