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IN THIS ISSUE:
MISSION & OBJECTIVES
• To serve business in Canada, Eurasia and Russia by
enhancing and supporting trade, investment and good
relations between these countries.
• Advocate and lobby on behalf of CERBA members to
the Canadian and Eurasian/Russian national govern�
ments on issues of importance to members;
• Serve as a forum for the exchange of essential infor�
mation and insightful views among business, govern�
ment and non�government representatives in Canada,
Eurasia and Russia;
• Facilitate business development through the provision
of selected services including business assistance,
counseling and networking.
ORGANIZATION
The Canada Eurasia Russia Business Association has a
network of seven chapters located in Moscow, Toronto,
Montreal, Ottawa, Calgary Vancouver and Almaty, and a
membership base of over 200 corporations and individu�
als in a wide range of sectors. As an association, CERBA
provides an extensive network of contacts with frequent
networking events, informative seminars on pertinent top�
ics in the Eurasian market for Canadian companies, an
annual National Conference, a quarterly printed News�
letter, committees of the Canada�Russia Business Coun�
cil (CRBC), access to annual trade missions, as well as
market intelligence, advocacy on government policy, and
active, Canada�focused sector committees.
MEMBERSHIP
For membership inquires, please contact yourregional CERBA office:
TTOORROONNTTOO CCHHAAPPTTEERR – Katherine Balabanova,e�mail: [email protected]: 1 (416) 863�4403
MMOONNTTRREEAALL CCHHAAPPTTEERR – Sebastien Dakin,e�mail: [email protected]: 1 (514) 575�6334
VVAANNCCOOUUVVEERR CCHHAAPPTTEERR – Tatiana Domilovskaya,e�mail: [email protected]: 1 (604) 720�2905
CCAALLGGAARRYY CCHHAAPPTTEERR – Frank Kense,e�mail: [email protected]: 1 (403) 218�4164
OOTTTTAAWWAA CCHHAAPPTTEERR – Anastasia Smolentsevae�mail: [email protected]: 1 (613) 882�8048
AALLMMAATTYY CCHHAAPPTTEERR – Taskyn Koshman,e�mail: [email protected]: 7 (702) 888�1319
MMOOSSCCOOWW CCHHAAPPTTEERR – Radmila Sionov,e�mail: [email protected]: 7 (495) 762�1240
MOSCOW BOARD OF DIRECTORS
ChairmanNathan Hunt � Ronald A. Chisholm International
DirectorsNeil Withers � Promsvyazbank
Alex Shifrin � Saatchi & Saatchi
Madina Assylbekova � Gowlings International Inc.
Luc Jones � Antal Russia
Ron Lewin � Terralink
John Place � Export Development Canada
Peter Prabhu � Interstice
Sheldon Bennett � Board Solutions
Anatoly Andriash � Norton Rose
Sergey Lobov � Barrick Gold
Lou Naumovski � Kinross Gold Corporation
Geoffrey Nicholson � PricewaterhouseCoopers
Andreas Weichert � Embassy of Canada
CALGARY BOARD OF DIRECTORS
ChairmanHans Gjerdrum � KUDU Industries
DirectorsLaurent Auger � Alberta International
Intergovernmental Relations
Shawn Beamish � Canadian Mat Systems
Renee Chernicki � Canadian Petroleum
Training Institute
Paul Drager � Norton Rose, LLP
Rod Heard � Zedi
Andy Kavanagh � Sage Energy
Erkin Atakhanov � PWC � Observer
TORONTO BOARD OF DIRECTORS
ChairmanRobert Fotheringham � TMX Group
DirectorsBoris Aryev – Stans Energy Corp
Lou Naumovski – Kinross Gold Corp
Vitaly Paroshyn – Ministry of Economic
Development and Innovation (Ontario)
Alina Pekarsky – Schulich School of Business
Geoff Rowan – Ketchum PR
Don McCutcheon – Gowlings
Jeff Sutton – KPMG
John Pearson – Centerra Gold
John Coll – Bombardier
Martha Harrison – Heenan Blaikie (Vice Chair)
Wolfgang Spillner – Albacor Shipping (Vice
Chair)
MONTREAL BOARD OF DIRECTORS
ChairmanJamila El Assaad � SNC�Lavalin International
DirectorsAndrei Ivanov � MDA
Andre L'Ecuyer � Rabaska
Bertrand Millot � Cordiant
Simon Ruel � Heenan Blaikie
Leo Knaapen � Bombardier
Paul Brunette � Technology Links
Anis Ouanes � Ministere du developpement
economique, de l'innovation et de
l'exportation du Quebec (Observer)
Gilles Breton � Consultant (Observer)
OTTAWA BOARD OF DIRECTORS
ChairmanMichael Woods � Heenan Blaikie LLP
DirectorsKonstantin Smolentsev � GreenOffOn
Sam Boutziouvis � SNC�Lavalin
Piotr Dutkiewicz � Carleton University
Pierre Pyun � Bombardier
Alexandra Logvin � Fasken Martineau
DuMoulin LLP
Larisa Beach � Neptec
Mark Cameron � RIM
Margaret Skok � Norman Patterson
School of International Affairs
Christopher Westdal � Silver Bear
Natalia Shpilkovskaya � BLG
Anthony Finch � DFAIT (Observer)
VANCOUVER BOARD OF DIRECTORS
ChairmanSandy Ferguson � BC Bio�energy Network
DirectorsDr. Rainer Ibowski � SNC Lavalin
Roger Richer � B2Gold Corp
Oleg Tchoubarov � Sea Green Enterprises
Robert Johnston � Cannon Design Architects Inc.
Rod Goy � BC Institute of Technologies
Igor Kovarsky � Global Cobalt Corp.
Bryan Hughes � Export Development
Canada
ALMATY BOARD OF DIRECTORS
ChairmanKeith Gaebel – Ernst & Young
DirectorsTerrance Powell – Chagala Group
Galymzhan Pirmatov – Cameco Kazakhstan
Xin Zhonglin, Petrokazakhstan
Steven Basadur – Embassy of Canada
Natalia Kurkchi – Antal Russia
Banat Ashkenova – Heenan Blaikie
Yulia Mitrofanskaya – Bakyrchik Mining
Venture
Tatiana Muratova – Norton Rose
Abzal Raimkhanov – SNC�Lavalin
NATIONAL BOARD OF DIRECTORS
Chairman
NATHAN HUNT � Ronald A. Chisholm Limited
Chairman Emeritus
PIERS CUMBERLEGE – World Economic Forum
Directors
BORIS ARYEV – Stans Energy Corporation
RENEE CHERNECKI – Canadian Petroleum Training Institute
PAUL DRAGER – Fulbright & Jaworski
PIOTR DUTKIEWICZ – Carleton University
JAMILA EL ASSAAD – SNC Lavalin International
THE HONORABLE J. TREVOR EYTON – Magna Corporation
ROBERT FOTHERINGHAM – TMX Group
HANS GJERDRUM – KUDU Industries Inc.
MARTHA HARRISON – Heenan Blaikie LLP
ROBERT JOHNSTON – Cannon Design Architecture Inc.
LOU NAUMOVSKI – Kinross Gold Corporation
JOHN PLACE – Export Development Canada
TERRY POWELL – Chagala Management LLP
PIERRE PYUN – Bombardier
CHRISTOPHER WESTDAL – Silver Bear Resources
DAVID WOODALL – Altynalmas Gold
MICHAEL WOODS – Heenan Blaikie LLP
IN THIS ISSUE:
With your help we raised over $ 1,200,000
USD during the last 11 years to help those
in need. This year we are hoping to contin�
ue this tradition and are looking forward to
welcoming you at our event.
CERBA 12TH ANNUALCHARITY AUCTIONwith VLADISLAV TRETIAKFOR THE BENEFIT OF CHILDREN'S, SOCIAL AND
FAMILY INSTITUTIONS IN THE RUSSIAN REGIONS
VENUE: YAR Restaurant (Leningradskiy prospekt, 32/2)
DATE: Wednesday, 27 March 2013
TIME: 7 pm. – 10 pm.
TICKETS: $150 per person or 4,500 Rubles
REGISTRATION:
e�mail: [email protected]
LIVE AUCTION LOTS:
• The unique 2012 World Championship Ring made in honor of Russian Team winning
the Championship. The ring is made from white and red gold, and incrusted with 26
Rubies, commemorating the number of victories if the Russian team at the World
Championships. The ring also features the logo of the 2012 Ice Hockey Championship,
and the Russian national emblem encrusted with a diamond. These rings were creat�
ed strictly for the members of the Russian ice hockey team, and only 1 ring will be
available for sale at the March 27 Charity Auction (Starting Bid 12 000 USD).
• Russia 2012 Ice Hockey Team Jersey Autographed by all the players current world
champions! (Starting Bid 3 000 USD)
• Tickets to 2012 Ice Hockey World Championship (Stockholm, SWEDEN & Helsinki,
FINLAND quarterfinals, semifinals, finals (Starting Bid 2 000 USD).
Our exclusive SILENT AUCTION LOTS include a variety of hockey memorabilia (auto�
graphed hockey jerseys, sticks, gloves, photos, etc.), Dinners hosted by Canadian Ambas�
sador and Vladislav Tretiak. In addition, Russian artworks (including Nikas Safronov's
painting), fine jewelry, haute couture fashion and fur items, airline tickets, luxurious hotel
stays and exquisite dinners and many other outstanding items will also be made available
during the silent auction and raffle to raise funds for the V.Tretiak charity fund.
OPINION
Guest Editorial, Dmitri Trenin, Russia's Awakening 4
Chairman's Message 5
ASSOCIATION NEWS
Updates 6
New Members 7
Member News 9
MAIN STORIES
Quebec Jumps on Growing Russian Trade Opportunities 12
Celebrating Business and Diplomatic Relations 13
at the Investment Forum «Whither Russia?»
Trade Mission to Ulyanovsk 16
LOOKING BACK
Past Events and Association Activities 17
LAW AND LEGISLATION
Transfer Pricing: How to adjust actual profit when 23
it is too high or too low?
CERBA Quarterly News
Spring 2013
Editor�in�Chief: Radmila Sionov
Design: Dmitry Radomsky
OPINION
4 / spring 2013
OPINION
spring 2013 / 5
bles, which have been plaguing opposition parties, less rel�
evant. The opposition's Coordinating Committee, elected by
popular online voting, is functioning, while the authorities'
repressive moves help to further radicalize this part of the
opposition.
