USC 1 . 2:SU1 In the Em' m& dieNIS U.S. DEPARTMENT OF COMMERCE e Washington,D.C. 20230 LOCKWOUDU • UNIVERS!TY AT BUFFALO MAY ~ 3 1996 uOCUMENTS DEPOSITORY LIBRARY 0433 ON The U.S. Department of Commerce offetS several programs dedicated to helping you maximize your commercial opportunities in the New Independent States ofthe fonner Soviet Union (NIS). Together, our programs provide numerous trade and investment facilitation services, including counseling, malket research, management training, business services, advocacy, and much more. MPBlJNG REASONS TO PURSUE THE NIS MARKETS: • Large consumer market-285 million people • Well-i!ducated work force • Rich natural teSOUl'('fS • Highly advanced technologies • Rising demand for U.S. goods and senices • Privatizing firms seeking U.S. partners • Improving commerdal climate • Aa:ess to Asian markets Your competitors are already there... Can your company afford NOT to be? 1 &siC NIS FACTS Country (Capital) Key Industries Annenia (Yerevan) Agribusiness Azerlraijan (Baku) Chemicals Belarus (Minsk) Computers Georgia (Thilisi) Construction Kazakstan (Almaty) Consumer Goods K~(Bishkek) Defense Conversion Moldova (Chisinau) Electronic; Russia (Moscow) Energy Tajikistan (Dushanbe) Environment Turkmenistan (A<>hgabat) Health Care Ukraine (Kiev) Mining Uzbekistan (Tashkent) Teleconununications 2 • Consult with BIS IS and Commercial Service trade specialists about the vast business opportunities that exist for U.S. companies in the IS (pp. 3-5). • Explore th emarkets in perso n. Confer with aCo mmercial Officer (p. 5) and use the ABC's business services (p. 6) while in the NIS. • joi n the CABNIS network of U.S. business associations involved in the NIS (p. 8). • Participate in the SABIT program to rain a potential IS business partner in the United States (p. 11 ). • Seek BXA's gltidance on defense conversion activities (p.14). • Follow BDC and CLOP efforts to cul tivate a positive commercial environment between the nited States and the 11S (pp. 15-16). BISNIS Business Information Service for the Newly Independent States • BISNIS is the U.S. Government's clearinghouse for business inform ation on theNIS countries. BISNJ Sserves as a hub for referrals to the numerous trade and investment promotion programs offered by the U.S. Department of Commerce and other U.S. Government agencies. BISNIS has been extremely successful in helping U.S. companies find export and joint venture opportunities in the IS. BI SNIS trade specialists handle over 150,000 inquiries annually. BISN IS publications include the BIS IS Bulletin, Search for Par tners, and Commercial Opp ortunities. BI SN IS publications and documents are now al so available to U.S. co mpanies via the Internet, on a "world wide web" home page. The BI SN IS home page can be accessed at the followingaddress: http: www.itaiep.doc.gm bisnis.bisnis.htmi BIS IS increasingly makes use of E-mail, via the Internet, to keep U.S. co mpanies informed of the latest business developmentsin Russia and the other NIS countries. BI SN IS E-mail can be accessed at the following address: bisnis@usita.go\ • Information Hotline-{202) 482-4655 : BISNIS trade speciali sts have expertise in all 12 countries in the IS, as well as major industrysectors. In addition to basic business information and referrals, BISNJStrade specialists provide one-on-one counseling to U.S. companies of all sizes doingbusinessin theNJS countries. BISNIS can provide 4 your company with time-sensitive trade leads, the latest information on export and project finance, including the Trade Development Agency (TDA), the Overseas Private Investment Corporation (OPIC), the Export-Import Bank, and the various enterprise funds, as well as insight into developing long-term strategies for NIS markets. • Flashfax Service-(202) 482·3145: BISNIS Flashfax is an automated information delivery system, available 24hours aday. It distributes over 450 different documents with critical market information on the NlS, inc uding trade leads, commercial overviews, sources of finance, a trade promotion calendar,and contact information for key officials and agencies in the NIS. • BISNIS Bulletin: This newsletter is the primaryvehicle for informing the U.S. business community about new U.S. Government programs supporting trade and investment in the