Eksportrådet logo package

For Printing

Office + Web logos

Eksportrådet logo package Eksportrådet Sponsor logos

For Printing

Web logos

Eksportrådet logotypes

EPSFor hi-end printing

EPSFor hi-end printing

For WebFor implementation in webpages

For Microsoft OfficeFor implementation in Office documents

For WebFor implementation in webpages

Folder overview

Eksportrådet new logotypesNew logos and logo package contents

AboutThis slide is a visual overview of the available logotypes in the new Eksportrådet logo package.

The EPS files serves as originals and should always be used for hi-end printing. The EPS files are also the ones to use, if you need to have a different file format made, or if you need a pixel based logo which size or colour space isn’t covered by the pre-made ones.

Kindly notice that all JPG files are made in RGB. If needed CMYK or Greyscale, JPGs can be made from the EPS files.

Export Guide to Russia

Table of ContentsWelcome 4

Russia – The Great Potential 6

Agro & Food 8

Energy & Environment 10

Health 12

Machinery 13

Policy & Services 14

Retail 15

Technology 17

Moscow 19

St. Petersburg 20

Yekaterinburg 22

The Urals 23

The Trade Council in Russia 25

VITUS 27

Join the Clubs 28

Contacts 30

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Own offices in:Denmark, Lithuania, Latvia, Russia, Ukraine, Romaniaand Kazakhstan

ICT Logistics A/SHI - Park 31, DK-7400 Herning

Phone: +45 70 266 288Fax: +45 70 266 250

ICT Logistics specialises in transportation and logistics to these areas.

ServicesTailormade, individual logistic solutions• Regular services • Documentation• Customs procedures and border crossing issues•

TransportAny kind of cargo or loads• Project shipments• Rail solutions in Russia and CIS• Barge and river solutions inside Russian water ways•

EquipmentNormal standard tilt- and reefer trailers• Extendable equipment/straight framed units up to 21,5 •

metres and step deck extendable up to 19 metresTrailers for transport of heavy cargo• Hanging garment units•

About ICT LogisticsICT Logistics has 20 years of experience in handling logistics and transportation for Russia, CIS, The Baltics or Central Eastern Europe. We have developed a high level of expertise and consider ourselves as one of the leading providers in these areas. Our multi lingual and highly experienced staff is based in our local offices in 7 countries.

TRANSPORT TO RUSSIA, CIS, THE BALTICS OR CENTRAL EASTERN EUROPE?

SMALL ENOUGH TO KNOW YOU - BIG ENOUGH TO SERVE YOU

ICT LOGISTICS – WE CARE ABOUT THE ENVIRONMENT

Renewed equipment• Focus on chauffeurs with environmental driving skills• Upgraded Trailerpark• Focus on combined transport to reduce C02 emissions• Focus on minimizing empty kilometres•

Initiatives

3

The relations between Russia and Denmark have developed considerably in recent years. In May 2010 our two governments agreed to work closely together on the important process of modernising our economies and preparing them for increased globalisation. Our main focus is on economic cooperation in areas of mutual interest to both Russian and Danish businesses.

Danish exports suffered during the financial and economic crisis. So did exports in many other countries. Our traditional main markets - Western Europe and North America – receded.

At the same time, the crisis created a shift in the previous classical growth patterns. The new growth economies have now gained increasing importance in international economics and trade. This is especially true in the case of the BRIC countries (Brazil, Russia, India and China).

Therefore, we have an increasing focus on doing business in Russia. The market is different from our well-known markets in the EU. The challenges are often not eminent to Danish companies.

Our advice is clear: Give the Russian market a serious try. The economic growth in Russia has been significantly higher in recent years – with the exception of during the crisis – and has been higher than growth in the EU and North America. That trend will likely continue in the forthcoming years, which will make Russia a must to consider when formulating a company’s growth strategy.

The aim of this brochure is to give you a better grasp of the challenges which you will encounter on the Russian market.

Furthermore, the brochure includes services that the Trade Council in Russia can provide in order to facilitate the launch of a successful entry into the Russian market and make the process as uncomplicated and smooth as possible.

The Trade Council is located in two of the main growth centres in Russia: Moscow and St. Petersburg.

In order to provide the best service and the best opportunities on the Russian market, we have specialists and consultants who are specialised in helping Danish companies within these sectors:

•Agriculture and Food•Energy and Environment•Health•Machinery•Policy and Services•Retail •TechnologyThe main focus of the Trade Council in Russia is on facilitating growth of exports of Danish Companies to Russia. We look forward to serving you and helping you create a strong and successful business in one of the world’s “must be present” growth centres.

Best Regards,

Tom Risdahl Jensen Ambassador

Welcome

4

Uno Transport - All the Way...

Uno Transport – Your professional transport partner to CIS

• Transport by truck and rail to all CIS destinations• We accept part- and full loads in trailers and containers• Daily departures to CIS• Own offices in Lithuania and Latvia with gateway to CIS• Transport of project cargo, overdimension and heavy lift

Please contact us: Uno Transport A/S · Jens Juulsvej 20 · 8260 Viby J. Tel.: +45 70 20 80 11 · Fax: +45 70 20 80 12 · uno@unotransport.com

5

GDP growth in total and in selected sectors from, 2005-2009

2005 2006 2007 2008 2009Total GDP 6,4 8,2 8,5 5,2 -7,9Agriculture & Forestry 1,1 3,8 2,5 7,2 0,3Manufacturing 6,0 7,3 7,9 -0,7 -15,3Electricity/Gas 1,2 5,7 0,1 0,5 -7,9Construction 10,5 11,8 13,7 11,2 -17Wholesale 9,4 14,1 12,1 9,6 -8,6Transport 6,2 9,7 5,4 6,0 -3

DELACOUR DANIA LAW FIRMDELACOUR DANIA is a full service law firm with more than 25 years’ experience in the former Soviet republics, and with offices in Denmark, Russia, Ukraine, Poland, the Faroe Islands and Greenland.

With respect for cultural differences and knowledge about different legal traditions, DELACOUR DANIA serves as a result and solution oriented advisor to all our clients and the diverse communities they represent.

Our clients can benefit from our Russian speaking lawyers in Denmark as well as Russian, Ukrainian, Polish, Danish and English speaking lawyers in Moscow, Kiev and Warszaw.

For further information on how DELACOUR DANIA can contribute to the success of your business, please visit our homepage www.delacourdania.dk (in English, Danish and Russian) or contact partner Thomas Salicath (+45 20 96 99 00, tsa@delacourdania.dk).

Russia – The Great PotentialRussia is already in 2010 looking at a positive four per cent growth in GDP and estimations made by IMF shows that the near future is also going to see an annual growth in GDP at around four per cent. Therefore, despite of the overall GDP decline in 2009, Russia is already recovering from the recent financial crisis. The Danish export of goods and services totalled USD 1.5 billion in 2009.

To understand Russia’s survival and fast recovery, one needs to take a look at the Russian oil and gas market.

The oil revenue plays a central role in Russia’s economic development. In 2008 the oil and gas

export accounted for two-thirds of all Russian exports by value. In 2004 an oil stabilisation fund (OSF) was established in order to reduce the impact on the budget from fluctuations in oil prices. In 2008 OSF was split into two funds – the National Wealth Fund and the Reserve Fund, the latter with the purpose of saving federal government oil and gas revenue and use it to finance the non-oil budget. When the crisis struck, the two funds were worth USD 225 billion (16 per cent of GDP) and they themselves financed the large fiscal stimulus in 2009 in order to support domestic demand.

For 2010 there has been a growth in the total GDP of 3,955%

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Top 5 exporters to Russia

Sector Export

(in USD Million)General Industrial Machinery And Equipment

268

Meat And Meat Preparations 256

Medicinal And Pharmaceutical Products

224

Machinery specialized for particular industry

148

Miscellaneous edible products and preparations

111

The Increasing WealthIn addition to the already recovered economy the Russian households have for the last couple of years had an increase in private consumption; verified by the constantly rising consumer price index (CPI). Even during the financial crisis of 2009 the average price of consumer goods and services purchased by households increased. This can be explained by a rising middle class and an 11 per cent average annual increase in disposable income since the year 2000.

Following that the Russian retail is in a unique position because of limited competition and few multinational players on the domestic market and that the demand for western goods increases from the public, the possibilities for the Danish retail companies are still very present.