The modernization in Russia can only be the work of society
as a whole, led by its more active elements capable of put�
ting pressure on the recalcitrant elites. The potential ele�
ments of change� conservative, liberal, and socialist�need to
narrow their differences and find common ground around
some key principles: mutual respect, nonviolence in pursuit
of their goals, dialogue and cooperation, and civic patriotism.
EExxtteerrnnaall IImmpplliiccaattiioonnss
The challenge to the domestic status quo has forced the
Kremlin to look for a new balance in the international arena
in order to protect and support the existing system.
Moscow's political "decoupling" from the West, which
occurred in the mid�2000s, is being followed by a "pivot"
away from Europe toward a more familiar Eurasian vector
and further in the direction of the Asia�Pacific. Relations with
the West have grown more acerbic. Yet, this "pivot," which of
course does not make Russia any less European, does
nothing to address the issue that Moscow formulated but
failed to resolve during the presidency of Dmitry Medvedev:
how to use Russia's foreign policy, above all, as a modern�
ization resource.
The Russian awakening should not be misconstrued as
eventually leading Russia into the fold of the political West.
Russia's foreign policy, even after systemic transformation,
will likely continue to be based on the notion of great power,
that is, it will continue to strive to be an independent strate�
gic player and seek a special co�equal role for itself in its
relations with the United States and Europe.
Yet, a benign external environment will be very important for
Russia's transformation. Isolating Russia would serve no
one's goals. Working with Russia to help it access the
Organization for Economic Development and Cooperation;
assistance in developing Russia's Far East and eastern
Siberia; cooperation in the Arctic; in�depth discussion on
global issues and regional contingencies, such as the future
of Middle East, Afghanistan, and stability and security in East
Asia; building a genuine security community across the
Euro�Atlantic; and arranging for U.S.�NATO�Russian joint
efforts in the area of missile defense, would all lead to better
prospects for Russia's modernization and help improve the
foundation for Russian�Western strategic relations, which
are key to solving some of the world's most urgent issues.
The Carnegie Moscow Center, established in 1993, is a
foreign policy think tank within the Carnegie Endowment
for International Peace. The Center's scholars produce
expert research and objective, nonpartisan analysis to
encourage debate on issues critical to Russia's domestic
developments and its foreign policy. For four consecutive
years, the Carnegie Moscow Center been ranked number
one among think tanks in Central and Eastern Europe and
the Former Soviet Union by the University of Pennsylvania.
CERBA is making a con�
certed effort to convey to
our government the impor�
tance of Russia as an emer�
ging market. In Russia face�
to�face engagement is more
important than in most other
markets. Our Minister of Inter�
national Trade Ed Fast has
visited all of Canada's major
partners among emerging
markets, including Brazil, India,
China, and Mexico. There is
tremendous opportunity for
further development of the
Canada/Russia relationship, especially in view of Russia's
chairing of the G20 meetings this year and Canada's two�year
term as Chair of the Arctic Council, which also starts this year.
We see potential in aircraft, engineering, mining, oil/gas, auto�
motive, high�tech, agriculture, and space technologies, among
other areas. If we can convince the government to endorse
our strategic development plan and support it to the greatest
extent practicable, we have a chance at making a difference.
Of course the old irritants continue to rear their heads and we
continue to engage them in battle � the complex visa system,
an outdated Foreign Investment Protection Agreement, the
Hague Convention on Apostilles, and rising diplomatic ten�
sion between Russia and the West, to name a few. By all
accounts, however, Russian President Vladimir Putin and
Canadian Prime Minister Stephen Harper have an excellent
relationship that bears dividends during their face�to�face
meetings. If we can translate this positive human capital into
legislative action, we will be doing a great service to our mem�
bers and the Canada/Russia business community as a whole.
The nascent CERBA chapter in Kazakhstan deserves praise for
their resolve and enthusiasm in creating a vibrant business as�
sociation that highlights Canada's special relationship with Ka�
zakhstan. While other CIS markets can command greater atten�
tion due to size and history, Kazakhstan is rapidly coming into
its own as a promising trading partner and a legitimate target
for foreign investment. A dynamic market about half the size of
Canada's, Kazakhstan boasts a rapidly developing middle class
and the most stable political regime in Central Asia. I had the
privilege of attending the Astana Economic Forum in May of
2012 and highly recommend it for serious business people
interested in gaining an understanding of this young and prom�
ising market (This year's forum takes place in Astana May 23�26).
Thanks are due to Irina Tabarina and Keith Gaebel who, with
others, helped to register CERBA in Kazakhstan and ensure
that we have a solid presence there. The new Regional Di�
rector Taskyn Koshman and Chapter Chair Terry Powell have
shown tremendous energy in their first 6 months on the job
and we look forward to watching the chapter develop and
prosper under their joint leadership in the future.
NNaatthhaann AA.. HHuunntt
CChhaaiirrmmaann ooff tthhee NNaattiioonnaall BBooaarrdd
CCaannaaddaa EEuurraassiiaa RRuussssiiaa BBuussiinneessss AAssssoocciiaattiioonn
RRuussssiiaa''ss AAwwaakkeenniinngg
Russia's crisis is occurring in three areas: the political
regime of personalized power, the socioeconomic system of
rent�based capitalism, and the predominantly paternalistic
pattern of societal behavior that has allowed this system to
function. The crisis reflects the emergence of new social ele�
ments within the country which the system cannot properly
accommodate.
TThhee PPoolliittiiccaall RReeggiimmee
The political status quo in Russia that has existed since the
early 2000s is over. The means that the authorities have
been using to stay in power no longer work because socie�
ty has matured and grown more demanding.
The Russian political regime has already had to reform,
though the authorities have also opted for more repression.
Gubernatorial elections have been returned, albeit with
important qualifications that make it virtually impossible for a
non�Kremlin candidate to succeed, and even this partial
measure is being reconsidered now. The process of regis�
tering political parties has been made dramatically easier,
though one result has been the emergence of a plethora of
very small groups, diluting the Kremlin's opponents.
Repressive measures have included restrictions on rallies
and heavy penalties for violating the rules. Some websites
can now be "blacklisted" for carrying offensive content, and
libel has been reinstated as a criminal offense. Opposition
leaders have been either charged with common crimes and
periodically detained or discredited. The members of the
punk band Pussy Riot were sentenced in 2012 to two years
in jail for their protest performance in the country's central
Russian Orthodox Cathedral. A law passed in July 2012
requires nongovernmental organizations that receive foreign
funding and engage in political activities to register as "for�
eign agents." Having adopted a defensive posture, Russian
authoritarianism is growing harsher and losing its modern�
ization credentials.
A change of personalities at the top, if it happens within the
autocratic system, would not solve but just prolong the cri�
sis. An inertial scenario is also possible if people lose faith in
their capacity to change their lives for the better, but not very
likely given the society's recent awakening, though the
awakening may take a long time to create the critical mass
needed for the real change.
RRuussssiiaa''ss PPoolliittiiccaall EEccoonnoommyy
The rent�based socioeconomic system that has supported
the regime is also undergoing a crisis. World oil prices are
stagnant and possibly falling, putting the Russian economy
at risk. The fundamental principle of fealty toward the
Kremlin in exchange for a license to grow superrich in what�
ever way, which has been a mainstay of the "vertical of
power", has resulted in unprecedented levels of corruption,
which breed massive resentment in society.
The government's extensive social obligations create a
strain on the economy and threaten a mass popular back�
lash if they cannot be met. Putin's two main constituencies,
pensioners and workers, on the one hand, and military per�
sonnel on the other, have been promised rising pensions
and no increase in the pension age as well as low levels of
unemployment. Simultaneously, a major rearmament pro�
gram has been launched. Those promises are in conflict
with one another and exacerbate the economic difficulties.
To improve control and reduce corruption, the Kremlin has
proposed making businessmen politicians cease actively
participating in the operations of their assets while sitting in
parliament. However, the principle of fusing power and prop�
erty lies at the heart of Russia's socioeconomic and political
system, and any meaningful attempt to dilute that link would
dangerously rock the boat in which the entire elite sit.
At the same time, the "federal power vertical" has evidently
run its course. Regional elites that make up the top levels of
the power vertical, from Kaliningrad to Vladivostok, have
become well established and do not want to be too tightly
controlled from the capital.
TThhee CCiivviicc AAwwaakkeenniinngg
The mildly authoritarian political regime built by current
President Vladimir Putin has lost legitimacy in the eyes of
more dynamic, potentially trend�setting segments of socie�
ty�around 15�17 percent of the population. During the past
year, tens of thousands of protesters in Moscow and other
cities throughout the country came out to demand fair elec�
tions, independent courts, and competitive political process.
For the first time ever, most Russians would accept the rule
of law provided that those who govern them accept it as
well. The decision by Vladimir Putin in September 2011 to
reclaim the presidency after taking the role of prime minister
during the Medvedev years prompted many to denounce
their noninterference pact with the authorities.
The systematic opposition in the Duma�the Communists and
A Just Russia�have been unable to do anything in the face
of the parliamentary majority held by the United Russia
party. Meanwhile, nonsystematic opposition has moved
beyond calls for Putin's departure to demand constitutional
reform to replace the czarist presidency with a system that
balances power between the executive and the legislature.
Networked forms of political activity make leadership squab�
CHAIRMAN'SMESSAGE
GUEST EDITORIAL
Dmitri Trenin, Director of the Carnegie Moscow Center, hasbeen with the center since its inception. He also chairs theresearch council and the Foreign and Security Policy Program.
ASSOCIATION NEWS
6 / spring 2013
ASSOCIATION NEWS
spring 2013 / 7
Neptec
Neptec Design Group Ltd. is an experienced spaceflight engi�
neering company. Neptec specializes in the development,
production, integration, operation and support of intelligent
spaceflight sensors, payloads, instruments and equipment.
Neptec achieved the highest possible contractor perform�
ance rating from NASA three years in a row; and in 2011,
was recognized with the George M. Low Award, NASA's
premier award for quality and performance. This marked the
first time a non�American company has won since the award
was established in 1985.
Neptec is privately held and operates as Neptec Design Group
Ltd. which develops innovative technologies and systems for
the Space market, and Neptec Technologies Corp., an affiliat�
ed company, that focuses on the migration of Neptec's tech�
nology to terrestrial markets.
Webis Group
Webis Group was established in 2000. Our core competence is
creating and deploying complex internet advertizing cam�
paigns, from internet marketing to developing web projects as
well as creating our own software products. Webis Group
employs highly skilled professionals with many years experience
in this area. Our clients are businesses, non�profit organizations,
holding companies and international corporations from Russia,
Canada, US and Western Europe.
Through the years of successful work in different markets we
have achieved the level of experience that allows us to work
on web projects in any markets around the world. Webis
Group pays special attention to businesses planning to enter
the Russian market.
