I just hung up the phone discussing the possibility of Russian investment in the US steel industry (and said that there would probably not be another acquisition until after the US Presidential election in November 2008), and read Peter Marsh's (Financial Times) article describing Severstal and Evraz's further investments in Rouge Industries and Oregon Steel.
Sphere: Related ContentMonday, December 31, 2007
Turkmenistan cuts gas supply to Iran by half
Zahra Hosseinian of Reuters writes that Turkmenistan has reduced their gas output by half to Iran; although Iran claims this is due to technical reasons, they think that it might also be a warning signal regarding pricing issues.
Interestingly, the announcement came soon after the announcement of resumption of direct flights between Turkmenistan and Iran, a further sign of the gradual opening of Turkmenistan.
Sunday, December 30, 2007
Peugeot to build car plant in Russia
John O'Doherty of the Financial Times reports that PSA Peugeot Citroën is to build its first factory in Russia as it aims to double its sales in the country within three years.
Additionally, Marcel Michelson of Reuters reported that other manufacturers, including possibly Mitsubishi, may use some of the production capacity in the future. Further news: Mitsubishi Motors signed an agreement for the granting of incentives with Russian Ministry of Trade, although no specific manufacturing facility is mentioned
PSA chose Kaluga, site of the Kaluga Special Economic Zone, over Nizhny Novgorod (the historic center of the Soviet auto industry) and St Petersburg (which President Putin recently declared as "evolving into Russia's and world's largest automobile production center").
According to PSA's website:
Sphere: Related ContentPSA Peugeot Citroën has notified the Russian authorities of its decision to build a plant in the city of Kaluga, 180 kilometers southwest of Moscow. Scheduled to come on stream in 2010, the new factory will produce vehicles in the midsize segment, which represents nearly 60% of all sales in the fast expanding Russian market. The new facility is central to PSA Peugeot Citroën's development strategy in Russia, considered to be a priority growth market. The Group plans to sell 100,000 Peugeot and Citroën vehicles in Russia in 2010, with a commitment to eventually raising this number to 300,000 a year. The signing ceremony for the project is scheduled to take place in Russia in early 2008.
Citi Receives Permission to Open Rep Office in Baku Azerbaijan
Azerbaijan Business Center
Citi has been active in Azerbaijan since 1991 (often through their Turkish subsidiary), although they haven't yet opened a represetantive office (it is expected to open in early 2008). Loans completed by Citi include
- USD 75 MM AIOC, Early Oil Project - B Loan, Azerbaijan
- USD 4.5 MM AzTelecom Import Financing, Azerbaijan
Perhaps this is the first step to Citi opening a retail network in this fast-growing Caspian nation.
Saturday, December 29, 2007
High Design for Low-Income Housing - WSJ.com
High Design for Low-Income Housing - WSJ.com
Ben Casselman of The Wall Street Journal discusses how architects are answering pressure for social responsibility by planning low-cost housing which is also of sensible, even inspiring, design.
Of course, for at least the last two centuries architects have been aware of their responsibility with regards to social housing. Frank Lloyd Wright designed Usonia in Westchester County, New York as a model community with thoughtful design which he wanted to duplicate around the country. Also, the avant-garde architects of post-Revolutionary Russia considered housing their most important assignment, and even today their designs appear fresh and innovative.
See the books of William Brumfeld, professor at Tulane, for more on the architecture of Russia.
Friday, December 28, 2007
China: New Dam Builder for the World - WSJ.com
China: New Dam Builder for the World - WSJ.com
The article does not mention the potential for hydroelectric power development in Kyrgyzstan, nor does it mention the substantial interest which the Chinese apparently have shown in the country.
An article published in China and Eurasia Forum Quarterly, Volume 5, No. 2 (2007) p. 131-148
Kyrgyzstan is considered the third largest hydroelectric power in the CIS after Russia and Tajikistan. Its potential production is estimated at between 140 and 160 billion kwh per year but only 10 percent of its resources are currently being exploited.Hydroelectric power is probably the most important exploitable resource in the Kyrgyz republic, and can be shipped to western China, Kazakhstan, Russia, Tajikistan, Afghanistan and Pakistan. Sphere: Related Content
Kazakhstan, Oil Firms May Be Near Deal on Kashagan Field - WSJ.com
Kazakhstan, Oil Firms May Be Near Deal on Kashagan Field - WSJ.com:
Gabriel Kahn of The Wall Street Journal said it clearly:
President Nazarbayev will probably use this as an opportunity to emphasis the role which Kazakhstan will play in world energy security. Sphere: Related ContentIn a Dec. 26 letter viewed by The Wall Street Journal, Kazakh President Narsultan Nazarbayev, has called the heads of the six foreign oil firms toAstana, the Kazakh capital, for a meeting on Jan 11 with himself and the country's prime minister.
The presence of Mr. Nazarbayev, who holds a tight grip on power in the il-rich country and has rarely been involved in talks over the oil field, is a signal that the two sides could be close to a deal.
"For me it is difficult to imagine that President Nazarbayev and Prime Minister [Karim] Massimov meet the most important oil companies without a resolution," said Paolo Scaroni, chief executive of Eni SpA, which is the chief operator of the Kashagan field and has been leading the negotiations.
