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Financing Deals in Eurasia
April 5, 2006 Washington, D.C.
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Organizers: BISNIS and Council for Trade and Economic Cooperation
This event will provide overviews of:
• U.S. government finance programs, including the U.S. Trade and Development Agency, Export-Import Bank, Overseas Private Investment Corp, and Foreign Agricultural Service.
• Initiatives of multilateral development banks, including the European Bank for Reconstruction and Development, Multilateral Investment Guarantee Agency, and Asian Development Bank.
• Private sector involvement and examples of how deals are financed.
Contact:
chris.christov@mail.doc.gov
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BISNIS Home | BISNIS Bulletin Home | 
February 2006
New Special Economic Zones in Russia:
Focus on Tomsk
by Mark Shulgov
A major Russian regional development initiative launched this year appears to
be successfully marshalling resources and gaining momentum.
Six manufacturing and technology development zones are
being established in an effort to attract foreign capital
investments to regional economies. These new special
economic zones (SEZs) will promote foreign investment
and local entrepreneurship based on scientific research-based
products in promising Russian regions by offering tax
and customs incentives and building up special infrastructure
that favors these activities. Tomsk in Siberia is the
only Russian city east of the Urals to be chosen as an
SEZ site. Despite its remoteness, Tomsk offers good prospects
for foreign investors seeking to develop promising technologies,
especially ICT and electronics, biotechnologies and medicine,
nanosized and nanostructural materials and products,
nuclear energy and alternative sources of energy.
SEZ Competition
During 2005, the Russian federal government held
a competition among its regions and cities
to choose sites for new
SEZs in the country. In November 2005, a commission
under the chairmanship of Russian Minister for
Economic Development and Trade German Gref
declared six winners
in the contest. Successful regions are divided
into two categories: (1) technology development
zones—Tomsk
(Tomsk region), St. Petersburg, Zelenograd (Moscow
region), and Dubna (Moscow region); and (2) industrial
manufacturing zones—Yelabuga (Republic of Tatarstan)
and Lipetsk region.
The SEZ concept being applied in Russia calls for simplified requirements for economic activities run inside the zones. For the industrial manufacturing zones, Russian and foreign companies must invest at least 10 million EURO to become an official resident enjoying tax and customs privileges; technology development zone residents are not required to meet an investment target. In the zones, the Federal Government will issue permissions and perform administrative duties on behalf of all government agencies. The
SEZs are scheduled to operate with incentives
for
20 years.
The Russian Government plans to introduce several
more such SEZs in the country during the next 10-15
years.[continued below]
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BISNIS is the U.S. Government's primary market information center for U.S. companies exploring business opportunities in Eurasia. A part of the U.S. Commercial Service, BISNIS disseminates information electronically and through consultations by its staff of trade specialists. Questions or comments? Call 202-482-4655 or toll free 800-872-8723, or email bisnis@ita.doc.gov. |
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During the beginning of 2006, agreements between the contest winners and the
Federal Agency on Special Economic Zones will be signed that will precisely
outline relations between the parties and determine the conditions of financing
and “launching” the zones. The Federal budget is expected to allocate 8
billion rubles ($280 million) for development of the special zones in 2006.
It is expected that similar amounts will be allotted from regional and
municipal budgets.
World Bank experts are currently studying the potential of the regions
chosen as special economic zone sites. The Bank is considering ways to
help finance development of Russia’s innovation business infrastructure. Granting special zone status implies certain scientific and industrial
specialization of the chosen territories. The new status gives the regions
a kind of “quality mark” based on their competitive edges and available
capacities. Products and technologies in fields developed in the special
zones are expected to be competitive and highly demanded on domestic and
international markets. For instance, in the St. Petersburg technology development
zone, special emphasis will be placed on scientific research and manufacturing
in the sphere of IT and analytical instruments. Technologies related to
nuclear physics will be further developed in Dubna, while Zelenograd
will specialize in microelectronics.
In the industrial manufacturing zone of Yelabuga, production of buses
and auto components (jointly with U.S. General Motors, Korea’s Hyundai,
and several other companies) and hi-tech petrochemical products are planned.
