The Trade Council Russia Energy & Environment

Transcription

1 The Trade Council Russia Energy & Environment Activity Plan 2017 This folder provides an overview of all the different activities and possibilities the Trade Council Russia offers in 2017 within the Energy & Environment sector. In the folder you can find invitations to exhibitions, market visits, the Green Capacity Club, and much more. We are always ready to answer the questions you might have concerning the activities, so please do not hesitate to contact us. Keep yourself updated with the newest activities and market developments on the market - follow the Trade Council in Russia: click for Linkedin; for Facebook; for Green Capacity 1

2 THE AMBASSADOR S INTRODUCTION 3 CASE STORY SALLING PLAST A/S 4 ENERGY & ENVIRONMENT 5 HOW CAN THE TRADE COUNCIL HELP YOU? 8 GET TO KNOW THE MARKET, PARTNERS AND CUSTOMERS 9 EKF 12 GREEN CAPACITY CLUB INFORMATION 13 ACTIVITIES DANISH DAYS 20 DANISH ENERGY EFFICIENCY 21 WATER SEMINAR ST. PETERSBURG VODOKANAL 22 2

3 THE AMBASSADOR S INTRODUCTION There are many news-flashes about Russia in the media, but there is another Russia behind the news. If you as a Danish company want to do business on this big market close to Denmark, you have to get behind the news-flashes. There is money to be made in Russia. The question is how to get to it? You may ask yourself if the overall political climate does not dictate that you stay away from Russia? The answer is a very loud and clear no. Denmark is still a good brand in Russia: they want and need our products, services and know-how. The Russian end-users know what Danish companies can do and they and many of your European competitors do not allow themselves to be limited by general politics. Because that would be opportunities lost! You may also have heard that the Russian economic policies of localisation and import-substitution limit the possibilities. To some extend it does make it more complicated but it also contains many possibilities. If Russia wants to boost their own production in agriculture, in pharma, in high tech why should they not do that by buying Danish machines, technologies and know-how? Doing business in Russia has never been a walk-over and it still is not. But the work and the risks are often worth undertaking. It does require thorough preparation and many issues have to be worked through. And then it does first of all require that you get to know the Russia behind the headlines. We, the Danish Trade Council Russia (The Commercial Department at the Embassy in Moscow and the General Consulate in St. Petersburg) know that Russia. We are ready to help you create a profitable market, with both the necessary analysis, including the political ones, the all-important establishment of contact with all the right Russian partners at all the right levels and to make sure that everything goes as planned, also after the contracts have been signed. We are also covering Belarus, Kazakhstan, Kirgizstan, Tadzhikistan, Turkmenistan and Uzbekistan and will be able to assist your access to these markets as well. I hope to see you in Russia soon. I and my colleagues at the Embassy and the General Consulate stand ready to help you sell. H.E. Thomas Winkler Ambassador of the Kingdom of Denmark to the Russian Federation 3

4 CASE STORY SALLING PLAST A/S More than 2 years after Salling Plast s export journey we are delighted to be able to share their success story! It has been almost five years since the economic crisis ravaged Europe, ruined companies and countries. Almost all countries have been recovering ever since, while a few have been performing fairly well. In Denmark there is a company named Salling Plast A/S. It is from 1967 and operates within the sectors of district heating, district cooling, utility and waste water, ventilation, food production (e.g. slaughterhouses, dairies and breweries), the chemical industry, and the offshore industry. In 2012 the company had a financial balance of DKK 80 million and the following year, in 2013, DKK 76 million. Their business has gradually stabilized since 2010 and their financial balance has never been below DKK 75 million. In Danish terms, this is good business. In 2013 Salling Plast was ready to expand into new territories and markets. They were looking for possibilities to exploit when they found Trade Council Russia (TC). The Trade Council Russia enrolled Salling Plast in the export programme VITUS. The Vitus programme is an initiative to help companies with a high export potential to achieve excellence in a 12 month intense collaborative partnership. The aim is to fast and effectively (kick)-start export to new markets. A programme consisting of 5 activities was designed for the Danish company with a total estimated time usage of 300 hours. 1) Understanding Salling Plast; what their strategies were, which core values they had, etc. 2) Introducing the tools for export markets. 3) Fact finding trip to Kazakhstan, Russia and Belarus. 4) Initial draft of the Go-To-Market plan and development of a sales and marketing plan. 5) Various sales activities; e.g. identifying customers, creating contact to key persons, VIP arrangements, planning future initiatives, such as the next step after the end of the Vitus programme. Salling Plast A/S at an exhibition The Vitus programme lasted for 12 months with the purpose of finding opportunities in the markets of Russia, Kazakhstan and Belarus. Geographically Belarus, a country in the development phase, was chosen due to the fact that inexpensive and qualified labour was available here. In addition Belarus offered access to the Customs Union (today, the Eurasian Economic Union), which among others includes Russian and Kazakhstan. 4