Webis Group has worked with world famous companies such
as Halliburton – global solutions provider for oil production
companies, Contura � a well�known Swedish manufacturer of
hi�tech fireplaces, Atlantis Yachts � the Italian shipyard, and Q�
Matic – the world leader in Customer Flow Management solu�
tions. Webis Group grows its cooperation with well�known
global companies already present on the Russian market,
such as Jones Lang LaSalle � a worldwide operator of com�
mercial real estate, and FANN � an oil services company. Our
portfolio includes works for such famous Russian organiza�
tions such Russian Broadcasting Company (VGTRK), Mariin�
sky Theatre, Drofa Publishing House, Sofrino Bank, Fix Price
stores network, Delta�Plaza Business Center and many oth�
ers. Webis Group has fulfilled many web development tasks
for Russian, European and North American markets.
Foster Wheeler
Foster Wheeler is a global engineering and construction
company and power equipment supplier, with a reputation
for delivering high quality, technically advanced, reliable
facilities and equipment on time, on budget and with a
world�class safety record. Foster Wheeler designs, engi�
neers and constructs leading�edge processing facilities and
related infrastructure for the upstream oil & gas, LNG and
gas�to�liquids, refining, chemicals & petrochemicals, phar�
maceuticals, biotechnology & healthcare, mining & metals,
environmental and power industries. Foster Wheeler owns
industry�leading technology in delayed coking, solvent de�
asphalting and hydrogen production processes, and have
access to numerous technologies owned by others. It also
provides international environmental remediation services
with related technical, engineering, design and regulatory
services. We are a recognized world leader in fired heaters
and delayed coking technology with our Calgary office spe�
cialized in design and supply of custom engineered direct�
fired Process Heaters. With other flexible engineering cen�
ters in the US, UK, Italy, Spain, France, Thailand, Singapore,
South Africa, Turkey, Chile, Malaysia and China we can
undertake all types of projects from feasibility studies to
large complex EPC contracts.
IMAX
IMAX, an innovator in entertainment technology, combines
proprietary software, architecture and equipment to create
experiences that take you beyond the edge of your seat to
a world you've never imagined. Top filmmakers and studios
are utilizing IMAX theatres to connect with audiences in
extraordinary ways, and, as such, IMAX's network is among
the most important and successful theatrical distribution
platforms for major event films around the globe.
IMAX is headquartered in New York, Toronto and Los
Angeles, with offices in London, Tokyo, Moscow, Shanghai
and Beijing. As of Sept. 30, 2012, there were 689 IMAX the�
atres (556 commercial multiplex, 20 commercial destination
and 113 institutional) in 52 countries.
Junior HockeyLeague
Non�commercial partnership "Junior
Hockey League" ('Molodezhnaya
Hokkeynaya Liga' or MHL) was
established on 26 March 2009. 20
professional clubs of the Conti�
nental Hockey League ('Kontinentalnaya Hokkeynaya Liga' or
KHL), KHL Holding and Russian Ice Hockey Federation acted
as founders of MHL. So far, this is the only long�term youth
project of such scale in Russia.
Mr Alexander Medvedev is the Chairman of the Board of MHL.
Mr Dmitry Efimov was appointed Managing Director of the
CERBA is pleased to welcome
Taskyn Koshman, new Regional
Director of the Almaty Chapter
Ms. Taskyn Koshman brings to CERBA
over 12 years of professional NGO
experience protecting political and civil
human rights. In 2004 she founded and
since then served as president of the
national election observer group
"RNIM" with 12 regional offices and
more than 25,000 local volunteers in
Kazakhstan. In 2009 she established
the "Women's Leadership Fund" to pro�
mote the participation of women in politics and to increase
women's representation in the Kazakh Government and
Parliament. Taskyn has organized, launched, and managed
more than 30 projects on social and political issues in
Kazakhstan since 2004 and successfully raised millions from
the private sector to support her NGO activities.
Taskyn also worked as a political analyst for the OSCE and
took part in ENEMO assessment and observation missions
to Italy, Belgium, Kosovo, Scotland, Macedonia, Ukraine,
Kyrgyzstan, Georgia, Kazakhstan, and Moldova. She recei�
ved appreciation letters and recommendations from the
OSCE, NDIMO, NED, Freedom House, FSK, USAID, and a
number of Ambassadors.
Taskyn's educational background is in law and philology.
She holds a Master of Jurisprudence degree and a teaching
degree for the Kazakh language. She completed the Che�
vening Fellowship in Birmingham UK in 2007 and the USA
Leadership program in 2010.
Taskyn can be reached by phone at +7 702 888 13 19 or by
e�mail at [email protected]. The address remains c/o
Ernst & Young, Esentai Tower building, 6th floor, 77/7 Al�
Farabi Ave, Almaty, Kazakhstan.
CERBA would like to express it's gratitude to outgoing
Almaty Regional Director Irina Tabarina, who participated in
our chapter's founding and organized CERBA's activities
here faithfully and professionally for the past three years.
Her dedication helped make CERBA a viable entity in
Kazakhstan and brought value to all members of the new
association.
CERBA is pleased to welcomeAnastasia Smolentseva, new RegionalDirector of the Ottawa Chapter
Anastasia Smolentseva has
joined CERBA as the Regional
Director of the Ottawa Chapter.
Anastasia has a Bachelors
degree in European, Eurasian,
and Russian History Studies
from Carleton University. She
previously worked for World
Hope International's LifeStart
Project in Odessa, Ukraine. In
the private sector Anastasia was
a Project Coordinator at SMO�
LENTSEV & Partners, working on investment projects in
Russia and Europe. In October 2011 Anastasia joined the
CERBA team as a volunteer Regional Coordinator.
Presently Anastasia is a Business Developer for a start up
company GreenOffOn, a Consultant for projects sponsored
by the World Bank and the International Bank of Recon�
struction and Development, and starting September 2012 �
the new Regional Director of the CERBA�Ottawa Chapter.
Anastasia can be reached by phone +1 613 882 8048 or by
e�mail at [email protected].
The address remains c/o Heenan Blaikie LLP, 55 Metcalfe
Street, Suite 300, Ottawa, Canada.
UPDATES NEW MEMBERS
CERBA has many offers for its members including discounts at
hotels, conferences, events, and airlines.
Featured in this issue is Transaero Airlines' Offer for
CERBA members:
For CERBA members Transaero offers a 7% discount off published
Business Class fares and a 5% discount off published Economy
Class fares on all Transaero scheduled route networks. The benefit
with Transaero can be obtained through Canadian Gateway
(Tel: +1�905�660�1100, http://www.canadiangateway.com).
Transaero Privilege for Frequently Flying Passengers
Transaero's frequently flying passengers may become members
of the airline's loyalty program, Privilege FFP, and earn points to
enjoy free tickets, class of service upgrade and other benefits. To
become a member of Privilege FFP is quite simple � one just
needs to fill in a registration form on Transaero's official site:
http://transaero.ru/en/privilege/priv�reg.
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CCoonnttaacctt uuss aatt rraaddmmiillaa@@cceerrbbaanneett..oorrgg oorr ccaallll ++77 998855 776622 11224400
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Ernst & Young ReleasesCompensation and Benefitssurvey 2012/2013
Ernst & Young in Kazakhstan has carried out the 2012/2013
Compensation and Benefits Survey and is glad to present the
following survey reports: General Industry Report (all indus�
tries, 83 participants), Oil and Gas, Mining, FMCG, Banks,
Financial sector.
Content of the Survey:
� Salary and compensation levels for particular job positions in
Astana, Almaty and 14 regions of Kazakhstan
� Level of salary increase in 2012 and forecast for 2013
� Benefits package
� Types of allowances and payments most widely used in
Kazakhstan
� Short�term and long�term incentive programs used to retain
and motivate key personnel and raise employee productivity
� HR function metrics.
If you are interested in purchasing reports or you have any
questions, please contact us at +7 (727) 258 5588 (direct line),
or by email at [email protected].
Vladislav Dobrovolsky appointedhead of corporate practice,Yakovlev and Partners
TThhee LLaaww GGrroouupp ""YYaakkoovvlleevv && PPaarrttnneerrss"" rreennddeerriinngg sseerrvviicceess iinn tthhee
ffiieelldd ooff lleeggaall ssuuppppoorrtt ffoorr bbuussiinneessss,, hhaass aannnnoouunncceedd tthhee aappppooiinntt��
mmeenntt ooff VVllaaddiissllaavv DDoobbrroovvoollsskkyy aass hheeaadd ooff ccoorrppoorraattee pprraaccttiiccee
((ccoorrppoorraattee aanndd ccoommmmeerrcciiaall llaaww))..
The priority activity of Mr. Dobrovolsky will be corporate dis�
putes relating to the protection of rights of participants of
economic entities, unfair issue, theft of stocks (shares), illegal
meetings of shareholders, the commission of deliberately
losing trades, hostile takeovers (raiding), deliberate bank�
ruptcy, etc.
Recent years have seen a significant step in our develop�
ment, � said the President of the Board of Partners of the Law
Group "Yakovlev and Partners" Sergei Lazurenko. And the
appearance in our team of such well�known expert as
Vladislav Dobrovolsky is another confirmation that we are on
the right path.
Vladislav Dobrovolsky has more than twenty years of profes�
sional legal experience. After graduating from the legal depart�
ment of the Military Institute of the Ministry of Defense of the
USSR (now � Military University of the Ministry of Defense of the
Russian Federation), Mr. Dobrovolsky worked in the prosecu�
tor's office, headed the legal departments of the three com�
mercial banks in the period from 2001 to 2005, was a judge of
the Moscow City Arbitrazh (commercial) Court, and later
became a private practicing lawyer. In addition, for many
years, Vladislav Dobrovolsky lectures on commercial pro�
ceedings at the leading law schools and conducts author's
workshops.
Beyond all doubt, the extensive experience of Vladislav
Dobrovolsky, including his work in private and public institu�
tions, as well as its excellent reputation and knowledge of the
legal market, give us reason to believe that in the short term,
we'll greatly strengthen our position � especially in the area of
corporate and commercial law, � SSeerrggeeyy LLaazzuurreennkkoo says.
Kinross co�sponsors the 5thAnnual Charitable ChristmasBazaar in Moscow
On December 13th, 2012 Kinross co�sponsored the 5th Annual
Charitable Christmas Bazaar in Moscow organized by the non�
profit organization – United Way of Russia. The event provides
an opportunity to buy ceramics, paintings, batik items, Christ�
mas decorations, unique crafts handmade by foster kids and
kids in need. All of the proceeds go towards charity projects run
by the participating organizations.