In Lipetsk region, household electronic appliances (in cooperation with
Italy’s Merloni) and furniture manufacturing will be developed.
However, any type of economic activities complying with Russian legislation
can be launched inside the zones and enjoy the privileges and tax incentives.
Restrictions apply only to extraction and processing of mineral resources,
scrap metallurgy, and production of goods subject to excise taxes (except
cars and motorcycles).
Focus on Tomsk
A curious event happened in the late 19th century in Siberia. When
the Trans-Siberian Railroad was being constructed and Tomsk was to be one
of its main transit points, the Tomsk guild of horse carriers raised a
sufficient sum to bribe the designers so that the railroad was instead
constructed via the small town of Novonikolaevsk, now Novosibirsk. In less
than 100 years, Novosibirsk became a major transportation hub and the third
largest city in Russia, while the economic complex of Tomsk has been suppressed
due to lack of access to main trunk lines. Tomsk Vice Governor for Economic
Policy and Investments Oksana Kozlovskaya recently suggested that gaining
special economic zone status gives the Tomsk region a second chance for
economic development.
From the announcement of the SEZ contest, Tomsk was regarded
as one of the main competitors. The reason for such a positive attitude
lies in the region’s traditionally successful combination of scientific
and industrial complexes and Russia’s most viable system of official
support for innovation. The regional government has developed legislation and designated
state bodies and numerous business facilitating agencies to assist research
and development and technology commercialization. Tomsk universities are
traditionally rated among the best in Russia. More than 3,500 specialists
in electronics, IT, control systems, chemistry, biotechnology, medicine,
etc., graduate each year, and the skills of these young professionals are
available for application within the high-tech zone.
The creation of the new technology development zone will further
strengthen the status of Tomsk region as a territory of innovation development.
Moscow company Proinvest-Consulting, which helped elaborate the Tomsk region
development strategy until 2020, also actively participated in developing
the Tomsk special zone project. The involvement of these consulting experts
was one of the reasons for the unanimous positive decision of the contest
commission—the project submitted from Tomsk was actually the only one that
incorporated long-term planning.
According to the contest results and government recommendations,
the Tomsk SEZ will focus on industrial electronics and material science.
However, other areas in which the region has a competitive edge will certainly
be further developed in the favorable conditions of the SEZ. Top priority
areas scheduled for development in Tomsk include:
1. IT, telecommunications, and electronics, especially digital television
systems, high-current electronic devices, radio engineering systems, communications
and radar systems based on microelectronics achievements, quantum electronics
devices, and the creation of an ERP (Enterprise Resource Planning) center
to be responsible for accounting and management of financial and other
resources circulating inside the zone.
2. Biotechnologies, especially
PCR-diagnostics, radioisotope diagnostics, immune-enzyme analysis, stem
cell production and therapies, recombinant proteins and new pharmaceuticals, genetic engineering applied to veterinary medicine, fodder
production, plant protection; reproduction of valuable species, extraction
of minerals by means of biotechnology, organic waste reprocessing and bioenergy
generation, bio sensors and bio chips.
3. New materials and alternative sources of energy, especially superfine
inorganic powders, inorganic nanofibers, biologically active substances
and medicines, porous nanoceramics for medicine, constructional ceramics,
biocomposite materials, radioactive substances deactivation technologies,
hydrogen power
engineering, and radiopharmacological substances.
A brand new scientific complex will be constructed in Tomsk on a
site near the existing Academgorodok (Academic Town). The region
expects to announce tenders for design work and construction
operations in 2006. Construction of three engineering complexes for
IT, biotechnology, and new materials and nanotechnologies is expected
to begin in 2006, and the first engineering complex for companies
engaged in industrial electronics, IT and telecommunications will
be commissioned by 2007. Regional authorities also plan to modernize
the runway at Tomsk airport, establish a terminal to receive international
flights, and construct new highways that directly connect the zone
to the airport and to the city.
