16 - 20 February 2015 Moscow, St Petersburg & Yekaterinburg
Transcription
16 - 20 February 2015 Moscow, St Petersburg & Yekaterinburg
16 - 20 February 2015 Moscow & St Petersburg 16 - 20 February 2015 Moscow, St Petersburg & Yekaterinburg Russia is currently in the news due to the EU sanctions regarding elements of energy and finance. In return Russia has implemented sanctions against sub-sectors linked to food. Despite these issues, Russia remains an important trading partner for the UK. The UK exported £7.6 billion of goods and services to Russia in 2013 and it’s forecasted to be the biggest consumer market in Europe by 2020. There remains a strong appetite for western products and services across a number of sectors which remain unaffected. Due to the sheer size of the country, demand varies quite significantly from regions, and a common view is that Moscow is Russia, which it definitely isn’t. But where do you start? This is a vast market, with immense potential. But given its size, diversity and the fierce competition in the major cities - a clear and focussed market entry strategy is needed – you can’t do it all. Participation in a sponsored Access Russia Market Visit is an excellent method for further research and to develop your market potential or share. Market Opportunities: Advanced engineering| biotechnology & pharmaceuticals| chemicals| consumer goods | education | energy | experience economy |financial & legal services | telecommunications |World Cup 2018. Benefits of an Access Russia Market Visit: Market Visit Itinerary We want to maximise your time in Russia, and provide you with plenty of opportunities to meet your existing and new contacts, hence we are recommending a multi-city programme. This is yet to be finalised – but the following itinerary is to give you an idea of options. Example Itinerary th Sunday, 15 February, UK/St Petersburg Fly out to St Petersburg th Monday, 16 February, St Petersburg AM: Briefing at Consul General or at hotel by CG Team PM: Free th Tuesday, 17 February, St Petersburg AM: Free/visit UK company based in St Petersburg PM: Sapsan Train to Moscow th Wednesday 18 February, Moscow AM: Free PM: Dinner/briefing with Embassy Option 1 th Thursday 19 February, Moscow An Access Russia sponsored Market Visit is designed to provide NE Companies with greater market support access; minimise risk and are excellent value for money. It is an efficient and effective method for companies visiting Russia. It can greatly facilitate the targeting of opportunities backed by pre-visit market research; provide easier routes into market including soft landings for JVs and partnership opportunities. Features include Financial contribution of £1000 for eligible companies Itinerary schedule to maximise visit opportunities with flexibility & options Security of visiting as part of an official UK group Opportunity for peer to peer support & intelligence sharing between companies AM: Free PM: Flight to Yekaterinburg Lucrative opportunities beyond Moscow: AM: Free PM: Free Although Moscow is the major commercial centre (especially important for certain sectors); NE companies should not ignore the considerable opportunities available in other cities/regions – St Petersburg, Kaliningrad, Yekaterinburg and east of the Urals, where markets opportunities are greater and commercial costs can be lower. These markets are often also less competitive and the NECC has good relations with HM Consuls in St Petersburg and Yekaterinburg, where there are excellent links into city and state government. Which companies should participate? Those companies who have already identified their products or services have a good potential in Russia and are in the initial stages of researching more market opportunities; refining product/service suitability; and/or wish to meet already identified or new potential partners. th Friday, 20 February, Yekaterinburg AM: Meeting Consul General Team in Yekaterinburg PM: Free th Saturday, 21 February, Yekaterinburg/UK Fly back to UK Or Option 2 th Thursday 19 February, Moscow th Friday, 20 February, Moscow/UK AM: Free PM: Fly back to UK Estimated travel package costs (Depending on options) International flights: Internal Flight: Internal train: Accommodation: Visa: £370.00 - £635.00 £130.00 Moscow - Yekaterinburg £40-£70 Moscow – St Petersburg £600 £240.00 Travel Grant £1,000 for eligible North East companies Please read on for more details on sector market opportunities |city programme itineraries | travel package To register please email: [email protected] Market Opportunities for North East companies in Russia Advanced engineering Russian heavy industry across all manufacturing sub-sectors needs to update management practices production processes manufacturing equipment Over 70% of existing capital assets are estimated to be outdated. Russian demand for new metal-machining equipment alone is valued at $1.5 billion annually. There are opportunities for UK companies to supply: Energy efficient manufacturing technologies and equipment, such as cleaning and recovery solutions and industrial automation solutions for resource management Machine tools and tooling Spare parts and components Advanced materials for manufacturing and assembly UK companies can develop their business in this sector via: Direct supply Joint Ventures (JVs) Taking part in creation and running of engineering centres Joint Research and Development (R&D) Biotechnology and pharmaceuticals: The Russian pharmaceutical market is reported to have grown by 13.5% in 2013 and is valued at about $29 billion. 