For the third consecutive year, Kinross presented indigenous
peoples' crafts made by children from the Chukotka region,
where Kupol and Dvoinoye mines are located. The money col�
lected by Kinross shall be used for purchasing learning aids to
be further donated to the regional children schools of arts and
to the orphanage in Anadyr.
ASSOCIATION NEWS
8 / spring 2013
ASSOCIATION NEWS
spring 2013 / 9
Junior Hockey League, Mr Alexey Antonov was appointed
Executive Director.
Currently, the League unites 64 clubs representing cities of
Russia, Belarus, Czech Republic, Hungary, Kazakhstan, Latvia,
Lithuania and Moldova, which means more than 1000 hockey
players aged between 17 and 21 years. MHL's major goal is to
promote, develop and bring Russian junior hockey to a new
quality level. In accordance with an agreement with the Russian
Ice Hockey Federation, MHL owns the rights on the organizing
of the Championship.
Troy Group
Troy Group is a multi�disciplinary group of companies special�
izing in the construction, manufacturing, technology and real
estate segments. With over 30 years of experience working on
varied projects across multiple domains, Troy Group is well�
poised to meet your requirements, however complex they may
be, successfully.
Troy Group's clientele includes blue chip companies, private
developers and municipalities. It has a high percentage of
returning clients (85%), which is testimony to the excellent serv�
ice levels and the high value that the conglomerate delivers.
Troy Group maintains a presence in seven countries across
Eurasia, the Middle East and Africa. It has an extensive net�
work of offices distributed around the globe, in Russia,
Kazakhstan, Turkey and UAE. Collaboration is the key to suc�
cessful project delivery, and Troy Group's sizeable resources
and consummate knowledge enable it to realize clients' vision
on time every time.
IBS
Founded in 1992, IBS Group
became a leading software devel�
opment and IT services provider in
Central and Eastern Europe. On 9
November 2010, the Global Depo�
sitary Receipts of IBS Group Hol�
ding Limited were listed on the Re�
gulated Market (General Standard) of the Frankfurt Stock
Exchange. Today through its two principal business seg�
ments, IT Services (operating under brand name IBS IT
Services) and Software Development (operating under
brand name Luxoft), it offers a wide variety of information
technology services, such as software development and IT
services outsourcing, IT consulting, business applications
implementation and IT infrastructure. It can count 72 of
Russia's top 100 companies and many international corpo�
rations as Boeing, UBS, Deutsche Bank, Ford amongst IBS
Group's customers. In the fiscal year ended on March 31,
2012, IBS Group reported US GAAP consolidated revenues
of USD 816.3 million. IBS Group has more than 20 locations
in 10 countries including Russia, Ukraine, Romania, Poland,
the USA, the UK, Germany, Switzerland, Vietnam, and
Singapore. It employs more than 8,300 people worldwide,
62% of which are located in Russia. IBS Group has principal
business offices located in Moscow (Russia), Kiev (Ukraine),
Bucharest (Romania), Krakov (Poland).
Marinvent Corporation
Marinvent is a Canadian company founded in 1983 for the pur�
pose of undertaking aerospace and defense research, devel�
opment, and program risk reduction. Marinvent offers expert�
ise, technologies and services to many of the leading
Canadian and International aerospace companies and
Government Agencies.
Marinvent has a stellar track record of success with its cus�
tomers and has won numerous awards in recognition of that
fact. Marinvent helps its customers innovate quickly and helps
them save time and money. Marinvent is constantly innovating
with cutting�edge technologies and methods which include
some of the most advanced flight test research and develop�
ment platforms in the world.
CIS Navigation
CIS Navigation Inc. is the commercial management center for
Atlantic Ro�Ro Carries (ARRC) Line which for the past 20 years
was and is the only direct transatlantic line linking Canada, the
US East and Gulf Coast ports and St. Petersburg, Russia.
ARRC's fleet of ice�classed multipurpose vessels carries close
to one million freight tons annually including bulk, break bulk,
specialized projects, rolling stock, shipper owned and liner
owned containers.
Offering a vast network of intermodal services on both sides of
the Atlantic our company provides a one stop solution for ship�
ping goods from or to their Canadian origin and destination.
InterContinentalMoscowTverskaya
This modern, luxury hotel is located on Tverskaya, the main
street of Moscow, leading straight into the Kremlin.
Contemporary design meets contemporary Russian cuisine at
Chekhonte Restaurant, serving the finest dishes from its unique
show kitchen. Well�appointed luxury suites include private ter�
races overlooking the vibrant cityscape. Ideally situated, this
Moscow hotel is within walking distance of Red Square, Christ the
Saviour Cathedral and business districts.
FFeeaattuurreess
A modern hotel for a modern city! Located in the heart of
Moscow's business and historic centre, InterContinental
Moscow Tverskaya blends comfortable, modern design with
the warmth and friendliness of true Russian hospitality to cre�
ate an unforgettable experience!
MEMBER NEWS
ASSOCIATION NEWS
10 / spring 2013
ASSOCIATION NEWS
spring 2013 / 11
PetroKazakhstan � Recognizedfor innovative "Think Green"Initiative and Charity Work duringKazakhstan Oil and Gas week
Almaty and Astana hosted the Kazakhstan Oli and Gas week in
October 2012. Astana met participants and guests of the VII
Eurasian Forum of KazEnergy on October 2�3 in the Palace of
Independence. The Forum went under the slogan "World in the
Time of Changes: Forming a Stable Energy Future".
PetroKazakhstan Company participated in both forum meetings
and the exhibition. This year PetroKazakhstan's stand
"PetroKazakhstan: Think green" was devoted to environmental
protection and received an award from the KazEnergy
Association for "The most ingenious stand design". Souvenirs
presented by the company were in the eco style, including tin
cans with basil seeds and eco�bags specially made for the exhi�
bition from recycled feedstock and were recognized by atten�
dees as the most ingenious in the whole exhibition history.
Almaty hosted the 20th anniversary four�day exhibition KIOGE
that convened under the roof of five exhibition pavilions of
Atakent KCBC. 600 companies from more than 30 countries of
the world participated in the event. As part of KIOGE, Mr. Wei
Yuxiang, the President of PetroKazakhstan Company, was pre�
sented with a letter of appreciation from the Public Fund "Charity
Voluntary Association" for merits in the implementation of social
projects. The Fund's Director General, Aruzhan Sain, expressed
words of appreciation for the support for the Fund and for the
Campaign "Give Life to Children."
For the first time, in October 2012, Kazakhstan also hosted a
session of the World Petroleum Council (WPC). The choice of
Astana as the place for the WPC's session is important for pop�
ularizing the country's image and demonstrating capabilities of
the republic's oil and gas industry, and undoubtedly speaks to
the growing authority of Kazakhstan within this influential organ�
ization which currently has 65 countries as its members.
Transaero Airlines ExpandsIts Services from MoscowVnukovo Airport
With a view to enhance its customer services, Transaero is
establishing another large and modern hub at Moscow Vnukovo
Airport. The airline will offer its passengers excellent transfer
opportunities in terms of schedule and comfort on the flights
between destinations in Russia, Kazakhstan, Uzbekistan und
Ukraine as well as destinations in the U.S. and Western Europe.
Transaero's first flight took off from Moscow Vnukovo Airport in
April 2012. Currently Transaero operates flights from Vnukovo
airport to eleven destinations: Paris, Rome, Milan, London, Tel
Aviv, Vienna, Barcelona, Pardubice, St. Petersburg, Yekaterin�
burg and Novosibirsk.
Within the summer of 2013 Transaero will launch flights from
Moscow�based Vnukovo to the U.S. cities of New York and
Miami, and in Western Europe Transaero will operate flights from
Vnukovo to London, Frankfurt and Venice, while also serving Tel
Aviv and launching flights to Cancun in Mexico. In the C.I.S.
countries Transaero will fly to Kiev, Odessa and Tashkent; and
seven Kazakhstan destinations � Astana, Almaty, Aktau, Atyrau,
Karaganda, Qostanay and Shymkent, will also be served.
Transaero's passengers traveling between Belarus, Kazakhstan
and Russia (member states of the Customs Union), will be able
to take advantage of the airport's special transfer facilities and
have a first class experience. In Russia, Transaero will addition�
ally serve Krasnoyarsk and Novy Urengoy from Vnukovo
International Airport.
The recently opened Terminal A at Vnukovo provides the best
conditions for passengers. The spacious 270,000 square
meters terminal and the airport`s capacity to handle 30 million
passengers per year is unique, and it is currently one the most
high�tech airport terminals in Russia. Moreover, Vnukovo is
located closest to the center of Moscow � only 28 kilometers
separating the airfield from the heart of Moscow.
Leading legal practices combineto form Norton Rose Fulbright.
International legal practice Norton Rose will combine with lead�
ing U.S. law firm Fulbright & Jaworski L.L.P. on June 1, 2013
to form Norton Rose Fulbright.
Norton Rose Fulbright will have 3,800 lawyers and will be a top 10
global legal practice by gross revenue and by number of lawyers.
The enlarged practice will have 55 offices internationally, including
11 offices and close to 800 lawyers in the U.S., in Austin, Dallas,
Denver, Houston, Los Angeles, Minneapolis, New York, Pittsburgh�
Southpointe, San Antonio, St Louis and Washington D.C.
The practice will have world class expertise in litigation and dis�
pute resolution, corporate, intellectual property and banking
and finance.
By industry sector, Norton Rose Fulbright will occupy a market
leading position in the areas of energy; pharmaceuticals and
life sciences (including healthcare); financial institutions; infra�
structure, mining and commodities; technology and transport.
Norton Rose Fulbright will also establish a global regulatory
and investigations practice.
Joint Venture Awara Groupand Eduhouse
With 2013, Eduhouse Ltd (www.eduhouse.fi), which is one of
the top corporate training providers in Finland, and Awara
Group (www.awaragroup.com), a leading business adminis�
tration provider in Russia and CIS entered in a joint venture
partnership to align forces to offer customized business train�
ings (Awara Eduhouse Russia Training), seminars and confer�
ences with a wide selection of topics for enterprises in Russia.
The idea behind this is that we recognized that many of our
clients and contacts have specific needs for specialized busi�
ness trainings, which we can identify and approach in a very
tailored way. In order to realize this Awara identified a training
partner, who has extensive experience in adult training and
coaching. With this partnership we will bring together top qual�
ity trainings that are renowned in Finland and cutting edge
business experience related to Russian topics, delivered by
trainers and coaches in both, English and Russian language.
Training courses and seminars are offered in Moscow, St.
Petersburg and other cities in Russia, as well as in the Ukraine.