Thursday, December 27, 2007
Simon LeVine's The Oil and the Glory: The Pursuit of Empire and Fortune on the Caspian Sea
The Oil and the Glory: The Pursuit of Empire and Fortune on the Caspian Sea by Simon LeVine (a financial journalist) gives much of the back story to Syriana, the 2005 movie about power politics in the Middle East and the US energy industry. It deserves a place in the bookshelf next to Daniel Yergin's classic The Prize : The Epic Quest for Oil, Money & Power .
Visit LeVine's website at http://www.oilandglory.com/
Wednesday, December 26, 2007
Ford Motor Strike Ends/Average Wage
One interesting point to come out of the strike which temporarily halted construction at Ford Motor's plant outside of St. Petersburg: Despite all the progress in Russia's economy, and despite all the hoopla about "New Russians," the average monthly wage at the plant is currently approximately $800, and this is earned by professionals who consider this to be a good, steady job. This reminds us that Russia is still an emerging market.
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Friday, December 21, 2007
Heidi Brown On Russia - Forbes.com
As usual, Heidi Brown of Forbes made some good predictions on Russia's economy and politics for 2008. She is one of the few journalists who recognize that Putin's posturing is largely to serve a domestic audience.
Lower oil prices and presidential elections in the U.S. and Russia will edge the countries toward détente. As oil prices drop, Russia will be more motivated to cooperate with foreign firms. Once Russia's elections have passed and Putin's role as prime minister is cemented, his need to posture for the electorate at home will ease.Frankly, though, I am not sure that the US elections mean closer ties; if anything, I am nervous that Russia will become a campaign issue and that the American candidates will be posturing to their domestic audiences. The Council on Foreign Relations has a good summary page on where each of the US Presidential candidates stand on US-Russian relations. Sphere: Related Content
Tuesday, May 15, 2007
Discovering Eurasia attends EBRD's Annual Meeting in Kazan May 2007
Marc David Miller, Managing Director of Discovering Eurasia, attended the European Bank for Reconstruction and Development's Annual Meeting during May, 2007.
Highlights of the EBRD's meeting included presentations by trade authorities from most of the EBRD's region of operation (including Russia, Ukraine, Kazakhstan, Turkmenistan, Kyrgysz Republic, Azerbaijan, and Moldova), a separate conference on investment in Tatarstan, and networking with 3,000 of the world's leading bankers and financial experts.
Government and multilateral leaders attending included EBRD President Jean Lemierre, The Tatar President, Mintimer Shaimiev, Russia's Minister of Economic Development and Trade, German Gref, Philip de Leon, US Department of Commerce, and Paavo Vaeyrynen, Finland's Minister of Finance.
Business leaders attending included Vagit Alekperov of Lukoil, Alexei Mordashev of Severstal Group, Oleg Deripaska of Basic Element. and Anatoli Chubais of UES.
Journalists from The Wall Street Journal, Merger Market, the Financial Times, and other institutions covered the event.
The Annual Meeting also allowed Tatarstan to show off its business-focused nature. Considering the size of the meeting, all of the logistics and other details went exceptionally well.
Sphere: Related Content
Monday, January 1, 2007
About Discovering Eurasia
Discovering Eurasia provides strategic advice and implementation regarding market and investment development issues to associations, governments and companies in the US, Europe and Russia/former Soviet Union. We provide a clear, concise and consistent message to support the financial, reputational and political goals of our clients. Discovering Eurasia primarily focuses on four distinct markets: the Russian Federation, Central Asia, the Caucuses, and Ukraine, Belarus and Moldova.
Our services-including business travel, trade promotion, identity building, nation- and region-branding, corporate citizenship and cultural programs, market development, road shows, conferences/investment forums, trade delegations, advertising-support this strategy. We focus on the need for coalition-building; especially in the Eurasian market, people need to build trust before making a decision to invest, and that trust is deeper and stronger when developed over a period of time and a series of events.
Recent projects undertaken by Discovering Eurasia and its sister company, i-Latina (focusing on the Spanish, Latin and American markets), include:
--Promotion of Russian securitization and structured finance conference in New York, attended by nearly 100 investment bankers, lawyers, and private equity/hedge fund investors
--Coordination of trade mission by several major Spanish infrastructure companies to New York to survey future large-scale municipal projects
--Introduction of trade mission (Russian leasing association) to an American financial institution
--Advice regarding logistics and marketing issues to an American company importing vodka from Kyrgyzstan
--Advice regarding US market entry to a major Spanish infrastructure company, including toll-road projects and parking systems
--Advice to American legal consulting company regarding Russian/former Soviet market entry and development
--Organization of delegation of American collectors to various art fairs and openings in Moscow and St. Petersburg
--Advice to proposed joint venture of American and Russian law firms regarding consulting project
--Advice regarding promotion in the US and other issues for a major Spanish soccer club
--Market entry strategy and implementation for a major European event planning company expanding their US operations.
For more information, please contact Marc David Miller, Managing Director, at 1-212-758-7699 or MDM@DiscoveringEurasia.com
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