The PotentialIn order for Russia to keep developing, the Russian government announced that they would go digital by 2015. The public service is right now very long-winded and according to the Russian news agency Interfax the Russian public wasted 25 million working hours standing in queues to seek public services. Considering that Denmark is one of the leading countries in the world when it comes to e-government this gives great potential for Danish IT companies to deliver know-how and IT solutions.

In general Russia is in lack of know-how and advanced machinery in many different sectors and this weakens the Russian markets future development. Russia is rich on minerals, has a lot of unused land and non-value added raw materials. With the right know-how and machinery this could create value and even more growth in Russia.

The FutureIt is important to remember that Russia stretches over 9 time zones. Moscow and St. Petersburg should in this respect therefore not be used as reference for a saturated market. Russia alone has 14 cities with a population of one million or more and the Russian consumer is demanding more and more Western goods. Hence, the faster you act the better the chance of conquering important market shares and for yet some time you even have the possibility of benefiting from monopoly or duopoly.

This ongoing positive development in the private consumption and the nations rising wealth indicates that the Russian market is out of the shadow from the credit crunch and that it’s time to invest in this emerging market.

The Danish PotentialDanish export to Russia has in recent years increased significantly; however, it declined in 2009 due to the credit crunch. In spite of this the Russian export market was both in 2008 and 2009 Denmark’s 14th biggest, exporting goods and services for USD 2 billion and USD 1.5 billion respectively. For 2010 it amounted to USD 1.836 billion

Despite the rise in Danish export we can’t keep pace with other EU-member states. Danish export to Russia has not increased nearly as much as it has for other EU-27 countries. Especially in 2007 and 2008 the Danish export to Russia declined from a two digit growth to a single digit growth while the EU-27 kept up their two digit growth. This implies that Denmark is losing valuable market shares to our closest competitors.

The five biggest sectors account for more than half of the export to Russia in 2010 and there is room for more.

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Agro & FoodRussia aims at improving self-sufficiency and Danes are highly respected for their merits of increasing outcome from soil to supper – that is why Russia is the land of opportunities for Danish agribusiness companies.

1.700.000.000 ha – that is the size of Russia, but only 6.9 per cent of this big country is right now suitable for agricultural use. Arid climate and inconsistent rainfall are the key factors behind the relatively low agricultural utilization, but there is still 117 million ha - or a 27 multiply the size of Denmark - to feed a population of approximately 142 millions.

Russia is a major regional and global agricultural producer and consumer. The production is expanding, but at a slow pace, so there is a high potential to benefit from new technology and know-how in order to improve efficiency.

In general, it can be said that the northern areas in Russia concentrate mainly on livestock and the southern part and western Siberia produce mostly grain.

Transforming to the free marketSince the collapse of the Soviet Union the restructuring of former state farms has been an extremely slow process, partially due to the lack of land codes allowing free sale, purchase and mortgage of agricultural land. Furthermore private farms and garden plots of individuals account for a big part of all agricultural production. Much of the agricultural sector has been almost unaffected by the transition to the free market and in this context the output performance of agriculture has been very weak.

As of today, technical and managerial skills in the Russian agricultural sector lags behind compared to international standards. Therefore many farmers do not have the training to run a profitable business without governmental support. The high standards of Danish technology and experience within these fields can help Russia reach international standards and create mutual benefits.

Farming and animal production in Russia requires approval from over a dozen different authorities. To ease the way through this process it is therefore recommendable with some good consultancy and a bit of patience.

Seeking Best PracticesSince the beginning of the 1990’s and up until today, the agriculture and food sector in Russia has gone through a transition from a planned economy to a market-based economy.

The Russian Government approved a USD 41 billion program for development of agriculture over a period of four years from 2008-2012. The broad objective of the program is to increase Russia’s self-sufficiency in all major sectors in 2018. As a result of the program Russian officials expect agricultural production to increase by 20 per cent between 2007 and 2012.

Russian farmers are very interested in “Best Practice” and they are constantly in search for higher productivity and profitability in crop and animal production. Following this is a growing interest in waste management and energy producing techniques, creating new possibilities for Danish companies.

8

Premium brands on the riseAccording to official Russian statistics, many Russian households spend over one third of their budget on food and non-alcoholic drinks.

Rising income levels and greater variety in the marketplace has made the Russian middle-class aware of food quality, thus there has been an increasing demand for both a larger variety and better quality in food.

The increasing variety of goods available gives advertisement a central role. Consumers today have access to several complementary products and manufactures must to establish brand awareness. Consistent quality and advertising among international competitors has convinced Russian consumers that it is worth paying a premium for a well-known brand.

To penetrate the Russian market, it is therefore essential to invest in packaging formats and labelling designs that are appealing to Russian consumers.

Economic development will continue to push levels of personal income and encourage the consumption of a wider range of food products, which will become more affordable, so there are definitely opportunities for Danish suppliers of all sizes.

Double digits growth Compared to the general development in the agricultural sector the food processing industry has the recent years grown considerable, with numbers indicating an annual growth rate at 15-20 per cent.

As a consequence of the previous mentioned program for higher self-sufficiency several companies have upgraded their equipment and technology over the past years.

The increase in demand for quality products combined with competitive pressure from multinational companies has driven the Russian companies to focus on international quality standards and to seek quality ingredients for production. A combination of domestic and foreign investment has made the sector fairly dynamic, and

created a market for ingredients and other supplies.

As part of a long term program of social development, running from 2020-2030, the food sector in Russia is planning on investing USD 30 billion. 55 per cent will be directed towards technological modernisation of the food sector.

New taste for lifeIn recent years Russia has seen a new and strong tendency for a healthier lifestyle. As a consequence fish and fish products is becoming more and more common at the Russian dinner tables.

Fish and seafood consumption is estimated to grow at a yearly rate of 17 per cent in Russia. The ready-to-eat segments such as shrimp, crab, scallops, squid and mussels has been estimated to a 30 per cent average annual growth. Because of this development local markets are now carrying a full range of products covering all price categories.

Currently, the seafood market can be analyzed by two categories - low-cost segment (cod, salmon, shrimp, squid, mussels, etc.) and high-class segment (oysters, lobsters, caviar, etc.). Statistics reveal an increase in the high-class segment in 2010 due to consumer’s interest in all kinds of new seafood. There is especially a growing interest in Japanese cuisine and this has expanded the seafood market with new types of fish such as pangasius, royal catfish, fugu, striped marlin and sea cucumbers.

By all accounts, the Russian seafood market is today very similar to the European market and has the same diversity of products.

Russia is expected to be very restricted regarding fish imports for the coming years. As well as in the meat sector exporters have to be approved by the Russian authorities and then listed for import access. Because of difficulties with import of seafood the marine industry is developing fast in Russia. There is a growing need for know-how and experience with great potential for Danish companies.

Poul Jacob Erikstrup

Minister Counsellor

pjerik@um.dk

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Energy and Environment

Russia needs foreign know-howRussia is in the process of strengthening its economy to lessen the dependency on natural resource revenues. The energy sector is the centre of the Russian economy and the centre of the latest steps taken by the Russian government to ensure a stable development in the country. Sustainable solutions are on the political agenda and a huge opportunity for Danish companies.

Being one of the biggest countries, Russia is also one of the biggest producers of oil, taking a second place after Saudi Arabia. Russia is the world’s number one producer of natural gas, and one of the largest coal producers of coal. Russia has the Russia has the eighth largest oil reserves, the largest natural gas reserves, and the second largest coal reserves in the world. Russia uses the reserves to secure its economic interests.

Recently Russia has realised that natural resources are not going to be enough to keep a healthy economy, especially regarding the industry. The focus is on developing a stable domestic petrol and energy market in order to sustain the developing economy.

Investing in the futureTo strengthen the industry sector, Russia is now investing in an update of technology, to modernise its industry and to introduce energy efficiency and energy savings on a country-wide scale.

Using resources effectively is a new challenge for Russia, whose oil production peaked in 1987. After

the Soviet Union, the production fell dramatically due to the inefficiency of the production apparatus. This time Russia will be prepared to handle any changes and this is where the new energy strategy comes in to play; in 2009, a law on energy efficiency was passed, and it was followed up by an implementation strategy running until year 2030.

It is expected that recently launched oil fields in Eastern Siberia will boost Russia’s 2011 oil output to a new post-Soviet record.

Another issue for Russia is its vast territory. Both an advantage and a challenge, the Russian infrastructure is having a hard time coping with the distances between the different parts of the country. Again, a lot of possibilities are present in Russia, including political initiative to modernise the infrastructure, but knowledge and technology are lacking. The world financial crisis has reduced the means for investments in infrastructural development.