A full schedule of our upcoming trainings and seminars can be
found on our website www.awaraeduhouse.com.
Please contact us for further details:
Awara Eduhouse
Jon Hellevig
Managing Partner, Awara Group
Tel.: +7 495 225 3038
Interstice Consulting launchesLukx Shades and MariposaDesigns e�commerce sites inRussia
Moscow�based member Interstice Consulting has recently
signed agreements to launch two new Russian e�commerce
sites on behalf of foreign fashion retailers. Lukx Shades is a
US�based retailer of designer sunglasses and will operate an
online store in Russia at www.lukx.ru. Mariposa Designs is
based near Bogota, Colombia and hand makes unique pine
and leather handbags, offering both a readymade collection
as well as individual customization options. Mariposa will oper�
ate an online store in Russia at www.mariposadesigns.ru. These
new projects will join Interstice's existing stable of brands
which feature women's shoes, garments, lingerie, and acces�
sories for mobile devices.
The Moscow office of Interstice Consulting specializes in e�
commerce, advising and partnering with foreign brands to
build their Russian presences. The company offers consulting
on market entry and strategy, public relations, social media
marketing and online advertising, as well as operational serv�
ices such as business development, customer pre� and post�
sales support via call centres and email, assistance with
imports and logistics, and payment processing. The Moscow
office opened in 2008.
Canadian Architects DIAMONDAND SCHMITT and Mariinskymaestro Valery Gergiev build theNew Mariinsky Theatre inSt. Petersburg
St. Petersburg is one of the most beautiful cities in the world. No
new building can satisfy the demands created by such pride
and extremely conservative tastes of those at every level of
power. When maestro Valery Gergiev was in Canada and visit�
ed Toronto's Four Seasons Centre, he was impressed by the
incredible sound, great acoustic detail, unobstructed viewing
from every seat not to mention that the job came in on budget.
In short, he fell in love with Toronto's new opera house and
immediately appealed to its architect, Jack Diamond, to create
a vision for the Mariinsky II. To the great surprise of many
Russian authorities and bureaucrats, Diamond won the project.
Valery Gergiev and Jack Diamond have united to bring the mag�
nificent Mariinsky II to fruition. The creation of St. Petersburg's
newest opera house including the magnificent journey is being
captured as a television documentary "The Maestro & The
Master". This film will follow these two men as they move heav�
en and earth to bring what is destined to be one of the world's
finest modern opera and ballet houses to completion.
Please view this 5 min. promo for the one�hour film:
www.youtube.com/watch?v=tgTZQXBUnn0&feature=youtu.be
If you are interested to be a part of this project, provide finan�
cial support or otherwise assist the production, please contact:
Barbara Barde at Up Front Entertainment.
[email protected] 416�357�3656
Mr. Wei Yuxiang, President of PetroKazakhstan Company,receives recognition from the Public Fund "Charity VoluntaryAssociation" during KIOGE 2012.
MAIN STORIES
12 / spring 2013
MAIN STORIES
spring 2013 / 13
On November 6, 2012, the conference 'Whither Russia?' took
place displaying a range of authoritative speakers in the areas
of political sciences, economy, finance, trade, and industry.
Over 120 people attended the conference that has become a
must for business people, whether already in Russia, or loom�
ing at its vast market. The goal of the conference was to
encourage an open and sincere discussion on the political,
legal and regulatory environment in Russia, assess the eco�
nomic prospects, show success stories, and examine the
potential for increased Canadian business in Russia.
The conference was officially launched in the morning of the
6th when some of the participants gathered at the Toronto
Stock Exchange to open the trading session. Nathan Hunt
(CERBA National Chairman), Robert Fotheringham (Senior
Vice�President of the TMX Group) John Sloan (Ambassador
of Canada in Russia), Georgiy Mamedov (Ambassador of
Russia in Canada), as well as Andrey Varichev (CEO of
Metalloinvest Holding Company), Vladimir Trifonov (Execu�
tive Director, Canada�Russia Business).
During the opening session of the conference, Ambassador
Mamedov and Ambassador Sloan underlined the potential
for growth in trade and business between the two biggest
countries on the planet. Indeed, according to Chris Weafer,
Chief Equity Strategist at Sberbank, 'Russia is currently the
2nd largest consumer market in Europe and it is likely to
take the 1st place by the end of 2013, which would make it
the 4th most important in the world. Moreover, the average
monthly wage has gone from $50 in 2000 to $850 in 2012!'
Although Philip Worman, Head of the political risk practice at
GPW Ltd., pointed out that along with opportunities, compa�
With more and more businesses turning to Russia and taking
advantage of the countries widening market opportunities, the
province of Quebec is not one to miss out! Stepping up co�oper�
ation with Russia, Quebec has opened an international office in
Moscow. Bureau du Quebec is lead by Director, Nicolas
Fresne. In recent years, Quebec missions to Russia have also
increased. Two high profile missions including Apparel Quebec
mission to Russia and Quebec Cosmetics mission to
Intercharm (largest beauty products trade fair in Russia and
Eastern Europe) demonstrate the provinces keen interest to
build stronger trade ties. To get better acquainted with Bureau
du Quebec, CERBA interviewed Mr. Nicolas Fresne. Our inter�
view touches on the Bureau's goals and the challenges and
opportunities Mr. Fresne sees for Quebec business in Russia.
What is the Quebec Trade Commissioner Service? How
does the office co�operate with the Canadian Trade
Commissioner in Russia?
First of all, Bureau du Quebec is more than a Trade office, it
represents Quebec's interests not only in trade and invest�
ment but also in cooperation, culture and academic affairs.
We have a very good relationship with the Canadian mission
in general. As the opening of the bureau is a response to the
great job the embassy has made to promote Quebec we don't
want to interfere with what is already well done. We are here
to support the Mission to better serve Quebec business and
interest mainly by coordinating and helping with follow ups as
it is a critical step in commercial and cooperation relations.
How many regional Offices does Quebec have?
We have more than 30 representations over the world with
Quebec's closest partners but during the last 8 years
Quebec has started to open representations in BRIC coun�
tries. In China, India and Russia our representatives are
hosted within the Canadian missions
When did the Russian Office open? Why Russia? Why now?
The Russian Office opened on September 3rd 2012 follow�
ing the announcement of Prime Minister Charest in 2009
during his mission in Moscow. There are many good rea�
sons to explain this opening. First the need for Quebec to
take advantage of the fast growing markets is the most obvi�
ous. It also must be said in the case of the Quebec Bureau
in Russia that the opening is also largely explained by the
importance of Quebec in the both commercial and cultural
activities of the Canadian Embassy. Our province is very
knowledgeable of this situation and wanted to support this
special treatment we had here in Russia.
What are Quebec's main areas of trade with Russia and
how much trade is conducted annually?
It is very difficult to have an accurate idea of the real in and
out trade flows, but stats say that we are exporting around
$500 million in mainly frozen pork products. This represents
around 40% of the Canadian total export. But we also know
that Bombardier aircraft sales are not fully registered in
these official numbers and that the trade amounts are much
bigger than the official numbers.
Nevertheless, our big issue is to maintain these levels. From
year to year flows appeared not to be very stable and reliable.
I guess one of our main objectives is at least to stabilize the
commercial activities and in turn make trade flows sustainable.
What obstacles do Quebec companies face in Russia?
How does the Office help them?
I think the main issue Quebec companies are facing in
Russia is following up and supporting their local partners.
Going to Russian is not a big deal, finding opportunities even
less, but being able to take advantage of these opportunities
is another question... you need not only to find a good part�
ner here but also to support and communicate with him.
Our office and the Canadian Trade Commissioner office
focuses on this matter: making the Quebec and Russian
partners efficiently work together at the beginning of their
relationships. There is a chasm/gap between the signature
of a partnership and the first sale, we try to fill this gap.
Is there much interest from Quebec companies to come
out to Russia?
Truthfully speaking, I guess we can do better, Russia is less
sexy than India or China among young exporters. That is
why I am very cautious in promoting Russia in Quebec to
businessmen. But each time I receive some of them to
Russia, they come to say at the end of their trip that they
were very positively surprised by Russia and Russian part�
ners... I usually ask them to spread the good news at home.
This is the best promotion we could ask for.
What message would you give to potential investors in
Russia?
Come here and make your own opinion about Russia... don't
do it alone ask Cerba, Canadian Mission or Bureau du
Quebec for appropriate introductions.
QUEBEC JUMPS ON GROWING RUSSIANTRADE OPPORTUNITIESINTERVIEW WITH NICOLAS FRESNE, DIRECTOR,
QUEBEC GOVERNMENT OFFICE IN MOSCOW
CELEBRATING BUSINESS AND DIPLOMATICRELATIONS AT THE INVESTMENT FORUM"WHITHER RUSSIA?"
Canadian Ambassador to Russia John Slaon
Canadian and Russian Ambassadors: John Sloan and Georgiy
Mamedov
Market Open Ceremony at TSX, November 6, 2013 before "Whither Russia?" conference
Nicolas Fresne, Director, Quebec
Government Office in Moscow
MAIN STORIES
14 / spring 2013
MAIN STORIES
spring 2013 / 15
The evening featured such prominent Bolshoi stars as Irina
Dolzhenko, Roman Muravitsky, Lolitta Semenina and Mikhail
Kazakov. The Canadian Opera Company's Orchestra accompa�
nied the performance led by a brilliant Russian conductor Alevtina
Ioffe. The concert's MC, Angelina Vovk, a well�known journalist
on USSR Central Television (Russian TV host for "Good Morning
Russia!") added celebratory flavor to the whole evening.
Among the themes that sounded that night were: Pyotr Ilyich
Tchaikovsky, Gremin's aria from the opera "Eugene Onegin";
Giacomo Puccini, Cavaradossi aria from the opera "Tosca"; Don
Jose aria from the opera "Carmen"; Giuseppe Verdi, Elena's
Bolero from the opera "Sicilian Vespers" and many others.
November events brought together many important players
involved in bilateral relations, whether business, cultural, or
political.
For more information please visit www.cerbainvest.com
nies have to face a certain amount of risk such as corrup�
tion, corporate governance and compliance, weaknesses in
the legal system, uncertainties in the long term economy,
and some level of political risk. He noted that generally these
risks can be mitigated by following a set of rules such as
maintaining good government relations, engaging at the
regional level, choosing carefully your business partners,
and while always following the law, he suggests to litigate
and arbitrate overseas.
Some of the main companies active in Russia shared their
experience in this part of the world. Lou Naumovski, Vice�
President at Kinross Gold Corporation, expressed that they
generally had a good experience during their Russian ven�
tures and that Kinross' care for the environment and com�
munities in the region helped them maintain good relation�
ships in Russia and a good business climate.
