The Trade Council Russia Machinery & Technology

Transcription

1 The Trade Council Russia Machinery & Technology Activity Plan 2016 This folder provides an overview of all the different activities and possibilities the Trade Council Russia offers in 2016 within Machinery & Technology. In the folder you can find invitations to fairs, market visits, sector clubs and much more. We are always ready to answer the questions you might have concerning the activities, so do not hesitate to contact us. Keep yourself updated with the newest activities and market developments - follow the Trade Council in Russia: click for Linkedin; for Facebook; for Green Capacity

2 The Trade Council Russia Activity plan 2016 THE AMBASSADOR S INTRODUCTION... 3 MACHINERY AND TECHNOLOGY... 4 HOW CAN THE TRADE COUNCIL HELP YOU... 6 EURASIAN ECONOMIC UNION (EAEU) NEW OPPORTUNITIES?... 6 EKF GREEN CAPACITY CLUB SECTOR GROUPS ACTIVITY CALENDAR RUSSIAN MARKET VISIT WITHIN AQUACULTURE AND FISHERIES RUSSIAN MARKET VISIT ICT & DATA CENTER DEVELOPMENT MARKET VISIT IN RUSSIA - DEVELOPMENT OF BEEF INDUSTRY IN LENINGRAD REGION RUSSIAN MARKET VISIT SHIPBUILDING: SUPPLY OF EQUIPMENT & TECHNOLOGIES MINING ALLIANCE RUSSIA, KAZAKHSTAN Step 1 Moscow 24 th 29 th April Step 2 Kazakhstan 23 th 27 th May

3 The Trade Council Russia Activity plan 2016 THE AMBASSADOR S INTRODUCTION The Russian economy has been hit hard in the last few years. A question I am often asked is if there is any business left. Let me be clear, the answer is yes. The Russian economic engine is still running. It is not running as fast as it did before. This can be an advantage for Danish businesses. Now the pace of the economy is more as we are used to. In Denmark we also have some of the major knowledge areas that are in demand. The major demand is for technologies for improving the Russian food sector and it is everything from seeds, field equipment to food processing technologies. Here Denmark has a major opportunity. However, we have also worked more in-depth with some of the other markets we are covering. We have had several delegations heading to Belarus, Kazakhstan and Turkmenistan. These are all markets where we are seeing new opportunities for many Danish companies. You will also in this activity plan find several invitations for these markets. When discussing the how with Danish companies who have been on the Russian market for some years, they point out the fact that Russia has always been a challenging market. It has its peaks and its lows, but so far it has come back every time. Their lessons learned can be summarised in 3 P s. Presence If you want to have Russia as a market, you need to be here when it goes up and when it goes down. Some Danish companies expand when the market is down. The square meters in the shopping centres are cheaper and the local governments are more eager to welcome you in local projects. It pays off in the long run - they remember those who stay! Patience Things take time in Russia. A key factor to achieving success is to know the right people. A key role for me and my colleagues at the Embassy is to open the right doors for you, to help you establish relationships with the right people and get a solid foothold faster. Companies, who have been here for more than 20 years, still use our services to meet the right level of decision makers and buyers. Persistence The companies who have something to offer that are relevant for the Russian market and who stay, will find that there is money in Russia. Currently the Russian government are implementing an anti-crisis plan that include major infrastructure projects and support for the Russian industry. Another major focus is on increasing the internal Russian food production. Starting to work with Russia will always be a big task, and this is no less true today. The current political environment should, however, not prevent Danish companies from taking advantage of the opportunities that do exist. That would be an opportunity lost. This is where I hope you will let Trade Council Russia (The Commercial Department at the Embassy in Moscow and the General Consulate in St. Petersburg) help you, get the right understanding of the market, get the right contacts, all in the aim to get the contracts and the sales! We are also covering Belarus, Kazakhstan, Kirgizstan, Tadzhikistan, Turkmenistan and Uzbekistan and will be able to assist your access to these markets as well. My colleagues and I at the Embassy and the General Consulate stand ready to guide and advise you also on the political framework. I hope to see you in Russia. We are looking forward to assisting you in achieving success. H.E. Thomas Winkler Ambassador of the Kingdom of Denmark to the Russian Federation 3