5 ENERGY & ENVIRONMENT The energy sector is at the core of the Russian economy and the main source of foreign currency revenues for the country. Russia is increasing the focus on environmental protection and energy efficiency. These issues are well known in Denmark and Danish industries have during the last 30 years worked hard on finding innovative and efficient solutions. These solutions now have a major market potential in Russia. Below you can read more about the specific areas within the energy and environment sector. A market with high potential The need for high-tech environmental-friendly solutions for Russia s natural resource industry sectors provides good opportunities for Danish companies because of the strong and unique Danish competences in these areas, including management skills and high-tech machinery and technology. Likewise the country s problem with supplying clean water to all citizens makes this a market with high potential for Danish companies. As part of a dedicated effort to support Danish commercial interests in the sector and further develop the strong engagement by Danish companies, the Trade Council Russia has established the Energy & Environment Club b. Read more about the benefits and advantages of membership in the annexes to this chapter. 5

6 Energy resources and challenges Russian natural resources, which contain 32% of the world s natural gas reserves, 13% of the oil reserves, and approximately 30% of the coal reserves, have, as a consequence of the quantity, a substantial impact on the global energy market. Russia is one of the countries that spend the most money on subsidizing fossil fuels, primarily natural gas. Of the 605 billion cubic meters of natural gas that Russia produces annually, 414 billion cubic meters satisfy the huge domestic consumption. The amount would be significantly lower if Russian consumers, industry, and power stations had to pay the same prices as in the EU. In addition it would release considerable amounts of natural gas for export. As a key economic sector, the energy sector is strongly interrelated with the Russian overall economic performance. The government of the Russian Federation is undertaking efforts to carry out a reform aiming at sector modernization, raising efficiency, and creating conditions for fair competition in the sector, which has always been strongly monopolized. This leaves an opening for Danish companies, which will be able to participate with knowhow and new technology. Among the critical issues for the development of the Russian energy sector as a whole there are poor management skills, worn-out equipment and machinery, and insufficient utilization of modern production technologies. More than half of the coal mining equipment, around 30% of the gas pumping units, more than half of the equipment in oil production, and more than 30% of the equipment in gas production is outdated and worn out. Most of the oil pipelines have already been in use for 20 to 30 years, and more than half of the nuclear power plants demand urgent improvement in accordance with modern safety requirements. This situation creates an obstacle for introduction of new efficient technologies and protracts the process of the sector s transformation. Meanwhile, it presents huge opportunities for Danish companies to participate in energy infrastructure upgrade and expansion projects. Environment protection and improvements In recent years, more emphasis has been put on environmental protection in Russia, and energy saving is one of the major priorities for the energy and utility sector s development. Given the high level of equipment deterioration, the focus is on sector re-equipment using energy efficient technologies. One of the tools for energy saving strategy implementation is the state program of the Russian Federation, Energy efficiency and development of energy sector, valid from 2013 to The program covers diversified issues dealing with development of the oil and gas sector, the coal industry, production of electricity, and development and usage of renewable energy. For the purposes of energy saving and minimizing the environmental impact the program envisages replacing outdated equipment, rehabilitation and introduction of new facilities based on efficient technologies. 6