Bombardier, with the recent certification of its Q400 turbo�
prop in Russia, sees important opportunities in this market
that has an aging fleet that will have to be replaced in the
upcoming years.
Also with income rising and regional poles being redevel�
oped, the regional jets have a great future looming in this
country that crosses 9 time zones. With more integration of
domestic regulatory agencies, Bombardier's skies would be
even bluer, according to Michael McAdoo, Vice�President
Strategy and International Business Development at the
aerospace division.
In addition to the traditional investment conference taking
place annually in Toronto, the 2012 edition added a cultural
program involving ballet dancers and opera singers from the
world famous Bolshoi Theatre to underline the 70th anniver�
sary of diplomatic relations between Canada and Russia.
The exclusive concert, sponsored by Metalloinvest and
organized by Canada�Russia Business Council impressed
the high�level Canadian and Russian guests by flawless per�
formance and highest note of professionalism.
Left to right: Olga Trofimova, Katherine Balabanova, Angelina Vovk,
Olga Tchetvertnykh, Lolita Semenina, Sergei Tchetvertnykh
Bolshoi Opera and Ballet Stars at the November 5 2012 Concert dedi�
cated to the 70th anniversary of Canada�Russia Diplomatic Relations.
Guests at the reception after the the November 5 2012 Concert dedi�
cated to the 70th anniversary of Canada�Russia Diplomatic Relations.
Market Open Ceremony at TSX, November 6, 2013 before "Whither Russia?" conference, left to right:
Nathan Hunt, Andrey Varichev, John Sloan, Georgiy Mamedov, Robert Fotheringham
Left to Right: Chris Westdal, Lou Naumovski, Mark Trevisiol,
Michael MacAdoo, Vladimir Trifonov, Robert Fotheringham,
Sergei Tchetvertnykh
LOOKING BACK
spring 2013 / 17
MAIN STORIES
16 / spring 2013
On November 27�29, 2012, CERBA brought a Trade Mission
to Russia's Ulyanovsk Region. The mission was organized
jointly with Canadian Embassy in Moscow and Vladislav
Tretiak Foundation, and headed by HE John Sloan, Canadian
Ambassador to Russian Federation, World�Famous Hockey
Legend and the State Duma Deputy Vladislav Tretiak, and
Nathan Hunt, CERBA National Chairman. The delegation
included business representatives from the IT, Agriculture,
Construction, and Logistics sectors.
The mission had several objectives including, familiarizing del�
egates with the Ulyanovsk Region and establishing good rela�
tions with the regional government, exploring business oppor�
tunities, and meeting with local industry representatives to seek
potential partners and clients. The mission also had another
important objective � to demonstrate to the business communi�
ty the results of the joint CERBA�V. Tretiak Foundation Charity
Activity in the region, and to show how funds gathered at the
2012 CERBA�Tretiak Charity Auction were used.
During the mission, participants visited the Zavolzhye Industrial
Zone and Dimitrovograd City, met with and established good
relations with top�level officials of the Ulyanovsk Region
Administration, including Governor Morozov, and met with local
business representatives and foreign businesses already suc�
cessfully operating in the region.
Organizing parities also organized a charity fundraising event in
Ulyanovsk. The event was made possible with the great sup�
port provided by new CERBA Corporate Member � IMAX
Corporation and its local partner "Sinema Park" Movie Theater.
The event featured giveaway to attendees the numerous hock�
ey memorabilia with V. Tretiak autographs, press�conference
with Canadian Ambassador to RF HE John Sloan and John
Schreiner, Vice President for Theatre Development in Russia,
CIS, Middle East, and India, from the IMAX Corporation, and the
screening of the movie "Space Station" in IMAX quality. All pro�
ceeds from the event were given to the Tretiak Foundation for
charity purposes, and a large portion of tickets for the event
were provided free of charge to several orphans' houses and
similar social institutions in the Ulyanovsk Region.
The mission program also featured an extensive cultural
aspect: the delegation visited the Museum of A.A. Plastov
(world�famous painter) and Lenin's Memorial.
CERBA would like to express a sincere gratitude to the
Governor Sergei Morozov and the Administration of Ulyanovsk
Region for the warm welcome of the delegation. We would also
like to thank our members who joined the mission, and local
businessmen of Ulyanovsk Region for their support of CERBA
activities and active contribution to the development of busi�
ness relations between the Canadian business community and
Russian regions. A deep appreciation goes to our partners �
Canadian Embassy in Moscow and V. Tretiak Foundation for
their dedication and efforts in bringing our joint projects to suc�
cess. Finally, we would like to express sincere gratitude to John
Schreiner and IMAX Corporation for the invaluable assistance
and support of CERBA Charity initiatives.
CERBA TRADE MISSION TO ULYANOVSK
Roundtable between members of Canadian delegation and representatives of
local business
Departure � V. Tretiak, State Duma Deputy, John MacIntosh,
Genesus Genetics (member of CERBA delegation), Sergei
Morozov, Governor of Ulyanovsk Region, HE John Sloan,
Canadian Ambassador to the RF
Nathan Hunt, CERBA Chairman and Vladislav Tretiak, State Duma
Deputy, meet Governor of Ulaynovsk Region Sergei Morozov.
HE John Sloan and John Shreiner, IMAX Corporation, at the press�
conference during the charity event, hold in Ulyanovsk jointly with
IMAX Corporation and "Sinema Park" Movie Theater.
Visit to Dimitrovgrad's Public Society of physically challenged people
"Overcoming " � one of the beneficiaries of joint CERBA�V.Tretiak
Foundation Charity Program
LOOKING BACKMMOONNTTRREEAALL
Kazakh Ambassador Speaks
to the Montreal Business Community
MMOONNTTRREEAALL,, NNoovveemmbbeerr 2200,, 22001122
CERBA organized a luncheon
seminar at the Club Saint James
in Montreal with the Ambassa�
dor of Kazakhstan to Canada,
Konstantin Zhigalov. The Ambas�
sador presented the current
state of affairs and business
opportunities between Canada
and Kazakhstan.
The event was attended by
many leaders of the Quebec
business community such as
Bombardier, SNC�Lavalin, Solmax
International, Vizimax Inc. CIS
Navigation, Cordiant, Heenan
Blaikie, Honco Steel Buildings,
and many more. The academia was represented by Carleton
University and McGill University.
Ambassador Zhigalov highlighted the social and economic
achievements of Kazakhstan, its large�scale Program of
Industrial Innovation and the potential for cooperation in areas
such as; uranium and gold mining, shale gas and oil, water
management, agriculture, environment, healthcare, educa�
tion and science, as well as tourism. Other promising sectors
were underlined such as finance, banking and public services.
The event was sponsored by SNC�Lavalin International and
its President, Ron Denom, made the opening remarks.
Conference on Aerospace Collaboration
OOTTTTAAWWAA,, DDeecc.. 66,, 22001122
CERBA organized the Canada�Eurasia�Russia Aerospace
Conference as part of the official program of the Canadian
Aerospace Summit, taking place in Ottawa on December 5�6.
Over 85 people attended the special session to learn about
business opportunities in space and aerospace with Russia
and Kazakhstan.
Speakers from various areas of the industry shared their experi�
ence of working with Russia, such as Bombardier, MDA, Ma�
rinvent, Neptec, and the Canadian Space Agency, among oth�
ers. Russian organizations such as Skolkovo, Titanium Valley
Special Economic Zone and the Central Aerohydrodynamics
Institute (TSAGI) described opportunities of collaboration bet�
ween our countries.
During the opening remarks, the Deputy Director for the
Americas of the Ministry of Economic Development of the RF,
Dmitry Sazhin, said that 'aerospace cooperation between the
two countries is constantly growing. Last year, a Memorandum
of Understanding was signed between the Russian Union of
Aviation Industrialists and the Aerospace Industries Association
of Canada (AIAC), the work on the draft agreement on cooper�
ation in space is underway, the certification of the Bombardier
Q400 is completed and it's underway for the CRJ900.
The President of the AIAC, Jim Quick, added that 'We believe
we can work with Russian Partners in the interest of both
countries. We have signed an MOU last year and we intend to
build on it and increase collaboration between our industries.
Marinvent Corporation, the Platinum sponsor of the event,
explained how it started working in Russia since 1993 and
this long term relationship is now paying off with contracts in
the field of avionics certification. It is a rare example of inte�
gration of supply chains between Canada and Russia.
'Russia is an interesting market because it has needs and
budgets, but you need to establish relationships and build
trust before seeing results, and this takes time', said Phil
Cole, VP Business Development.
CERBA intends to take an active part in developing relation�
ships between Canada, Russia and Kazakhstan in space
and aerospace and this was the first of a series of events to
be held in the upcoming years.
TTOORROONNTTOO
MINING in RUSSIA: Roundtable withSaint Petersburg Mining Institute Delegation
TTOORROONNTTOO,, OOcctt.. 3300,, 22001122
This roundtable provided an interactive discussion with the
delegation from Saint Petersburg Mining Institute. The perti�
nent issues brought up at the event were: Government regu�
lation of the renewal mineral base; Problems of licensing and
financing geological projects; Level of state participation in
geological exploration; Experience of junior geological com�
panies in Canada; Compensatory arrangement use of natu�
Konstantin Zhigalov
LOOKING BACK
spring 2013 / 19
LOOKING BACK
18 / spring 2013
ral resources. Also discussed were: Gold and silver produc�
tion companies; Strategies of development; Advanced tech�
nologies in exploration, production and commercialization.
CERBA INTERNATIONAL
CONSTRUCTION CONFERENCE
TTOORROONNTTOO,, NNoovv.. 2277,, 22001122
CERBA brought together a most authoritative group of inter�
national trade and construction lawyers, architects, design�
ers, infrastructure and development experts in order to
encourage a productive discussion on the current state of
the construction/infrastructure industry and cooperation
opportunities, present success stories, share the solutions
for the Arctic and Northern environment relevant for Canada
and Russia, and examine the potential for increased Cana�
dian business in the markets of Russia and Eurasia.
The program of the conference featured among others the
presentations of the following companies: ACM�Lindal,
Diamond and Schmitt Architects; Hopewell�Peresvet; Heenan
Blaikie; International Centre for Innovative Technology Transfer
Special thank you to our supporters and partners:
CERBA Toronto Holiday Reception
TTOORROONNTTOO,, DDeecc.. 2200,, 22001122
Toronto Chapter welcomed over 90 members and friends to
the holiday season celebration in an informal and festive set�
ting at TSX Gallery. The event was sponsored by the Toronto
Stock Exchange and Uniglobe Capital Trust Inc.
