Number 02.1, February’12
Embassy of the Kingdom of the Netherlands
Economic and Commercial Section
Kalashny pereulok 6
115127 Moscow, Russia
Tel. + 7 495 797 2922
Fax + 7 495 797 2907
E-mail: [email protected]
Embassy of the Kingdom of the Netherlands in Moscow publishes twice a month economic newsletter. The
newsletter offers an overview of Russian economic news, news of Turkmenistan and Uzbekistan of the previous
month. The Embassy intends to distribute this newsletter as widely as possible among Dutch institutions, companies
and persons via or from The Netherlands. Those interested in receiving it are requested to contact the Embassy via
phone/ fax or e-mail. The newsletter is distributed by e-mail. The newsletter summarises economic news from
various publications and aims at collecting as accurate data as possible. The Embassy cannot be held responsible for
any mistakes or omissions in the information sheets provided.
Putin promises bright future to investors
PM Putin spoke about perspectives of the global and Russian economy at
the conference 'Russia-2012'. The global economy will change significantly
within the next decade and Russia has a good potential to become one of
the leaders of global economic development. In order to achieve this goal
Russia needs to modernize its economy and improve the investment
climate. Russia is one of the top five countries with the highest potential to
attract foreign investment, but the country is ranked at only 120th place for
doing business. Russia will get into the first 20 places in the Doing Business
ranking within the next few years, Putin promised. The timeline for connecting to electricity grid will be
cut by four times, the costs of tax accounting will be reduced by three times, the timeline for receiving a
construction permit – by five times and the timeline for crossing a border by truck – by seven times.
Putin also promised to establish the post of ombudsman for the protection of the rights of entrepreneurs.
Russian state companies to increase spending on innovation 60% in 2013
This year, Russian state-owned companies will spend RUR950bn ($31.3bn, or €23.8bn) on innovation;
in 2013, this sum will reach RUR1.5tn ($49.4bn, or €37.5bn).
Unemployment in Russia totals 6.3% of workforce in January
The number of unemployed in Russia in January 2012 totalled 6.3% of the workforce,
Healthcare and Social Development Minister Tatyana Golikova said.The figure has
decreased 33% from the peak of the crisis seen in January-February 2009, she said.
Government reserves $363mn for young doctors support programme
The Russian Federal Mandatory Medical Insurance Fund has reserved RUR11bn ($363mn, or €275mn)
for a programme of support to young doctors who decide to go working in rural areas, Healthcare and
Social Development Minister Tatyana Golikova said. She recalled the terms of joining the programme: a
qualified doctor aged under 35 years will receive a resettlement grant of RUR1mn ($33,000, or
€25,000) if he or she goes working in a rural area. The doctors are expected to stay in the area for five
years; if they decide to leave earlier, they will have to repay part of the sum depending on how much
time they have worked there.
Trade surplus growth
Russia's trade surplus grew by about 25% to $210.7 billion last year, with exports growing to $516 billion
from $397 billion a year earlier, while imports increased to $305.3 billion from $228.9 billion, according to
the Federal Customs Service.
Transportation scheme devised to connect Spartak, Dynamo, CSKA stadiums in Moscow
The Moscow authorities plan to connect the Spartak and CSKA stadiums, which
are being built in the northwest and north of the capital, and the Dynamo stadium
in Leningradsky Prospekt, which is undergoing reconstruction, in a single
transportation scheme. The scheme may be needed to organise traffic during the
FIFA World Cup that Moscow will host in 2018.
Kaluga region reports highest consolidated budget revenue growth in central Russia
In 2011, consolidated budget revenue in the Kaluga Region located 100 km (62 miles) southwest of
Moscow increased by over RUR2.7bn ($91mn, or €68.5mn) from 2010, when the region demonstrated
its best performance ever thanks to proactive investment development. Last year, income tax revenue
rose by more than 13%, which is the best result in the Central Federal District.
Russia suspends livestock imports from several European countries
Russia will suspend imports of livestock from a number of European countries because of an outbreak of
the Schmallenberg virus starting from 1 February 2012. The Russian veterinary
and phytosanitary watchdog Rosselkhoznadzor said in a statement on Tuesday
that temporary restrictions would be imposed on the imports of cattle and its
genetic material from Germany, the Netherlands, Belgium and France and those of
sheep and goats and their genetic material from France. Rosselkhoznadzor also
confirmed its earlier ban on imports of cattle, sheep and goats from the United
Kingdom and imposed temporary restrictions on imports of genetic material of these animals from the
United Kingdom.
