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<title>PETTIGREW'S TRADE MISSION TO RUSSIA CONTINUES TO BEAR FRUIT: SNC-LAVALIN SIGNS DEAL WITH NEW RUSSIAN PARTNER</title>
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<p><font face="Arial"></font><font face="Arial"></font><font face="Arial" size="+1"></font><font face="Arial" size="+1"><strong>December 18, 2000 <em>(3:15 p.m. EST)</em> No. 272</strong></font></p>
<p align="CENTER"><font face="Arial" size="+1"><strong>PETTIGREW'S TRADE MISSION TO RUSSIA CONTINUES TO BEAR
FRUIT: SNC-LAVALIN SIGNS DEAL WITH NEW RUSSIAN PARTNER</strong></font><font face="Arial"></font></p>
<p><font face="Arial">Canadian businesses signed deals with Russian companies at a ceremony today,
including a move forward on the $220 million for the Montreal-based SNC-Lavalin to
build a rapid transit system linking Sheremetyevo Airport with downtown Moscow. The
announcements come on the heels of a trade mission to Russia led by International
Trade Minister Pierre Pettigrew last June during which $800 million in deals were
signed. The minister notes that Canadian companies also signed at least $25 million in
new contracts with Russian businesses since June.</font></p>
<p><font face="Arial">"I am pleased by the success of those companies announcing deals today and by the
continued positive results of our recent trade mission to Russia," said Minister
Pettigrew. "Canada and Russia have much in common and a great deal we can build
on in forming business partnerships. Today's announcements illustrate the benefits of
strengthening our economic ties with Russia."</font></p>
<p><font face="Arial">SNC-Lavalin today signed an agreement to include Moscow-based Aeroflot in its rapid
transit system Memorandum of Understanding (MOU) signed with the City of Moscow
during the June trade mission. Aeroflot will be involved in the Airport Terminal Station
and the railway corridor construction in the section in the Moscow Oblast and within
the airport boundary. Today's agreement is another important step in the development
of this multi-million dollar transportation project expected to carry an estimated 25 000
passengers per day by the year 2005.</font></p>
<p><font face="Arial">Nascor Incorporated of Calgary signed a $1.7 million contract at today's ceremony
with Rostnefteresurs Ltd. of Rostov on the Don, Russia to provide technology and
equipment for the manufacture of pre-fabricated housing in the Rostov region.</font></p>
<p><font face="Arial">Minister Pettigrew witnessed the signatures with Russian Deputy Prime Minister Viktor
Khristenko who was in Ottawa with Russian President Vladimir Putin as part of a state
visit. The signing ceremony was held at the Department of Foreign Affairs and
International Trade.</font></p>
<p><font face="Arial">Several of the other contracts signed recently are housing-related projects that will
bring Canadian technology and equipment to Russia.</font></p>
<p align="CENTER"><font face="Arial"> - 30 -</font></p>
<p><font face="Arial">A background document containing more detailed information on today's contracts
and the recent contracts is attached.</font></p>
<p><font face="Arial">For further information, media representatives may contact:</font></p>
<p><font face="Arial">Sylvie Bussières</font></p>
<p><font face="Arial">Office of the Minister for International Trade</font></p>
<p><font face="Arial">(613) 992-7332</font></p>
<p><font face="Arial">Media Relations Office</font></p>
<p><font face="Arial">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Arial">(613) 995-1874</font></p>
<p align="CENTER"><font face="Arial"><strong></strong></font><font face="Arial" size="+1"><strong>Backgrounder</strong></font><font face="Arial"></font></p>
<p><font face="Arial" size="+1"><strong>Today's Signings</strong></font><font face="Arial"></font></p>
<p><font face="Arial"><strong>NASCOR INCORPORATED, Calgary, Alberta</strong></font></p>
<p><font face="Arial">Nascor Incorporated and Rostnefteresurs of the Rostov region are today signing a
$1.7 million contract for the sale of Canadian technology and equipment that will
enable the construction of up to 2 500 pre-fabricated wood frame homes in the Rostov
region. </font></p>
<p><font face="Arial">Nascor also recently signed a similar deal worth $3.6 million with Techtranstroy of
