NEWS RELEASES
EGGLETON ANNOUNCES EXPORT FINANCINGFOR RUSSIAN COMPANIES
October 16, 1996 No. 190
EGGLETON ANNOUNCES EXPORT FINANCING
FOR RUSSIAN COMPANIES
The Honourable Art Eggleton, Minister for International Trade, announced today in
Moscow that leading private Russian companies will be eligible for new financing
from the Export Development Corporation (EDC) to support Canadian exports to
Russia.
EDC will target companies that earn hard currency, primarily in the oil and gas
and telecommunications sectors, as well as leading Russian banks whose clients are
likely to purchase Canadian goods and services.
"I am confident that EDC's decision to lend money to high-quality Russian
companies will result in increased activity by Canadian firms in the Russian
market, and will build on our already extensive commercial contacts," said the
Minister. Mr. Eggleton is accompanied by a delegation of 57 Canadian companies.
The Minister spoke today at the opening of the second-annual meeting of the
Canada-Russia Intergovernmental Economic Commission (IEC), which he co-chairs with
Russian Deputy Prime Minister Alexandr Zaveryukha. The Commission promotes
economic co-operation and trade between Canadian and Russian companies.
"Since the IEC's first meeting in Canada one year ago, commercial links between
our nations have strengthened considerably," said the Minister. "Our exports to
Russia are on the rise, and Canadian companies are making important inroads in a
quickly evolving market."
Total Canadian exports to Russia for 1995 valued $190 million. For the first six
months of 1996, Canadian exports have grown to $149 million.
Mr. Eggleton is to meet Thursday with Vladimir Potanin, First Deputy Prime
Minister for Finance and the Economy, and on Friday with Vladimir Yakovlev,
Governor of the Leningrad Oblast (province).
The Minister will also attend the opening of the Moscow showroom of Construct
Quebec, a consortium of 19 small and medium-sized building materials
manufacturers. The group had sales of $2.5 million in Russia in the past year.
This is the first showroom in Russia devoted to Canadian-made products.
Mr. Eggleton will participate in a ceremony launching Molson's beer in the Russian
market. The Minister said that the distribution relationship between Molson
Breweries and AWT International is "an exciting Canada-Russia trade initiative
that will benefit both our countries."
In St. Petersburg on Friday, Mr. Eggleton will announce a technical co-operation
agreement to install window films to protect the Hermitage Museum's collection
from harmful ultra-violet rays. The project involves joint government-business
financing, and will demonstrate Canadian expertise in this field.
Mr. Eggleton will also discuss with Russian ministers, officials and business
people ways to develop Canada-Russia trade across the Pacific. The Minister
expressed interest in the Russian Far-East region as a natural extension of the
Asian market for Canadian companies.
The Minister also signed a memorandum of understanding (MOU) on veterinary science
with Deputy Prime Minister Zaveryukha. The MOU will help Canadian and Russian
veterinary agencies to prevent the spread of animal diseases.
Canadian direct investment in Russia currently stands at just over $400 million,
principally in the oil and gas sector. Since 1992, more than 50 joint ventures
have been launched under the auspices of the Canadian government's Renaissance
Eastern Europe Program.
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A background document is attached
For further information, media representatives may contact:
Nicole Bourget
Director of Communications
Office of the Minister for International Trade
(613) 996-6271
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
This document is also available on the Department's Internet site:
http://www.dfait-maeci.gc.ca
Backgrounder
CANADA-RUSSIA INTERGOVERNMENTAL ECONOMIC COMMISSION
The second annual meeting of the Intergovernmental Economic Commission (IEC) will
take place in Moscow on October 16, 1996. The inaugural meeting of the IEC was
launched in Ottawa in 1995 by Prime Minister Jean Chrétien and Prime Minister
Victor S. Chernomyrdin.
The IEC is chaired by Minister for International Trade Art Eggleton and Russian
Deputy Prime Minister Alexandr Zaveryukha. Its purpose it to promote economic co-operation and trade, and to resolve trade irritants.
The Commission's focus is the private sector. Nearly 50 Canadian companies will
participate in the Moscow meeting, whose main goal is to continue the progress
made in facilitating business between Russian and Canadian companies.
Canada's objectives for the IEC are:
-- to identify and bring forward the concerns of the Canadian business community to
the Russian government;
-- to agree on means to address those concerns, and to identify areas where
industry or government can co-operate to enhance the Canadian presence in Russia;
and
-- to raise Russia's profile as a place to do business.
For Canadian companies with significant investments in Russia, particularly in
the oil and gas sector, the IEC is a valuable forum for discussing issues,
resolving problems and making recommendations to key Russian players. The
Commission promotes Canada as a high tech trading partner with global expertise
and complements its broader trade interests throughout Europe.
Since the 1995 meeting, Russia's economy has improved, and a growing number of
success stories are bringing more Canadian companies into the Russian market. The
first meeting of the IEC benefited from strong private sector interest and
participation.
Changes in the Russian marketplace have occurred at an unprecedented pace in the
last six years, creating tremendous commercial opportunities. Canada's interests
in Russia have evolved accordingly, and our commercial activities now span many
sectors.
In the short to medium term, Canadian companies stand to do well in Russia in the
agri-food, energy, transportation and telecommunications sectors, all of which are
being discussed by the IEC.
Canada-Russia trade continues to increase; non-grain exports of goods and
services to Russia improved in 1995. Total Canadian exports to Russia for 1995
valued $190 million. For the first six months of 1996, Canadian exports totalled
just over $149 million, and are expected to exceed 1995's total. These figures do
not include the export of services, which are estimated to exceed $250 million a
year.
Canadian direct investment in Russia currently stands at $300 million,
principally in the oil and gas sector.
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