In total, some $160 million will be required to establish a fully
functioning complex by 2008. The Tomsk region’s 2006 budget allocates
about $12 million for construction of the engineering complex and
infrastructure development, the city of Tomsk will contribute $1.7
million, and regional authorities expect the federal government to
invest at least $40 million. Tomsk Governor Viktor Kress estimates
that total investments in the zone during the 20 years of its work
may range from $1.7 to 3.5 billion.
Tomsk officials have thoroughly analyzed foreign, in particular Chinese,
experience of managing special economic zones, and concluded that
instead of applying the pattern of cheap work force utilization,
the success of the Tomsk economic zone will rest on the region’s
high intellectual capacity. About
80 innovation-oriented companies, able to convert the developments
of Siberian universities and research centers into successful businesses,
have already applied for resident status in the zone. Foreign companies are also
being encouraged to consider the opportunities of Tomsk high-tech
development zone, and negotiations with a number of Western companies
and multinational corporations are in progress.
In December 2005, following the announcement of contest results,
World Bank experts visited Tomsk region to study the potential of
its special economic zone. Following negotiations with local authorities,
the World Bank reportedly agreed to allocate funds for development
of innovation management infrastructure and venture financing in
the zone. It is likely that the funds will be given for development
of B2B services, including an investment promotion agency and certification
centers, and establishment of a new university to train specialists
in the priority sectors.
To read the full version of this report, including information on
the specific requirements and benefits for companies setting up residency
in the new zones, as well as useful contacts in Tomsk, click here.
The Russian Federal Agency for Management of Special Economic Zones
maintains a web site at http://rosoez.economy.gov.ru.
For more information on Siberia, visit www.bisnis.doc.gov/siberia.
Mark Shulgov is the BISNIS representative in Tomsk. |
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For more information, contact Desi Jordanoff, BISNIS, at desi_jordanoff@ita.doc.gov.
BISNIS trade specialist Desi Jordanoff is participating in Showtime, customized market briefings at one-on-one meetings, at this year’s NPEW.
www.buyusa.gov/eme/npew2006.html
“Banking on Development”
Working with the
Multilateral Development Banks
March 30, 2006
New Orleans, La.
Organizers: The U.S. Department of Commerce and
the World Trade Center Of New
Orleans
The conference will highlight business opportunities for U.S. companies with
five large multilateral development banks (the World
Bank, the Inter-American Development Bank, the Asian
Development Bank, the African Development Bank, and
the European Bank for Reconstruction and Development).
www.wtcno.org/programs
Doing Business in Afghanistan and Central Asia
April 4, 2006
Washington, D.C.
Organizers: BISNIS, the U.S. Department of Commerce’s Afghanistan Reconstruction
Task Force (www.export.gov/afghanistan) and American-Uzbek
Chamber of Commerce (www.aucc.online.com)
The event will feature the Ambassadors from Afghanistan, Kyrgyzstan, Tajikistan, and Uzbekistan, as well as representatives of U.S.
Department of Commerce, U.S. Department of State, U.S.
Trade and Development Agency, Overseas Private Investment Corp., and the Asian Development
Bank. U.S. companies will learn about business opportunities in Afghanistan and Central Asia and see how neighboring countries can help the reconstruction effort in Afghanistan.
For more information, contact Philip de Leon, BISNIS, at Philip_De_Leon@ita.doc.gov.
3rd Annual Conference on Investing in Russian Banking:
Investment Opportunities in Banking
in the Russian-Speaking World
April 5-6, 2006
New York City, N.Y.
Organizer: Financial Services Volunteer Corp.
www.fsvc.org
U.S. Export-Import Bank
2006
Annual Conference
April 6-7, 2006
Washington, D.C.
www.exim.gov/news/events.html
BIO 2006
April 9–12, 2006
Chicago, Ill.