An untapped great potential is Russia’s undeveloped renewable energy sources. Russia already uses hydro and geothermal energy, but without the necessary technology and knowledge, renewable energy is not fully utilised according to the energy strategy. With a varying geography, surrounded by three oceans and huge open steppes, the potential for alternative and environmentally safe energy sources is unmatched.

Know-how neededThere is a political will to reorganise the energy sector and to make it environmentally safe.

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Klaus Sørensen

Commercial Counsellor

klasor@um.dk

But to actually carry out changes Russia needs foreign know-how and experience. The potential for Danish companies lie in Russia’s need for energy efficient technologies and the experience Danish companies has achieved in sustainable and efficient solutions.

Lately, the government has introduced several campaigns to help combat energy and resource waste. A restructuring of the water supply system is underway. The law on energy efficiency specifically prohibits sale of incandescent light bulbs as well as introduces energy standards on goods in order to reduce energy usage in all stages of production. Reducing wasteful domestic consumption can allow Russia to boost its competitiveness according to the World Bank.

The European Bank for Reconstruction and Development and Russia has signed an agreement to fight climate change and establish more energy efficient sectors including industry and construction. To boost Russia’s modernisation, Vladimir Putin pledged USD 3 billion in high-tech investments during 2010.

The world will be watchingThe Olympic Winter Games is coming to Russia in 2014. The host city Sochi has a population of 400,000 people and is situated in Krasnodar, which is the third largest region in Russia. The attention on Sochi is heating up and the government uses this opportunity to modernise the region’s infrastructure and energy supply.

In general, Russia is not lacking the political will or incentive to modernise its infrastructure, develop its energy sector and care for the environment. What is missing is the technical knowhow and experience needed to carry out such a comprehensive project: to modernise Russia.

Denmark is recognised throughout the world for its clean technology, sustainable energy solutions and water purification projects, and is already exporting a great deal to several countries. Luckily, Russia has also noticed the Danish reputation, and this leaves Denmark with a great opportunity on the Russian market.

11

Svetlana Chernova

Senior Commercial Consultant

sveche@um.dk

Politically planned growthRussia wants to improve health and modernise the health-care sector. Political initiatives have been launched which gives tremendous opportunities to Danish companies seeking access to this growth market.

The Russian health care sector is a very attractive emerging market with a two-digit growth rate for the past ten-year period. The pharmaceutical market amounts to USD 16.5 billion and is projected to be doubled by 2014. At the same time foreign exporters face great new opportunities thanks to the Russian Government’s interesting political initiatives to bring structural changes.

Main initiatives:

•A new strategy for the pharmaceutical industry called Pharma 2020

•The national project Health, which is one of the Russian Government’s five strategic priorities

Pharma 2020 aims to increase the local production of pharmaceutical products - both by supporting local industries and by increasing foreign investments in production. Several of the largest global pharmaceutical companies have already invested in Russian production or is planning to do so. This implies that Russia will continue to increase its imports of inputs for the pharmaceutical industry and that there is a wave of investment projects underway. Therefore the Russian market is very attractive for subcontractors to the industry and for investment projects in Russia.

Project Health is designed to improve both the general health of the population and the health care services. This involves investment in new hospitals, equipment and training.

Within a number of key areas the Trade Council see some interesting focus areas for Danish exporters:

•Manufacturers of API’s and other subcontractors for pharmaceutical manufacturing

•Consulting and project designing within factories and hospitals

•Consulting on processes within the pharmaceutical manufacturing industry

•Equipment for the health care sectorDemand is driven by the state, the Russian regions and the individual consumer - Russia is a major OTC (Over-the-Counter) market. Though in Russia the supply and distribution channels can be complex depending on the sub-sectors. The Governmental regulation of the health care sector and industry in Russia is complex and may appear chaotic from time to time. In addition Russian Government supports the local industry, and hence a number of strong Russian players in the health care system. Following this it can be a difficult task for Danish companies with interest in the Russian market to track down information and get the right advice on market entry.

But the Russian health-care sector is despite the obstacles worth the effort. The sector is rapidly evolving and growth rates are measured in double digits. The middle-class is growing and with their wealth there will be a rising demand for health-care. The following ten years will dramatically change the business environment - it is a politically planned growth scenario.

Health

12

Marina Piotrovskaya

Senior Commercial Advisor

marpio@um.dk

Development of Russian machinery industryRussian market of machinery has wave-like movement. The peak of the development was in 2005, when the market increased by 75-100% (depends on the sectors) compared to 2004. Since 2006, average annual growth was around 10%. Since 2009, some slowdown (around 15%) of production and import is observed, mainly due to the global financial crisis.

The Russian market of machinery has a strong need for modernisation and replacements of the equipment. Around 70% of all machinery in Russia is obsolete.

Producers on the marketRussian machinery market is dominated by foreign producers, mainly from Europe, with around 90% market share. Germany, Netherlands and Austria have been the permanent leaders, with around 30%, 25%, and 15% accordingly. Denmark, Spain and Italy are also very active on Russian machinery market.

Local producers count for around 10% of the market (by some sources up to 20% of the market). Russian producers are mostly active in the small capacity equipment segment. Local producers of such equipment can provide ready available spare parts and relatively cheap service. Also, the price for local equipment is rouble denominated and is not subject to foreign currency exchange rate fluctuations. Lower costs for domestic labor, taxes, raw materials, and energy resources also contribute to the competitiveness of domestically assembled equipment.

Import ClimateThe climate for importing machinery to Russia is favorable. There are no quotas or limitations on machinery. Some equipment is subject to certification (for example: meat processing equipment). However, importers are responsible for customs clearance and certification procedures.

Distribution opportunitiesDistribution and business strategies may vary a lot, but representation in Russia is important.

A company can open a local office or penetrate the market through a local distributor, preferably with extensive experience, good knowledge of the market and well established relationships with

end-users. The Russian market of food processing equipment is very competitive; most Russian clients would like to have products which are available for immediate purchase. Only advanced companies would contact an equipment supplier outside of the country by themselves.

Machinery

13

Jens Thomsen

Minister Counsellor and Regional Coordinator

jentho@um.dk

Russia stretches over more than 17 million square kilometres and is the biggest country in the world. Therefore logistics is a challenge and with a growing import from Europe there is a risk for infrastructure bottle necks. There is off course a work-around those obstacles and collaboration with us may be your gateway to Russia.

Success on the Russian market is often related to presence. The closer connection your company has to the Russian market the bigger the success. Most Danish companies operate through distributors in Russia. Some have such a close relationship to their distributors that they visit them in Russia several times each year, while yet others opens representatives and even start production in Russia. This gives a myriad of challenges and cooperating with our team can help you foresee, avoid and solve some of these challenges, reducing time and costs when entering the Russian market.

Experience with transport and logisticsRussia stretches over 9 time zones which provide fertile ground for development of logistical hubs and optimisation of transport, logistics, storage and warehouse solutions. The Trade Council in Russia’s Service and Logistics team is experienced in dealing with problems related to transport and logistics, including border crossing, customs, certification and the possible pitfalls for Danish companies in this part of their logistic planning.

Increasing imports of products and services from Europe puts pressure on the Russian infrastructure

and resulting in congestion at terminals, customs and border crossings. We can assist you through our contact to Russian authorities to ease your way to Russia.

Establishing a firm foothold in RussiaA growing number of Danish companies are establishing subsidiaries in Russia. The Trade Council in Russia has counselled several companies in the process. Many regions offer favourable terms for new business in their region. However in this process there are many different governmental parties involved and the negotiations with the authorities can be a long and uncertain journey. On top of this there are simple infrastructure issues to consider, like electricity, water etc. The Trade Council in Russia has the needed experience to cope with these challenges and get you safely through the gateway to Russia.

Policy & Services

14

There is money to be made.

Putting the crisis behind them the Russian consumers are again heading out to shop.

The major shopping centres are reporting that customers are returning and this has already shown results for some Danish players on the Russian market. In Moscow alone, one of the huge shopping centres have 5 million visitors per month and recently Eastern Europe’s biggest shopping mall, of 241.000 m2, opened here.

The segment of mid-level income is growing rapidly and currently about 70 million people is considered to be in the mid-level income range. They might have less money to spend than an average Dane, however in Russia they spend up more than 75 per cent of their income on consumer goods and food, making precisely this segment very attractive. And when the current slowdown in economy has completely lost its grip in Russian consumers it is expected that the segment’s consumption will increase each year by approximately 25 per cent.

