Honorary Consulate General of Russia in the State of Colorado

Honorary Consulate General of Russia in the State of Colorado

www.DebPalmieriRussia.com

Honorary Consulate General of Russia in the State of

Colorado Deb Palmieri

“Panel Discussion: Strategies for

Expanding in Growing Markets”

March 13, 2014



Student Conference

International Business and U

March 13, 2014

Tivoli Center, Metro State University

InternationalTrade

Opportunities:Colorado and Russia

Honorary Consulate General of Russia in the State of Coloradowww.DebPalmieriRussia.com



Map of the Russian Federation



Background: Key Facts on Russia*Largest country in the world; 11 time zones

*Growing population. Russia’s birthrate has increased 21% since 2005; slow but steady growth. Current population is 143 million people.



More Key Facts on Russia*Energy superpower; world's largest natural gas reserves, huge

coal and oil reserves. World's leading natural gas exporter and leading oil exporter

*Vast mineral resources, potential estim. at $30trillion +

*Largest stockpile of weapons of mass destruction (WMD)

*World’s largest forest and fresh water reserves

*Member of G8; member of WTO

A Few Facts on Russian Economy 2014

2013 economic performance: slower than prior years, but stable employment, at just under 6%

Trade surplus almost $18bn in Jan. 2014

2013 Russian GDP at $2 trillion - now world’s 7th largest economy by Purchasing Power Parity (PPP) - (11th largest by nominal GDP at 1.2 trillion)

Deb Palmieri Russia Institutewww.DebPalmieriRussia.com



Market Opportunities: Focus on Agriculture

Agriculture: How Colorado Companies Can Benefit


*Big opportunity for Colorado ag companies is exporting to Russia. Ag exports grew by 900% in recent years from $2.8mn to $30mn plus Mainly: meat and live animals

*Note that #1 commodity exported from U.S. to Russia is meat! Huge potential for exports to Russia!

Agriculture Opportunities (continued)

*U.S. livestock genetics technology, breeding technology (cattle embryo transfer and vitro fertilization technologies).

*Ag machinery/equipment and infrastructure expertise.


Agriculture Opportunities continued

Did You Know?

Russia is one of world’s top wheat exporters and producers. Medvedev’s “Food Security Doctrine” - calls for 80% increase in domestic production of food by 2020.

That means they need help in technology and equipment!




Agriculture, continued

However, Russia’s aging machinery and equipment and outdated infrastructure requires revitalization and expertise. Excellent opportunities for Colorado!

Other Opportunities

*Clean technology. Solar and wind power equipment

*Information technology

*Medical equipment


Some “Fast Facts” about Russia

*Russia’s pharmaceutical market growing twice as fast as U.S. and European markets

*Nuclear energy now accounts for 16% of Russia’s power, projected to double by 2031.

*The Russian advertising market is exploding. They are one of largest advertising markets in Europe.


Challenges Doing Business in Russia


Today, Crisis with Ukraine textbook case of risks companies

face in emerging markets


Companies feeling the pinch

*Cancelled contracts

*Less trust and openness

*UNCERTAINTY

*Fewer prospects

*Unprepared for magnitude and speed of crisis

*Lesson: importance of risk and crisis management. What to do when emergency situation arises?


How Smart Companies Thrive in Russia: Tips


Characteristics of Smart Companies Who Thrive in Russia

*They understand the place of politics and politicians

*They involve local authorities

*They adapt the right model for Russia

*They understand where to go for reliable information

*They find reputable Russian dealers and partners

*They have a zest for problem-solving

*They have long-term commitment and perspective

*They an excellent network

*They have mental stamina and can cope with uncertaintyDeb Palmieri Russia Institutewww.DebPalmieriRussia.com

Smart Company Methodology

*Carefully analyze risk

*Know your market and your competition

*Place a high emphasis on personal relations

*Don’t be distracted by day-to-day politics and volatility. Keep your eye on your long-term

strategic plan

*Have confidence that you will be a winner

Deb Palmieri Russia Institutewww.DebPalmieriRussia.com

Deb Palmieri’s Bottom Line on Russia and Colorado

*Russia holds great untapped

potential for Colorado companies

*There is a lot to be learned from Colorado companies who have done business with Russia for years, such as L1ockheed Martin Space Systems, Wagner International, Denver Moscow Associates and many more




Thank you!

http://www.russianamericanchamber.org/photo.htm

Honorary Consulate General of Russia in the State of Colorado

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