4 The Trade Council Russia Activity plan 2016 MACHINERY AND TECHNOLOGY The machinery and technology sector in Russia provides significant export and joint venture possibilities for Danish companies. Despite recent economic challenges, including ruble devaluation, Russia is still a very large market for production and construction machinery, ICT solutions (both hardware and software), and consumer electronics. Russia s total capital expenditures in January-November 2014 amounted to RUB 11 trillion (EUR 146 billion at current exchange rates), while imports of machinery, equipment and transportation vehicles during this period were worth EUR 110 billion. In the short- and medium-term significant state investments in infrastructure projects and newly adopted import replacement programs will be the main drivers behind strong demand for foreign equipment and know-how. In the longer term, Russia has good chances to improve economic performance, while additional exciting market opportunities will arise from the transformation of the Customs Union (Russia, Belarus, and Kazakhstan) into the Eurasian Economic Union. Machinery new and old Russia s manufacturing sector is a mix of production facilities dating back to the Soviet Union times and modern production plants built during the last two decades and based mostly on foreign technologies. Older plants often require complete re-design and all-new equipment to continue operations, while newer facilities need continuous upgrades to remain competitive. Construction of new manufacturing plants, warehousing and distribution facilities is also regularly started even despite current foggy perspectives of the country s economy. And foreign suppliers are often the only source of state-of-the-art production technologies, machinery and solutions for all these projects. Among specific segments where Danish machinery and expertise is especially in high demand there are food production, metalworking, wood processing, and several others. This is very much related to the sanctions, and the strong import substitution within the sector. It should be noted that penetration of the Russian market requires physical presence in the country with own sales offices and/or sales representatives or via a solid partnership with a strong local distributor. Infrastructure from airports to stadiums Federal focused capital spending program amounts to RUB 1.02 trillion in 2015, RUB 900 billion in 2016, and RUB 916 billion in 2017 (more than EUR 120 billion annually). The focus is on all types of transportation infrastructure (airports, highways, seaports, and railways), as well as on cultural, educational, and sports facilities (stadiums for the FIFA World Cup, museums in Moscow and St. Petersburg, federal universities in major cities, etc.). Interesting opportunities for foreign suppliers of machinery and technology arise in connection to public private partnerships with international participation taking over highway construction and management. Special attention of the Russian government to expansion and modernization of airports and railroads in large Russian cities could also generate demand for solutions and machinery from Danish vendors. 4

5 The Trade Council Russia Activity plan 2016 ICT and consumer electronics The ICT sector in Russia is well developed and diversified. Demand for ICT systems from all the sectors of the economy and also the public sector continues to be very strong. Danish companies developing niche software and hardware solutions can play a significant role. However, in most cases entering and building presence on the Russian market for ICT solutions in many cases will require developing partner relations with a well-established Russian systems integrator. Most promising opportunities can be found with the hardware segment, where Russian domestic ICT industry is traditionally not very strong while Danish companies have strong expertise especially in niche products, as well as in such segments as data hosting and SaaS. High-end consumer electronics is another market of significant interest for Danish companies. Russia s well-to-do and ultra-rich households are eager to purchase expensive high-quality and designer products and represent a welcome public for new state-of-the-art product offerings. In total, Russians spent RUB 1.47 trillion (EUR 19.6 billion) on consumer electronics, appliances and gadgets in Join the Machinery & Technology Sector Group The Sector Group is an initiative launched by the Trade Council, promotes Danish interests on the Russian market for machinery and technologies. Below you will find our invitation to join the Sector Group and our Green Capacity Club. The Sector Group assists Danish companies in following developments in the Russian technology and industrial sectors, assists them in establishing contacts to potential partners and authorities, and contributes to maintaining strong relations with existing Russian clients and stakeholders. Given the large demand for equipment and technologies within the agricultural and food sector, TC Russia has launched a new sector group in the autumn of The new sector group, Food Technology seeks to exploit the opportunities that lie ahead for this promising sector. For more information please contact our sector expert in Machinery & Technology and Water & Waste. Marina has been a part of the Trade Council since 2000, where she initially worked with several industries. She has worked as a legal adviser at Coopers and Lybrand as well as she has been heavily involved in the international project Vodokanal St. Petersburg. Furthermore Marina has extensive experience in project marketing, recruitment and arranging conferences. Marina Piotrovskaya Team Leader and Sector Expert in Machinery & Technology marpio@um.dk 5

6 The Trade Council Russia Activity plan 2016 HOW CAN THE TRADE COUNCIL HELP YOU Area of specialisation: Russia, Belarus, Kazakhstan, Kirgizstan, Tadzhikistan, Turkmenistan and Uzbekistan. We understand that time is money. We are here to help you save time on the Russian market and to get your products sold faster. EURASIAN ECONOMIC UNION (EAEU) NEW OPPORTUNITIES? The activities of the Trade Council Russia not only cover Russia but also most of the CIS countries; Tadzhikistan, Uzbekistan, Kyrgyzstan, Kazakhstan, Turkmenistan, and Belarus. The potential for cooperation between Danish companies and these countries within many sectors, including technology and energy sector, is getting more and more attractive due to the creation of the Eurasian Economic Union (EAEU), which was launched on 1 st January The Customs Union and the Common Economic Space between Russia, Belarus, Kazakhstan, and Armenia represent two elements of the most ambitious regional integration projects launched in the post-soviet space since Kyrgyzstan has recently become a member, while Tadzhikistan has shown interest in joining the EAEU as well. The Eurasian Economic Union aims to create a single economic space of more than 170 million people and a gross domestic product of around USD 3 trillion. One of the main objectives for the EAEU is to create a common energy market, and Trade Council Russia will closely monitor the development and possible opportunities for Danish companies in this connection. 6