«ENERGY SECTOR: Roundtable with theManagement of the Leading Ukrainian EnergyCompany, DTEK»
TTOORROONNTTOO,, JJaann.. 2211,, 22001133
This event was dedicated to outlining the opportunities in the
Ukrainian energy sector in general and discussing possible
partnership projects with the country's industry leader,
DDTTEEKK, a largest privately�owned vertically integrated energy
company in Ukraine, core businesses of which are coal pro�
duction and processing, electricity generation, transmission
and sale.
TRAVEL and TOURISM TRENDS in MODERNRUSSIA: Presentation by the Deputy Head ofthe Russian Federal Agency for Tourism
TTOORROONNTTOO,, JJaann.. 2211,, 22001133
During this luncheon, the Deputy Head of the Federal Agency
for Tourism «Russiatourism», NNiikkoollaayy VV.. NNoovviicchhkkoovv, presented
Russia as a tourist destination in North America for the first
time, and gave details about cultural and tourist potential,
travel and logistics trends in modern Russia. Igor Kiykov, Se�
nior Consul of the Russian Consulate General provided de�
tailed information about the visa issues. Special thanks goes to
Canadian Gateway for the support of this event.
CCAALLGGAARRYY
TRADE AND INVESTMENT IN OVERSEASMARKETS: CHALLENGES AND IMPLICATIONSOF PRACTICAL COMPLIANCEIN THE CONTEXT OF ANTI�BRIBERYAND CORRUPTION
CCAALLGGAARRYY,, OOcctt.. 3300,, 22001122
The Chapter hosted two lunches � one in Edmonton and the
other in Calgary � on this increasingly important subject. The
current status, challenges and practical examples of what
was done nationally and internationally to overcome bribery
and corruption practices through legislation in several coun�
tries was reviewed. The impact of these developments on
Canadian companies doing business in Russia and other
former Soviet countries is often not given proper attention.
The two seminars dealt with these and related issues at
these presentations by a leading expert, MMaaggggyy DDeeaaccoonn ooff
FFoorreennssiicc RRiisskk AAlllliiaannccee..
CRUCIAL INSIGHTS FOR SUCCESSFULINTERNATIONAL BUSINESS EXPANSIONAND CROSS�CULTURAL INTEGRATION
EEDDMMOONNTTOONN,, NNoovv.. 1133,, 22001122
Our Speakers, founders of AAllpphhaa GGlloobbaall XXppeerrttss IInncc, Pre�
sident Michele Hecken and Vice�President Global Opera�
tions, Dr. Usukuma Ekuere, provided an overview of oppor�
tunities and challenges to doing international business. The
presentation highlighted the importance of cross�cultural com�
munication and its effect on a company's success. The
Speakers also shared insights from local experts and con�
cluded with a comprehensive checklist for successful mar�
ket entry and cross�cultural integration.
OPPORTUNITIES ARISING FROM RUSSIAJOINING THE WTO
CCAALLGGAARRYY,, DDeecc.. 55,, 22001122
Russia's membership in the WTO is good for the global
economy, for the WTO, for Russia, and for Canada. Mem�
bership will increase foreign investment in Russia, and as a
logical and somewhat familiar trading partner that includes
us, with Canadian investment in mining, agriculture, infra�
structure, housing, aerospace, biotech and other fields. Ca�
nada, and Alberta, has a unique opportunity to benefit from
Russia's acceptance into the WTO. We were pleased to wel�
come MMrr.. DDaarryyll HHaannaakk, Executive Director, Trade Policy –
International in the Alberta Ministry of International and Inter�
governmental Relations for an informative and interactive
luncheon on the coming changes.
UKRAINE DOUBLE BILL: "OPPORTUNITIESFOR CANADIAN BUSINESS IN UKRAINE" AND "DTEK: UKRAINE'S COAL & ENERGYMARKET LEADER"
CCAALLGGAARRYY,, JJaann.. 2233,, 22001133
We are pleased to welcome MMrr.. KKiirriillll EErrmmiicchhiinnee, Head, De�
partment of International Public Affairs, DTEK who will speak
to DDTTEEKK:: UUkkrraaiinnee''ss CCooaall && EEnneerrggyy MMaarrkkeett LLeeaaddeerr and MMss..
CChhrriissttiinnaa BBiillyykk, Commercial Counsellor & Senior Trade
Commissioner, Embassy of Canada in Ukraine, who is
accompanying the DTEK delegation to Calgary. Ms. Bilyk
will talk about OOppppoorrttuunniittiieess ffoorr CCaannaaddiiaann BBuussiinneessss iinn UUkk��
rraaiinnee. This luncheon seminar provided an excellent oppor�
tunity to hear about current developments in the Ukrainian
energy sector and to hear from its leading private energy
company about it's plans for development in the coal sector
AND coal bed methane extraction.
MMOOSSCCOOWW
MOSCOW ANNUAL CHRISTMAS COCKTAIL
MMOOSSCCOOWW,, DDeecc.. 66,, 22001122
The Canada�Russia business community gathered together
to celebrate the holidays and ring in the New Year at the fab�
ulous Baltschug Kempinski Hotel. Guests networked and
socialized while looking over the Kremlin view, listening to
lively jazz band � Vadim Ivashenko and the Boneshakers.
The special event could not be possible without our event
LOOKING BACK
spring 2013 / 21
LOOKING BACK
20 / spring 2013
sponsors KKiinnrroossss GGoolldd,, PPrriicceewwaatteerrhhoouusseeCCooooppeerrss,, aanndd
BBaarrrriicckk GGoolldd!! A very special thank you to all who came out
and celebrated with us!
LUNCHEON WITH DMITRI TRENIN,RUSSIA AWAKENING ONE YEAR OLD:Where are things heading
MMOOSSCCOOWW,, DDeecc 1122,, 22001122
CERBA hosted a luncheon seminar at the Moscow Carnegie
Centre with Dmitri Trenin, Director of the Carnegie Moscow
Centre and one of the most well known political analysts in
Russia. Mr. Trenin presented a new major paper, The Russian
Awakening. The paper is a joint effort by Carnegie Moscow
scholars which details the growing Russian crisis under
Putin, as well as the responsibilities of Western policymakers
to help the transformation.
CERBA�CCIFR WINE TASTING AND BACKTO BUSINESS RECEPTION
MMOOSSCCOOWW,, FFeebb.. 66,, 22001133
CERBA together with the French Chamber of Commerce held
a Riedel Glass Wine Tasting and reception to offer a unique
networking opportunity and celebrate the start of a new busi�
ness year. Over 100 Canadian and French business people
attended the event to taste wines using various forms of
glasses to see how perception of taste changed based on
glass dimensions. Guests identified their personal wine styles.
Following the tasting the Canadian, French, and Russian
guests mingled at a reception put on the Intercontinental
Moscow Tverskaya Hotel. The wine, food, venue and guests
made the event a fabulously unforgettable time!
KKAAZZAAKKHHSSTTAANN
CANADIAN END OF YEAR PARTY
KKAAZZAAKKHHSSTTAANN,, DDeecc.. 66,, 22001122
This party gathered all Canadians working in Kazakhstan, as
well as friends of CERBA, representatives of Canadian and
international, local companies. After welcoming remarks and
introduction Chapter plans for the coming New Year by the
Chairman of the Almaty Advisory Board Mr. Terrance Powell,
members and friends of CERBA in Almaty continued enjoy�
ing wonderful music, food and drinks.
OOTTTTAAWWAA
ROUND TABLE DISCUSSION WITH DILYORKHAKIMOV, DIRECTOR, AMERICASDEPARTMENT, MFA, UZBEKISTAN
OOTTTTAAWWAA,, NNoovv.. 2222,, 22001122
CERBA�Ottawa was pleased to host a delegation of four
people lead by the Director of the Department of Americas,
MFA, Uzbekistan Mr. Dilyor Khakimov for a round table dis�
cussion of Uzbekistan's economy, political situation, invest�
ment opportunities, as well as facilitation of business coop�
eration between Canada and Uzbekistan through CERBA.
PARTNERSHIP EVENT WITH ORGANIZATIONOF WOMEN IN INTERNATIONAL TRADE(OWIT�OTTAWA) "HOLIDAY SOCIAL"
OOTTTTAAWWAA,, NNoovv.. 2299,, 22001122
CERBA � Ottawa was pleased to invite its members, partners,
and friends to a Holiday Social organized with the Organization
of Women in International Trade (OWIT�Ottawa) at the Royal
Canadian Mint.
SEMINAR ON INFORMATION MANAGEMENTFOR A DELEGATION OF 24 PEOPLEFROM UKRAINE UNDER THE LOAN OF THEINTERNATIONAL BANK OF RECONSTRUCTIONAND DEVELOPMENT (IBRD)
OOTTTTAAWWAA,, NNoovv.. 3300,, 22001122
CERBA together with Heenan Blaikie LLP organized an Infor�
mation Management seminar for a delegation of 24 people
from Ukraine who came for a study tour to Canada under the
loan of the International Bank of Reconstruction and Deve�
lopment (IBRD). According to the Loan Agreement, the Inter�
national Bank for Reconstruction and Development granted a
loan to Ukraine with the purpose of funding of implementation
of the Social Assistance System Modernization Project.
Under supervision of the IBRD, the Ministry of Social Policy
of Ukraine manages activities under the Project, including
those related to procurement of goods, works and services.
ROUND TABLE WITH THE NEWLY ARRIVEDAMBASSADOR OF UKRAINE TO CANADA
OOTTTTAAWWAA,, DDeecc 1199,, 22001122
CERBA was pleased to host with
bread and salt the new Ambas�
sador of Ukraine to Canada His
Excellency Vadim Prystaiko. After
a productive round table discus�
sion on Canada�Ukraine business
relations, and cooperation with
CERBA, a wine and cheese recep�
tion was held for the Ambassador
and diplomats of the Embassy of
Ukraine in Ottawa.
VVAANNCCOOUUVVEERR
METALLOINVEST MINING HOLDINGIN VANCOUVER
VVAANNCCOOUUVVEERR,, NNoovv.. 11,, 22001122
The CEO of Metalloinvest Holding Company Andrei Varichev
and CEO of Canada�Russia Business Council Vladimir
Trifonov met with Vancouver mining exploration, consulting
and engineering companies hosted by CERBA and the As�
sociation of Mineral Exploration BC (AME BC).
Mr. Varichev and his team were visiting Vancouver for a meeting
with Vancouver based engineering company Flour Canada to
discuss cooperation on the Russia – Udokan Copper deposit.