Russia bans import of some Ukrainian cheeses
On February 7, the Russian consumer rights authority banned the import of cheese from
several Ukrainian suppliers who have taken a non-constructive stand regarding the dispute
over the quality of their output, Russian chief sanitary inspector Gennady Onishchenko
said. The more samples of Ukrainian cheese are examined, the more “negative findings”
are reported, the official said.
Government expands its role in electricity sector
FAS (Federal Anti-monopoly Service) has approved a planned purchase by the state-owned electricity
corporation RAO UES of the private electricity-generation firm Bashkirenergo owned by AFK Systema.
Experts warn about the actual revision of the reform in the power sector. The state is regaining lost
ground in the sector. As a result of its recent acquisitions in the sector, RAO UES now controls 23
gigawatts of power in the country (plus 6 gigawatts abroad). Gazprom controls 38 gigawatts of power in
Generating company TGC-14 invests over $22mn in trans-Baikal heat system
In 2011, territorial generating company TGC-14 invested RUR681mn ($22.5mn, or
€17.2mn) in heat supply in the Trans-Baikal Territory. The figure was announced at a
meeting held to discuss the performance of the territory’s construction industry last
year. Investment in construction went up 15.6%, while prices of real estate grew 10%
on average, said Vasily Borodin, the regional minister of territorial development. To
date, TGC-14 is 83.62% owned by Energopromsbyt, a consortium of Russian Railways
and energy investment company ESN Group.
Gazprom' s gas supplies to Europe normalizing
According to the European Commission, after a short reduction of gas supply to Europe, the situation
with Russian gas supplies to Slovakia, Austria, Hungary, Poland and Greece is now back to normal. Gas
supplies to Germany and Italy are on the rise but the situation in these countries remains difficult.
Gazprom says that, because of the cold weather in Europe, European countries are asking for more gas
than envisaged by their contracts with Gazprom.
Siemens, Transneft establish strategic partnership
Russian oil pipeline operator Transneft and Germany’s Siemens signed a one-year
extendable strategic partnership deal. The agreement was signed in Moscow on
Tuesday by Transneft President Nikolai Tokarev and Dr Dietrich Moeller, president
of Siemens Russia and Central Asia. The document outlines three priority areas for
cooperation including modernisation, development and optimisation of
synchronous and induction motor systems; supply and maintenance of energy equipment; and
automation and safety of technological processes and process management systems.
Engineering competence centre to be set up in Sverdlovsk region
A concept of a mechanical engineering competence centre will be worked out in the Sverdlovsk Region
in the Urals by the end of March. The centre’s key tasks are to seek partners to organise joint machine
tool production lines in the Urals, promote communication between participants, and create a pool of
potential domestic and foreign investors to implement regional industry programmes.
Swedish company plans to locate joint venture in Voronezh
Stockholm-headquartered global industrial group Atlas Copco, specialising in the
manufacturing of drilling equipment, plans to locate its joint venture with mining
machinery producer Rudgormash at the company’s site in the city of Voronezh in
southwest Russia. Atlas Copco’s management decided to expand its construction
equipment production business in Russia, and the company’s representatives
visited Rudgormash to consider possible cooperation.
Lanta Tur’s debt totals $40mn
The total debt that the ailing tour operator Lanta Tur owes to its partners and
clients is estimated at $40mn, or 10% of the company’s turnover. Prime Minister
Vladimir Putin earlier suggested that state-controlled Bank VTB could provide
funds to restore Lanta Tur’s cash flows after it defaulted on its loans. Dmitry
Yanin, chairman of the International Confederation of Consumer Societies in
Moscow, believes the bank is likely to take over Lanta Tur’s business after
helping it repay its loans. Lanta Tur, Russia’s oldest travel operator, halted
operations last weekend leaving thousands of clients stranded abroad.
Housing construction in Russia grows 6.6% in 2011
The amount of new housing turned over to tenants in Russia in 2011 reached 62.3mn sq m, up 6.6%
from 58.4mn sq m in 2010, the federal statistics service reported. In 2010, housing construction fell 2.4%
against 2009.
Russian gold mining up 4.7% in 2011
Last year, Russian gold refineries produced 212.122 metric tons of gold from the ore
supplied by miners, by-products supplied by non-ferrous smelters and scrap. It is 4.7%
more compared to 2010, the Russian Gold Producers Union said in a statement. Gold
mining grew 5% to 185.3 tons, ancillary mining 13.2% to 14.35 tons and secondary
production from scrap and waste, 25.9% to 9.334 tons.
Honda Motors Rus may build assembly plant in Tver region
The possibility of building a Honda assembly plant in the central Russian region was discussed at a
meeting between Tver Governor Andrei Shevelyov and Honda managers.