7 The Trade Council Russia Activity plan 2016 Get to know the Market, Partners and Customers 1. Free of Charge Service A Free of Charge Service is a great way to quickly get a general overview about the available possibilities for your company within the Russian market. It could include a personal consultation about export, general overview for a company s strategy in the market or any other support within one consultancy hour. 2. Market Survey The market survey helps the company define a strategy or decide whether to enter the Russian market. In correlation with The Trade Council the project will be defined very clearly in order to fully understand what your company expects from the survey and the kind of decisions the survey should lead to. A market survey could include information about: The accessibility to the market The size of the market and different segments The product s or service s fit to the market Identification of distribution channels, the competitive environment, prize levels, and legislation. SWOT analysis of the market entry 3. Market Visit The Market Visit Programme is a service provided by The Trade Council to Danish small and medium sized enterprises (SMEs). The Market Visit Programme targets a group of companies with mutual interest that are looking for new market opportunities. This program is perfect for companies who wish to get a personal insight in the current trends and opportunities on the Russian market. The Market Visit could include: A meeting program for visiting potential partners and private and public institutions Participation in conferences, exhibitions etc. Field visits to relevant projects, retail outlets or other branch related localities 4. Marketing Campaign The Trade Council can help you become visible on the Russian market. A marketing campaign is ideal for newcomers to the market and those who need help in order to achieve their marketing goals. We will use our experience and knowledge about the Russian market to help your company becoming more visible. A marketing campaign could include the following activities: Spreading the information about your company in written/online sources of information Series of publications in the right sources of information (magazines, newspapers, blogs) Press-event and launch at the Embassy LinkedIn, FB publication on Trade Council s internet resources 7

8 The Trade Council Russia Activity plan Partner Search A Russian partner helps the Danish company to market its product and services on the selected market. The Trade Council has extensive knowledge about many sectors, the business environment, and business culture and will do everything to help you to find a suitable partner. Together we will identify your specific needs and approach to the market and use our network, technical skills, and solid experience in partner search to set up meetings with relevant candidates. The Trade Council can support you with translation, logistics and advice on your meetings with the potential partners. 6. Participation in Exhibitions The Trade Council arranges a turnkey national exhibition stand, which will guarantee your company presence on the Russian market and bring you close to the Russian customers. 7. Vitus The Vitus programme helps Danish SMEs to enter new markets through a fast and effective kick-start. The aim is for ten chosen Danish SME s to quickly realize their export potential. This is done through an intense collaborative partnership between the companies and a commercial adviser on the Russian market. The goal for the program is that each participant achieves an export success within the 12 months that the program last. 8. Export Start The Export Start Programme has existed since 2001 and is a government service provided by the Trade Council to Danish SMEs. This programme is applicable to any kind of Trade Council service within the amount of consultancy hours and could be used for a partner search, market entry assistance etc. The programme targets companies with a proven export related business plan which are looking for ways to expand their businesses on the Russian market. Create your event 1. Reception/Dinner at the Ambassador residence or Danish Cultural Institute This is a unique chance for your company to host an event in the attractive surroundings of the Ambassador residence which is an old and charming Russian mansion in the absolute centre of Moscow. The setting is perfect for meeting potential partners or Russian officials and the Ambassador s presence will contribute to attract the right Russian attendants. We are always flexible and will ensure that the event meets your specific needs. 2. VIP events at the embassy/residence or Danish Cultural Institute The embassy may be a great alternative venue for hosting all kinds of other events. We can help you arrange catwalks, publicity events, media events etc. 3. Round-tables We can arrange round table discussions with high-ranking Russian officials to discuss legal issues or other matters which requires the attention of the Russian authorities. The involvement of the embassy can ascertain the seriousness of the matter at hand. 8

9 The Trade Council Russia Activity plan 2016 Additional support 1. Negotiation support The embassy may assist your company with translation, counselling and guidance. We can assist you as a company to know what to expect from a meeting with a potential client/distributor and help you to understand what exactly is being said to try and avoid potential misunderstandings. 2. Conflict resolution support The Trade Council may use our experience in conflict resolution to assist you in resolving a given conflict. We may facilitate a restart of a dialog with the right people and within the right structural framework. 3. Company registration support The Trade Council can help you with the general framework of the registration process. We can assist with contact to legal support and offer incubator services. 4. Product certification support The Trade Council may assist you with an overview of the procedure and facilitate a liaison with a certification agency. We have knowledge about which product has mandatory registration and which has voluntary registration. Peter Mygind Rasmussen Minister Counsellor, head of the commercial department pemyra@um.dk 9