Russians love to show that they have money to spend. Flashy clothes, exclusive handbags, the newest mobile phones and huge cars are dominating the scene in every big city in Russia. All the while the regions are still lacking behind and leaving room for even more Danish products. Yekaterinburg is a rising star on the horizon, where first-mover advantages still is a possibility. Danish design is recognised as good taste and Danish products are praised for their high quality. This has a positive impact on some of our key Danish sectors such as fashion, jewellery, furniture and all kinds of interior decoration and household design. The key to success in retail is as always location and teaming up with the right distributor. Once this is in place Danish companies have shown that even in hard times it is possible to reach record sales. Taking a firm foothold in the growing middle class and their growing income retailers of Danish shoes has reached record sales in 2009 and Danish fashion

retailers are still expanding with yet more shops in Moscow and Saint Petersburg as well as in the regions.

FashionMost of the clothes sold in Russia are imported. This trend is visible in Russia’s major cities. The Moscow fashion market is the major market with a 70 per cent share of fashion sales in Russia.

Walking through the shopping centres in Russia you will notice Zara, H&M, ECCO, INWEAR, Martinique side by side with Armani, Gucci and other high fashion brands. Some of the mid-level brands have reported their best year ever in 2009. This has been achieved by decisive expansion in the face of the credit crunch. These brands are now widely recognised in the market as being trustworthy and solid brands.

The latest trend in Russia is kid’s fashion. Kids are the princes and princesses of the family and they are dressed accordingly. This trend has been widespread in Denmark for a few years and the result is many smaller brands and collections. This is something that the Russian retail sector is aware of and they are currently hunting for suitable brands for their market.

Design – high and lowThe typical Danish family puts enormous pride in their home. In Russia this is slightly different. Normally Russians do not own their home, and have more traditional furniture, but as the Russian middleclass is growing this is changing. They travel more and in general have more input from around the world and now they want to live accordingly, so therefore IKEA is the major player in bringing Scandinavian design and style to the Russian market. However there are still lots of space in the market for new players.

Retail

15

Peter Mygind Rasmussen

Commercial Attaché

pemyra@um.dk

This is not only true for furniture but also in the decor and living segments. There are a growing number of interior decoration stores and Scandinavian design is highly appreciated. However the major retail chains, as seen in Denmark, are still under development and this offers fair chances for Danish companies to get a foothold. The key to success is to find the right distributors and offering fast and secure deliveries.

JewelleryTraditionally Russians love jewellery and especially gold which is considered a symbol of wealth and prosperity. This ties into their flashy personalities.

The jewellery statistics show that women most often wear rings (97%), chains (91%), earrings (88%) and less often brooches (12%) and necklaces (11%). Men however prefer chains (42%) as their only jewellery. Walking the streets it is also evident from the amount of shops and stalls selling jewellery ranging from cheap Turkish to expensive luxury brands that the market is abundant. The market is so far dominated by the cheaper jewellery and the pace at which Russians are acquiring more refined tastes is defined by their wallets. So there is still a need for a certain level of schooling of the Russian consumers to develop the awareness of Danish jewellery brands and their specific qualities.

Is Russia a ripe fruit ready for picking?Entering the Russian retail market is a challenge, however a rewarding challenge.

The main task for Danish companies is to secure distributors and prime locations in shopping centres. Shopping centres was previously fully occupied, but the credit crunch has meant the end of several stores, therefore the crisis has actually opened new

opportunities for Danish retailers who can get hold of the open retail space in the popular malls. Newly build centres are open for negotiations and so are the centres planned to open for the public these years. Moscow alone has reached a total of almost seven million square metres in 2010. When looking for distributors Danish companies should know that Russian companies are well aware of the fact that the Russian market is very interesting for foreign companies. They are highly professional and know what they want. The products brought to market should be of high quality and unique. Building brand awareness is as important in Russia as it is all around the world and Russian distributors expects Danish companies to enter into cooperation and carrying part of this burden, aiming for an equal and trustworthy relationship.

With 14 million-populated cities and a growing middle-class Russian has the potential to be BIG business for the Danish retail sector. Russian consumers have outpaced consumers in almost any other country and they hunger for new shopping opportunities.

As Scandinavian designers, we believe form should follow function. So we do things differently. We own our own tanneries and factories. We create our own technologies. We invent our own materials. We make shoes of timeless style that follow the function of the foot.

ecco.com

SIMPLYTHEWORLD’SFINESTFUR

16

Russia has potential for present and future development, though in order to keep the development going Russia is in need of new developments within technological equipment and know-how. This is where you come into the picture.

Denmark has a proven track record as one of the World’s leading countries in terms of technology and innovation. Focusing mainly on human capital and education, Denmark is trying to maintain this leading position and remain internationally competitive.

To be able to do so the Danish Government is both financially and politically supporting Danish companies. Following this the Danish Government has allocated over USD 250 mil for more than 1300 administrative and technical sector projects of cooperation with Russia. As a rule, Danish investments come together with implementation of cutting-edge technologies and innovations for the Russian market. The aspiration to simplicity, combined with the maximum number of functions, Danish services and technologies are recognized in Russia and there is a huge potential for strengthen the technological relationship between Denmark and Russia.

Right now The Trade Council in Russia sees several sub-sectors with strength and potential on the Russian market:

TelecommunicationThe Russian telecommunication sector is experiencing a huge amount of money being plowed into the sector right now. The purpose is for the operators to be able to improve their services and network; in addition the long-term upward trend seen in the ARPU (average revenue per user) only increases the action in the sector.

The telecommunication sector in Russia is well developed and the next generation of networks is in the process of being launched, which will make the operators able to deliver advanced services such as high-speed broadband and IPTV.

Russia maintains enviable external account dynamics, with a robust current account surplus, limited foreign debt and high reserve holdings. This will continue to provide significant stability during recovery from the financial crisis.

ITRussia educates 20,000 skilled IT and computer specialists every year from science graduate studies. Therefore the possibility for finding relevant and highly skilled employees or partners on the Russian market is very eligible.

In recent and coming years vast wealth from oil revenues has led to an expansion of the IT budgets, this combined with huge resources being used to keep upgrading the Russian hardware infrastructure presents opportunities for Danish companies in the field of application development, integration and maintenance.

Russian ICT sector forecastLooking forward, Russia is still on course to emerge as one of the largest IT markets in Europe. In a 2010-2014 forecast (PMR, May 2010), the Russian IT market will recover to USD 15.9bn by 2011 and keep a growth rate at 12 per cent. Growing computer penetration, government ICT projects and immense potential for IT spending by Russia’s traditional industries could drive an increase in IT spending per capita from around USD 113 to USD 185 over the 2010-2014 periods.

Technology

17

Peter Thomsen

Commercial Counsellor

peteth@um.dk

The domestic software market reached approx. USD 3.2 billion in 2010 around. Going forward the market is projected to emerge at a compound annual growth rate of 14 per cent to USD 5.4 billion by 2014, making Russia potentially one of the most significant software markets.

The computer hardware market recovered to USD 8.7 billion in 2010, up from USD 7.5 billion the previous year but still short of 2008 levels. Growth potential shall be seen together with GDP-growth.

IT services market had a value of USD 4.1 billion in 2010; again we see clear recoveries from 2009 when the market experienced a sharp contraction. The IT services opportunity is forecasted to grow to around USD 7.0 billion by 2014.

Systems integration is the largest component in IT services and accounts for one-third of segment revenues. Integration together with implementation of hardware and software probably ads up to approx. half of all IT services. However, more value-added services such as consulting and application development are growing fast.

Today the modernization of the economy has first priority in Russia. Therefore utilization of the advanced technological and engineering experiences of Danish companies is certainly a possibility and the appetite for new technology among both consumers and corporations is growing day by day.

Infrastructural developmentsBeing the largest country in the world and stretching over nine time zones, Russia has huge communication and infrastructural lines. Opportunities here range from renovating roads, building new roads, upgrading tarmac, building new bridges, maintaining old bridges, participating in railroad projects, renovating upgrading and expanding airports.

As an example several leading Danish consulting companies have already won billion-dollar contracts for Airport upgrades and expansions.