The BioIndustry Initiative (BII) of the U.S. Department of
State is sponsoring a 60-member delegation of leading
life sciences researchers and bio-entrepreneurs from
Russia, Ukraine, Kazakhstan, Azerbaijan, Uzbekistan
and Georgia, to attend BIO 2006 (www.bio2006.org),
the Annual Meeting of the Biotechnology Industry
Organization. The delegation has been organized in
cooperation with the International Science and Technology Center, Moscow, (www.istc.ru), the Science and Technology Center of the Ukraine, Kiev, (www.stcu.int) and TEMPO, Moscow, a
consortium of Russian biomedical research institutes
and companies (www.nptemp.ru).
BII invites representatives of biotechnology and pharmaceutical companies
attending BIO 2006 interested in partnership opportunities to:
• Visit the Russia and Eurasia Booth in the BIO2006 Exhibition Hall
• Attend the TEMPO-organized session, “Issues in International Biotechnology
Transfer: Russia” during the Doing Business Globally Track on April
11
• Attend the Russia Seminar organized by the Mid-Atlantic Russian-American
Business Council during the International Biotechnology Marketplace
on April 9
• Visit www.biistate.net or email Maria Douglass, BioIndustry Initiative, at EurasiaBio2006@biistate.net for more information or to schedule a meeting with delegation members.
7th International Forum
“High Technology of the 21st Century"
April 24-27, 2006
Moscow, Russia
Organizer: Institute
of Economics and Complex Communication Problems,
ECOS
JSC
www.engl.vt21.ru/index.php
EBRD Annual Meeting and Business Forum
May 21-22, 2006
London, UK
Organizer: European Bank for Reconstruction and Development
Why participate?
• Boost your company’s business development prospects
• Access to an influential audience, with extensive networking opportunities
• Up-to-the-minute political insights and in-depth analysis of reform
progress
www.ebrd.com/new/am/
2006 Black Sea Business Day
June 11-12, 2006
Baku, Azerbaijan
Organizer: Black Sea Trade and Development Bank
www.bstdb.org
Central Asia Regional Electric Power Conference
June 12-14, 2006
Istanbul, Turkey
U.S. Trade and Development Agency is sponsoring a conference to foster regional
transmission of electricity from Central Asia to
South Asia and to help U.S. companies learn about
electric transmission and power generation projects
in Kazakhstan, Kyrgyzstan, Tajikistan and Afghanistan
(including power transmission to Pakistan). The 2-day
conference will highlight up to 15 projects and will
serve as a venue for U.S. companies to showcase their
goods and services to key decision makers involved
in each project.
www.trademeetings.com
Interop Moscow
June 21-23, 2006
Moscow, Russia
Organizer: MediaLive International
A conference plus expo, Interop Moscow will give Russian technology
business buyers the ability to hear from worldwide technology
leaders, learn about new technology products, and source vendors
to buy from. Key education themes include mobility and wireless technologies, security, open source,
VoIP, and data management.
www.interop.ru |
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Kazakhstan’s Investment Committee
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The BISNIS Bulletin interviewed Mr. Yerlan Arinov, Chairman of the Committee for Investment under the Ministry of Industry and Trade of the Republic of Kazakhstan, about the activities of the Committee and opportunities for foreign investors
in his country. Kazakhstan receives more than 80
percent of all foreign direct investments going
into Central Asia. The Committee is working to
attract the interest of U.S. companies in investment
projects, particularly in the non-extractive industry
sectors, in Kazakhstan.
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Mr. Yerlan Arinov
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Please describe the main work of your Committee.
The basic directions of the Committee for Investment are:
1. Realization of the measures of state support of investments. In particular,
according to the Law of the Republic of Kazakhstan
“On Investments” of January 8, 2003, the Committee
is the authorized body that concludes contracts
giving investment preferences to companies that
invest in priority sectors of the economy. In accordance
with the law, at the conclusion of a contract with
an authorized body, companies are allowed investment
preferences for corporate income tax, property
tax, and real estate tax for period of up to 10
years. In addition, investors may import any equipment
needed for realization of the investment project
duty-free. Other in-kind contributions by the government are also possible, including grants of land, buildings, or equipment.