7 Construction upgrading and urbanisation Usage of energy efficient technologies and equipment in the building and construction sector has significant potential due to the fact that the Russian market for construction has been growing rapidly for several years. The Russian private housing market is currently slowing down, but not coming to a halt. The reasons for the slowing, but continuous, growth are numerous; old and worn-out buildings need repairs, families living in one room are moving into individual apartments and urbanization in Russia because of migration are all factors supporting continued construction of private housing. Water utilities sector One fourth of the world s fresh surface and underground water is located in Russia. Still, low quality water is one of the major water resource problems in territories with a high density of population. The water utilities sector is one of the largest industries in Russia serving the entire Russian population. There are over 25,000 municipalities in Russia, and virtually all have a local water utility. Russia has an incredibly large and extensive water supply network. Despite poor investments during and just after the Soviet era, Russia has seen a large amount of new investment in recent years a trend that is expected to continue. However it is estimated that only 28% of the Russian waste water is treated in accordance with existing regulations, while the rest is discharged improperly treated into lakes, rivers and seas. This endangers the fresh water supply over time and Russia is therefore very interested in solutions based on BAT (Best Available Technology) legislation. To mitigate this critical problem the Russian government has launched the so-called clean water program that came into effect in 2011 and is due to run until The main objectives of the program are to replace obsolete equipment, improve water quality and increase the efficiency of the entire sector. For more information please contact our sector expert in Energy & Environment and Oil & Gas. Jens Thomsen Consul General in St. Petersburg jentho@um.dk Jens Thomsen has more than 15 years of experience with business development in Eastern Europe and the CIS market. In his time with the Danish Ministry of Foreign Affairs he has gained experience at a number of official representations in Russia, Ukraine, Kazakhstan and Poland. During this time, he has worked with a number of Danish as well as local companies, and networked with regional and national authorities. Amongst others, Jens has competencies within business development, export strategies and public diplomacy. 7

8 HOW CAN THE TRADE COUNCIL HELP YOU? Area of specialisation: Russia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. We understand that time is money We are here to help you save time on the Russian market and to get your products sold faster. Eurasian Economic Union (EAEU) New opportunities? The activities of the Trade Council Russia not only cover Russia but also most of the CIS countries; Tadzhikistan, Uzbekistan, Kyrgyzstan, Kazakhstan, Turkmenistan, and Belarus. The potential for cooperation between Danish companies and these countries within many sectors, including technology and energy sector, is getting more and more attractive due to the creation of the Eurasian Economic Union (EAEU), which was launched on 1 st January The Customs Union and the Common Economic Space between Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia represent two elements of the most ambitious regional integration projects launched in the post-soviet space since The Eurasian Economic Union aims to create a single economic space of more than 170 million people and a gross domestic product of around USD 3 trillion. One of the main objectives for the EAEU is to create a common energy market, and Trade Council Russia will closely monitor the development and possible opportunities for Danish companies in this connection. 8

9 GET TO KNOW THE MARKET, PARTNERS AND CUSTOMERS 1. Free of Charge Service A Free of Charge Service is a great way to quickly get a general overview about the available possibilities for your company within the Russian market. It could include a personal consultation about export, general overview for a company s strategy in the market or any other support within one consultancy hour. 2. Market Survey The market survey helps the company define a strategy or decide whether to enter the Russian market. In correlation with The Trade Council the project will be defined very clearly in order to fully understand what your company expects from the survey and the kind of decisions the survey should lead to. A market survey could include information about: The accessibility to the market The size of the market and different segments The product s or service s fit to the market Identification of distribution channels, the competitive environment, prize levels, and legislation. SWOT analysis of the market entry 3. Market Visit The Market Visit Programme is a service provided by The Trade Council to Danish small and medium sized enterprises (SMEs). The Market Visit Programme targets a group of companies with mutual interest that are looking for new market opportunities. This program is perfect for companies who wish to get a personal insight in the current trends and opportunities on the Russian market. The Market Visit could include: A meeting program for visiting potential partners and private and public institutions Participation in conferences, exhibitions etc. Field visits to relevant projects, retail outlets or other branch related localities 4. Marketing Campaign The Trade Council can help you become visible on the Russian market. A marketing campaign is ideal for newcomers to the market and those who need help in order to achieve their marketing goals. We will use our experience and knowledge about the Russian market to help your company becoming more visible. A marketing campaign could include the following activities: Spreading the information about your company in written/online sources of information Series of publications in the right sources of information (magazines, newspapers, blogs) Press-event and launch at the Embassy LinkedIn, FB publication on Trade Council s internet resources 9