Investment Opportunities & Financial InstitutionsRussia provides vast Investment Opportunities. In reality there are too many for any company to be able to grasp or assess them all. We therefore provide several investment projects in our Technology Newsletter after due screening. This way we help Danish banking and investment institutions operate on the Russian market. This is done by providing reports and analysis, looking into concrete investment projects and doing due-diligence. We

also help with client acquisition and retention, e.g. by making get together, investor meetings at the Trade Offices, brand parties out in town and inviting HNWIs for business meetings. Furthermore The Trade Council has assisted in looking for buy-up potential and bank mergers. With more than 1.300 Russian banks with a good client base that Danish regular banks and investment banks can tap into it provides opportunities for collaboration, buy-ups, mergers or regular add-on business expansion.

Bio-technology, Chemicals, NanotechnologyRussia provides some of the most advanced brain-power in the world in terms of research. Thanks to former military research, Russia still possesses know-how and forefront skills within the fields of research. Danish companies tend to be extremely good at innovating and commercializing research. Thus, combining these two factors, the market potential is second-to-none. The Trade council helps Danish companies tap into this knowledge and further expanding their R&D capabilities.

Nano-Technology has got a targeted birth in Russia, and many R&D and commercial companies already exist. The knowledge is present and provides solid ground for Danish Nano-Technology companies. Besides, the Russian governmental company Rusnano is funding Nanotechnology projects with USD 10mio and up for R&D, production or other investments. Joining common forces using Russian finances there are clear abilities on the Russian market, using relatively cheap research labour in order to make your product more sophisticated, or just using cheap Russian labour for production and export purposes.

Chemicals – also live strong thanks to former military production and research. So strong that leading western companies are all tapping into the knowledge possessed there, which has led to growth of Chemical clusters. One example is Nizhniy Tagil, where Danish companies are working on multimillion-dollar, yearlong contracts.

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MoscowIn the central European part of Russia lies the capital Moscow and the city is of course known as home for the President in Kremlin and the ruling government institutions of Russia - the State Duma and the Federation Council. But the Russian capital is far more than just politics. Moscow is the key city when it comes to business in the Russian federation since almost all major companies are represented with offices in the metropolis. And Moscow is also the greatest showcase for your company.

The Russian capital has excellent channels for promoting your business and products. Moscow is the main city for many annual fairs and exhibitions and the city attracts 100.000 exhibitors and around 8.5 million visitors for the events every year.

With its approximately 10.5 million inhabitants Moscow it is by far the biggest city on the European continent and the 7th largest city in the world. Moscow has the highest Gross Regional Product (GRP) of all the federal regions. In 2010 GRP amounted to more than 70 million USD.

Constant modernisationThe new Moscow International Business Centre known as Moscow city is the largest estate investment project in Russia and is currently in the final stage of development. When completed it will house the Moscow Duma and government as well as combining business activity, living and entertainment for 250,000-300,000 people. To further expand the city the Russian government has the ambitious plan that by 2020 Moscow shall be the second largest financial centre in Europe after London. This will be done by governmental measures to expand and develop financial infrastructure and regulations. Furthermore Moscow will be the centre for the huge potential stock markets in Russia and the CIS countries.

Moscow is constantly modernising. This growth scenario is a huge potential for Danish construction companies. The construction sector in Moscow is in constant development and plans are to build 90 million square meters of housing before 2025. Furthermore the city has also planned new roads in order to help solve the city’s traffic problems. One of the current projects is a forth ring around Moscow stretching 74 kilometres. Future plans for the city are to build additional 2,000 kilometres of freeways and 380 kilometres of lines under ground by 2025.

Public transportation is also planned to be improved and expanded. A new railway station will be launched next to Kalanchevskay station in 2011 which will unite the lines between the three largest

airports in Russia: Sheremetyevo, Domodedovo and Vnukovo.

As the city expands and activity grows there is an increasing need for accommodations to foreign business travellers and tourist. The tourist infrastructure is developing and there are currently approx. 270 hotels operating in Moscow offering around 70,000 rooms. The number of hotels is expected to reach 535 hotels in 2025 which will be constructed in and around the city.

Moscow has 85 shopping centres and more centres are to be constructed in 2011. The continuing expansion of shopping centres due to the fact that Russians are keener on spending than saving in the post crisis period.

Fashion and ITThe retail market in Moscow and the rest of the country offers some of the best opportunities in the world. Furthermore Russian consumers are becoming increasingly aware of clothes and furniture design from the international fashion scene. Female consumers in Russia spends a large percentage of their income on clothes and cosmetics and since the gender division in Russia is 54% female and 46 % male with a population of 141 million the market for female fashion and cosmetics is huge.

Moscow hosts the Russian Fashion Week (RFW) which is the biggest fashion event in Russia and Eastern Europe. The Danish fashion industry has an excellent opportunity to enter the market and acquire a large market share in this early stage of the Russian fashion.

On the technology front Kremlin gave the go ahead in 2010 to build a high tech research hub near Moscow at “Skolkovo,” which is known in the press as the Russian Silicon Valley. The main task is to ensure a transition from an economy based on raw-material towards a knowledge-based economy. Several major international ICT and software developing companies has showed their support to the project by providing huge financial investments. “Skolkovo” presents an excellent opportunity for Danish companies to set up business and thus enter the very promising future of the soon to come knowledge based Russian economic.

Moscow is a true metropolis and the as the Capital of Russia it is also here the future begins. From politics to business and from concrete to high fashion Moscow has it all. It is a natural birth place for the new knowledge based economy and the growing city has also room for your expansion to the east.

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St. Petersburg Situated on the banks of the river Neva and on the coast of the Baltic Sea lie the city of St Petersburg, Russia’s second largest city and the fourth largest city in Europe. The former capital of Russia was build during the 18th century by Peter the great with the purpose of being Russia’s window to the west. This description of the city is certainly as accurate today as it was back then.

Today St Petersburg has 4.8 million inhabitants and a gross regional product (GRP) of 1.58 trillion USD. International trade is thriving in the city as never before and a large part of the GRP is due to this international outlook. All major industrial and financial industries along with a booming retail sector are represented in the city.

Being located near the sea means that St. Petersburg acts as an important transport and logistical hub for cargo entering the Russian Federation by sea. St Petersburg is by far the largest sea port in the Baltic region and the leading seaport in Russia with a total of 1,343,672 TEU (standard containers) in 2009. Both the regional and federal government is well aware that there is high competition from other Baltic state seaports and in order to remain competitive the port of St Petersburg is constantly seeking investments to improve the facilities both physical and technical and thus also remain the leading port in the Baltic region and Russia in the future.

Maritime opportunitiesAside from being the busiest cargo port in Russia St Petersburg is currently building one of the most modern passenger ports in the world, which is part of the city’s complex Marine Façade infrastructure project. The new passenger port located on Vasilyevsky Island is currently undergoing construction and will consist of five berths capable of handling all of today’s most modern cruise ships along with two berths for ferries. The port is expected to handle 1.5 million passengers from northern Europe each year and approximately 12.000 passengers a day when completed.

The St. Petersburg passenger port is a great opportunity for Danish companies who can supply know how and solutions both in passenger port maintenance and technology along with solutions to passage logistics. The passenger port is just one part of the Marine façade project

which consists on reclaiming land on the western part of the Vasilyevsky Island. It is planned to build approximately two million square meters of residential housing and the same amount of commercial property including hotels and trade centers.

Since the total completion of the Marine faced project is set to the year 2020 Danish contractors and construction firms should look for investment opportunities since some foreign contractors has been forced to resell their contracts to competitors due to financial problems from the post financial crisis.

Transportation opportunitiesThe city of St Petersburg has an excellent transportation system which links all parts of the city with buses, trolleybuses and marshrutkas. Furthermore the city has a well build metro system which serves 13 million passengers and is the 13th busiest metro system in the world. The Saint Petersburg metro has future plans for a further expansion with 41 new stations, 5 new depots and 71 km of new lines from 2008 to 2020 and therefore presents good investment opportunities.

Investment opportunitiesBesides being globally connected through the seaport St Petersburg is also home to the Pulkovo International Airport which is the 4th busiest in Russia. The Pulkovo Airport is currently undergoing major renovation and expansion with a new terminal. It is estimated that the Pulkovo airport will handle up to 14 million passengers by 2013 and 22 million by 2025. Apron areas will also be extended in connection with the new terminal. Danish companies have an outstanding opportunity to use the Pulkovo renovation project to gain access to the lucrative airport renovation industry in Russia since the Russian Federation has around 329 airports in need of modernization and renovation.