NIS, as well as upcoming trade missions and trade shows, changes in trade rules and regulations, and other significant market developments. • Critical Market Information Initiative: One of BISNlS' main goals is to collect critical information on the emerging NIS markets for U.S. companies. BISNIS network of over· seas representatives gathers this information-on potential trading partners, sales opportunities, and changing market conditions-at U.S. embassies and consulates throughout the NIS for dissemination to American companies. • Search for Partners: The BISNIS Search for Partners newsletter lists NIS companies looking for U.S. partners. BISNIS receives the leads from its Overseas Network, NIS embassies in the United States, U.S.embassies in the NlS,the Peace Corps, and other organizations that have contact with NIS businesses. • Trade and Tenders: BISNIS works closely with the Commercial Service, the European Bank for Reconstruction and Development (EBRD), and the World Bank to publish information on tenders and trade leads in the biweekly electronic and Flashfax "Trade and Tenders" report BISNlS trade specialists also contact U.S. companies d ectly when they learn of major projects under consideration in the NIS. Tile Commercial Service The Commercial Service operates aglobal networl< of more than 70 offices in the United States and 130 offices abroad to promote the export of U.S. goods and services, strengthen the U.S. economy, and create jobs. SERVICES • Export and Trade Finance Counseling and Advice • Overseas Market Research Information • International Trade Contacts (Agents and Distributors) • Trade Promotion Events and Programs The Commercial Service (the United States and Foreign Commercial Service) helps you make valuable contacts, check the background of your potential overseas business partners, and assess the marketability of your products in a given country. In cooperation with the U.S. Advocacy Center, the Commercial Service also protects and advocates for your business interests abroad. LOCATIONS IN RUSSIA/NIS Our Commercial Service offices in Moscow, St. Petersburg, Vladivostok, Russia; Kiev, Ukraine; Almaty, Kazakstan; and Tashkent, Uzbekistan are committed to helping youstart or expand your business operations in Russia and the New Independent States. For more information on Commercial Service programs and services, contact the l'.S. Department of Commerce domestic office nearest you, or call the Trade Information Center toll-free at: 1 (800) lSA-TRADE (1-800-872-8723). 5 American Business Centers ABCs provide you with a professional work environment and the business communication and logistical services you need to conduct business successfully in Russia and the New Independent States. ABC SERVICES · Office, Carrel, and Conference Room Rental 6 •International Telephone, Fax, and E-Mail . computer Equipment Rental . secretarial Assistance and Word Processing • Interpretation and Translation Services · Photocopying Facilities · Business Appointment Scheduling · Meeting and Product Display Facilities • Assistance with Hotel/Travel Arrangements ABC LOCATIONS Russia Ukraine Chelyabinsk *Kiev Khabarovsk Nizhnevartovsk Uzbekistan Nizhny Novgorod *Tas kent Novosibirsk *St. Petersburg Kazakstan *Vladivostok *Aimaty Volgograd Yekaterinburg Yuzhno-Sakhalinsk *These five ABCs are managed by the Commercial Service of the U.S. Department of Commerce. The remaining eight ABCs are operated by nongovernment entities through cooperative agreements with the Departtr.ent of Commerce. .\BC CO:\TACT INFORMATIO~ 1:\" THE :\IS Kazakstan Almaty: 7(3272) 639·01 4 fax: 7 327) 581 -15 78 Russia Chelyabinsk: 7(3 512) 623-782 fax: 7(3 51 2) 62}768 Khabarovsk: 7 ( 42 12) 332·800 fax: 7 ( 42 12) 332·971 Nizhnevartovsk: 7(3466) 224-407 fax: 7(3466) 224-407 NizhnyNovgo rod: 7(83 12) 372-213 fax: 7(83 12)372-2 13 Novosibirsk: 7 (3832) 235·569 fax: 7(3832) 235-762 St. Petersburg: 7(8 12) 11 0-6042 fax: 7(8 12) 311 ·0794 Vladivostok: 7 ( 4232) 300·093 fax: 7 ( 4232) 300-092 Volgograd: 7(8442) 33 5·946 fax: 7(8442) 362·732 Ye katerinburg: 7(3432) 564-623 fax: 7 (3432) 564-524 Yuzhno-Sakhali nsk: 7(4242) 223-142 fax: 7 ( 4242) 22}142 Ukraine Kiev: 380 (44j219·11 68 fax: 380 44 417-14 19 Uzbekistan Tashkent: 7(37 12) 771-407 fax: 7(37 12) 89 1·335 In the lnited States, for