12% growth is expected for 2014. A Good Manufacturing Practice (AGP) certificate is now a mandatory requirement in Russia during registration of medical products. Russia’s Pharma 2020 strategy aims to increase innovative drug development and domestic manufacturing output. The Russian pharmaceutical sector offers opportunities for UK investment in: Innovative R&D Generic medicines Active Pharmaceutical Ingredient (API) manufacture Chemicals: The Russian chemical industry has developed unevenly. Nearly 80% of Russian chemical production is for low value added products. Higher value added products are mainly imported. There are opportunities for suppliers of high value added chemical products including: Some types of plastics Speciality rubbers Adhesives Sealants Certain cosmetic ingredients Carbon materials In the longer term there is potential for suppliers of technologies and equipment for production of: Petrochemicals Polymers Other high technology chemical products Consumer goods: The consumer goods market in Russia was worth US$597 billion in 2013. It is an important market for fashion houses and global luxury brands with estimated sales of US$57.3 billion in 2013. Russia is the fastest growing market in Europe for food and drink. It offers opportunities in: Premium spirits, beer, and non-alcoholic drinks including premium quality tea High quality confectionary Snacks, jam / preserves Cheese Organic, natural, gluten free and locally sourced food Russia is expected to overtake Germany as Europe’s largest automotive market in 2015. There is strong demand for luxury vehicles and furniture sales are growing steadily with increased demand for: Bespoke furniture Traditional solid wood furniture Luxury furnishings Imports account for 75% of the high end furniture market offering opportunities for UK companies. The Russian pet food and pet care market accounts for over 50% of total sales in eastern Europe. This sector offers a wide range of commercial opportunities for British firms. Education: Russia is in the middle of the biggest reform of higher education in decades. The reforms aim to enhance the international reputation of Russian universities and ensure universities enter the international top 100 ranking. The reforms offer opportunities for UK providers to: Assist in the process of reviewing Russian Higher Education (HE) provision Assist in the design of the new institutions Form partnerships with Russian HE institutions to further boost their international reputation The demand for English language training services and associated products is likely to grow rapidly in the next few years. This is a huge commercial opportunity for the UK. The English component of the Russian national school leaving exam is currently optional. However, in 2020 a foreign language will become mandatory and the vast majority of students will choose English. English is expected to become a university entrance requirement. Energy: Oil and gas - Russia’s oil and gas market is the second largest market in the world. It was valued at $23 to $25 billion in 2012 and is predicted to grow in the next 10 to 15 years. The sector is transitioning from production of hydrocarbons in traditional fields to development of hard-to-recover and offshore reserves. Russia currently imports more than a third of its oil and gas equipment. There is a growing demand for expertise and technologies for extraction of hard to recover and offshore reserves. Nuclear power - The Russian nuclear industry is a world leader. The state atomic energy corporation, Rosatom has orders for 80 units. This includes construction of nuclear plants in India, Bulgaria, Turkey, Armenia, Ukraine, Vietnam, China, Belarus, Czech Republic and Bangladesh. There are opportunities for UK companies to establish a supply chain relationship with Rosatom. Renewable energy - Russia’s vast territory has massive potential for all kinds of renewables. However, Russian interest is growing from a very small base. Russian interest in partnering with overseas companies in the wind, hydro and solar energy sectors is increasing significantly. There are opportunities to supply equipment and expertise. Russia has recently ratified Renewable Energy Source Development Measures (RESDM). This will increase the volume of renewable energy projects in Russia and open up the market to UK providers of both goods and services. Electricity grids - JSC Russian Grids is the largest electricity distribution and transmission grid company in Russia. The company cooperates with major foreign energy companies with the aim of applying modern managerial decisions and advanced techniques to its operations. JSC Russian Grids is moving towards the application of new technologies such as: Automated control systems Smart grids Other systems to improve control and operation Energy efficiency - There are enormous opportunities for improved energy efficiency across all sectors of the Russian economy and the entire chain of energy use. This includes: energy generation distribution final consumption Experience economy Russia offers excellent opportunities for UK firms delivering projects within the museums, heritage and visitor attraction sector. Russia has 2,631 state and private museums with over 80 million visitors every year. The Russian Ministry for Culture aims to increase visitors to 143 million by 2016. Museum developers and curators in Russia require international expertise in: Preparing funding applications Business