World Prices For Diamonds Growth

World prices for diamonds will grow in the coming years against the background of the deficit, calculates the Russian state monopoly Alrosa.Diamond mining in the world will return to pre-crisis level in 2015 at the earliest, when it reaches 165 million carats produced in 2008, said Alrosa.  

In subsequent years the world will produce 165-167 million carats a year against the depletion of current fields and the lack of new ones. The global financial crisis 2008-2009 helped Russia to become the world's leader in diamond  mining. 

In 2010 the demand for diamonds in the world will be $ 13.1 billion, and the proposal - $ 12.3 billion. Over the next eight years, the gap between consumption and production will increase: by 2018 demand will reach $ 18.9 billion, and production - $ 14.4 billion, which would be equivalent to 33 per cent shortage in the market.  

Alrosa believes that demand for diamonds in 2018 will grow by one third compared to 2008 due to the largest markets for diamond jewelry - the U.S., Europe, the Asia-Pacific, Japan and the Middle East.
By this year the deficit in the market will lead to 31 - per cent rise in prices for diamonds in real terms, or an increase of 55 per cent to inflation of the dollar, the company said.
In subsequent years, believes the company, the world will produce 165-167 million carats a year against the depletion of current fields and the lack of new ones.

Russian Economy is Doing Well

Russian economy is finally doing well, but it needs to add investment and inner demand. Then its state could be called sustainable reported economists considering the impressive portion of official figures published last week . 

On Monday, Prime Minister Vladimir Putin once again boasted economic success:
"We expect the upward trend in employment will be gradually strengthened. The significant growth in industrial production and investment gives every reason for such a favorable prognosis," - he said at a meeting of the presidium of the government.

Reliance Acquire Shale Gas Company in USA

Indian energy company Reliance Industries has agreed to acquire 45 percent of deposits of shale gas company Pioneer Natural Resources in the U.S. for $ 1.35 billion, Financial Times reported today. 

Reliance will be the co-owner of Eagle Ford Field in south Texas. In April the company bought 40 per cent of deposits of shale gas company Marcellus Shale in the eastern U.S. for $ 1.7 billion. The company and Atlas Energy has agreed to establish a joint venture.

Market of Shopping Centers in the regions of Russia

23 regions of Russia were analysed including Moscow, St. Petersburg, Novosibirsk, Yekaterinburg, Nizhny Novgorod, Samara, Kazan, Omsk, Chelyabinsk, Ufa, Volgograd, Perm, Voronezh, Saratov, Ulyanovsk, Lipetsk, Kirov and others.

At the beginning of 2010 in 22 analysed cities the total space of the shopping centers was about 18.5 million meters. According to experts, in 2010 in 23 Russian cities, as described in the study, about 60 shopping centers will be opened, and their total area will increase by approximately 3 million square meters.

Thus, launch of shopping centers is expected in St. Petersburg - 7, in Voronezh - 5, Omsk, Novosibirsk and Volgograd - 3, Perm, Chelyabinsk, Samara, Yekaterinburg and others - 2.

In 2011, analysts predict a decline in input space with respect to 2009 to the level of 2,3-2,4 million square meters. , and in 2012 they predict growth of not less than 3 million square meters.

Experts estimate that the threshold of saturation in the 500 square meters per 1000 people was by January 1, 2010 bridged only in 14 cities: Kazan, Novosibirsk, Samara, St. Petersburg, Krasnodar, Yekaterinburg, Chelyabinsk and Nizhny Novgorod, Ufa, Rostov-on-Don and Volgograd. In 2010 Moscow, Voronezh and Lipetsk will join this list.

New Financial Laws Will Be Adopted in Russia in 2010

Important for Russian economy laws on financial statements, management of affiliates, on central depository and the national payment system will be adopted by the end of 2010, said Russian President Dmitry Medvedev at the St. Petersburg International Economic Forum today. 

These laws "should allow to operate more comfortable on Russian trading floors and make taxation of financial activities more convenient." Size of financial system assets in Russia, despite the crisis, following last year amounted to about 1 trillion. 

"Moscow is already well-developed public financial market, which is drawn to stocks and bonds of many hundreds of issuers. Daily volume of trading has long been measured in billions of dollars. And in derivative securities, Moscow is already among the top ten global markets. Thus, our market is saturated and it is ripe for further growth, "- Medvedev said.

Danone & Unimilk Create a Unified Company in Russia

French Danone in Russia and CIS and OJSC "Unimilk" create a unified company.Danone will control 57.5% of the new structure. 

The agreement was signed on Friday in St. Petersburg by CEO of Unimilk Andrei Beshmelnitsky and  president of Danone Franck Riboud, in the presence of First Vice Prime Minister of Russia Viktor Zubkov, of Economy and Finance Minister of France Christine Lagarde.