an infonnation packet about the ABCs and market opportunities in these cities, contact the BIS:\lS office at: phone: (202) 4824655. option#21. flashfa\: (202) 482-3145. document #"'022. or on the Internet at: http:l ;www.itaiep.doc.gov/bisnis/abc/abc.html 7 CABNIS Consortia ofAmerican Businesses in the New Independent States ATrade Development Initiative • The Consortia of American Businesses in the New Independent States (CA BNIS) is a low-cost, high-benefit initiative th at helps to create an export-friendly environment for U.S. fi rms interested in doing business in the fo rmer Soviet Union. Administered through its Trade Development area, International Trade Administratio , the Department of Commerce has issued matching-grant awards of approximately $500,000 each to 12 U.S. nonprofit organizations. • The CA BNIS award recipients are usingthe federal seed money over a three-year peri od to form and nurture U.S. business consortia of for-profi t fi rms interested in doing business in the NIS, and to establi sh and operate consortia offi ces in the NIS. On-site, consortia staff prov ide a wide range of export faci litation services tailored to meet the needs of U.S. exporters. REPRESENTATIVE CONSORTIA SERVICES • advertisingandpublidty development • distribution of member fmn promotional literature • product demonstration • potential buyerand distributoridentification • market research • trade show partidpation • technical andsales seminars • assistance in contracting agents and distributors • assistance in training local personnel for members • tnlllS[Xlrtation arran~n~nts, including doom~ntation • conununication of specific sales oppornmities • arrangement of necessary legal services • In addition, the consortia staff work with NIS government decisionmakers, entrepreneurs, trade and professional associations, and academia to develop meaningful business relationships, develop early commercial intelligence on • new trade opportunities, participate in the development of local industryand product standards, and promote state-ofthe-art U.S. technology. CAB IS activities establish strong, lasting business relationships between the participants, which hopefully result in long-term benefits for alL CABNIS AWARD GRANTEES • American Agribusiness Equipment Consortium • American Building Products Export Council and the Home Builders Institute • The American Graduate School of International Management (environmental and natural resource management technologies) • The American-Russian Technology Association (information technologies) • Food Processing Machinery &Supplies Association • Partners in Economic Reform (coal extraction technology) • The Port Authority of New York and New Jersey (business training and trade facilitation services) • Semiconductor Equipment and Materials International • Telecommunications IndustryAssociation • Virginia Commonwealth University (biotechnology) • World Trade Center Alaska/The University of Alaska (located in the Russian Far East) • World Trade Center Association Orange County (information systems) 9 10 • The CABNIS consortia managed by these organizations represent the commercial interests of hundreds of U.S. firms that have expressed a desire to do business in the NIS. CABNIS commercial offices can be found in Russia, Ukraine, and Kazakstan,and several grantees plan to establish satellite offices in other NIS countries. • Many U.S.companies attribute their presence and ensuing successes in the NIS to this Department of Commerce initiative. Through CABNIS, U.S. firms are positioned to pool their commercial expertise and other resources to gain a competitive edge in the NIS . • CABNIS serves as avenue for U.S.companies that otherwise would be unable to enter this market alone. Let CABNIS generate export opportunities for you! For more information on the CABNIS initiative, contact the Office of Export Trading Company Affairs at: phone: (202) 482-5004. fax: (202) 482-4654, or on the Internet at: http://www.ita.doc.gov/export_admin;brochure.html SABIT Special American Business Internship Training Program The SABIT program awards grants to U.S. companies to help defray the costs of training NIS managers and scientists in the United States for three to six months. SABIT not only facilitates economic restructuring in the NIS, but also