planning Procurement of innovative exhibition equipment and installations Appointing project teams, including exhibition designers and other museum specialists Delivery of Information and Communications Technology (ICT) solutions There are also opportunities for UK creative companies in: Concept development Master planning Landscape design Interpretative planning Lighting and other visual effects Branding Development of museum/attraction shops with branded products Introduction of interactive elements into content There are opportunities for UK amusement park designers for the design and fit-out of theme parks. Several major projects have been announced recently, including: An ethnographic park under open sky RUSSIA (educational theme park – Russia in miniature) 3 theme parks by DreamWorks 1 theme park by Universal Studios Financial and legal services: Russia’s financial and legal services sector is growing fast. Russia’s banking system is worth around $1.6 trillion. Moscow has ambitious plans to develop as an International Financial Centre. There are opportunities for UK companies in: More efficient banking practices, particularly lending priorities, risk management, data processing and insolvency rules Mergers and Acquisition (M&A) Services Privatisation advice Dispute resolution consultancy International professional certification English law litigation and arbitration expertise There will also be opportunities for UK companies as Russia reforms its insurance and pensions industry which is relatively small. Telecommunications: 2% annual growth is expected in Russia’s communication services market between 2014 and 2016. Russia is Europe’s largest market for mobile phones. Demand for innovative technologies and equipment will be boosted by the: development of Long Term Evolution (LTE) government’s programme to improve communication services in distant regions Traditional telecommunications services will still be in demand for a long time as the network of 44 million fixed lines only covers about 28% of the population. There are opportunities for UK companies in: LTE/4G hardware and technologies technologies aimed at development of Value Added Services (VAS) innovative broadcasting technologies World Cup 2018 Russia will host the 21st FIFA World Cup in 2018, the first World Cup to be held in Russia. The government has developed an infrastructure programme to deliver the project and create a lasting legacy. The designated budget of $20 billion for 2013 to 2018 will be spent on: Design and construction of 12 stadiums 48 training grounds 64 team base camps Broadcasting and media centres Modernisation of airports and transport infrastructure Nearly 40% of the budget will go into building, or renovating multi-purpose football arenas. Opportunities arise in a broad range of sectors including: Design Construction technologies Project management Transport planning Security and access control equipment Sport venue fit-out Pitch management Stadium operations management Venue commercialisation Overlay Fan fests Hospitality UK Trade and Investment (UKTI) publish over 1,000 business opportunities per month across all sectors and over 100 markets. Sign up to receive regular business opportunities alerts. The Export Control Organisation (ECO) issues licences for the export of strategic goods. You must check your goods are meeting legal requirements for export. Contact: mailto:[email protected] for more information on doing business in Russia https://www.gov.uk/government/news/doing-business-in-russia-and-ukraine-sanctions-latest Travel Recommendations International Flight Options: Flight prices are significantly cheaper travelling out 14th February and returning back 21st Februrary. Option 1: Moscow and St Petersburg AF 1559 AF 1464 AF 4899 AF 1158 15th Feb 15th Feb 21st Feb 21st Feb Newcastle - Paris CDG Paris CDG - St Petersburg Moscow Sheremetyevo / Paris CDG Paris CDG / Newcastle 06.25 / 09.15 10.20 / 15.35 10.20 / 12.25 15.30 / 16.15 The cheapest economy fare quoted £ 370.00 Internal Train Travel: Sapsan Trains St Petersburg - Moscow 18th Feb 06.45 / 10.35 13.30 / 18.00 16.30 / 20.40 19.25 / 23.24 Fares vary between £40 - £70 depending on time and availability Option 2: Moscow, St Petersburg & Yekaterinburg AF 1559 AF 1464 SU 1410 AF 4903 AF 4899 AF 1158 15th Feb 15th Feb 19th Feb 21st Feb 21st Feb 21st Feb Newcastle - Paris CDG Paris CDG - St Petersburg Moscow Sheremetyevo - Yekaterinburg Yekaterinburg - Moscow Sheremetyevo Moscow Sheremetyevo / Paris CDG Paris CDG / Newcastle 06.25 / 09.15 10.20 / 15.35 06.55 / 11.20 07.55 / 08.25 10.20 / 12.25 15.30 / 16.15 The cheapest economy fare quoted for the above is: Newcastle to St Petersburg and return from Moscow to Newcastle £635.00 The Cheapest economy fare quoted from Moscow to Yekaterinburg £130 including taxes Recommended Accommodation: Moscow: Mercure Arbat Weekend rates 6900 Rubles per room per night, week rates 8900 Rubles per room per night St Petersburg: Crowne Plaza rates 3090/ 3590 Rubles per room per night (SGL / DBL) Breakfast and VAT included Yekaterinburg: Park Inn Sunday-Thursday rates 4550-5550 Rubles per room per night & Friday-Saturday 4000-5000 Rubles Breakfast and VAT Included Visa Requirements: Business Single entry visa support can be ready in 14 working days and processing at the consulate can be Standard 5 working days Cost approximately: £240.00. We can recommend an agency NECC uses for its Visa requirements. PLEASE NOTE ALL FARES AND PRICES ARE SUBJECT TO AVAILABITLY AT THE TIME OF BOOKING