The visit brought together a number of mining, engineering and
hi�tech companies such as Global Cobalt Corporation, MDA,
GEMCOM Software International, Fluor Canada. Brief welcome
remarks made by President of AME BC, Gavin Dirom, and a
Anastasia Smolentseva (CERBA) with Vlada Shilina, Associate
Vice President, International Strategy & Business Development,
Aerospace Industries Association of Canada (AIAC � CERBA's
newest partner to develop the Aerospace direction)
CEO Metalloinvest Andrei Varichev (left) and President of AME BC
Gavin Dirom (picture by Jenny Wagler, Business in Vancouver)
LAW AND LEGISLATION
spring 2013 / 23
LOOKING BACK
22 / spring 2013
members of CERBA Vancouver board of Directors Erin Chutter
(president of Global Cobalt Corp.) were followed by an excep�
tional presentation of Udocan Copper deposit by Andrei
Varichev.
CHRISTMAS SOCIAL WITH KLAUS BUTTNER
VVAANNCCOOUUVVEERR,, DDeecc 1122,, 22001122
The former Minister�Counsellor and Senior Trade Commis�
sioner at the Canadian Embassy to Moscow, now � Executive
Director International Market Development at the BC Ministry
of Jobs, Tourism and Skills Training, Mr. Klaus Buttner was an
exceptional speaker at the CERBA�Vancouver Christmas Party
on December 12th at the beautiful Vancouver Terminal City
Club. With over 2 years of experience in Russia Mr. Buttner is
a great source of information and advice to any company and
individual who is planning to expand or enter the Russian market.
The audience was also happy to welcome a newly appointed
Director of Department of Foreign Affairs and International
Trade (Vancouver regional office), Allan Minz, who is posted in
BC after over two years of diplomatic work in Germany. The
event was very well attended by CERBA members and asso�
ciates. The program included a concert co�organized by the
Kazakhstan Society in Canada and featured talented opera
singer Andrei Andreychik.
2ND VANCOUVER INTERNATIONAL MININGCONFERENCE AT THE AME BC ROUND UP
VVAANNCCOOUUVVEERR,, JJaann.. 2299
In collaboration with the Association of Mineral Exploration BC
(AME BC), CERBA held its second annual International Mining
Conference in Vancouver. Established in 1912, AME BC rep�
resents 4,000 Individual and 360 Corporate Members and is
the predominant voice of mineral exploration and develop�
ment in British Columbia.
During his visit to Vancouver, the CEO of Metalloinvest Holding
Company Andrei Varichev stated, that "there is wider potential
for deals between the mining sector of Russia and British Co�
lumbia for utilizing BC expertise in mining technology and engi�
neering". It becomes obvious, that business ties between the
BC and Russia mining sectors are strengthening. Canadian
mining companies in Russia range from junior explorers to
major miners as well as consultants and suppliers that are
offering technical, legal and financial expertise. Given that
almost 75% of business in British Columbia is related to the
mining sector it is difficult to overestimate the significance of
developing stronger links between Canada and Eurasia�
Russia regions in the area of industrial development and tech�
nology transfer.
The Vancouver Mining Conference�2013 became a venue for
sharing experience and discussing untapped opportunities in
Russia, Kazakhstan and the other CIS countries. Progress of
Canada�Eurasia�Russia collaboration in the mining industry, new
and developing investment projects, issues of the market pene�
tration procedures and how to overcome them, new exploration
technologies and experience of their application in Russia and
CIS – all these and many other subjects were highlighted at the
plenary session and panel presentations by 15 speakers repre�
senting government and private sector. Over 80 participants
came to Vancouver from Canada, Russia, Kazakhstan, Mon�
golia, China, Belgium, Poland and Australia.
The event was sponsored by the long term members � B2Gold,
Global Cobalt Corporation, CWS Industries, Hennen Blaikie LLP,
DFAIT Vancouver regional office, as well as Titanium Valley
Special Economic Zone (Russia) and supported by many oth�
ers. The Russian Mining Company Metalloinvest took the impor�
tant role of Patron Sponsor and an Honorable Speaker.
Vladimir Trifonov,
CEO Canada�Russia
Business Council
speaking at the
plenary session
Right to left: John Wiebe( GLOBE Group), Alexander Nistratov,
Roger Morin (MDA), Kim Swanzey (ERM), Gaston Remenants.
Left to right: Robert Johnston (Chair, Vancouver Chapter),
Alan Minz (DFAIT Vancouver Regional office), Vladimir Trifonov
(Metalloinvest) and Maxim Kopylov (Russian Trade Representation)
Left to right: Vladimir Trifonov (Metalloinvest), Klaus Buttner (BC
Government), Erin Chutter (Clobal Cobalt), Dennis Bergen (RPA)
and Jonathan Lotz (HB)
New Transfer Pricing (TP) rules were recently implemented
in Russia. Information that is crucial for understanding the
rules and their impact on businesses is presented below.
IIss mmyy bbuussiinneessss aaffffeecctteedd bbyy tthhee nneeww RRuussssiiaann TTPP rruulleess??
Yes, if you have any cross�border transactions between group
entities that include a Russian company. Russian compa�
nies' transactions that involve commodities quoted on
exchanges and transactions with legal entities residing in
«blacklisted» offshore jurisdictions could also be subject to
TP audits. In addition, the tax authorities could audit domes�
tic Russian transactions between related parties. Whether or
not these transactions are subject to TP audits depends on
various thresholds and exemptions. Therefore, the applica�
bility of TP rules must be determined on a case�by�case
basis. Transactions, subject to the new TP rules are referred
to as controlled transactions.
WWhhaatt aa ccoommppaannyy wwiitthh ccoonnttrroolllleedd ttrraannssaaccttiioonnss sshhoouulldd ddoo ttoo
ccoommppllyy?? WWhhaatt hhaappppeennss iiff iitt ddooeess nnoott?? WWhhaatt aarree tthhee rriisskkss??
CCoommppaanniieess wwiitthh ccoonnttrroolllleedd ttrraannssaaccttiioonnss mmuusstt::
• Notify the Russian tax authorities of controlled transactions
by 2200 MMaayy ooff tthhee ffoolllloowwiinngg yyeeaarr.
• Documentation for prices used in controlled transactions
should be prepared before 11 JJuunnee ooff tthhee ffoolllloowwiinngg yyeeaarr – as
the new TP rules provide for a ssppeecciiffiicc TTPP aauuddiitt including a
request for TP documentation to be available after that date.
• Provide TTPP ddooccuummeennttaattiioonn (based on the new TP rules re�
quirements) within 30 days from the tax authorities' request.
««MMiissssiinngg»» tthhee ttaarrggeett pprrooffiitt rraannggee ccoouulldd rreessuulltt iinn rriisskkss for your
Russian company and related foreign counterparties,
including:
• Unpaid tax by not following TP rules is subject to a 40%
penalty (although not until 2013, and for 2014�2016 20%
applies). A late payment interest may also be due.
• Adjusting prices for TP purposes can affect other taxes
and duties (e.g. WHT, VAT, customs duties), which could
cause partially non�deductible/nonrefundable costs. The tax
authorities could also challenge costs previously used for
tax and customs purposes (if prices of imported goods
should actually be lower).
• Tax compliance obligations may not to be fulfilled or fulfilled
late without proper planning because:
� a significant number of transactions could be involved;
� complicated or insufficient contract documentation is in
place or documentation is unavailable;
� responsible persons have limited experience.
� spending more time with the tax authorities during TP
audits especially if TP documentation is unavailable or
insufficient (not meeting statutory requirements);
� preparing and updating required TP documentation.
• Russian legislation prohibits yyeeaarr��eenndd TTPP aaddjjuussttmmeennttss.. Thus,
appropriate prices should be determined and applied from
the beginning of the period/year.
• The new TP rules allow correlative adjustments only between
domestic Russian entities.
• Changes/improvements to the structure of intercompany
transactions that are made to decrease TP risks may result
in unexpected tax obligations, e.g. withholding tax on newly
introduced royalties or fees.
As everyone prepares for the new Russian transfer pricing
rules, it is apparent that a TTPP ppllaann wwhhiicchh oonnllyy iinncclluuddeess TTPP
aannaallyyssiiss aanndd ddrraaffttiinngg TTPP ddooccuummeennttaattiioonn iiss nnoott eennoouugghh..
Often, the chosen profit level indicator (PLI) and the aaccttuuaall
pprrooffiitt aatt yyeeaarr��eenndd,, ccaann ssiiggnniiffiiccaannttllyy ddiiffffeerr ffrroomm tthhee ttaarrggeett ((aarrmm''ss
lleennggtthh)) PPLLII rraannggee identified during the benchmarking study
(i.e. your company's profit is too high or too low).
In these cases, there is a nneeeedd ttoo iiddeennttiiffyy aapppprroopprriiaattee mmeetthh��
ooddss ffoorr aaddjjuussttiinngg aaccttuuaall 22001122 pprrooffiittss.. HHooww aa ccoommppaannyy wwiitthh
ccoonnttrroolllleedd ttrraannssaaccttiioonnss ccaann ssaavvee oonn ccoossttss ffoorr ccoommpplliiaannccee??
• Perform TP diagnostics on time (identify and evaluate TP
risks, assess whether transfer prices are at the arm's length
level) because year�end TP adjustments cannot be made.
• Develop/adjust a transfer pricing policy in line with the new
TP rules.
• Mitigate identified TP risks (e.g. discuss issues with parties
and amend agreements).
• Prepare/adapt TP documentation to support the chosen
TP method and prices used. Conduct benchmark studies
based on Russian databases, reflecting data for the year in
which the transaction occurred.
• Develop a system for setting up and monitoring intra�
group prices that reduces TP risks and automates future
data collection and reporting.
• Consider concluding an advance pricing agreement.
AAbboouutt KKPPMMGG
KPMG is a global network of professional firms providing
audit, tax and advisory services. The company employs
152,000 outstanding professionals working together to deliv�
er value in 156 countries worldwide. KPMG has been working
for more than 20 years in Russia and has more than 3,800
professionals working at 19 offices in seven CIS countries.
KPMG was rated the No. 1 audit and advisory firm in 2009�
2011 by Expert RA and was named Tax Firm of the Year 2012
in Russia by the International Tax Review magazine.
Sergei Schelkalin
Partner, Tax and Legal,
KPMG in Russia
and the CIS
+7(495) 937 44 77
Pavlo Myronov
Senior Manager, Tax
and Legal KPMG in Russia
and the CIS
+7(495) 937 44 77
TRANSFER PRICING:How to adjust actual profit when it is too high or too low?
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