Software opportunitiesThe Russian software sector experiences huge growth because of an increasing domestic demand for high quality software and e-government along

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with increasing foreign outsourcing to Russia. St Petersburg is the leading city in terms of ICT (information technologies and telecommunications) resources. Software developers who have graduated from the Technical universities in St Petersburg are among Russia’s best educated.

Approximately 25-30 % of all income from offshore programming in Russia is generated in St Petersburg.

Because of St Petersburg’s geographical location many of the region’s software developers are more focused on the Scandinavian market than other attractive markets. This specific focus from St. Petersburg presents profitable possibilities for Danish companies entering the Russian IT market or to make use of cheap well educated software developers for outsourcing or off-shoring.

Food opportunitiesThe food industry is one of St Petersburg’s leading sectors, and the industry has been greatly developed in the recent years. The share of food, beverages and tobacco in the total volume of goods dispatched in manufacturing industry is approximately 26.7%.

As the beer capital of Russia practically all beer producers in St. Petersburg are owned by foreign investors. Due to the increasing beer consumption in Russia and relatively good water supply, St Petersburg can offer profitable possibilities for Danish companies operating in the industry.

Energy & environmental opportunitiesThe Russian Government has as top priority to improve energy usage and the environmental situation. St. Petersburg has implemented a number of energy efficient and energy savings projects during the last years: In the water sector, St. Petersburg has implemented the North Collector project for wastewater handling and a part of the Neva programme which has meant a reduction of 2.000 tonnes of phosphorus emissions per year, and 93 % of the water is treated meaning a better environment and more energy efficient water supply. NEFCO (Nordic Environment Finance Corporation) has started an environmental fund with Prime Bank operating in St. Petersburg in order to promote energy efficiency in the industrial sector, and the purpose is to show that energy efficiency is also cost efficient.

The increased focus on the energy & environment sector creates great profit potential for Danish companies operating in the industry. The Trade Council established the Energy & Environment Club in order to pave easier access to the sector.

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YekaterinburgYekaterinburg is one of Russia’s top five cities and the biggest of the 47 cities located in the Sverdlovsk oblast. The city of Yekaterinburg acts as the administrative centre for the oblast. Because of the city’s geographically central location Yekaterinburg also acts as an important transport and logistics hub between Europe and Asia.Yekaterinburg is highly industrialised with all major industries represented. Furthermore the region of Sverdlovsk is one of the riches in metals and minerals in Russia which supplies all the raw materials needed to support the industry. The city offers huge production, labour and scientific potential. One-third of the region’s population resides in Yekaterinburg. The majority of credit and financial institutions, insurance companies and other market infrastructure are concentrated in the city. The city has been highly successful to adapt to the new economy by privatising its companies and small businesses. The result is that customer services and networks has been retained and expanded. Furthermore most of the trade in the Sverdlovsk oblast takes place in Yekaterinburg which accounts for more the 60% of the regions retail turnover which in 2008 amounted to USD 11 billion.Strong growth and developmentThe city constructed 4.2 million square meters of habitat from 2005 to 2009 which is more than a million more square meters above what other cities with a population of one million or more in Russia has constructed.One of the largest Investment projects currently taking place in Yekaterinburg is the Akademicheski integrated area development project. The project target is to create a new residential area with developed engineering and social infrastructure for 325,000 residents. Akademicheski will cover an expected 13 million square meters of real estate divided between 9 million square metres housing and 4.2 million square metres of social and commercial real estate in the south-west of Yekaterinburg. The first stage of the project 2007-2015 is currently underway with the second part 2016-2026 expected to begin after completion of the first stage of the project.International relationsYekaterinburg has strong international relations which is stated by the presence of 20 international institutions which all want to ensure that the companies of their countries gets a share of the huge investments opportunities in Yekaterinburg and the Sverdlovsk oblast. The development of the total amount of foreign investment in the Sverdlovsk oblast in 2008 saw an increase from USD 9 billion in 2007 to USD 75 billion in 2008. The GNP of the Sverdlovsk Oblast has also seen considerable growth from USD 23 billion in 2007 to USD 29 Billion in 2008.

Infrastructure and transportationYekaterinburg has two airports; Koltsovo International Airport (SVX) and the domestic Aramil airport. Koltsovo International Airport is home to more than 30 Russian and foreign airline companies and has routes to 104 cities around the world. Koltsovo Airport demonstrated improved performance in 2008. The total number of scheduled departures was 12,728 up 1.3 per cent from 2007 and the total number of passenger departures, arrivals and passengers in transit increased 11,5 per cent to 2 million. The cargo and mail volume was 12.3 thousand tonnes (104.8% of 2007’s level).One of the targets in the Russia’s transportation industry development strategy 2020 is organisation of a large transportation and logistics terminal at Koltsovo Airport. The strategic goals for future development of the Koltsovo airport is to create an efficient system for organising international, domestics and the regional passengers and cargo traffic capable of supporting the Sverdlovsk region and Yekaterinburg’s economic and social development. In order to strengthen Yekaterinburg as a transportation and logistics hub future plans to modernise Yekaterinburg’s smaller domestic Aramil Airport are in development. Yekaterinburg has a well build public transit network which includes a Metro, tramways, and busses, trolleybusses and Marshrutkas routes. In 2008 the total number of people carried by the Yekaterinburg metro was 48.9 million.Education and CultureYekaterinburg is home to 16 state owned universities and many academic institutes, furthermore there are 600 libraries in the city with the most famous being the V.G. Belinsky Scientific Library, the largest public library in the Sverdlovsk region. The high presence of academic institutes along with a high level of industry is why Yekaterinburg is considered to be the fourth largest scientific centre after Moskva, St. Petersborg and Novosibirsk. The city has a total of 45 science institutes and about 100 R&D institutes. Yekaterinburg is considered to be the cultural capital of the Urals and offers 19 theatres, 27 museums, 7 cinemas, 130 cafes, 20 large restaurants, 13 fast food restaurants, 26 canteens, 9 coffee houses and 12 large bars; furthermore it has 49 night clubs and 23 casinos. For overnight stay or vacations Yekaterinburg offers a choice between 58 different hotels that are rated from 2 till 5 stars and 30 different mini hotels, guesthouses and camping sites. Some of the top hotels in the city are the following; Atrium Palace Hotel, Hyatt Regency, Alexander Park Hotel, Master Hotel, Moskovskaya Gorka, and Park Inn.

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The six federal subjects who make up the UFD are:

Area (km2) Capital GRP 2009 (USD million)

Population UFD

(Census 2002)

Population Capital

(census 2002)

Kurgan Oblast 71,000 Kurgan 3,5 1,020,000 346,000

Sverdlovsk Oblast 194,800 Yekaterinburg 31,3 4,490,000 1,294,000

Tyumen Oblast* 160,100 Tyumen 16,4 1,240,000 511,000

Khanty – Mansiysk Autonomous Okrug

534,800Khanty-

Mansiysk64,3 1,520,000 72,000

Yamalo-Nenets Autonomous Okrug

770,000 Salekhard 23,7 507,000 42,000

Chelyabinsk Oblast 87,900 Chelyabinsk 22,1 3,600,000 1,080,000

* Notice that Tyumen is the administrative jurisdiction over Khanty-Mansiysk and Yamalo-Nenets, GRP and the populations of these can therefore often be included into Tyumen Oblast in other publications

The UralsThe Ural Federal Districts (UFD) with its administrative centre in Yekaterinburg is one of the most profitable districts among Russia’s eight districts. The Total Gross Regional Product (GRP) in 2009 was USD 161 billion which ranks third after the Central federal district and the Volga federal district. Natural resources, booming industry and growing retail sector makes the region one of the promising areas for Danish investments.

Almost all the regions in the UFD are blessed with an abundant amount of natural resources and are rich in ferrous and non ferrous metals. The district has huge mineral deposits due to their location near the Ural Mountains. The major industries dominating the district are oil, gas, metal, and machinery industry.

The UFD is made up of six federal subjects with a total population of 12.2 million people according to 2002 census.

Yamalo-NenetsIn the far north of the UFD with the bordering coastline to the Arctic sea lies the federal subject of Yamalo-Nenets Autonomous Area. The area is enormous and equivalent to 1.5 times the size of Spain. The Autonomous area has abundant oil and natural gas resources and sees huge development to support the oil and gas industry in terms of

machinery parts, tubes and drilling equipment. Many Bank and credit institutions have established themselves in the region to support the oil and gas industry.