10 The Trade Council Russia Activity plan 2016 EKF The best security a company can have EKF is Denmark s Export Credit Agency. We help Danish companies make it possible and attractive for customers abroad to purchase Danish products. We do so by helping raise financing and by insuring companies and banks against the potential financial and political risks of trading with other countries. We assist both large and small companies, and we are pleased to provide solutions tailored to your company s specific needs. EKF was established in 1922 as only the third export credit agency in the world. Over the years, we have acquired unique expertise in the challenges faced by Danish companies in trading and investing around the globe. EKF is owned and guaranteed by the Danish state but operated as a modern financial enterprise. With a guarantee from EKF, you have the backing of the Danish state, and that makes a difference in the world beyond Denmark s borders. Use EKF as a sales argument We help you and your international customers to secure the financing that can make your export transactions a reality. For example, by securing your customer a loan that is to be used solely for buying your goods. By letting EKF and a bank help your customer with the financing, you can offer your customer an extended credit without running any unnecessary risk. This can give you an advantage in the competition with other suppliers. And even though your customer buys on credit, you get your payment immediately. Today, it takes more than just a good product to succeed in the export markets. With backing from EKF, you can offer your foreign customer a financing solution together with your product. The customers have an additional incentive to select you as a supplier, if you bring along a financing solution as well. Perhaps you re dreaming of - securing the order even though the customer s bank is refusing to finance the deal - helping your customer with credit without taking any unnecessary risk yourself - giving your customer an extra reason to choose you rather than your competitors - your distributor having the money to buy even more of your goods - covering your losses if your customer suddenly goes bankrupt or cancels an order - being able to concentrate on new business instead of the risk of losses on old business? - EKF can help you with this. See our brochure here or find more information about EKF at EKF Lautrupsgade Copenhagen Tel ekf@ekf.dk 10

11 The Trade Council Russia Activity plan 2016 GREEN CAPACITY CLUB 11

12 The Trade Council Russia Activity plan 2016 The Green Capacity Club is a new initiative by the Trade Council Russia to easily and in a more flexible way support Danish companies in developing their presence in Russia and in the majority of the EEU & CIS countries. The Green Capacity Club can be seen as a re-launch of our previous clubs, whereof the Energy & Environment Club, created in 2007, was the first one. The Trade Council Russia would like to express its gratitude to those companies who have worked with us since the very beginning in We very much appreciate that you support us and trust in us. Through the Green Capacity Club we will plan even more tailored solutions that fits you. Our new concept is for all of you to have a basic membership in our Green Capacity Club and furthermore be able to become a member in one or several of our sector groups; Energy & Environment (E&E), Oil & Gas (O&G), Machinery & Technology (M&T), Water & Waste (W&W), and Food Technology (FT) A membership in the Green Capacity Club gives you a lot of advantages! Three hours of consulting free of charge; Financial contacts (EKF and other international players); Tailor-made events; Interesting events and business breakfasts; Themed newsletters; Relevant guest articles, which may be yours; Macro news on the Russian market (e.g. politics, legislation, and economy); Assistance with visa invitations and hotel bookings at favourable rates; Promotion of your company and products on our different platforms. Green Capacity Club membership is part of our network platform here you will be able to stay in touch with the Trade Council Russia. In short, we are striving to create a more flexible and interactive relationship with you. 12

13 The Trade Council Russia Activity plan 2016 SECTOR GROUPS Name Status Annual fee Consultancy Your membership Green Capacity Club Required DKK 5,000 3 hours 1) Financial contacts; 2) Tailor-made events; 3) Interesting events and business breakfast; 4) Themed newsletters; 5) Relevant guest articles, which may be yours; 6) Macro news on the Russian market; 7) Assistance with visa invitations and hotel bookings at favourable rates; 8) Promotion of your company and products on our different platforms. Sector Groups Energy & Environment Optional + DKK 4, hours 1) At least a 50 % discount on our initiatives within the sector (events, market visits, etc.); 2) Great contact possibility to the Russian Ministry of Natural Resources & Environment; 3) Direct contact to developers and project companies; 4)Possibility for targeted approaches for cooperation with other Danish companies; 5) You will get a personal advisor; 6) Frequently fresh and sector specific news; 7) Special requests will be taken into account. Oil & Gas Optional + DKK 2, hour 1) 50 % discount on our initiatives within the sector (events, market visits, etc.); 2) Great contact possibility to Russian industrial conglomerates and state-owned companies; 3) You will get a personal advisor; 4) Fresh and sector specific news. Machinery & Technology and Food Technology Optional + DKK 2, hour 1) 50 % discount on our initiatives within the sector (events, market visits, etc.); 2) Great contact possibility to Russian industrial conglomerates and state-owned companies; 3) You will get a personal advisor; 4) Fresh and sector specific news. Water & Waste Optional + DKK 2, hour 1) 50 % discount on our initiatives within the sector (events, market visits, etc.); 2) Great contact possibility to Vodokanals in different regions; 3) You will get a personal advisor; 4) Fresh and sector specific news. Other sector Optional + DKK 2, hour To be determined upon request, in close cooperation with you. 13

14 The Trade Council Russia Activity plan 2016 ACTIVITY CALENDAR 2016 Date: Event: Sector: 29th of Feb - 4th of March Aquaculture Market Visit to Russia 14-18th of March 4-8th of April 11-15th of April 25-29th of April 23rd-27th of May ICT & Data Center Development Market Visit Beef Industry Market Visit to Russia Shipbuilding Supply of equipment & technologies Market Visit Mining Alliance to Russia Mining Alliance to Kazakhstan Machinery & Technology Machinery & Technology Machinery & Technology Machinery & Technology Machinery & Technology Machinery & Technology 14