2. Attraction of foreign investments into the non-extractive sectors of the economy
of Kazakhstan via direct dialogue with the representatives
of multinational corporations.
3. Guarantee of the activity of the Council of Foreign Investors under the President
of the Republic of Kazakhstan. The council is a
consultative and advisory organ seeking to guarantee
that a proper dialogue takes place with investors
and that any problems that could arise in connection
with investment activity reach resolution. The
President of Kazakhstan is the chairman of the
council. The council is composed of senior government
officials, and 18 leaders of international financial
organizations and key foreign companies.
Since its formation 8 years ago, the Committee for Investment has been working
successfully on a large number of projects. The
number of contracts concluded has been rather impressive:
in 2003, 64 contracts were signed with a total
value of $338.4 million. In the first 11 months
of 2005, 51 contracts were concluded with a value
of almost $1.5 billion. As you see, 2005 by the
volume of investments already outpaced the previous
year, and we expect the number of contracts in
2005 as well as their value to exceed previous
years sharply.
Where has U.S. investment in Kazakhstan been concentrated and why?
U.S. direct investment in the Kazakh economy accounts for about 30 percent of
total direct foreign investment since 1993, totaling
about $11 billion. In the first half of 2005, U.S.
investments in Kazakhstan totaled $1.178 billion,
up 44 percent from the same period in 2004.
The largest portion of U.S. investment was in the mining sector, comprising 42.7
percent of the total or some $6 billion
as of June 31, 2005. Comparatively, the portion
of U.S. investments in the processing industry
during the same period was 3.9 percent, and in
agriculture 9 percent.
Overall, in Kazakhstan today there are more than 100 existing small and medium
enterprises with U.S. capital in industries such as the production of thermal
energy, furniture, wholesale trade, apparel production, sea transport, agricultural
processing, development of software, construction and similar industries, but
this number is woefully insufficient.
In my opinion, this is mainly caused by geographical remoteness between our countries
and insufficient information available to U.S.
companies about the potential of the Kazakh market.
This lack of information does not only apply to
American companies but to other foreign companies
doing business in Kazakhstan.
To address the problem of misinformation or the lack of information for investors,
we at present unrolled a new campaign to provide
information for foreign businesses, including American.
During 2003-2005, more then 90 presentations were
made for representatives from more than 200 companies
from the largest multinational corporations that
specialize in non-extractive sectors.
What are the key new initiatives to promote foreign investment?
The “Innovative Industrial Development Strategy of the Republic of Kazakhstan
for 2003-2015,” aims to support the sustainable
development of the country through non-extraction
oriented diversification of the economy. Production
of competitive and export-oriented goods and services
in processing industries and services is the major
focus of this policy. As part of this effort, the
government is working to create the necessary infrastructure
and adequate conditions for the attraction of foreign
capital into non-natural resource sectors of the
economy. In particular, a number of special economic
zones (SEZs) and technoparks are planned. Three
regional technoparks have already been created in Uralsk, Karaganda, and Almaty. There currently exists in Kazakhstan a powerful,
but unequipped and untapped production and scientific
potential, which requires significant capital investment.
U.S. companies have already expressed some interest in these developments. In
particular, within the framework of the development
of the IT-focused technopark, bilateral memorandums
were signed with some large U.S. companies such
as Intel, Microsoft, Oracle, and Cisco Systems.
These memoranda envision joint development of information
technologies, around 40 projects total.
Also, there are other special economic zones, such as the one in Aktau seaport,
which focuses on transportation and logistics services;
the Ontustik SEZ (southern Kazakhstan region),
focusing on the textile industry, and the Astana
- New City zone (www.astana.dan.kz/sez/sez_angl/inv_angl.htm) focusing on the construction sector and production of building materials. The
creation of a petrochemical SEZ in the Mangistau
region, and the Khorgos SEZ (Almaty region) are
also planned. According to the legislation, the
territory within the SEZ is free of customs duties,
and also enjoys a 50 percent reduction of corporate
income tax, as well as an exemption from the real
estate tax, property tax, and VAT on services.