Over $33mn invested in Krasnodar industry in 2011
Industrial enterprises of the city of Krasnodar in southern Russia invested over
RUR1bn ($33.2mn, or €25.3mn) in production development and upgrade in 2011.
A RUR260mn ($8.6mn, or €6.6mn) investment project to introduce new
technology and upgrade production lines was implemented at the Saturn
producer of solar arrays and storage batteries. Elektrosevkavmontazh, a
company that builds energy facilities and installs power equipment, launched a
RUR700mn ($23.3mn, or €17.8mn) hot dip galvanising line with an annual
capacity of 5,000 metric tons. A metal structures plant was also commissioned in Krasnodar. Russian
Mining and Metallurgical Company invested over RUR2bn ($66.4mn, or €50.7mn) in the project.
Minpromtorg proposes new barriers for imported used cars
The Ministry of Industry and Trade (Minpromtorg) in a report on domestic industry support
after Russia's WTO accession proposes to introduce a tax on scrapping automobiles, and
to replace the transport tax with an ecological tax. The Ministry also proposes to forbid the
use of commercial vehicles, which are older than 15 years, and to subsidise from the
federal budget up to 70% of the price of buses purchased by municipalities. Experts say the
proposed measures are unfavourable for imported used cars.
Privatization of Novorossiysk port
Deputy PM Sechin asked the government to sell its stake in Novorossiysk Sea
Port directly to state-owned oil company Rosneft, bypassing the normal
privatization procedures. In a letter to PM Putin, Sechin argued that a 25%
blocking stake in the port should be transferred directly to Rosneft rather than
auctioned off because of the port's "strategic significance".
Oskol steel plant invests $12mn in environmental protection in 2011
Oskol Electrometallurgical Plant, a unit of Metalloinvest based in the southwest Russian Belgorod
Region, invested over RUR360mn ($12mn, or €9.1mn) in environmental protection measures in 2011.
The plant has started building a closed-loop recirculation system, is modernising its gas purification
facilities to cut dust emission, has improved the treatment of effluent water and recirculation systems,
and also planted more trees and bushes.
Basic Element reorganises agricultural business in Mordovia
The Federal Antitrust Service (FAS) has satisfied the request of Agro Kuban
Resource, a unit of Kuban Agroholding of Oleg Deripaska’s investment vehicle
Basic Element (BasEl), for the right to control two agricultural assets in Mordovia –
VKM-Selkhozprodukt and VKM-Agro. BasEl explained the decision by the
establishment of a new agrarian division in Mordovia, a republic in central
European Russia. Its immediate plans stipulate tripling the cultivated area to 30,000
ha (74,074 acres) and developing beef cattle breeding.
Modernisation of bread baking plant completed in Altai
A modernised bread baking plant has started operation in Aleysk, a city in the Altai
Territory in southwest Siberia. The facility was modernised by its new owner in the
framework of a RUR80mn ($2.6mn, or €2mn) investment project. The plant has been
equipped with energy efficient German equipment and is to produce 20 bread products.
Administration of Orel region approves meat processing programme
The administration of the central Russian Orel Region has approved a meat processing programme for
the region’s Pork Cluster in 2012-2014. Its financing will total RUR4.89bn ($160.9mn, or €122.3mn).
The facilities to be built under the programme will be included in relevant investment plans for electricity,
water and gas supply and road network development. The programme’s implementation is expected to
increase pork production in the region to 51,000 metric tons by the end of 2014.
North Korea interested in importing foods from Omsk region
A business delegation from North Korea met with colleagues from the Omsk Region’s business
incubator. The North Koreans said their goal is to establish partner relations with the southwest Siberian
region with a view to importing locally produced foodstuffs. The North Korean company is ready to
provide floor space to sell foodstuffs from the Omsk Region in one of the country’s largest supermarkets.
Food security website
The Ministry of Agriculture has allocated RUR100m on the development of a unified information system
on food security in Russia in the Internet. The system will contain information on crop and grain
production forecasts, on demand for food in all the Russian regions, and the country's food balance
Turkey farm to be built in Voronezh region
There are plans to build a turkey farm in the Ramon District of the southwest Russian
Voronezh Region. Overall investment will total RUR1.6bn ($53.2mn, or €40.6mn). The
project is to be implemented in 2012-2021.
Russian market moves up
The MICEX index grew by 25.33 points (1.67%) against the previous closing, settling at 1539.36 points.
The RTS index was up 22.27 points (1.41%) to 1599.56 points.
Turnover on the MICEX-RTS as of 6.45 p.m. Moscow time was RUR60.8bn. As many as 62% of stocks
traded on the main floor posted gains and 35% losses.
The growth was led by WGC-1 (up 7.76%), Seligdar (up 7.57%), WGC-2 (up 6.68%), VTGK (TGC-7, up
6.43%) and FGC UES (up 5.7%).