15 Contact: Trade Council Russia Marina Piotrovskaya Phone +7 (812) RUSSIAN MARKET VISIT WITHIN AQUACULTURE AND FISHERIES Are you looking for growth opportunities? Or have you considered entering Europe s biggest consumer market? If so, now is the time to join Trade Council Russia in this upcoming market visit with focus on the opportunities within aquaculture and fisheries in Russia. Join Trade Council Russia for the Aquaculture Market Visit in the period 14 th through 18 th March 2016 and get acquainted with the current situation within processing equipment, production methods, feeding and operating technologies for fish and fisheries in Russia. Large growth prospects are present within the aquaculture sector as Russia is ramping up production to meet internal demand from Russian citizens. The country has a self-sufficiency target of 85% and a state budget of EUR 1.4 billion to develop the industrial fisheries sector leading up to The support mechanisms are aimed at development of research and science and the infrastructure of the aquaculture sector. Therefore, foreign investments play an important role if the industry is to meet international standards regarding packaging processes, technical equipment, feeding, and operation systems. The opportunities for your business are to supply modern methods that increase efficiency and quality, while reducing costs within fisheries and aquaculture. By joining this market visit, you will gain insight into the Russian market, identify which specific opportunities are present for your company, and be brought close to potential partners, customers, and projects. In addition, the delegation will take part in the international exhibition RybProm 2016 Please contact us before 10 th February 2016! Kind regards, Marina Piotrovskaya 15

16 Preliminary programme In order to provide you with a deeper knowledge, we will make a presentation on the current market opportunities in the aquaculture industry, Russian business culture, and arrange meetings with relevant Russian authorities as well as potential customers or partners. In addition the delegation are offered to take an active part in RybProm 2016 an exhibition with focus on; fish farming, processing, transportation, fishing and education and science in the aqua cultural sphere. The exhibition is held to promote the modernization of aquaculture and fish processing industry in Russia through introduction of advanced technologies and modern equipment. Focus is on the practical aspect of the implementation of the import substitution. The participating Danish companies will have the opportunity to be a part of a seminar, hosted by the Danish Consulate General at the exhibition a great opportunity to promote your company. Furthermore, the exhibition also includes workshops, conferences, seminars and B2B-meetings. Why St. Petersburg and Leningrad Region? St. Petersburg and the surrounding Leningrad Region is particularly interesting. At a recent meeting with the international relations committee of Leningrad Region it was confirmed that the regions has ambitious plans for the coming years in order to meet the self suffiency target. Worthwhile mentioning is: Plan to invest in 100 sets of equipment for fish farming for Leningrad region, which then will be rented to local businesses. Fish farming and fish processing have significantly grown in the Region during last year. The number of companies working in this sector has grown by this year. The preliminary programme for the market visit will last for 3 full working days and will consist of the following elements: Briefing about the political, economic and legal situation in Russia B2B meetings with producers Roundtable conference and meetings with local authorities Participation in RybProm Seminar (great opportunity to promote your company) Participation fee The price of a Market Visit is DKK 12,000 for Small- & Medium-Sized Enterprises under the EU definition. This corresponds to a subsidy of 50 percent of the normal price per hour (in 2016 the price per hour is DKK 960). For more information, please contact: Marina Pitrovskaya marpio@um.dk 16

17 Contact: Trade Council Russia Marina L. Piotrovskaya Phone +7 (812) RUSSIAN MARKET VISIT ICT & DATA CENTER DEVELOPMENT Are you looking for growth opportunities? Or have you considered entering Europe s biggest consumer market? If so, now is the time to join the Royal Danish Consulate General in the market visit with focus on the opportunities within ICT and Data Center Development in Russia. Join TC Russia for the ICT & Data Center Development Market Visit between 14 th and 18 th March 2016 and get acquainted with the market opportunities within software, microsystems, hybrid technology and construction of data centers. Large growth prospects are present in the ICT sector as Russia is experiencing rapid development in the online economy. Furthermore, the construction of Data Processing Centers (DPC), which offers cloud and colocation services has become a new growth driver for the Russian ICT industry. Russia strives to increase its investment in innovation and technology, and is currently building up data storage centers to meet a growing demand for cloud computing and big data. This growth is facilitated by two factors; the cool climate, which reduces re-cooling costs, and changes to the country s data protection law Law on Personal Data, which calls for the personal data of Russian citizens be stored on servers located in Russia. Since Russia as of now only has very few companies that can build centers of this standard it leaves room for international players that are specialized in providing equipment, technologies, and building data centers. The market visit includes a visit to the 19 th International exhibition of electronic components, modules and systems. Additionally, with B2B meetings, roundtable conference, and networking we aim to find partners and customers suitable for your business. Please contact us before 1 th February 2016! Kind regards Marina Piotrovskaya 17