PepsiCo Intends to Become the Largest Beverages Producer in Russia by 2015

The company PepsiCo expects to restore double-digit sales growth in Russia in 2010, while assigned the task of becoming the largest producer of food and beverages in Russia by 2015, the president of PepsiCo in Eastern Europe, Ramon Laguartasaid today at a press conference in the SPIEF-2010 .

Foreign Investments Will Double in Russia

President's assistant Arkady Dvorkovich predicts that foreign direct investment in Russia will double in the next 3-4 years and will amount to tens billion dollars. 

In the first quarter of 2010 Russian economy has attracted foreign investment in the amount of $ 13.1 billion, by 9,3 per cent over the same period in 2009, with cumulative investments in Russia at the end of March totaled $ 265.8 billion. 

"Direct foreign investments will at least double over the next 3-4 years. It will be tens billion dollars," - said Dvorkovich  in the interview to Reuters Insider.

En+ (Main shareholder of Rusal) Bought 10% of Hong Kong Mercantile Exchange

The company En + Group of Oleg Deripaska, a major shareholder of the world's largest aluminum producer RUSAL, was among the founders of the Hong Kong Mercantile Exchange (HKMEx), bought 10% of its shares, said the En +. 

"The Hong Kong Mercantile Exchange was incorporated in 2008 and will become a platform for trading stock key commodities, above all, metals and energy focused on Asian consumers. It is expected that trading on the Hong Kong Mercantile Exchange will begin in 2010. The first instrument will be traded in futures of gold supply in future non-ferrous metals will be added , including aluminum and nickel, "- the report says. 

HKMEx board of directors will include one representative  of En + Group. 

In January 2010 Rusal was the first Russian company held an IPO on the Stock Exchange of Hong Kong, as a result the company has attracted more than $ 2 billion. Major buyers of IPO companies were VTB (3,15%), NR Investment Limited (0,48%), Paulson & Co Inc. (0,47%), Asian companies of a billionaire Robert Kuok (0,09%).

International Economic Forum in St. Petersburg in Russia

In St. Petersburg today launched the annual international economic forum. Thousands of Russian and foreign businessmen, as well as officials from various ministries and agencies will meet today in the halls of "LenExpo" to discuss the current economic situation in Russia and in the world. 

The main theme of the forum: "Laying the foundation for the future." The forum will be attended by 69 heads of foreign companies and 74  heads of Russian largest companies by version of Fortune and Forbes. 

Participants will discuss restoration of the world economy, the future of gas market and the Russian education, ways to increase productivity and even business models in the cinema. A separate briefing will focus on the creation of Technopolis - the future centers of scientific and technical ideas.
The scale of the event quite clearly visible in the figures: more than a thousand representatives of foreign business, nearly 1300 Russian businessmen, for three days of the forum was attended by 52 foreign delegations. To provide security in the city will be about 1,5 thousand police officers and cadets of the internal troops, which pulled into town at the time of SPIEF. 

Tomorrow Russian President Dmitry Medvedev will have a welcoming speech on the theme "We have changed". However, the actual work of SPIEF-2010 begins today - with the five round tables, four of which represent a business dialogue with key trading partners (CIS, EU, USA, India), while the fifth is devoted to electricity and is held by the Federal Grid Company (FGC).
  A distinctive feature of this forum is its French accent. It is quite natural - the current year has been declared the Year of Russia in France (and in France, respectively, the Year of Russia). The forum convened management of almost all the major French corporations. Electricity represent Electricite de France (EdF) and GDF Suez, the banking sector - Societe Generale and BNP Paribas, pharmaceuticals - Sanofi-Aventis, the defense aviation industry - Safran, oil and gas - Total, construction - Bouygues. On the last day of the forum  the president of France Nicolas Sarkozy will appear.

Wal-Mart Enters Russian Market

Wal-Mart held talks with several potential partners from Russia on the Russian market the head of Walmart International (a unit that is responsible for international markets) Doug McMillon told Reuters. At the same time, he said, the company continues to seek "the most appropriate way" for its appearance in Russia.

Top-manager of Wal-Mart noted that as one of the most attractive options for entering the Russian market for the company is considering a Russian company. "Most likely, this is the best way," - said D. McMillon.

In May this year it became known that Wal-Mart Stores Inc. intends to acquire 100% stake of Russian grocery retailer "Lenta". Currently, the company conducted preliminary discussions on this issue. According to sources close to the negotiations the formal conclusion of the transaction may take from several months to a year.

In 2008 Wal-Mart opened an office in Moscow and registered a 100 per cent subsidiary in Russia OOO "ВМ истерн юроп холдингз, ЛЛК". The company entered the Russian Association of Retailers lobbying interests of Russian trade networks.