Khanty-MansiBordering the Yamalo-Nenets Autonomous Area from the south lies the Khanty-Mansi Autonomous Okrug which is located in the centre of the UFD. The Autonomous Okrug also has a huge amount of oil and natural resources and is considered to be one of the world’s largest oil producing areas. The imports are food products, high tech equipment for fuel and energy along with communications and computer equipment.

SverdlovskBeneath the Khanty-Mansi Autonomous Okrug to the south west lie the Sverdlovsk Oblast. The Sverdlovsk Oblast has a plentiful amount of natural resources in terms of metals and minerals. The main industries in Sverdlovsk and its capital Yekaterinburg are engineering and metal working. Furthermore the city experiences a fast developing retail sector with plenty of room for more competition due to the absence of many international retail companies.

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TyumenNeighbouring the Sverdlovsk Oblast to the east is the Tyumen Oblast. The Tyumen Oblast is unofficially known as the energy centre of Russia with huge deposits of oil and gas. It has administrative jurisdiction over Yamalo-Nenets and Khanty-Mansi. The region also has many engineering plants which manufacture equipment for oil drilling, exploration and refining.

The region has a well developed forest and woodworking industry. Because of the huge industrial output from the region 87 countries are represented in order to perform business relations with the region and prosper from the regions industrial output.

KurganBordering the Tyumen Oblast to the south west lays the Kurgan Oblast. Kurgan has rich fertilised land which covers 60% of the Oblast and is highly suited for agriculture. The main industries are agriculture, food processing and mechanical industry many of which produces apicultural equipment.

ChelyabinskNeighbouring the Kurgan Oblast to the west and beneath Sverdlovsk Oblast lie the Chelyabinsk oblast. Chelyabinsk is like Sverdlovsk one of the major industrial centres in Russia. The oblast has an abounded amount of natural mineral and metal resources such as iron, copper, zinc, nickel, gold, bauxite, talc, and graphite. Furthermore Chelyabinsk has huge forests resources of some 2.5 million hectares.

Chelyabinsk has a well developed transportation system with tramways, trolleybusses, mashruskas and

its Balandino Airport. The city began construction of a 3 line subway network which is expected to open the first section in 2010. Chelyabinsk with its above one million people is a city in rapid development and along with its metal processing industry it is also developing a booming retail sector.

The Danish perspectiveThe Ural federal districts offer great potential for Danish companies. Like other industrial areas in Russia there is a huge demand for technology up-grades and know-how - as well as growing interest sustainable developments and energy savings project.

Wealth is rising in the region and this gives room for retail investments and the Danish consumer goods industry. Back in the good old days the Urals was very far away - today in our globalized business environment the region has potential to be a booming export market very close to Europe.

• 60modern,comfortablerooms

• Conferenceroomsforupto80personswithnaturaldaylight

• State-of-the-artequipmentforaudiovisualandconferenceneeds

• Lobby-barand“Magellan”restaurantseating90persons

• Wirelessinternetthroughoutthehotel

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The Trade Council in RussiaThe Trade Council in Russia have highly qualified and specialised consultants of both Danish and Russian origin ready to help you. The Trade Council has considerable experience in advising both new Danish companies as well as companies with years of experience in Russia. Furthermore the Trade Council in Russia has a strong network in the Russian Foreign Ministry, among them Key-Opinion-Leaders in the most attractive regions in Russia.

With two Trade Councils in Russia located in Moscow and St. Petersburg, Denmark is well represented in Russia.

Moscow is as the capital and one of the most well-known Russian cities a very obvious choice for entering the Russian market. The Trade Commission is located at the Royal Danish Embassy and do thereby have the privilege of being close to the ambassador and his staff.

Russia’s gateway to Europe, St. Petersburg is the regional centre of North-West Russia. Here the Trade Commission is located at the Danish Consulate General.

The geographical proximity has made it a stepping stone for many Danish companies.

There is an increasing interest in the Russian market, resulting in different types of delegations visiting. A visit to Russia including business meetings with Russian companies, hands-on experiences combined with a cultural programme might be just the eye opener needed to realise the potential that the Russian market offers Danish companies. We have facilitated groups ranging from curious

knowledgeable groups to high profile investment banks, with all their different interests and needs.

The Trade Council also help Danish companies who are dealing with Russia already. Some need a risk analysis of a potential big client others need help retrieving debt. No matter which problem you may experience our elaborate network will find a solution.

Below is a broad range of services our three teams offer Danish companies.

Market information – Get a thorough knowledge about the Russian market with help from our consultants. We can provide you with all the necessary market information, which among other things include the following:

Strategy consulting: Make your entering into the Russian market as profitable and rewarding as possible. Take advantage of our teams’ knowledge on Russian business culture, structure and market opportunities.

Brief-packs: We will provide you with information about potential business partners, market, collaborating company, retailer or others you wish to collaborate with. Our brief-packs will give you the advanced knowledge necessary when making contact to new business partners in the Russian market.

Due-diligence: By knowing the business you are about to confront you lower your risks and costs of a future potential involvement. Let us help you by doing a thorough background check of the possibilities for doing business in Russia.

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Monitoring: Be fully updated on what is happening on the Russian market all the time. Make it easier to find the right time to enter and attack the Russian market. Let us by request monitor your market and give you up to date information and alerts on the Russian market conducted by our consultants.

Monitoring your product even further: We will help you monitor your product even further on the Russian market through our in-depth knowledge and business possibilities. This will provide you with an overview of how your product is doing on the Russian market.

Public authorities – A big milestone in expanding to a new market is to get by all the legislation and public authorities. With our knowledge and well established network, we can assist your company in all strategic issues involving Russian legislation and the public authorities.

Incubator services – Minimize your company’s start up cost and maximize your operating framework by taking advantage of our incubator services.

Here the Trade Council in Russia will provide you with your first office including your own telephone, internet, desk etc. We help you search and select, and secure a loyal and competent employee. Your employee will work directly for you with the help and support from the staff at the Trade Council.

Seminars & PR-events – A great way to launch new initiatives and make new contacts. Using the premises of the Consulate General and the Royal Danish Embassy we can help you plan and facilitate seminars and PR-events, and through that broaden the awareness of your brand on the Russian market. We will find and invite relevant companies with the potential of becoming your costumer or partner. Our press relations will support the event in order to maximise coverage and awareness.

Exhibitions, fairs etc. – Every year Russia has a big amount of exhibitions and fairs. Let us know the requests for exhibition and fairs which is in your companies interest and we will search for information and inform you of future events.

If interested in participating the Trade Council in Russia will make reservation of the exhibition stand, assist you in the necessary registration and solve the administrative problems.

Other – If you have any other requests, we will be happy to help you fulfil them.

Let us help you become a success on the Russian market.

For more information please contact one of our commercial departments located in:

Moscow at mowamb@um.dk

St. Petersburg at ledgkl@um.dk

“In our attempt to get into closer contact with some of the leading biotech institutes in Russia we realised that it was very difficult without having the right contacts. Eventually we decided to ask The Trade Council in Russia for their assistance in terms of getting into contact with the Russian Biotech institutes, and to meet with its directors in order to explore and start collaboration. This initiative proved to be a good decision and we obtained the progress we wanted, we were granted access to the relevant institutes and had meetings in Russia. Today we are still exploring the opportunities for further mutual beneficial cooperation with the Trade Council in Russia”.

- Henrik Bisgård-Frantzen, Senior Director, Novozymes A/S

Компания SELCO Лидер в течении 26 лет на рынке производства и поставки электронных реле и микропроцессорного оборудование для управления, контроля и защиты генераторов при параллельной работе.Продукция применяется для генераторов, установленных на судах, в наземных электростанциях, где одним из требований может быть работа в параллель с энергосистемой. SELCO производит широкий спектр блоков сигнализации, индикации и программного обеспечения для применения в морских и наземных (добывающая и обрабатывающая промышленность) установках. Вся продукция проходит тщательное тестирование и контроль, что обеспечивает высокую надежность и продолжительную бесперебойную работу на местах.

www.SELCO.com / contact: anra@selco.com

СИСТЕМЫ СИГНАЛИЗАЦИИ, ИНДИКАЦИИ, КОНТРОЛЯ И ЗАЩИТЫ

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VITUSVitus is the Trade Council’s new programme for small and medium-sized companies with a particularly high and global growth potential.

The core of Vitus is solid preparation and a ruthless execution in an intensive tandem between the company and an export advisor situated in the chosen export market and with a long experience in sales. The export advisor both helps develop your export strategy and to complete it in practice.

The goal is clear: A new export success within 9 months!

