The Annual Swiss Investment Forum took place in mid-July this year in Zurich. The Nizhny Novgorod region and Tatarstan made presentations on their prospective spheres of cooperation.
The conference was initiated by the Swiss Organization for Investment Support (SOFI), authorized by the Government of Switzerland to provide assistance to business activities.
“Russia has great potential and possibilities for the development of business, Dorit Probst-Sallis, deputy head of SOFI said. There was always an interest with regard to the status of the investment climate in Russia. Businessmen actively explore the different regions, including those which are introduced here”.
“The Nizhny Novgorod region and Tatarstan possess a well developed infrastructure and good prospects for the future, the RF Ambassador in Switzerland, Dmitry Cherkashin said. The Seminar devoted to the Russian Federation attracted a great amount of people. Investors are interested in the Russian market”.
The Zurich forum was attended by the heads of Swiss companies interested in getting first-hand information about Russia.
The Nizhny Novgorod region’s potential, however, is not some kind of a sealed secret for Swiss business circles. Cooperation commenced in the early nineties. Thus, one of the “eldest” Nizhny Novgorod–Switzerland joint enterprises is the “RIDO” print shop, established in 1992.
According to the “Delovoy Quartal – Nizhny Novgorod” magazine, the company is among the first five leading print shop companies in the region. Its client base has long extended the limits of not only the Nizhny Novgorod region, but the Privolzhsky Federal District as well. Since 1994 Switzerland has been participating in the EBRD “Russian Minor Business Fund” special programme, providing support to Nizhny Novgorod small and medium-sized businesses.
In 1997 Swisscontact, a Swiss technical assistance fund, was established in Nizhny Novgorod. One can hardly overestimate its contribution to the business development of the Nizhny Novgorod region.
Thanks to the fund’s work, over 15 thousand businessmen of the Nizhny Novgorod region acquired various business services. The fund issued 12 irrevocable letters of credit for totaling US$600 thousand for the establishment of a system of guarantees and currency risk reduction schemes. Swisscontact made direct investments into the Nizhny Novgorod region’s economy totaling over US$300 thousand.
Since 1997, Nizhny Novgorod small and mediumsized businesses received loans for the amount of US$8 million, including those in cooperation with the OAO “NBD-Bank”. In January 2006, the results achieved through the “Interaction of Power and Business: overcoming administrative barriers” project in the Nizhny Novgorod region, with the participation of Swisscontact funds, received high appreciation at the International Forum in Hertsenzee, devoted to business development. The Forum is conducted annually by the Swiss Government with support from a number of European states. The results of the project performed in the Nizhny Novgorod region were introduced to the Forum participants by the Swisscontact fund’s official representative in the region, Olga Yasinovskaya, the only Russian participant at the Forum. In the framework of the project, a sociological research study on how to overcome administrative barriers was performed, a working model of a selfregulated organization (SRO) on the basis of the Union of the Balakhna Businessmen (Balakhna, Nizhny Novgorod region) was created, and a regional draft bill on self-regulated organizations was developed. The fund has now been restructured into a consulting company focused on providing services to businessmen in the spheres of management, marketing and international cooperation.
In March 2005, Nizhny Novgorod acquired a partnership with international sporting goods sales network Intersport. The partner is Nizhny Novgorod corporation “Ceazar”, which has two “Ceazar-Sport” stores. The “Intersport International” company, whose offices are in Bern (Switzerland), was founded in 1968. It comprises around 4,700 multi-brand sports stores, including those of its own and those working on a franchise basis, in 28 countries around the world. The company’s annual turnover is US$8.6 billion. There are 26 Intersport stores in Russia: in Moscow, St. Petersburg, Novosibirsk, Sochi, Kazan, Vologda and other cities. According to market players, Nizhny Novgorod sporting goods sales account for US$20–22 million per year. “Ceazar” paid US$10,000 for the franchise, while royalties for the brand name came to 4%. “Intersport Russia” has stated that within five years the company intends to open up to 300 stores in the country.
At the 35th conference of the Worldwide International Trade Centers Association in Geneva, membership was bestowed to the “International Trade Center – Nizhny Novgorod”. Moreover, the Nizhny Novgorod International Trade Center (ITC) was granted a special license for its activity. The official delegation of the Nizhny Novgorod region made a presentation in Switzerland of its ITC and signed a contract for its entry into the Association. The Nizhny Novgorod delegation was headed by Sergey Solodsky, director of the “RITC” Operating Company. There are plans to have offices, conference-halls, hotel rooms, boutiques, restaurants, cafes, a concert hall, bowling, fitness-hall, and a beauty parlor located on ITC property. The main complex will comprise offices of the Nizhny Novgorod regional Chamber of Commerce and Industry, since its building will undergo reconstruction.
The ITC development project will be implemented by the “Regional International Trade Center” Operating Company in cooperation with the Nizhny Novgorod regional Chamber of Commerce and Industry and with the support of the Office of the Authorized Representative of the RF President in the Povolzhsky Federal District. The main task of the ITC is to assist regional companies interested in acquiring contacts in foreign business circles. ITC is currently conducting negotiations with the European Business Club and other major foreign companies with respect to arranging mutual cooperation. Switzerland is represented in Nizhny Novgorod by its classic goods, such as Swiss watches and the “Nestle” products.
Real products from Basel and other watch producers are being successfully sold by the “Consul” stores, the “Geneva” watch shop and the “Crush” watch company, which has a network of stores in different towns of the Nizhny Novgorod region. Promotion of the “Nestle” products in Nizhny Novgorod, just like in seven neighboring regions of Russia, is overseen by the “ALIDI” distribution company. Being “Nestle’s” official partner in Nizhny Novgorod, the “ALIDI” company offers the local sales facilities the most complete variety of its products: “Nescafe” coffee, the “Maggi” products, “Russia” and “Nestle Classic” chocolate goods, “Savinov” and “Bon Paris” candies, the “Nestle” ready-to-eat breakfast products and baby food. There is also a “Nestle Foods – Nizhny Novgorod” company. Unfortunately, Swiss banks have not been represented yet. The first talks with respect to their arrival happened in 2002 during a visit to Nizhny Novgorod by Walter Fetscherin, the Swiss Ambassador to the Russian Federation.
However, things never went any further.
Tourism, including business tourism, has become yet another sphere of mutually beneficial cooperation.
Major Nizhny Novgorod tourist operators have long been offering interesting tours to Switzerland. The “Lengford Travel” company has been actively promoting the Swiss Tourist and Hotel Management School, located in Zorenbern, Lucern (in the Germanspeaking part of Switzerland), among business and student circles. “Lengford Travel” is an educational tourist operator and has already been cooperating with Swiss educational institutions for 9 years.
It can also be added that Switzerland is the only country with which we have an Agreement on Technical and Financial Cooperation. Our two countries cooperate actively in the spheres of law enforcement and security services in the struggle against terrorism, illegal migration, criminal money laundering, drug trafficking and other types of organized crime. Switzerland occupies 9th place in terms of investors working in the Russian market. The total volume of its investments into the Russian economy amounts to US $ 1,6 billion. Over 600 businesses with Swiss capital participation and over 230 Swiss company branches have been registered in Russia.