10 5. Partner Search A Russian partner helps the Danish company to market its product and services on the selected market. The Trade Council has extensive knowledge about many sectors, the business environment, and business culture and will do everything to help you to find a suitable partner. Together we will identify your specific needs and approach to the market and use our network, technical skills, and solid experience in partner search to set up meetings with relevant candidates. The Trade Council can support you with translation, logistics and advice on your meetings with the potential partners. 6. Participation in Exhibitions The Trade Council arranges a turnkey national exhibition stand, which will guarantee your company presence on the Russian market and bring you close to the Russian customers. 7. Vitus The Vitus programme helps Danish SMEs to enter new markets through a fast and effective kick-start. The aim is for ten chosen Danish SME s to quickly realize their export potential. This is done through an intense collaborative partnership between the companies and a commercial adviser on the Russian market. The goal for the program is that each participant achieves an export success within the 12 months that the program last. 8. Export Start The Export Start Programme has existed since 2001 and is a government service provided by the Trade Council to Danish SMEs. This programme is applicable to any kind of Trade Council service within the amount of consultancy hours and could be used for a partner search, market entry assistance etc. The programme targets companies with a proven export related business plan which are looking for ways to expand their businesses on the Russian market. Create your event 1. Reception/Dinner at the Ambassador residence or Danish Cultural Institute This is a unique chance for your company to host an event in the attractive surroundings of the Ambassador residence which is an old and charming Russian mansion in the absolute centre of Moscow. The setting is perfect for meeting potential partners or Russian officials and the Ambassador s presence will contribute to attract the right Russian attendants. We are always flexible and will ensure that the event meets your specific needs. 2. VIP events at the embassy/residence or Danish Cultural Institute The embassy may be a great alternative venue for hosting all kinds of other events. We can help you arrange catwalks, publicity events, media events etc. 3. Round-tables We can arrange round table discussions with high-ranking Russian officials to discuss legal issues or other matters which requires the attention of the Russian authorities. The involvement of the embassy can ascertain the seriousness of the matter at hand. 10

11 Additional support 1. Negotiation support The embassy may assist your company with translation, counselling and guidance. We can assist you as a company to know what to expect from a meeting with a potential client/distributor and help you to understand what exactly is being said to try and avoid potential misunderstandings. 2. Conflict resolution support The Trade Council may use our experience in conflict resolution to assist you in resolving a given conflict. We may facilitate a restart of a dialog with the right people and within the right structural framework. 3. Company registration support The Trade Council can help you with the general framework of the registration process. We can assist with contact to legal support and offer incubator services. 4. Product certification support The Trade Council may assist you with an overview of the procedure and facilitate a liaison with a certification agency. We have knowledge about which product has mandatory registration and which has voluntary registration. Peter Mygind Rasmussen Minister Counsellor, head of the commercial department pemyra@um.dk 11

