German investments into russia osint

Russia says foreign investment in Russia reaches $220 bln

14:58 30/05/2008

MOSCOW, May 30 (RIA Novosti) - Accumulated foreign investment in Russia has exceeded $220 billion, a Russian deputy prime minister said at an international economic conference in Moscow on Friday.

"We expect more foreign investors to come to Russia. So far accumulated foreign investment has exceeded $220 billion," Alexander Zhukov said.

Transport, mineral production, power generation, the social sector and the real estate market have been the major areas for investment, Zhukov said.

The official acknowledged that a lack of protection for intellectual property rights has hampered investment in Russian companies.

He also said investment in infrastructure development in Russia was expected to top $1 trillion by 2020.

"We expect investment in the construction of roads, railroads and airports will exceed $1 trillion," Zhukov said, describing the sums as "huge."

He also said proposals for implementing large-scale projects in infrastructure development were included in a long-term socio-economic development plan up to 2020 which is due to be approved by the end of this summer.

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http://www.cnbc.com/id/41658829

MOSCOW, Feb 18 (Reuters) - NLMK: * NLMK (LSE: NLMK) has approved the construction of a pelletizing plant at stoilensky with a capacity of 6 million tonnes of iron ore pellets per year. * Investments into Stoilensky's operating and infrastructure facilities over 2011-2014 will total some 39 billion roubles * During the Stoilensky's pellet plant construction, supplies of iron ore pellets to Novolipetsk will be made under long-term contracts between NLMK and Metalloinvest Holding * The project will be jointly executed with Siemens VAI/Outotec, a German-Finnish consortium, responsible for supplying the required equipment and technologies, as well as rendering other construction-related services (Moscow Newsroom, + 7 495 775 12 42, [e-mail]) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

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http://www.bmwi.de/English/Navigation/Press/press-releases,did=361492.html

Press Release

2010-9-24

28th session of the German-Russian Strategic Working Group on Economic and Financial Affairs

The 28th session of the German-Russian Strategic Working Group on Economic and Financial Affairs (SWG) took place today in Nizhny Novgorod, a Russian major economic centre on the mid-Volga.

The Working Group was headed by Dr. Bernd Pfaffenbach, State Secretary at the Federal Ministry of Economics and Technology, and Andrey Slepnev, Deputy Economic Development Minister of the Russian Federation. It has been given a permanent mandate by the German Federal Chancellor and the President of the Russian Federation.

The SWG, as the main governing body for bilateral economic relations, gives active assistance to joint projects, discusses measures to improve the environment for bilateral economic cooperation and helps to shape the strategic prospects of German-Russian economic relations. Business representatives of both countries make a significant contribution here. Thus Prof. Dr. Klaus Mangold, Head of the Committee on Eastern European Economic Relations, and Mr. Gert-Michael Raabe, Head of the East and Central Europe Association (OMV), took part in the session. Russian business was represented by Mr. Alexey Mordashov, Vice-President of the Russian Union of Industrialists and Entrepreneurs (RSPP).

Today's session concentrated on finding new ways for Germany and Russia to give a fresh impetus to their economic cooperation, in particular to cooperation in future-oriented industries.

State Secretary Dr. Pfaffenbach said: "I am confident that our countries will overcome the economic crisis and that the exchange of goods between Germany and Russia and our overall economic cooperation are going to develop dynamically again."

Apart from infrastructure development, particular interest is focused on energy efficiency, the health care industry, information and telecommunications technology.

In order to create an appropriate environment, the removal of  barriers to trade and the promotion of small and medium-sized enterprises headed the agenda of the SWG. This will help to release the potential of highly innovative German medium-sized companies engaging in plans to modernize the Russian economy.

After a difficult year in 2009 business transactions between Germany and Russia have revived considerably in 2010. The volume of bilateral foreign trade in the 1st half of 2010 was 29 % higher than for the same period last year.

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http://www.bmwi.de/English/Navigation/Press/press-releases,did=353050.html
Press Release

2010-7-15

Federal Minister Brüderle signs German-Russian declaration on co-operation in the energy efficiency sector

Within the framework of the 12th German-Russian Intergovernmental Consultations in Yekaterinburg, Federal Minister of Economics and Technology Rainer Brüderle today co-chaired a Russian-German forum on energy efficiency together with Russian Energy Minister Sergei Shmatko. On this occasion, the ministers also signed a joint Russian-German declaration on intensified co-operation in the energy efficiency sector. The declaration contains a list of priority projects to enhance energy efficiency in Russia.

Minister Brüderle stated: "The joint Russian-German Declaration on co-operation in the energy efficiency sector represents another important step in the intensification of our co-operation with Russia in the field of energy. The concrete projects outlined in the joint declaration will contribute to the advancement of energy-efficient modernisation processes in Russia with the help of German technology companies. Both sides can benefit tremendously from this collaboration."

There is great potential in Russia for increasing energy efficiency in buildings, in power grid infrastructure and in industry. According to the Russian government, Russia has set the target of achieving an energy savings level of roughly 40% by 2020 through the more efficient use of energy. Increased energy efficiency in Russia will enable Russia to boost its exports of oil and gas and thereby enhance Europe's security of supply. Furthermore, greater energy efficiency will make an important contribution to climate protection.

