Transcript Gas Import

Russian Investments Abroad
Economic and Financial Forum in Switzerland
Zurich, March 18, 2007
Renova Group’s profile
• Renova Group is a strategic investor and shareholder in a number of
leading Russian and international companies of the oil, metallurgical and
chemical industries, as well as in telecommunications, construction and
energy sectors, e.g. TNK-BP, United Company “Russian Aluminum”,
Integrated Energy Systems (IES), OC Oerlikon.
• The value of Renova assets under management exceeds €11 bln.;
• Renova Group is active in 34 Russian Regions as well as in more than
10 countries throughout the former USSR, Europe and Africa.
OUR PARTNERS
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Russia: new outlook for the West
We have changed!
 Evolution of the Russian legislation, aiming at reaching
international standards
 Redirection of National Economy from raw materials to
high-tech
Russia-Europe
XXI century:
Cooperation?
Competition?
 A new generation of Russian Managers
 Education in international business standards
GLOBALISATION + TRENDS FOR QUALITATIVE
CHANGES = PROMOTION OF ENTERPRENEURSHIP IN
RUSSIA 


 Commitment to turn Russian companies into
international players
 Import of high technologies, development of industries
with higher end product value
 Access to the new markets and expansion within the
existing ones
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Issues and solutions

Subjective factor - «…We are not welcome here….»
1.
Russian capital as well as that of the other BRIC countries
faces difficulties with international expansion
2.
Forced limitation of Russian presence in the international
business

Objective factor –Difficulties with expansion for Russian
capital
1.
Russian capital lacks experience in acquisition of
considerable assets abroad
2.
Legal and cultural specifics of M&A transactions
3.
Insufficient experience in state protectionism
4.
Traditional fear of Russia in the West
5.
European companies facing problems when entering
Russian market
Possible solution: efficient partnerships
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Efficient partnership experience (1): technologies
Starting point
 The company is easily adapted to operation within
Oerlikon is the recognized
international leader in
semiconductors
production, vacuum
systems, data storage
(60% of all CDs and DVDs
and 80% iPod are
produced with Oerlikon
equipment) and innovative
space technology.
Oerlikon is the exclusive
supplier of the intersatellite navigation
systems and equipment for
NASA and Arianespace
program, an official
partner of Intel, AMD,
Philips, Infineon and others
different cultures and traditions
 Clear business development strategy in Russia
 Lack of technologies applied by the company and a
strong demand for them in Russia
 Synergies achieved by Oerlikon entering the
Russian market
Entering the business
1. No conflict entry: Deliberate waiver of a minority
financial investor’s position in favor of a strategic
one
2. Participation strategy discussion: Agreeing of OUR
ROAL in implementation of Oerlikon initiatives with
the other shareholders of the company
3. Open participation: Partnership
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Efficient partnership experience (2): Energy
Investment in alternative energy in Europe
Example of a partnership between Russian and European companies:
- Actively developing sector in both Europe and Russia
-Western technology, Russian capital and expertise
Renova Group
(Avelar)
Avelar
owns
100% in
Energetic
Source
• Established in 1999
• Large Italian retailer
100%
• Power generation projects
•Investment in wind power generation
•Investment in solar power generation
•Investment in biomass power generation
Power
generation
Sales
Gas
Energy
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Efficient partnership experience (3): USA, RSA
RENOVA U.S. Holdings Limited –
Joint Investment fund with the American
partners focused on alternative renewable
energy projects.
United Manganese of Kalahari (‘UMK’) –
One of the largest mining projects.
Pursuant to the local laws investment in
development of mineral resources has to be effected
in cooperation with the local partners representing
the native population of the country. In this case our
partnership investment strategy is governed by both
our willingness and the rule of law.
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And finally…
…Believe my experience – the
shortest way to the Russian
market is to go hand in hand
with a good and reliable
partner. Having entered Russia
with one transaction you
would soon face the same
result I did in Switzerland:
upon completion of the
Oerlikon deal the number of
investment proposals and
ideas received by our Zurich
office increased dramatically...
Victor Vekselberg
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