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Fitch's Detailed Russian Economy Forecast

The Worst Phase Is Behind

Fitch believes that the worst phase of economic and financial crisis in Russia is behind. Energy sector shows signs of recovery. Such comments of Fitch rating agency experts were given in the seminars for investors on "Credibility of corporate issuers of Russia", which took place in Paris, London and Frankfurt.

Improvement of prospects for generating free cash flow of companies ratinged by Fitch in Russia and expectation of reducing of leverage to moderate levels were noted at the seminars. Reflecting these expectations is the fact that 38% of current ratings of corporate issuers in Russia are in the category of BB, while 23% - in the category of BBB. 

Russian oil and gas sector is currently supported by strong cash flow generation and ability to  fund capital expenditure and dividend payments, as well as by substantial liquidity position. Fitch expects  free cash flow generation in the sector as a whole will be about $ 3 billion by 2011 after a slight decline in 2010 associated with higher capital expenditure and investments, which were postponed as a result of the global financial crisis. In general, the agency believes that oil and gas companies of Russia occupy a comfortable position in their rankings, and in the short term, large-scale increase in ratings is unlikely to happen. 

In 2010 Fitch sees signs of recovery in the metals and mining industry of Russia. The outlook for the industry is stable. In Russia, the visible growth of domestic demand in the first half of 2010 by 30% is relative to the same period of the previous year, and Fitch expects growth in apparent demand by 12-15% and overall production volume in the 65-67 million tons of steel. The companies will maintain the focus on export. Steel prices will continue to feel pressure from weak demand and oversupply.


Nat LawyerForecast for the telecommunications sector of Russia as a whole is stable with a moderate positive dynamics. Operating sector indicators have shown strong resistance during the recession, and most operators have a moderate increase in revenue. Access to markets for debt and bank financing has improved, contributing to resolve remaining issues in the refinancing / liquidity. Stable generation of free cash flow is a key factor that could lead to positive changes in ratings.

IMF Again Raised its Estimate for Russia's GDP Growth

The International Monetary Fund (IMF) again raised its estimate for growth in the Russian economy, but advised not to have illusions about the speed of post-crisis recovery. 

Driven by demand recovery GDP of Russia, collapsed in 2009 at 7.9 per cent in 2010 may grow by 4.25 per cent, but despite the expected recovery of consumption, inflation in the country for the year will amount to a record low of 6 per cent, said on Tuesday the Head of IMF mission in Russia Paul Thomson.

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French Auchan Opened New Store in Russia

French retailer Auchan has invested 600 million rubles to launch a hypermarket in the suburban shopping center "Vegas" near Moscow the company said.

New shop "Auchan Vegas", which opened on Friday, became the 40th hypermarket of the retailer in Russia. Shopping space is 13,7 thousand square meters and its hall is equipped with 72 funds. The range of "Auchan Vegas" includes more than 42 thousand kinds of goods, both food and nonfood (50 to 50). The staff includes 500 people.

Auchan operates in the Russian market since 2002, there are 25 hypermarkets of Auchan, 13 hypermarkets of format "Auchan City", two stores "Auchan Garden" and two hypermarkets "Rainbow ". Shops are located in St. Petersburg, Rostov-na-Dony, Adygea, Ekaterinburg, Krasnodar, Nizhny Novgorod, Novosibirsk, Omsk, as well as in the cities of Moscow region Podolsk and Orekhovo-Zuyevo.
 

Trade group Auchan was established in 1961 by Gerard Myule. It consists of more than 1,2 thousand stores in 13 countries. The company's turnover in 2008 amounted to 39,5 billion Euro. 

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Swiss Oerlicon and Sulzer AG in Skolkovo - Russian Silicon Valley

Russian businessman Viktor Vekselberg, intends to attract Swiss companies to participate in innovative projects Skolkovo, news agency Bloomberg reported.

Discussions with engineering company Oerlicon have begun (Vekselberg owns 39% of its shares). "We want the world's leading technology leaders built their own centers of research and development in Skolkovo" - said Vekselberg.

In his words, Russia can also offer the University of Zurich, to participate in the project.
 

However, the Swiss engineering company Sulzer AG (Vekselberg owns 31% of its shares) was also invited to participate in the project.It was reported in Renova - a company of Viktor Vekselberg.  

Russian-Swiss economic relations will be the main topic of talks during the visit of the President of Switzerland Doris Leuthard in Russia in August this year.
 