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U.S. Commercial Service
Video Market Brief: Russia’s Regions
Learn about three of Russia's top performing markets and best prospects in those
markets and meet U.S. Department Commerce representatives
who will help you develop business strategies and
meet buyers.
To watch interviews with BISNIS Representatives in Samara, Nizhny
Novgorod, and St. Petersburg, visit www.globalspeak.com/html/export-gov/webcasts.asp.
ClearView RMR, LLC
Russian Market Snapshot reports from ClearView provide information on the Russian
import/export market for a particular product or
commodity. BISNIS has obtained brief sample reports on imaging equipment and blue cheese that are now available on the BISNIS web
site.
Clearview also offers Corporate Snapshot Reports on Russian companies. In addition
to standard contact information, the reports
contain an exhaustive review of the subject company's
corporate details—from stockholder capital to foreign
trade activities.
www.clearview-rmr.com
GMB Publishing
Investing in St. Petersburg: A Guide to Business and Investment is a comprehensive analysis of the investment and business climate in St. Petersburg, Russia. Published in association with the City Government of St. Petersburg, the book contains information
on the business environment and overviews of St. Petersburg’s most dynamic sectors, including real estate, manufacturing, and services. Reports by BISNIS are included.
The Russia Foreign Energy Policy Report series looks at Russia's expanding role in the energy sector throughout Eurasia. Nine specific country profiles focus on the oil,
gas, electricity and nuclear power industries. Each report written by an author
of international standing explains how Russian foreign energy downstream mergers
and acquisitions are transpiring to consolidate the new Russian empire. Titles
currently available include: Kazakhstan: Energy Cooperation with Russia – Oil,
Gas and Beyond; Russia’s Energy Interests in Azerbaijan; Belarus: Oil, Gas,
Transit Pipelines and Russian Foreign Energy Policy; and Ukraine: Post-revolution
Energy Policy and Relations with Russia.
www.globalmarketbriefings.com
World Bank
Doing Business in 2006: Creating Jobs
Doing Business in 2006 is the third in a series of annual reports investigating
regulations that ease doing business and those that constrain it. This edition addresses indicators such as starting a business, hiring and firing workers, getting
credit, protecting investors, enforcing contracts, closing a business, paying taxes, getting licenses, and trading
across borders. The indicators are used to analyze economic and social outcomes,
such as productivity, investment, informality, corruption, unemployment and
poverty, and identify what reforms have worked, where and why.
The Doing Business Database provides information from the report online, by country.
www.doingbusiness.org
Business Environment and Enterprise Performance Survey (BEEPS)
BEEPS is jointly conducted by the World Bank and the European Bank for Reconstruction
and Development. The 2005 survey
of over 9,500 firms indicated that the countries of Central and Eastern Europe
and the former Soviet Union have made important strides in improving their
business environments, although challenges remain. The World Bank has prepared
and posted online detailed BEEPS-at-a-glance notes for 27 transition countries,
presenting simple statistics on firm perceptions and experiences
in the context of government reforms and policies as they impact the investment
climate.
Enhancing Job Opportunities: Eastern Europe and the Former Soviet Union
The report assesses how economic transformation has affected
labor markets and what policies can promote job creation in the face of obstacles
such as corruption, high taxes, and inefficient courts. The
report urges countries to improve their investment climates and lower the cost
of labor mobility.
www.worldbank.org/eca/laborstudy
From Disintegration to Reintegration:
Eastern Europe and the Former Soviet Union in International Trade
A major assessment of trade flows over a 10-year period, this study finds that
most countries in Eastern Europe and the former Soviet Union are benefiting
from their reintegration into the world trading system following the fall of
communism. However, transition countries must undertake crucial domestic reforms
to take full advantage of liberalization and spur continued growth.
www.worldbank.org/eca/tradereport
Infrastructure in Eastern Europe and the Former Soviet Union: Tariffs, Safety
Nets, Regulation, and Commercialization
Coming in May 2006 - The study outlines a set of benchmarks for infrastructure
reform in Europe and Central Asia and assesses progress in reform achieved
to date.