18 Preliminary programme In order to provide you with a deeper knowledge, we will make a presentation on the current market opportunities in the ICT industry, Russian business culture, and arrange meetings with relevant Russian authorities. We will also look specifically at the opportunities and challenges for your company in terms of sales. For further development of the ICT sector, Russian producers are in need of high quality of software and hardware, which includes technical equipment as well as innovative solutions. Most of these companies are open for foreign investments. The opportunities for your business are to supply modern methods that increase efficiency and quality in the sphere of telecommunication, wireless technologies, data center development, automation components, and microelectronics. The preliminary programme for the market visit will consist of the following elements: Briefing about the political, economic and legal situation in Russia and how it affects your company. B2B meetings with companies in your industry. Roundtable conference. Meetings with local or federal authorities. Visiting the 19 th International exhibition of electronic components, modules and systems. Participation fee The price of a Market Visit is DKK 12,000 for Small- & Medium-Sized Enterprises under the EU definition. This corresponds to a subsidy of 50 percent of the normal price per hour (in 2016 the price per hour is DKK 960). For more information, please contact: Marina Piotrovskaya marpio@um.dk Facts about the DPC Sector The Russian commercial Data Processing Center market was estimated to be worth EUR 156 million at the end of 2014, and witnesses an annual growth of over 20%. Experts predict continued segment growth in the next three years due to the development of cloud computing, Big Data, and the B2G market. In 2009, Russia had 110 data centers, by the end of 2014 about 180, with 60% located in or near Moscow. 18

19 Contact: Trade Council Russia Marina L. Piotrovskaya Phone +7 (812) Contact: The Royal Danish Consulate General in St. Petersburg Marina L. Piotrovskaya Phone +7 (812) MARKET VISIT IN RUSSIA DEVELOPMENT OF BEEF INDUSTRY IN LENINGRAD REGION Are you looking for growth opportunities? Or have you considered entering Europe s biggest consumer market? If so, now is the time to join Trade Council Russia in this upcoming market visit and discover the opportunities within the beef industry of Leningrad Region. Join Trade Council Russia for the Beef Industry Market Visit between 4 th and 8 th April 2016 and get to know the opportunities within production, processing, and operating equipment for the beef industry in Northwest Russia. The Russian Federation is currently focused on implementing import substitution in the food and agricultural sector. Therefore, large growth prospects are present within the sector as Russia is ramping up production to meet internal demand. The country has a plan to increase self-sufficiency remarkably by 2020 and to achieve this goal; the federal support of agriculture has been increased with EUR 550 million. Foreign investments play an important role for Russia in the development of the beef industry to meet international standards, especially within production equipment and processing technologies. In the Leningrad Region alone there are cattle farms with a capacity of up to 20,000 oxen of which the majority are considering investments in modern efficient machineries and technologies to optimize the production. By joining this market visit, you will gain insight into the Russian market and get acquainted with opportunities within the beef industry. During the visit you will be brought close to potential partners, customers, and projects. Additionally, with B2B meetings and a roundtable conference we aim to find partners and customers suitable for your business. Please contact us before 15 th February 2016! Kind regards, Marina Piotrovskaya 19

20 Preliminary programme In order to provide you with a deeper knowledge, we will make a presentation on Russia s current market outlook in the beef industry, Russian business culture, and arrange meetings with relevant Russian authorities. We will also look specifically at the opportunities and challenges for your company in terms of sales. For further development of the beef industry, Russian producers are in need of fundamental modernization, which includes technical equipment as well as innovative processing procedures. Most of these companies are open for foreign investments. The opportunities for your business are to supply modern methods that increase efficiency and quality, while reducing costs within beef production. The preliminary programme for the market visit will consist of the following elements: Briefing about the political, economic, and legal situation in Russia and how it may affect your company B2B meetings with producers and farmers Roundtable conference Meetings with authorities from Leningrad Region (the region surrounding St. Petersburg) Participation fee The price of a Market Visit is DKK 12,000 for Small- & Medium-Sized Enterprises under the EU definition. This corresponds to a subsidy of 50 percent of the normal price per hour (in 2016 the price per hour is DKK 960). For more information, please contact: Marina Piotrovskaya marpio@um.dk Facts Domestic suppliers currently have enough capacity to meet only 60% of internal demand. New federal programme from 2015: Reimbursement of up to 20% of direct capital investments into projects within the beef industry. Up to 35% reimbursement of direct investments in modernization of cattle breeding centres. The Russian Ministry of Agricultures list of investment projects for import substitution currently includes 53 projects within beef production. 20

21 Contact: Trade Council Russia Marina Piotrovskaya Phone +7 (812) RUSSIAN MARKET VISIT SHIPBUILDING SUPPLY OF EQUIPMENT & TECHNOLOGIES Are you a supplier of equipment and technologies for the shipbuilding industry? And are you looking for growth opportunities? If so, now is the time to join Trade Council Russia in St. Petersburg a national hub for shipbuilding. Join us for the Shipbuilding Supply of equipment & technologies Market Visit between 4 th and 8 th April 2016 and get acquainted with the current market situation within shipbuilding in Russia. The aim of the market visit is for you to discover the prospects of the government support to the industry and how your company can benefit from it. During the visit your company will have the opportunity to visit the International Conference of Russian Shipbuilding in St. Petersburg, get insight into the government s programme Development of Shipbuilding and Special Equipment for Successful Offshore Projects During the Period Between 2015 and 2030, and become aware of large shipbuilding contracts of the Russian Federation. Worthwhile mentioning is the fact, that Russia still lack production of internal made components within; propulsion complexes, compressors, pumps, electric equipment, ship fittings, etc. and therefore the demand for foreign made components is still very present. If you are interested in participating in the market visit, please contact us before 1 th March 2016! Kind regards Marina Piotrovskaya 21