Togliatti, Russia. Both contracts will involve the provision of training and licensing of
design software by Nascor, and each plant will have a capacity to build up to 2 500
homes per year. The two deals are the first large-scale introduction of such technology
in Russia.</font></p>
<p><font face="Arial">Nascor recently signed an agreement for the construction of the first wood-frame
demo house in Rostov. An agreement to train Russian specialists on energy-efficient
building technology and construction management methods will be signed between
the Canada Mortgage and Housing Corporation (CMHC), Nascor and its Russian
partner. This is part of larger Canadian International Development Agency (CIDA)-supported, CMHC managed project to transfer Canadian building technology to Russia
and to support Canadian exporters of building materials. Building materials are
Canada's second largest export to Russia.</font></p>
<p><font face="Arial"><strong>SNC-LAVALIN, Montreal, Quebec</strong></font></p>
<p><font face="Arial">During the June trade mission, SNC-Lavalin signed a co-operation agreement with the
City of Moscow to build a rapid transit system between Sheremetyevo Airport, the
Moscow International Business Centre and Moscow city centre. Initial feasibility
studies estimate the value of the first phase of the project for SNC-Lavalin at over
$220 million. This phase includes the construction of the section from Leningradsky
Terminal to Mezhdunarodnoye schosse in the corridor of the Oktyabrskaya Railway.
Today, the company further expanded on that project signing an agreement to bring
the Mosow-based Aeroflot into the deal. Additional Russian partners are also
considering joining the project.</font></p>
<p><font face="Arial">SNC-Lavalin is currently carrying out the bankable feasibility study on the first phase of
the project that will connect Sheremetievo Airport to the Leningradsky Railway
Terminal Station. The feasibility study is funded by SNC-Lavalin in co-operation with
the Canadian International Development Agency (CIDA) and the Russian partners and
will be completed by mid-2001.</font></p>
<p><font face="Arial" size="+1"><strong>Recent Signings</strong></font><font face="Arial"></font></p>
<p><font face="Arial"></font><font face="Arial"><strong>CANSTROY INTERNATIONAL, Toronto, Ontario</strong></font></p>
<p><font face="Arial">Canstroy International recently signed two contracts to build 100 to150 houses per
year for the next 10 years in two developments in the Moscow region using Canadian
technology and materials. The deals are expected to be worth $7.5 to $10.5 million per
year.</font></p>
<p><font face="Arial"><strong></strong></font><font face="Arial"><strong>FERGUSON SIMEK CLARK, Yellowknife, Northwest Territories</strong></font></p>
<p><font face="Arial">Ferguson Simek Clark, specialists in northern terrain construction, have recently
signed a $9 million contract with the Russian region of Chukotka to build a school, 20
houses and a local power system and electrical grid.</font></p>
<p><font face="Arial"><strong>INTERNATIONAL INFORMATIZATION ACADEMY, Montreal, Quebec</strong></font></p>
<p><font face="Arial">The International Informatization Academy of Montreal recently became a partner in a
consortium that won a tender to develop a heavy oil tar sands deposits in Tatarstan
using Canadian technology and equipment. </font></p>
<p><font face="Arial">The company has also developed ties with Moscow State University and will exchange
scholars, distance learning technology and research. They have also struck a third
deal, this one with the Tatarstan Ministry of Agriculture, to bring Canadian agricultural
technology to the area. These announcements add to the company's success during
the June trade mission.</font></p>
<p><font face="Arial"><strong>NAVIGATOR TRADE HOUSE INTERNATIONAL, Winnipeg, Manitoba</strong></font></p>
<p><font face="Arial">Navigator Trade House International of Winnipeg recently signed a letter of intent with
the Tomilinskaya Poultry Complex in the Moscow region to upgrade and renovate an
egg processing plant. The $2.8 investment evolved following Navigator's participation
in the Canada-Russia Intergovernmental Economic Commission meeting co-chaired
by Minister Pettigrew and Deputy Prime Minister Khristenko during the Canadian trade
mission last June. </font></p>
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