12 EKF The best security a company can have EKF is Denmark s Export Credit Agency. We help Danish companies make it possible and attractive for customers abroad to purchase Danish products. We do so by helping raise financing and by insuring companies and banks against the potential financial and political risks of trading with other countries. We assist both large and small companies, and we are pleased to provide solutions tailored to your company s specific needs. EKF was established in 1922 as only the third export credit agency in the world. Over the years, we have acquired unique expertise in the challenges faced by Danish companies in trading and investing around the globe. EKF is owned and guaranteed by the Danish state but operated as a modern financial enterprise. With a guarantee from EKF, you have the backing of the Danish state, and that makes a difference in the world beyond Denmark s borders. Use EKF as a sales argument We help you and your international customers to secure the financing that can make your export transactions a reality. For example, by securing your customer a loan that is to be used solely for buying your goods. By letting EKF and a bank help your customer with the financing, you can offer your customer an extended credit without running any unnecessary risk. This can give you an advantage in the competition with other suppliers. And even though your customer buys on credit, you get your payment immediately. Today, it takes more than just a good product to succeed in the export markets. With backing from EKF, you can offer your foreign customer a financing solution together with your product. The customers have an additional incentive to select you as a supplier, if you bring along a financing solution as well. Perhaps you re dreaming of > securing the order even though the customer s bank is refusing to finance the deal > helping your customer with credit without taking any unnecessary risk yourself > giving your customer an extra reason to choose you rather than your competitors > your distributor having the money to buy even more of your goods > covering your losses if your customer suddenly goes bankrupt or cancels an order > being able to concentrate on new business instead of the risk of losses on old business? EKF can help you with this. See our brochure here or find more information about EKF at EKF Lautrupsgade Copenhagen Tel ekf@ekf.dk 12

13 GREEN CAPACITY CLUB INFORMATION The Green Capacity Club is a initiative by the Trade Council Russia which in a flexible way supports Danish companies in developing their presence in Russia and in the majority of the EEU & CIS countries. The Green Capacity Club has been re-launched in 2017 in order to adapt to the changes in the business in environment, and meet the needs of the current and future members. 13

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15 Event type 1: 15

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18 STEP-BY-STEP 18

19 ACTIVITIES 2017 Date: Event: Destination: March Danish energy efficiency Petrozavodsk 1 st 3 rd April Danish energy efficiency Rostov on Don 3 rd 4 th April 20 th Danish Water seminar St. Petersburg Vodokanal May 17 th 19 th Danish Days on Volga Nizhny Novgorod and Ulyanovsk June Danish energy efficiency Syktyvkar 26 th 27 th September Danish energy efficiency Novosibirsk 18 th 19 th October Danish Days in Siberia Omsk and Irkutsk 8 th 10 th November Danish energy efficiency Volgograd 9 th 10 th November 26 th 27 th Danish energy efficiency Krasnoyarsk Each of the trips will cost DKK 8000, (for Green Capacity Club members the price is DKK 3000). This price covers the organization of the meetings and logistics. Transport, hotel costs etc. are not included and will be invoiced separately. Please note: Activities listed above including dates, are tentative. Implementation of the individual events will depend on the interest shown by Danish companies. To ensure relevant programmes we are very open to input, and are very keen on listening to your needs. 19

20 DANISH DAYS 20

21 DANISH ENERGY EFFICIENCY 21

22 WATER SEMINAR ST. PETERSBURG VODOKANAL 22

23 The Trade Council is a part of the Ministry of Foreign Affairs and is the official export and investment promotion agency of Denmark. The Trade Council benefits from around ninety Danish Embassies, Consulates General and Trade Commissions abroad. The Trade Council advises and assists Danish companies in their export activities and internationalisation process according to the vision: Creating Value All the Way. The work in the Trade Council follows specific procedures and quality guidelines. In this way our customers are secured the best possible quality under the varying working and market conditions at any given point of time. Ministry of Foreign Affairs of Denmark Royal Danish Embassy in Moscow 9 Prechistensky Pereulok Moscow Tel: Fax: mowamb@um.dk Royal Danish Consulate General in St. Petersburg Nab. Reki Moiki, 42, of St. Petersburg Tel: +7 (812) Fax: +7 (812) ledgkl@um.dk 23