Commercial News – Novosibirsk, Krasnoyarsk, Omsk, Altai Regions
 

NOVOSIBIRSK

Sberbank to Enter Leasing Market
 
RG Leasing, subsidiary of Sberbank, is opening an office in Novosibirsk. The office will cover Novosibirsk, Tomsk, and Kemerovo regions. The company plans to offer a wide range of services, including leasing of cars, equipment, real estate, etc. The company plans to have portfolio of leasing deals in the amount of US$10-15 million by end of the year. (Source: Commersant-Sibir Newspaper, 04/27/2007)

Project to Construct Transcontinental Truck Line Eurasia - America Via Bering Strait to Be Discussed in Moscow

The conference was conducted in line with the state policy aiming the development of unique natural and resource as well as geopolitical potential of Russia's eastern regions. The transcontinental trunk line could become the key element of the strategy of social and economic development of the country's eastern region and Russia as a whole and an important element of the system of international transport flows providing 3% of the foreign freight turnover of China, Japan, Russia, USA and other developed countries.
 

Seagate to open an Office in Novosibirsk

Seagate company, worldwide leader in hard drive market, plans to open an office in May 2007. The office will cover entire Siberia. In addition, the company plans to open offices in 11 cities of NIS. In Q1 2007, the company sold 1.3 million hard drives in Russia, and plans to sell 6 million hard drives by end of the year.

 
Caterpillar Equipment to Be Made in Novosibirsk

Caterpillar Company (USA) intends to set up production of its equipment on the base of Novosibirsk enterprises. Delegation of the US enterprise, one of the world's leaders in machine building, headed by Director on Production Planning Joseph Rice arrived in Novosibirsk to conduct negotiations on the opportunity of setting up production on the base of Novosibirsk enterprises.

 Loans Attracted for Agribusiness Development

Over RUR300 million (approx. US$11.5 million) of loans were attracted for agribusiness development in Novosibirsk region since the beginning of 2007. In particular, over RUR 42 million (approx. US$1.6 million) of loans were attracted on construction and renovation of cattle-breeding enterprises. Farmers obtained loans in the total amount of over RUR 240 million (US$9.2 million).

KRASNOYARSK

Retail Trade Turnover Increased

In 2006, retail trade turnover amounted RUR 148.7 billion (approx. US$5.7 million), and increased by 9.2 percent compared to that in 2005. (Source: REGNUM agency, 04/18/2007)

USTDA to Provide a Grant to KrasAir

 On April 6, the US Ambassador to Russia William Berns and general director of Krasair, Boris Abramovich, signed an agreement, according to which the United States Development Agency (USTDA) provided a grant to the company. The grant amount is US$500,000. The grant will be used for co-financing a business plan for development of the Krasnoyarsk transportation hub.  (Source: REGNUM agency, 04/09/2007)

Norilsk Nickel's Net Profit Grew by More Than 110 Percent

 GMK 'Norilsk Nickel' OJSC published official data regarding the growth of profits and the value of the company's assets in 4Q 2006. The costs of Norilsk Nickel's assets over the reporting period increased by 16.84 percent to RUR362,587,208 thousand.
 

OMSK

 Residential Housing Construction Develops

In the first quarter of 2007, over 210,000 sq.m. of residential housing space was put to operation in Omsk region. In accordance with the national project “Affordable Housing”, over one million sq.m. of housing space is planned to be put to operation in 2007.

Glass Production Plant to be Built in Omsk

Construction of glass production plant will be launched this summer in Omsk region. Investments into the project are estimated EURO 53 million. The plant will be producing up to 700 million bottles annually.

ALTAI

 Barnaul Asbestos Technical Items Plant Starts Promissory Notes Program worth of RUR100 Million
  
Total volume of pilot promissory note issue is RUR100 million. The promissory notes are to be redeemed in 3 months. Promissory notes are simple discount notes with the yield of 14.8% per annum. Also the plant hopes to launch another promissory note program with the term of redemption of 9 months. The company plans to carry out 2 or 3 promissory note issues. In 2008 it plans to issue bonds to generate the funds for the production capacities development. The next entrant to the financial market could be Barnaul Plant of General Mechanical Rubber Goods Ltd., which was purchased by the owners of Asbestos Technical Items Plant in 2005.

Swedish Company to Participate in National Project

The Governor of Altai region, Alexander Karlin, met with the president of DeLaval company (Sweden) in Russia, Nikolai Timoshenko to discuss potential of cooperation between the company and regional agribusinesses within the framework of the ‘Agribusiness Development” national project .  The company has been working in the region since 2001, and promotes milking equipment used in cattle-breeding farms.

 
Trade with China Boosts

Trade turnover of Altai region with China in 2007 totaled US$38.6 million. Exports amounted US$10.3 million, and imports – US$28.3 million. The region exports mainly timber, non-ferrous metals, and boiling equipment.