Kamaz fell 3.55%, Irkutskenergo 2.27%, IDGC of the Urals 2.14% and WGC-31.54%.
Turkmenistan increases oil and gas production
In the first month of 2012, the production of oil and gas condensate in Turkmenistan amounted to 114.4
percent and production of natural gas totaled 118.2 percent compared to January last year. At the same
time, exports of natural gas increased by 28.5 percent.
New village to appear in Akhal province of Turkmenistan in four years
A new, modern village will be erected in the territory of Yasmansalyk gengeshlik of
Rukhabat district of Akhal province of Turkmenistan. In accordance with the Master
Plan, the new village will occupy 400 hectares in the northern part of the Karakum
President sharply criticizes quality of construction of houses in Ashgabat
During his inspection tour of the capital city, President of Turkmenistan Gurbanguly
Berdimuhamedov expressed dissatisfaction with the work of Deputy Prime Minister
Deryageldy Orazov and Governor of Ashgabat Shamuhammet Durdylyev. The head
of state said they pay insufficient attention to social facilities being erected in the city.
Construction of new water reservoir begins in northern region of
Construction of a new water reservoir kicked off in Kunya Urgench district of
Dashoguz province of Turkmenistan. This facility is expected to contribute to the
further improvement of water supply to the population and planted areas in the
Turkmenistan to start work for improving energy efficiency in residential buildings
In the next five years Turkmenistan will focus on reducing greenhouse gas emissions by improving
energy management and reducing energy consumption in the residential sector. This work will be
supported by the United Nations Development Programme and the Global Environment Facility as part
of the joint project “Improving Energy Efficiency in Residential Buildings of Turkmenistan” until 2015
23.02- 26.02.2012 DOMEXPO - 2012
26th International Exhibition of Russian and Foreign Real Estate
28.02- 02.03.2012 "APPAREL TEXTILE SALON - 2012" within
International Salon of Fabrics and Accessories for Garment Production
28.02- 02.03.2012 "HOME TEXTILE SALON - 2012" within Federal wholesale fair "TEXTILLEGPROM"
International Salon of Decorative Fabrics, Home Textiles and Interior Furnishings
28.02 02.03.2012 CJF - CHILDREN'S FASHION - 2012
International Exhibition "Children's and Youth's Fashion. Clothes for Expectant Mothers"
28.02- 01.03.2012 COATINGS AND SURFACE TREATMENT - 2012
9th International Specialized Exhibition and Conference
12.03- 15.03.2012 GARDENTOOL - 2012
6th International Specialized Exhibition of Tools for Gardens and Parks
12.03- 15.03.2012 MATTEX - 2012
International Specialized Exhibition of Equipment for Heating, Water, Gas Supply and Canalization
12.03- 14.03.2012 INLEGMASH - 2012
13th International Exhibition "Equipment and Production Processes in Light Industry"
12.03- 15.03.2012 INTERLAKOKRASKA - 2012
16th International Specialized Exhibition of Varnishes and Paints, 6th International Salon "Surface
Treatment. Corrosion Protection", Conference, Contest
12.03- 15.03.2012 WORLD OF CLIMATE - 2012
8th International Specialized Exhibition of Climate Equipment
13.03- 16.03.2012 DAIRY AND MEAT INDUSTRY - 2012
International Exhibition
14.03- 16.03.2012 INTERNATIONAL FAST FOOD FAIR (IFFF) - 2012
International Exhibition of Food, Beverages and Equipment for the Fast Food Industry
14.03- 16.03.2012 CHILDHOOD - 2012
International Specialized Exhibition of Children's Goods
International Specialized Exhibition of Utensils, Household Goods, Housewares, Interior Items
20.03- 25.03.2012 MOSCOW BOAT SHOW - 2012
5th International Exhibition of Boats and Yachts
Moscow, Expocentre
MITT is Russia’s leading and largest travel exhibition. With over 3,000 participating companies and 185
destinations, it is the key meeting place for the industry and an opportunity to catch up with colleagues
and clients. In addition, it enables participants to increase
awareness of their destination, gain a real feel for the
Russian travel market and gauge demand for their
MITT is officially supported by the following organisations:
•Ministry of Sport, Tourism and Youth Policy of the RF
•The Council of the Federation
•The State Duma or the RF
•The Russian Union of Tourism Industry
•The Government of Moscow
Contact Ekaterina Lakhtikova, Economic Policy Advisor of the
Embassy of the Kingdom of the Netherlands in Moscow, if you
have comments on the content of the bulletin at:
+7 (495) 797-2922
Email: [email protected]

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