22 Preliminary programme In order to provide you with a deeper knowledge, we will make a presentation of Russia s current situation within the shipbuilding industry, Russian business culture, and arrange meetings with relevant Russian authorities. We will also look specifically at the opportunities and challenges for your company in terms of sales. The preliminary programme for the market visit will consist of the following elements: Briefing about the political, economic, and legal situation in Russia and what it can mean for your company. B2B meetings with shipbuilders. Participation in the third international conference «Russian Shipbuilding. Import Substitution». Meetings with local authorities. Participation fee The price of a Market Visit is DKK 12,000* for Small- & Medium-Sized Enterprises under the EU definition. This corresponds to a subsidy of 50 percent of the normal price per hour (in 2016 the price per hour is DKK 960). * this amount does not include the conference participation fee. To be announced later. For more information, please contact: Marina Piotrovskaya marpio@um.dk Facts about shipbuilding Main facilities located in the Northwest Federal District Dominated by military shipbuilding Positive trend of increasing commercial shipbuilding The shipbuilding industry has: - More than 100 industrial enterprises - More than 40 shipyards - A total staff of about 36,000 people According to Russian analysts and development strategy, the main customers of shipbuilders will be the oil and gas industry 22

23 Contact: Trade Council Russia Marina L. Piotrovskaya Phone +7 (812) MINING ALLIANCE RUSSIA, KAZAKHSTAN Do you deliver equipment and technologies to the mining sector? Are you looking for growth opportunities? If so, now is the time to join Trade Council Russia in the Mining Alliance to Russia and Kazakhstan, scheduled for 25 th - 29 th April and 23 rd - 27 th May The Alliance will include visits to Moscow in Russia, and Astana and Almaty in Kazakhstan. The purpose of this trip is to introduce Danish suppliers to the Russian and Kazakh mining industries and to facilitate an easier access to the markets by providing: B2B meetings with key players and potential partners Meetings and round table discussions with relevant authorities Visit to the Mining World Russia Exhibition Networking with both local partners as well as Danish companies The alliance will, in step 1 and 2, visit the three cities highlighted below: Moscow: Mines in Russia are scattered around the country, but the headquarters of the most important mining companies are located in Moscow, because it is the centre of power. Also the world-renowned mining exhibition Mining World will take place in Moscow. Astana: Astana is the capital of Kazakhstan, and hence it is where all the decisionmaking bodies are situated. It is also the home of one of the country s most important mining companies and the influential professional organisation Association of Mining and Metallurgical Enterprises. Almaty: In terms of mining Almaty is also a very important city in Kazakhstan as it is home to two of the country s leading mining companies. Detailed information about the countries mining industry and draft programmes with suggested company visits will follow in the pages to come. 23

24 Mining in Russia Russia is extremely rich in all kinds of mineral deposits from aluminium to gold and is the source of a significant share of the world s raw mineral production. The estimated monetary value of the Russian mineral reserves is EUR 27 trillion. According to recent estimates, the level of production of the mining and metallurgical industries of Russia will be EUR 242 billion in Russia has the world s largest reserves of iron ore around 56 billion tons, and at the moment Russia produces more than 100 million tons of marketable iron ores per year, which makes it the fifth largest producer in the world. Russia is also a very strong player in the coal industry, and is currently ranked second in the world in terms of percentage of world reserves. The long term prospects of the coal mining sector are positive due to Asia s continued reliance on coal to cover rising electricity needs. As a result the Russian government plans to spend EUR 112 billion between 2012 and 2030 on developing the country s coal reserves, alongside major investments into logistics and engineering capacities. Top ten Russian producers of: Platinum Group metals 1st Iron ore 5th Aluminium 2nd Gold 5th Magnesium 2nd Copper 6th Cobalt 2nd Chromite 6th Silver 5th Bauxite 7th In recent years, the Russian diamond mining industry has also become an important source of income. According to a report from 2013, Russia is now the world s leading diamond supplier, accounting for about 22% of the global diamond supply. In 2013 approximately mineral deposits had been explored and only about one third of them are currently being developed and mined. Thus, the Russian mining industry still has great untapped potential! We plan to visit some of the main players in the sector: EVRAZ EVRAZ is a vertically integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, USA, Canada, Czech Republic, Italy, Kazakhstan and South Africa. Mechel Mining Mechel is a global mining and metals company operating in Europe, Asia, North and South America and Africa. Mechel is comprised of more than 20 production enterprises, producing coal, iron ore, steel, rolled products, ferroalloys, heat and electric power. 24