http://publications.worldbank.org/ecommerce
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Briefing Highlights Opportunities in Azerbaijan Beyond Oil and Gas
by Seymour Khalilov
BISNIS and the U.S.-Azerbaijan Chamber of Commerce (USACC) recently held
a commercial briefing, “Azerbaijan: Beyond Oil and Gas,” at the Ronald Reagan
Building in Washington, D.C., hosting Minister of Economic Development of
Azerbaijan, Mr. Heydar Babayev, Deputy Minister of Foreign Affairs, Ambassador
Vagif Sadigov, and the U.S. Ambassador to Azerbaijan, Reno L. Harnish III.
Ambassador Harnish focused on the best prospects for U.S. exports and investment
outside of the oil and gas sector and on some of the steps the Azerbaijani
government is taking to diversify the economy and maintain growth and opportunities
in the non-energy sectors, such as agribusiness, engineering/construction,
health care, and telecommunications.
The speakers underlined that major business opportunities in Azerbaijan would
especially grow after the Baku-Tbilisi-Ceyhan oil pipeline becomes fully
operational. According to official figures, Azerbaijan is expected to gain
between $73 billion and $143 billion from oil sales between 2006 and 2024.
“The U.S. is first and foremost a trading nation, and Azerbaijan presents
commercial opportunities in a wide range of sectors, from oil and gas to
agriculture and telecommunications,” Ambassador Harnish said. “Companies
coming to Azerbaijan will find a developing market and an Azerbaijani government
interested in attracting more foreign investment to spur development.”
He also spoke about challenges in the business environment, including the
rule of law, corruption, and ambiguities in the tax and customs legislations.
The speakers noted that both the U.S. Embassy and the Government of Azerbaijan
were addressing these problems and encouraged U.S. businesses to be more
proactive.
Minister Babayev informed U.S. investors about the priorities and objectives
of the government in 2006. “Azerbaijan will see unprecedented growth during
the coming years. The double-digit growth that started last year with 10.2
percent will further grow with a faster pace, reaching 23 percent this year,
and 26-28 percent growth is projected in the coming years.”
“We would like to cooperate closely with U.S. companies,” said Mr. Babayev.
“With technological advances and management know-how, U.S. companies are
poised as attractive partners.”
Ambassador Sadigov provided the audience with a general background on Azerbaijan,
its foreign policy, and strategic partnership with the United States. The speakers visited Washington, D.C., to attend the bi-annual U.S.-Azerbaijan
Joint Economic Task Force meeting.
To read the complete text of Ambassador Reno Harnish’s remarks at the BISNIS/USACC
event, visit http://bisnis.doc.gov/bisnis/bisdoc/051130AmbRemarksAZ.htm.
For additional information on Azerbaijan www.bisnis.doc.gov/bisnis/country/azerbaijan.cfm.
Seymour Khalilov is Executive Director of the U.S.-Azerbaijan Chamber of
Commerce (www.usacc.org), a nonprofit member organization in Washington,
D.C. that seeks to promote U.S. economic and commercial cooperation with
Azerbaijan. |
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BISNIS is the U.S. government's primary market information center for U.S. companies
exploring business opportunities in Eurasia.
A part of the Department of Commerce's U.S. Commercial Service, BISNIS disseminates information electronically and through consultations with its staff of trade specialists.
For more information, call: 202-482-4655 or email: bisnis@ita.doc.gov.
To call BISNIS toll-free, dial 1-800-USA-TRADE (872-8723), press 2 and then press 8
or visit http://bisnis.doc.gov (English) www.bisnis-eurasia.org (Russian)
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Director Tanya Shuster
tanya_shuster@ita.doc.gov
Deputy Director Philip de Leon
philip_de_leon@ita.doc.gov
Managing Editor Ellen House
ellen_house@ita.doc.gov
Contributors
Yerlan Arinov, Ellen House, Seymour Khalilov, Mark Shulgov
Articles by non-U.S. government employees express the views of the authors and
should not be construed as a statement of U.S. government policy.
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