provides U.S. and NIS companies a unique opportunity to develop the critical business partnerships that are the key to success in international business. • Interested U.S. companies apply to SA BIT when funds are ava il able. SA BIT awards grants on a competitive basis. • SA BIT reimburses U.S.companies for each intern's round trip airfare and $30 dail ystipend for meal s and incidentals. • U.S.host companies provideinterns' visa support, housing, short-term medical coverage, and hands-ontraining. • SA BIT supplies host firm swith qualified applicants from whom to choose, or firmscan nomin ate to SA BIT candidates whom they wish to train. • SA BIT gives pri orityconsideration to U.S. organizations involvedin these lO sectors: agribusiness, defense conversion, energy, environment, financial services, health care, housing, product standards and quality control, telecommunications, and transportation. 11 12 SABIT SUCCESS STORIES • More than 60 percent of participating companies report ongoing business relationships with their SAB IT interns. • Mill ionsof dollars of U.S.·NIS business have been generated from the joint ventures, contracts, di stributorships, and other business relationships fo stered by SABIT. • A small New jersey housing company that has trained five Ru ssian managers through SA BIT has since completed business co ntracts totaling $3 .5 million. • Afood processing company from ew York trained a manage r from Kazakstan for six months under SABIT. The company has since sold $4 10,000 of its juice extraction equipment to Kazakstan. • ANew Mexico technology company that participated in the SABIT program three times has formed a joint ven ture with two of its fom1er interns andhas exported approximately 750,000 of computer products to Ru ssia. SABIT SPECIAL PROJECTS • SABIT and the Na ti onal Institute of Standards and Technology (NIST) jointly manage a comprehensive two· month trai ningprogram in the United States for over 100 NIS standards experts. The program enhance · thedevelopment and use of harmonized international standards in several key industry sectors,includingautomotive,1 edical equipmen~ telecommunications, aerospace, and food processing. • In collaboration with theBureauof Ex port Ad ministration (BXA),SA BIT implemented a specialized training program to provide up to 130 defense enterprise experts from Belarus, Kazakstan, Russia, and Ukraine with two months of hands· on exposure to U.S. methodsof product diversification. "SABIT is an excellent toolfor facilitating business relationships between the US. and NIS. The interns are carefully chosen and are well matched to the US. companies with which they train. I would recommend SABIT to anyfirm interested in developing business ties with the NIS. " Candace Frasher Arbor Crest Wine Ce ll ars For more information or to request an application kit. contact the SABIT office at: phone: (202) 482-007 3. fax: (202) 482-2443. E-mail: SABIT@usita.gm. or on the Internet at: http: www.itaiep.doc.go' sabit sabit.html 14 Bureau ofExport Administration The Bureau of Export Administration (BXA) has implemented several programs which are focused on assistingU.S. companies pursue trade and investment opportunities in the New Independent States (NIS): • Bilateral Defense Conversion Committees: BXA's Deputy Under Secretary serves as the U.S. vice·chair, to the Secretary of Defense, on Committees on Defense Industry Conversion established between the United States and Belarus, Kazakstan, Russia, and Ukraine. These bil ateral committees facilitate the U.S. private sector's efforts to participate in NIS defense conversion initiatives. The objectives are to: (I) collect and disseminateinformation to the U.S. private sector on NIS defense co nversion opportunities; (2) id entify opportunities and obstacles to private sector participation in NIS defense conversion initiatives; and (3) facilitate contacts between potential business partners for NIS conversion. • Defense Enterprise Directories: BXA has published directories profi li ng over 600 defense enterprises located in Kazakstan, Russia, and Ukraine, which are seeking to convert to the production of commercial goods. Information is included on privatization, taxation, sources of financing, U.S. and foreign government points of contacts and programs. • Technical