Plans to create an ultramodern scientific and technological complex for the development and commercialization of new technologies, Russian President Dmitry Medvedev announced in February. The new Innovation Center, he said, should become the Russian equivalent of the American Silicon Valley, a kind of prototype of the city of the future, which should be the largest testing ground for new economic policy. Early last week the head of state, introduced in the State Duma a draft of federal law "On the Innovation Centre Skolkovo, which is aimed at ensuring conditions for the establishment and operation of the center.

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Why Do Customers Leave?

Why do customers leave? 

• Move away or die/become insolvent - 4% 
• Influenced away - 5%
• Get a better deal - 9%
• Unresolved conflict - 14%
• Perceived indifference - 68%

(Source: Michael LeBoeuf – How to Win Customers and Keep them for Life) 

When I first saw those figures I was astounded. Customers leave because they don’t feel ‘loved’. We’ve ignored them! This is our life blood we are talking about, without customers we can’t survive, and we’re letting them leave, for some businesses in their droves. 

The same research suggested that a customer thinks you’ve forgotten them if you don’t speak to them for 6 weeks or more. Wow! That’s a big ask for most businesses, but it does demonstrate why the modern keep in touch mechanisms via Twitter, Blogs, Linked In and so on, which put the customer or receiver of information in a position of control, have been so effective for some brands.

I always recommend to clients regular communications via e-newsletters, e-shots, mailings, service calls and face to face meetings with the most important customers. You can make the process as formal or informal as you like and of course it doesn’t have to be the business owner making the contact.

As a business grows it’s important to not only delegate work tasks but also client contact and ownership. I think many professional firms really shoot themselves in the foot in this regard. Getting this balance right isn’t easy, but data intelligence and proper systems can help the client continue to feel ‘loved’.

IPO of Diode Plant in Russia

The range of the offering price of Diode shares, a plant of ecological engineering and environmental ecological food,  defined in the IPO in 30,55-40,74 rubles per share, said the head of Finam (organizer of placement) Vladislav Kochetkov.
Reception of applications begins on Wednesday from 12.00 Moscow time and ends on June 22. On June 24 begins trading on exchange by shares of the company.
Diode in the process of IPO is the second among Russian companies in the biotechnology sector. In December, quite successful IPO was held by the Institute stem cells (ISKCH). 

In late May Diode announced a public offering to investors of 25 per cent of its capital. The company plans to raise up to $ 25 million.



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Russia Became the World's Leading Oil Producer

Russia in 2009 bacame the world's leading oil producer, said on Wednesday the released Annual Report of British energy company BP on the status of the world energy (BP Statistical Review of the World Energy). 

According to the report, in 2009, Russia increased its oil production by 1,5% compared to 2008 to the level of 10.032 million barrels per day (this represents 12.9% of world output).

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Russia Sells Shares of Sheremetyevo Internatiional Airport

Russia is ready to sell stake in its capital's airport Sheremetyevo to a strategic investor, who wishes to develop this aiport of Moscow, the First Deputy Prime Minister Igor Shuvalov said on Tuesday to reporters.

"We started with Sheremetyevo International Airport, perhaps, our proposal will expand. While our preliminary understanding of the situation is such that the investor may be interested in the whole Moscow aviauzel" - said Shuvalov.

"This year or early next year as planned we will give a long-term concession or lease, or we are even ready to sell (shares of Airport)," - said the First Deputy Prime Minister.

Currently, the largest Russian international airport is 100% state owned. Airport in 2009 handled 14.76 million passengers. The airport has organized an international hub alliance of SkyTeam, it also collaborates with the airlines, representing the oneworld alliance and StarAlliance.

According to Shuvalov's Sheremetyevo international airport a few interested investors, "but you may receive an investor with another volume of investment, if our proposal could be expanded.

"What is important is not the price, and infrastructure projects", - he added.

The Board of Directors of OJSC Sheremetyevo International Airport "has chosen a consortium of Credit Suisse and the Troika Dialog investment advisor to the consolidation of assets of the airport and attract management company. Also investkonsultant would submit recommendations on the privatization of shares Airport after the completion of the consolidation.

New Model of SsangYong Rexton II Production in Vladivostok in Russia

Company "Sollers - Far East" at the car factory in Vladivostok starts production of new model of business class car SsangYong Rexton II, the the Head of public relations department of the company Barbara Nasir reported.

"This is the most powerful and most expensive car in the line of " Sollers - Far East ". It will also be the latest model of SsangYong, production of which is transferred from Naberezhnye Chelny.
Rexton II is a car of representative class. The official launch of the newest models will be held in Vladivostok on Friday.
 
The first cars of the company "Sollers - Far East" came down the assembly line on Dec. 29, 2009. In the first phase capacity of the seaside company is 15 thousand cars per year. Today - more than 20 thousands. In mid-April there was put into production a new model - SsangYong Actyon.


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