25 Metalloinvest Metalloinvest is a leading global iron ore and HBI producer, supplier and a regional steel producer. Norilsk Nickel Norilsk Nickel Group is the world s largest producer of nickel and palladium, also one of the leading producers of platinum and copper. SUEK SUEK is the leading Russian coal company, the largest producer and supplier of coal in the nation, and one of the major global players in its sector. KRU KRU is a Russian based coal company. KRU extracts, processes, and distributes coal domestically and internationally. KTK KTK is one the largest producers and exporters of thermal coal in Russia. SDS (Siberian Business Union) The holding s enterprises mine coal, produce rail cars, heat and electric power, mine equipment and other goods and services. 25

26 Mining in Kazakhstan Kazakhstan is extremely rich in minerals and the country has the potential to overtake many of the leading mineral economies, but foreign capital and technology will be needed in order to utilise these vast resources. The country is currently ranked 6 th in the world in terms of its amount of mineral resources, and the mineral resource base has an estimated net worth of EUR 43 trillion according to government reports. Kazakhstan alone accounts for 30% of the global reserves of chromite and 25% of manganese ores. Iron ores as well as reserves of copper, lead, and zinc range from 10 to 13%, respectively, of the world reserves. Kazakhstan is also an important source of uranium. In 2009 it became the world s leading uranium producer, and by 2013 Kazakhstan accounted for 38% of the world production. The Kazakh government is committed to increase uranium exports and aims to supply 30% of the world fuel fabrication market by the end of Consequently, mining is by far the most important industry in Kazakhstan, also when it comes to export. Kazakhstan top 10 producer of: Uranium Chronite Titanium Magnesium Zinc Bauxite Copper 1st 2nd 3rd 4th 7th 8th 10th At the moment 99 different minerals have been discovered, 70 of those are being explored, and so far 60 of the minerals are being commercially recovered. Since 2011 the Kazakh government has taken significant measures to support the expansion plans of the country s largest mining companies, and it is expected that the volume of investments into the industry will amount to EUR 11.5 billion by So if you want to get in on the act now is the perfect time! We plan to visit the two main players in the sector: 26

27 ENRC ENRC is a leading international natural resources group, with integrated exploration, mining, processing, power generation, logistics and marketing operations. Kazakhmys Kazakhmys PLC is among world's leading natural resources groups. They are based in Kazakhstan, Central Asia, listed in London, Kazakhstan and Hong Kong. Preliminary Programme Step 1 Moscow 24 th 29 th April Introductory meeting Sector opportunities Reception Meeting with authorities Visiting MiningWorld Russia 2016, Moscow Meeting with some of the above companies Step 2 Kazakhstan 23 th 27 th May Introductory meeting Sector opportunities Reception Meeting with authorities Meeting with ENRC Meeting with KAZAKHMYS Step TBA 27

28 Why should your company participate? Coordinated and cost-efficient sales effort Low entry and exit barriers/costs Professional local set-up with necessary infrastructure to support your business development Access to market intelligence and key decision-makers through the Trade Council s network Ongoing advice and assistance from experienced export advisors targeted your companies business needs. Administrative support with company registration, customer support, etc. Get 50% Financial Support By applying as a coalition of companies to the Foreign Ministry s Trade Council we are able to secure 50% funding venture for an amount up to DKK 192,000 (200 hours x DKK 960). This provides excellent start-up opportunities for the strategic alliance of supplying companies, as this will strengthen and help the imitation phase of the project. The price will depend on the exact number of companies in the Mining Alliance. It is also possible to participate in one step of the strategic alliance and take a decision about the next step afterwards. Below is the price of each step summarised in case of 5, 4, and 3 participating companies. Steps Number of hours 5 participating companies, price per company DKK 4 participating companies, price per company DKK 3 participating companies, price per company DKK 1 step 2 steps 3 steps 4 steps ,600 19,200 28,800 38,400 12,000 24,000 36,000 48,000 16,000 32,000 48,000 64,000 If you wish to be a part of this initiative, get more information or have any questions, please contact: Marina Piotrovskaya marpio@um.dk Sector Expert Machinery & Technology 28

29 The Trade Council is a part of the Ministry of Foreign Affairs and is the official export and investment promotion agency of Denmark. The Trade Council benefits from around ninety Danish Embassies, Consulates General and Trade Commissions abroad. The Trade Council advises and assists Danish companies in their export activities and internationalisation process according to the vision: Creating Value All the Way. The work in the Trade Council follows specific procedures and quality guidelines. In this way our customers are secured the best possible quality under the varying working and market conditions at any given point of time. Ministry of Foreign Affairs of Denmark Royal Danish Embassy in Moscow 9 Prechistensky Pereulok Moscow Tel: Fax: mowamb@um.dk Royal Danish Consulate General in St. Petersburg Nab. Reki Moiki, 42, of St. Petersburg Tel: +7 (812) Fax: +7 (812) ledgkl@um.dk 29