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http://yourbusinessinrussia.blogspot.com/2010/11/german-companies-in-russian-market.html

Monday, November 8, 2010

German Companies In The Russian Market

The classic way to develop the Russian market by German firms is as follows: first sales through representatives or through their own trading partners. If these transactions are successful, German firms establish their representative offices in Russia, in order to serve customers better. 

German companies usually take a decision to invest or establish manufacturing only in a few years in the Russian market. 

German medium-sized businesses today are represented in Russia mainly in the production of food and construction materials in the construction industry. 


Among the advantages of the Russian market are: first of all, it is every year increasing purchasing power of the Russian population, which is evident from the impressive data on the growth of retail turnover. Revenues are growing three times faster than the supply of goods and services. The Russian economy is still unable to meet this growing demand. 
Second, continued economic growth leads to an increasing demand for investment goods. Since the degree of deterioration of Russian machinery and equipment is high, it should be updated. Therefore, almost half of Russian imports are machinery and equipment, one third of which is German production.
And, last but not the least: political stability in Russia  is also an important argument for investment in Russian market. 

Among the most important and interesting projects can be called an assembly production of BMW Group in the Kaliningrad region, a joint venture with DaimlerChrysler to produce agricultural machinery, the project company Bayer for the production of rubber and construction of chemical factory in St. Petersburg , the construction of chemical plant for methanol production in Arkhangelsk with the participation of MAN Ferrostaal, as well as participation of BASF (through a subsidiary - the company Wintershall) in projects for exploration and production of oil and natural gas. Store network of wholesale and retail company Metro, the German retail branch Swedish company IKEA, as well as the company's AVA (Edeka), which begins building its own network of hypermarkets «Marktkauf". 

It is noteworthy that in recent years, the Germans began to invest actively in the information sphere, realizing that most effectively exploit the potential of Russian market of programming can not by inviting specialists to work in Germany, and the execution of orders directly to German companies in Russia and the creation of joint companies. Good examples of such cooperation could be joint projects in Zelenograd, St. Petersburg and Novosibirsk. Unfortunately, in absolute terms such investments remains slow. 

If we talk about regional cooperation German investors prefer regions with political stability, good economic potential, rich labor and natural resources, with a constructive attitude toward foreign investors and having access to transportation and other infrastructure. Therefore, the highest priority for the region of the Russian Center and the North-west. Considerable interest has been shown also to the Volga and Ural regions. 

In recent years, not only Moscow and St. Petersburg, but also other Russian regions are becoming more attractive for investments of German investors.  In other words, more than half the funds were sent to other Russian regions.

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BMW's Russia factory opens in Kaliningrad

Sun, 1999-10-24 13:00 — admin

Issue Number: 

35

Author: 

Sam Green Published: 

1999-10-25

KALININGRAD - German carmaker BMW opened its first Russian factory Friday in a city that earlier this century was the capital of German East Prussia.

The $69 million plant, intended to churn out 900 automobiles a year, actually began limited production in August but was officially opened last week in this sliver of Baltic Russia stranded between Poland and Lithuania.

"For BMW, the opening of this new venture in Kaliningrad is not simply the beginning of production of BMW and Land Rover automobiles in Russia," Heinrich Heitmann, one of BMW's managers, said.

"This event is a witness of our belief in the future of Russia. With our work, we are setting an example for other investors and are showing how it is possible to achieve success quickly in this country."

However, in picking a location almost not in "this country," BMW assured itself a slew of benefits. Kaliningrad and the surrounding region constitute a "special economic zone," in which manufacturers pay few or no duties and taxes -- and can more easily transfer profits abroad.

"The choice of the Kaliningrad site was not due solely to the prospect," said Luder Paysen, BMW's regional director of sales. "The region is located in one of the only special economic zones guaranteed by Russian law and therefore offers substantial and clear benefits."

It took BMW and its local partner, Avtotor, only seven months to get the plant ready for production. In the process, they shipped in virtually all the assembly line's parts and brought in engineers and experts to make sure the facility runs smoothly. With such a short deadline, some thought they would never make it.

"This April, when we'd just signed the cooperation agreement with BMW, many didn't believe our joint project could be realized, and especially not this quickly," Avtotor Chairman Vladimir Shcherbakov said. "I'm happy all the pessimistic forecasts for our program didn't come true."

The plant will produce a total of about 900 BMW 523i and 528i models and Land Rover Defenders, but has capacity for more than 10,000, officials said.

The three models are the company's best sellers in Russia. A total of 4,500 were sold in Russia over the past five years. Of the cars produced at the plant, all are intended for sale in Russia. One hundred of them will be bought by the Russian government, Paysen said.

The plant will open with 300 employees. It is intended to grow to 500 in the near term, officials said.

The territory of Kaliningrad was known until the end of World War II as East Prussia, and its capital was Koenigsberg - also the birthplace of the famous philosopher, Immanuel Kant.

Following the defeat of Nazi Germany, it was renamed Kaliningrad and as an important Soviet naval base. It remained a closed region until the fall of the Soviet Union.

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http://www.telegraph.co.uk/sponsored/russianow/5215503/Special-Economic-Zones-Foreign-direct-investment-boosts-Russian-economy.html

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http://news.xin.msn.com/en/business/article.aspx?cp-documentid=4631468