Assistance Directories: BXA has published technical assistance directories on Russia and Ukraine. • Industry Outreach: BXA counsels U.S. companies in maki ng contact and working with NIS defense enterprises on defense conversion·related proj ects a d holds periodic industry roundtables to brief U.S. companies on government programs fostering defense conversion activities in the NIS. • Nonproliferation and Export Control Cooperation: BXA participates in interagency export control cooperative efforts with the NIS and other countries, in the areas of legal/legislative basis for export control systems, licensingand regulatory procedures, preventive enforcement mechanisms, industry-govenunent relations, and automation support • SABIT Defense Conversion Training Program: BXA, working closely with SA BIT, implemented a $1.2 million trainingprogram through which up to 130 defense enterprise managers from Belarus, Kazakstan, Russia, and Ukraine will spend two monthsin the United States for business training and internships with American companies involved in defense conversion. For more information, contact the BXA office at: phone: (202) 482-3984, fa\: (202) 482-5650. INTERGOVERNMENTAL INITIATIVES Business del'elopment committees (BDC) and Ombudsman Initiatives The BDC and Ombudsman initiatives, two of the U.S. Govetmlent's most effectivegovenment-togovenment mechaisms fcx ~thecinate fcx U.S.IxlsiJesses in N/S matkets,provide U.S. compcr1ies wfth advocacy ~t»fcy ibmatia~ ;nJ access tD key decisioomchts ir the U.S.;nJ N/S~ • Bilateral Problem-solving: Through BDCs with Belarus, Kazakstan, Russia, and Ukraine, the U.S. Government harnesses expertise in the publ ic and private sectors to work with counterpa rt NIS governments to stimulate new app roaches to bilateral co mmercial relati ons, spur government support fo r increased trade and in vestment, and facilitate new bilateral commercial contacts and projects. 15 • Wo rking Groups: Spearheading U.S.-Russia commercial relations, the .S .-Russia BDC has established working groups to address market access , standardsconformity, and defense conversion issues as well as 10 industry subgroups to identify and remove industry-s pecific impediments to trad e and investment. • Project Advocacy: In addition to the BDCs, the White House has appointed an Ombudsman for Energy and Co mmercial Coo peration with the IS to dismantlebarriers to U.S. commercial projects in strategic NIS markets. For more information on the BDCs, call the BIS~IS flashfax (202)482-3145 and request document #7050. CLDP 16 Commercial Law Der•elopment Program The Commercial Law Development Program (C LOP) of the Department of Co mmerce's Office of the General Counsel provides technical assistance to the governments of the New Independent States on legal issues affecting trade and investment. CLOP's wo rk focuses onaccession to theWorld Trade Organization and implementation of laws, regulations, and administrative practices relevant thereto . CLOP assistance is conducted in consultation with the U.S. Department of State, the Office of the nited States Trade Representative, and the Age ncy fo r Intern ational Development, which provides funding for CLOP activities. CLOP is always loo kingfor expert advisor candidates from both the public and private sectors. For more information about the CLDP, call (202) 482-5382 or fax (202) 482-3244. / SUNY/BUFFALO UNIVERSITY LIBRARIES l l lll lllllll lll lll l lll llllllllllllllllllllll lllllllll lllll 3 9072 02328644 0 U.S. Deptnnent ri Ccmnetce NIS f'rolan Offices ABC (202l482-46 55 #2 1 flashfax: (202 482-3 145 #7022 Home pageaddress: http://w ww.itaiep.doc.gov/bisnis/abc/abc.html BISNIS (202) 482-4655 fax: (202) 482-2293 flashfax: (202) 482-3145 Home pageaddress: http:/jwww.itaiep.doc.gov/bisnis/bisnis.html BXA (202) 482·3984 fax: (202) 482-5650 Home page address: http://www.doc.govjresources/BXA_info.html CABNIS (202) 482-5004 fax: (202) 482-4654 Home page address: http://www.ita.doc.gov/export_admin/brochure.html CLOP (202) 482·5382 fax: (202) 482-3244 SABIT (202) 482-0073 fax: (202) 482-2443 Home page address: http:/jwww.itaiep.doc.govjsabit/sabit.html For more information regarding Federal Government export assistance programs,contact the Trade Information Center at: 1-800-l'SA-TRADE l""{i', . . \ I "'"-"11!1~