December 18, 2000 (3:15 p.m. EST) No. 272

PETTIGREW'S TRADE MISSION TO RUSSIA CONTINUES TO BEAR FRUIT: SNC-LAVALIN SIGNS DEAL WITH NEW RUSSIAN PARTNER

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.

"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."

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.

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.

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.

Several of the other contracts signed recently are housing-related projects that will bring Canadian technology and equipment to Russia.

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A background document containing more detailed information on today's contracts and the recent contracts is attached.

For further information, media representatives may contact:

Sylvie Bussières

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

Backgrounder

Today's Signings

NASCOR INCORPORATED, Calgary, Alberta

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.

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.

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.

SNC-LAVALIN, Montreal, Quebec

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.

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.

Recent Signings

CANSTROY INTERNATIONAL, Toronto, Ontario

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.

FERGUSON SIMEK CLARK, Yellowknife, Northwest Territories

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.

INTERNATIONAL INFORMATIZATION ACADEMY, Montreal, Quebec

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.

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.

NAVIGATOR TRADE HOUSE INTERNATIONAL, Winnipeg, Manitoba

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.