#1+ Schweizerische Eidgenossenschaft Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business 16th February 2017 in Lugano Julie Bächtold, Deputy Head, Swiss Business Hub Russial IMPORT SUBSTITUTION AND BUSINESS OPPORTUNITIES IN RUSSIA AND ESPECIALLY IN EKATERINBURG 111 NSAIL 111 111 EQIMIO XPART#2Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business Russia: Business Opportunities Despite of Economic Difficulties Content: 1. Economic Situation in Russia 2. Import Substitution and Business Opportunities 3. Ekaterinburg and Sverdlovsk Region Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia + 2#3Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business Russia: Business Opportunities Despite of Economic Difficulties Content: 1. Economic Situation in Russia 2. Import Substitution and Business Opportunities 3. Ekaterinburg and Sverdlovsk Region Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia + 3#4+ Schweizerische Eidgenossenschaft Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business Economic Figures and Forecast Real GDP growth (% change) Bilateral Trade Switzerland Russia (Mio CHF) 5000 Russia East-central Europe 4500 World 5.0 4000 4.0 3500 3.0 3000 2.0 2500 1.0 2000 0.0 1500 -1.0 1000 -2.0 500 -3.0 0 -4.0 2012 19 14 15 10 17 18 2012 2013 2014 2015 2016 Source: The Economist Intelligence Unit Source: Foreign Trade Statistics Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia Export -Import 4#5Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business Challenges when Entering the Russian Market Instabile nuation Logistics utura Business partner search Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia Scarce information ANDRA ROOF GRELY Cultural idma Frances 5#6Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business Services of the Swiss Business Hub Russia Reports and fact sheets on our Website www.s-ge.com/de/country/Russia (,,Business Guide Russia“, „Russian Business Etiquette“, „Legal Provisions") enabling new basis Russia Legal Provisions Compiled by: SBH Russia Moscow. February 2014 GENERAL REMARKS SWITZERLAND GLOBAL ENTERPRISE Like Switzerland the Russian Federation has three levels of govemment authority: the federal State, the so-called "subjects of the Federation" (republics, regions, etc.) and the municipales (local self-govemment. The Russian Federation has 63 "subjects" including the cities of Moscow and Saint Petersburg cities of national Importance thereamer "Regions"), and apprimately 23,000 municipaites. Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia 6#7Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business Services of the Swiss Business Hub Russia Market overviews (Interviews with experts, product-, competitor-, import- and consumeranalysis, consumerfeedback, store check) SHINDO 6,1% Main imported brands (U SD, %) JET AR 3.7% IKEA AKPO 3.3% 3.3% CATA 5,0% BOSCH 3,1% TRIDIS GORENJE 2.9% FABER ELICA Showroom Subdistributor 5,1% 2.7% [$ 110.8 min ZIGMUND & SHTAN 8.6% KRONA STEEL 14.2% Other 42.0% Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia Internet Shop Kitchen Studio/ Furniture Salon Electronic Supermarket End Consumers 7#8Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business Services of the Swiss Business Hub Russia Business Partner Search Longlist Company name #+ No 1 tific Beauty Academy of Scien- Arnebia Address Post: Russia, 129090, Mos- cow, 2-nd Troitsky, Lane 3 Tel./Fax: +7 (495) 781-66-22 E-mail: [email protected] (For Chernitsina Elena) www.academie.ru Post: 115193 Moscow, Xushnoportovaya street 6/28 Tel: (495) 913-84-97 Fax: (495) 737-32-60 E-mail: [email protected] For Rabinovich www.arnebia.ru Contact person Mrs. Chernitsina Elena Valerievna (Head of Adverstis: ing Department) or Mrs. Kireeva Lada (Assistent) Rabinovich Sergey Alexandrovich, General Director CIS Field of activity Founded in 1995. One of the largest suppliers of professional cos- metics and beauty care equipment in Russia and the Company provides outfit solutions for beauty salons, clinics and fitness studios, consult on business launching and man- agement issues. Distribution of homeo- pathic products, food supplements, vita- mins, cosmetics in- cluding anti-age- cosmetics, skincare products. Most important brand represented Academie Scien- tifique de Beaute (France), Biologische Heil- mittel Heel, Dado Sens Dermo- cosmetics. Bio- turm. «Logona Naturkosmetik». «Sante 3 Naturkosmetik, «Aquabio Balance Cosmetic Group Post: Russia, 119415, Mos- cow, Prospekt Vernadskogo avenue 37, build. 2, office 37- 42 Tel./Fax: +7 (495) 938-93-93, 938 93 75 E-mail: office@janssen- beauty.ru www.janssen-beauty.ru Mrs. Arsenyeva Dina S. (Head of Advertis- ing Department) Distributor ofprofes- sional cosmetics for skin and hair care and cosmeceuticals. Janssen Cos meceuticals (Germany), SO- THYS (France), RENEVE (Mona- co), LA BI- OSTHETIQUE (France), LACREM (Swit- zerland), Dikson Coiffeur (Italy) Shortlist Academy of Scientific Beauty Number of em- ployees 200 Turnover Contact person Elena Kazanova n/a Position Email Address & Telephone Website N/a Nia Legal Form nia n/a Organizational structure Established in Subsidiaries (including nr of medical representatives) Commercial Director E-mail: [email protected] 3, 2-nd Troitskiy pereulok, Moscow, Russia, 129090 Phone/fax: +7 (495) 781-66-22, (495) 781 99 11 www.ankportal.ru ZAO Closed Joint-Stock Company, 100% Russian capital The company is not a subsidiary of the French Academie de Scienifique Beaute The head office in Moscow (all centralized services: finance, marketing, procurement, training center, sale department etc.) and own subsidiaries in Russia, Belarus, Ukraine, Kazakhstan. 1993 20 own branches: 16 in Russia (Saint-Petersburg, Vladivostok, Ekaterin- burg, Irkutsk, Kazan, Krasnodar, Nizhniy Novgorod, Novosibirsk, Perm, Rostov-na-Donu, Samara, Sochi, Tyumen, Ufa, Khabarovsk, Omsk) 4 in the Ukraine and 8 distribution partners in Belarus and Kazakhstan. Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia 8#9Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business Services of the Swiss Business Hub Russia Individual fact finding trip Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia 0000 9#10Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business Services of the Swiss Business Hub Russia Due diligence INN: OKPO: OGRN: OKFS: Registration Data 7714228606 29336011 1027739690516 Private property OKOPF: Limited liability companies Primary registration date: 17/09/2001 Registration date: Deregistration date: 04/12/2002 16/10/2012 Shareholders (source: EGRUL, Russian Register of Juridical Persons) Name Zhuravleva Irina Aleksandrovna Shareholder's Change history Location Last updated in EGRUL: 16/10/2012 Share in charter capi- Share in charter capi- tal, ruble tal, % 15,000 100 Share in charter capi- Name Location tal, ruble Share in charter capital, % Last up dated in EGRUL CHOGO-RI, 000 g Moskva, prosp Budennogo, d 20, korp 1 5,000 33.33 03/12/2002 g Moskva, prosp Budennogo, d KARA-DANIZ, 000 5,000 33.33 03/12/2002 20, karp 1 Shustox Vladimir Nikolaevich Shustox Vladimir Nikolaevich Suslox Valeri Anatolevich Zhuravleva Irina Aleksandrovna Balance Sheet, x1,000 RUB 11,000 73.33 21/03/2011 1,000 6.67 10/03/2011 10,000 66.67 27/01/2011 4,000 26.67 30/07/2012 Name 2005 2006 2007 2008 2009 Assets Capital assets Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia 45 24 20 10#11Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business Russia: Business Opportunities Despite of Economic Difficulties Content: 1. Economic Situation in Russia 2. Import Substitution and Business Opportunities 3. Ekaterinburg and Sverdlovsk Region Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia + 11#12Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Import Substitution History NIVA 2002 100 НО-ШПА 40 мг INO-SPA pravee MDS> Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia sononi aventie Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business ww.epk-stone СПФ-1 5 R T Y H 2014 2016 2 12#13Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business Import Substitution: Sectors affected Machinery ICT Medtech Pharma Light Industry Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia Construction Food&Foodprocessing 13#14Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business Import Substitution: Reports Practical Guideline for legal Framework: http://www.s- ge.com/sites/default/files/censhare_files/swiss-business-hub-russia- practical-guide-import-substitution-russia_14.pdf Practical Guide IMPORT SUBSTITUTION IN RUSSIA Report on Business Opportunities related to the Import Substitution Program to be published soon. Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia 14#15Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business Russia: Business Opportunities Despite of Economic Difficulties Content: 1. Economic Situation in Russia 2. Import Substitution and Business Opportunities 3. Ekaterinburg and Sverdlovsk Region Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia + 15#16Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE Ekaterinburg and Sverdlovsk Region . Ekaterinburg is the fourth-largest city in Russia. • Execution of the Tsar family after the bolshevist revolution. enabling new business • • During World War II, many state technical institutions and whole factories were relocated to Sverdlovsk region. During the 1991 coup d'état attempt, Sverdlovsk was selected as a temporary reserve capital for the Russian Federation Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia 16#17Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia Sverdlovsk Region: Main Indicators • Total land area - 194,300 sq km • Population - over 4.32 million people • +SWITZERLAND GLOBAL ENTERPRISE enabling new business Capital: Ekaterinburg (population: 1.41 million), other major cities: Nizhny Tagil, Kamensk- Uralsky and Pervouralsk . GDP: 25.5 bn EURO (1899 bn RUR) . GDP per capita: 5913.9 EURO . Industrial growth: 7.0% • Unemployment: 1.37% Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia 17#18Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business Sverdlovsk Region: Main Industry Sectors The structure of the gross regional product of the Sverdlovsk region in 2014 GSON 19,10% 27,20% ■ Manufacturing Mining operations Production and distribution of electricity, gas and water Wholesale and retail trade 9,60% 11,00% 21,00% 1,50% ■Real estate operations 4,10% ■ Transport and communications ■Building and construction Source: Ministry of international and foreign economic relation of Sverdlovsk Region, http://mvs.midural.ru/en Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia 18#19+ Schweizerische Eidgenossenschaft Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia +SWITZERLAND GLOBAL ENTERPRISE enabling new business Ekaterinburg/Sverdlovsk Region and Switzerland OKVA SWISS CENTER EKATERINBURG Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia ABB 19#20Schweizerische Eidgenossenschaft + Confédération suisse Confederazione Svizzera Confederaziun svizra Embassy of Switzerland Swiss Business Hub Russia Ekaterinburg/Sverdlovsk Region Business Opportunities +SWITZERLAND GLOBAL ENTERPRISE enabling new business • • Interesting for suppliers of the strong local sectors metallurgy, heavy machinery/manufacturing and mining. Possible location for production because of skilled workforce and existing infrastructure. Because of the distance transport costs should be not significant for the final price. Gateway the Urals and Siberia. Swiss Business Hub Presentation / Russia Embassy of Switzerland | Swiss Business Hub Russia + 20 20#21THANK YOU FOR YOUR ATTENTION! Julie Bächtold Deputy Head Swiss Business Hub Russia Tel: +7 495 642 64 68 [email protected] www.switzerland-ge.com