RoadmapTwice a year the programme is initiated with a team of 10 Danish companies. The programme consists of two main modules: 2 months of Go-To-Market strategy and 7 months of execution.

During the first module an export advisor appointed by the Trade Council will visit the company to gain in depth knowledge of the company. Afterwards the company and the advisor will participate in three workshops where they will work together to identify aspects of relevance for the Go-To-Market strategy for the targeted market. Focus area from the workshops will be customer and competitor analysis, price-setting, distribution as well as sales strategy and establishment of network and local business partners. Finally the company will have the chance to test their Go-To-Market strategy on an expert panel composed of experienced successful businessmen.

During the second module of the programme the Go-To-Market strategy will be implemented in close collaboration between the company and the export advisor. In total, 265 hours are offered throughout the programme.

Bringing the programme to an official close, an annual event will be held with award presentation.

Benefits•Formulate Go-To-Market strategy for a chosen

market•Initiate sales activity in new market within nine

months•Secure access to knowhow and relationship

building both internationally and in Denmark•Obtain unique branding value and marketing

platform both internationally and in Denmark

Application and expensesTo be considered as participant in the programme a distinction is made between an objective definition of applicable companies for the programme and more qualitative criteria used for selecting the ten most promising export companies whom are offered to participate in the programme.

Objective criteria: In order for your company to be considered as participant of the programme you must have an annual turnover of maximum DKK 100 million, between 5-100 employees, and must already be operating in at least one export market. However, the company must not have exports to the market for which it is submitting the programme application.

Qualitative criteria: In the selection process, emphasis will also be placed on whether the company have a particularly high growth potential, posses the necessary commitment within the management group and have the sufficient financing and competences to expand globally.

The total price for participation will be DKK 74,200 (excl. Accommodation and transport expenses). The companies will receive a subsidy of 65 per cent for the consultancy hours. The companies will thus not be invoiced for the coaches and facilities at the workshops.

To get more information about Vitus please visit the webpage www.vitus.um.dk or call the programme secretary at +45 70 22 00 76.

Meat protein for meat products – that makes sense!

Hobrovej 1 · 9632 Møldrup · DenmarkPhone: +45 8669 2033 · Fax: +45 8669 1273

email: scanflavour@scanflavour.dk · www.scanflavour.dk27

Join the Club

The Danish Business Club in MoscowThe Danish Business Club in Moscow was established in 1999 with the purpose of promoting Danish business interests in Russia.

The members are both resident and non-resident Danish and Russian people engaged in business, professional or cultural activities in Russia. The club also embrace companies with Russian trading activities whether they are Danish or partly owned Danish entities.

The Danish Business Club is an excellent opportunity to establish a network with peers and partners around your business. We arrange regular meetings of both social and business oriented purpose.

For more information about the club and membership please consult the website of the Danish Business Club at: www.dbcmoscow.camp9.org

The Energy & Environment ClubThe Energy and Environment Club was established by The Trade Council in 2008, in order represent the Danish interests and conditions for working in Russia, and paving easier access to Russia and the energy and environment sector through seminars, meetings, road shows, and round tables with Russian high-level decision makers.

Since 2008, the club has developed its strengths and is a vital asset to both newcomers and companies which want to expand their activities on the Russian market.

A main purpose is to help Danish companies to approach the right business areas and the right people with success. The Energy and Environment Club arranges meetings and seminars on political level and establishes contact between companies.

The Energy and Environment Club has arranged

seminars on credits and guarantees which are important factors for long term investments in the energy sector. Club meetings with potential partners are always a success and so are the round table events with Russian authorities.

The establishment of a working group on energy efficiency with the Russian Ministry of Energy and the establishment of a working group on the development of the innovation hub outside Moscow in Skolkovo are also important activities.

Newsletters and periodical news updates are sources of vital information, provided to the companies. It is a working forum, where companies with an interest in the Russian energy and environment sector can establish new business connections, receive personal counselling from the Trade Council and be informed of projects that could be of interest to the specific company.

2011 will be an outstanding year, and the Energy & Environment Club has already prepared a number of important activities, with the meeting in the Danish Russian Intergovernmental Council on March 14th-15th, the Russian Prime Minister, Vladimir Putin’s visit to Denmark in March/April, and the official state visit of H.M the Queen of Denmark in September.

Oticon Hearing Instruments available throughout RussiaOticon Representative Office

Luzhnetskaya nab. 2/4Bld. 21 office 206119270 Moscow

Phone: +7 (495) 9266832 - +7 (916) 2453638Fax: +7 (495) 9266832

Visit our website at: www.oticon.com.ru

People are our starting point

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Members of Energy & Environment Club Russia

Green Capacity Participants

Health Network RussiaThe Health Network Russia is a new initiative from The Ministry of Foreign Affairs of Denmark, the Trade Council in Russia, developed in dialogue with Novo Nordisk and Coloplast and in co-operation with the Danish Ministry of Health, Danish Regions and Region Central Denmark.

The Russian health care sector is projected to grow 3-6 times as fast as the growth in GDP the next five years. The Russian Government has acknowledged the need for modernising the health care sector and therefore prioritising the health care sector in their policy targets. Since the Danish health care model is very attractive and respected outside of Denmark, there is more than ever a reason for Danish pharmaceutical companies to focus on Russia.

Russia can be a challenging market because of their protectionism and bureaucracy. This network will help you overcome some of the worst obstacles by varies services.

The network’s focus is its members, and is always acting in their best interest. Therefore a lot of

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activities are planned during the year to increase knowledge about Danish pharmaceutical companies. Some of the most popular activities are bilateral events, roundtables with the Ministry of Health, road shows and individual projects.

Companies eligible to become members of the Health Network Russia are Danish companies with a recognised international brand in the health care sector and either a proven track record in Russia or a clear strategy on market entry in Russia.

We are looking forward to welcoming new members and mutual beneficial cooperation.

For more information please contact Peter Mygind Rasmussen, pemyra@um.dk

The Technology Club in RussiaThe Technology Club in Russia is organized by the Ministry of Foreign Affairs of Denmark, The Trade Council in Russia. The Club is initiated in order to serve its members from Danish companies - with interest in the Russian market - producing or servicing hardware, Telco, Machinery, IT, Defence, Intel & Security, BioTech, Media and Entertainment. The club makes the Russian market more accessible to its members.

The Club is a working forum, where its members establish new business connections, receive personal counselling from the Trade Council and are informed of specific projects in Russia. Besides that the Trade Council is sharing its contacts and marked knowledge with members of the club.

As a member you receive:

•Individual counselling from advisors of the Trade Council in Russia

•Invitations and information about sales trips and fairs around Russia, where the Trade Council is attending

•Invitations to Meetings & Roundtables with relevant decision makers in Russian regions

•Overview of planned projects through meetings with relevant decision makers and institutions

•Four technology newsletters. The Newsletters contain information about main news, trends, developments, changed regulations, investment opportunities and selected pieces of nice to know information within the technology area. The newsletter is always adapted to the current members of the club. Upon request of its members a research topic can be included.

For more information about The Technology Club in Russia please contact Peter Thomsen, peteth@um.dk

The latest initiative from the Energy and Environment Club is the Green Capacity campaign. Green Capacity is a branding concept, focused on associating green and sustainable technologies with Denmark and Danish companies. The campaign consists of information material such as brochures on the four sectors; housing, district heating, water and wastewater, and industry, informative leaflets for the citizens, the web page www.greencapacity.ru with movies on Denmark, energy news, and other relevant material. The information material is prepared as a prelude to Energy and Environment Club activities.

For more information on the Energy and Environment Club or Green Capacity, please contact Klaus Sørensen, klasor@um.dk

Contacts

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Please do not hesitate to contact any of the following, we will be happy to help.

Agro & FoodPoul Jacob ErikstrupMinister Counsellorpjerik@um.dk

Energy and EnvironnmentKlaus SørensenCommercial Counsellorklasor@um.dk

HealthSvetlana Chernova

Senior Commercial Consultantsveche@um.dk

MachineryMarina PiotrovskayaSenior Commercial Advisormarpio@um.dk

TechnologyPeter K. ThomsenCommercial Counsellorpeteth@um.dk

Policy & ServicesJens Thomsen

Minister Counsellor and Regional Coordinatorentho@um.dk

RetailPeter Mygind Rasmussen

Commercial Attaché

pemyra@um.dk

Moscowmowamb@um.dk

St. Petersburg ledgkl@um.dk

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