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Canada Trade Mission to Russia (June 3-8, 2012)

Format: Trade Mission
When: Sunday, June 3rd, 2012 at 05:40:00 PM
Where: Russia

Canada Trade Missions

View/Download the flyer in PDF - 463KB

Foreign Affairs and International Trade Canada (DFAIT) is organizing a Canada Trade Mission to St. Petersburg and Moscow, (Russia) June 3-8, 2012. The mission will be led by the Minister of International Trade, the Honourable Ed Fast and will focus on Building Products and Construction, Aerospace and Mining sectors.

Russia has been identified by the Canadian Government as a priority market that offers significant potential for Canadian exporters and investors. It has a highly educated population of more than 142 million, with an advanced science and technology capacity, opportunities in many sectors and substantial natural resources that include large natural gas and oil reserves. Canada-Russia bilateral trade relations have expanded rapidly over the last decade - with Canadian merchandise exports increasing from $240 million in 2002 to almost $1.5 billion in 2011, and imports of Russian goods jumping from $380 million to nearly $1.3 billion during the same period.

Russia's upcoming accession to the World Trade Organization should further increase its integration into global markets and provide better access for Canadian products and services in an improved rules-based, transparent business climate. While providing commercial opportunities for Canadian companies, this market remains challenging, requiring a great deal of dedication to achieve success, and where experience in international, particularly emerging markets, can prove to be a valuable tool.

Participants of previous Canada Trade Missions will be familiar with the tremendous value of such missions in providing networking opportunities, market intelligence and access to key local businesses and government contacts. This is an ideal forum for Canadian firms seeking to gain a better understanding of the Russian industry, identify opportunities and possible local partners and/or expand their activities in Russia.

Building Products and Construction (including related infrastructure services)

The construction sector, in particular housing, remains a major focus of the Russian Government's social and economic policy. Low-rise residential construction is one of the priorities in the on-going federal program of housing development for 2012-20. There is a growing interest in Canadian wood-frame housing technology and related engineering services and solutions, including heating, ventilation and air conditioning. It is recognized that this technology has strong potential in the Russian housing market due to the abundant forest reserves in Russia allowing the building of affordable houses, which are in high demand on the domestic market.

Also of interest are opportunities related to infrastructure development in residential areas, particularly in road construction, operation and maintenance, and repairs. There may also be opportunities related to proposed major infrastructure projects, such as the construction, renovation and refurbishment of highways, railways and airports, in particular in the cold climate areas of Siberia and the Russian Far East.

Canadian companies that will find this mission useful include:
-Land and urban planners experienced in sustainable community development;
-Architectural firms with a specialization in residential buildings;
-Engineering/construction firms that want to identify local counterparts to help them identify, bid on and later execute infrastructure projects;
-Developers, project managers and construction firms that want to identify local counterparts to develop and execute small to medium-sized commercial projects such as housing, public buildings, sports facilities, and warehouse construction;
-Suppliers of heat, ventilation, air conditioning and plumbing equipment;
-Construction hardware systems for hotels, resorts and urban multi-storey condo markets; and
-Building products for low-rise wood-frame construction, such as sheathing, roofing, insulation, moisture barriers, windows, doors, finishes, etc.

Aerospace (Aviation and Space)

As the Russian aerospace industry continues to transform and modernize, it is increasingly internationally oriented with a growing focus on integration into existing global value chains. As such, opportunities for Canadian firms exist not only as potential suppliers to Russian Original Equipment Manufacturers and Tier-1s but also as innovation partners in collaborative research & development projects.

Aerospace has been identified as a key high technology sector within the Russian economy and significant resources are being invested to support its future development, most notably in the aviation industry. In addition, due to the ever-increasing number of Western-built aircraft and an ageing domestic fleet, there are growing opportunities in the Maintenance, Repair and Overhaul (MRO) market, including the potential for partnering. Overall, the growth potential in the Russian market is considerable.

Canadian space industries have identified Russia as an attractive market for exports. Russia is among the leading space-faring nations in the world - its access to space and enhanced space budget make Russia one of few providers of satellite launch services.

Canada enjoys a longstanding relationship in space with Russia that spans several decades. Over the years, this partnership has generated important opportunities and benefits in such areas as search and rescue satellite systems, astronaut training, and advancements in space science and technologies. Canada's most significant collaboration with Russia has been on the International Space Station (ISS), a premier international space research facility involving the United States, Japan, Europe, Canada and Russia - the largest space initiative ever undertaken.

Russia's space sector has full spectrum capabilities, including design and manufacturing of space craft and rockets, launch, satellite services. However, there are a number of opportunities as Russia is continuing to actively develop its space industry, notably in the space communication and broadcasting segment.

Opportunities also exist in areas such as search and rescue satellite systems, climate/environment monitoring and meteorology, astronaut training, and advancements in space science and technologies.

Canadian companies that will find this mission useful include:
-Aircraft and parts/engines/systems manufacturers;
-MRO companies offering a full-range of services, particularly with engine and component maintenance capabilities;
-Companies in the space sector providing information and communication systems and solutions, components of on-board equipment, as well as providers of solutions and equipment for space-based systems;
-Businesses and research and development (R&D) organizations interested in exploring R&D/innovation collaboration/partnerships in both the space and aerospace sectors.

Mining (equipment, services and technology)

With the high levels of global commodity prices, driven largely by growing demand in emerging markets, Russia has reaped the benefits as one of the world's largest producers of ferrous, base and precious metals.

The mining and metallurgical industries account for almost 20 percent of the country's industrial output. In 2011, metals and minerals represented 13.6 percent of Russia's total merchandising exports, with iron and steel accounting for 43.2 percent of these.

Canada is the largest foreign investor in Russia's mining sector, and Canadian equipment and services in this sector contribute annually to an important share of our total exports to the market. A number of Canadian engineering companies with a strong, albeit not exclusive, focus on the mining sector have permanent offices in Russia. Canadian equipment and services providers have established an excellent reputation for providing reliable, leading edge technologies and equipment - and some of the largest mining companies in Russia have long-standing direct relationships with Canadian suppliers.

Numerous new opportunities exist for Canadian companies in the mining sector in Russia. As commodity prices increase, so too have costs of production. Even as mining companies, Russian ones included, look to accelerate production through increased capital expenditures, they will also be keeping an eye on cutting costs to ensure sustainable long-term profitability. Canadian companies which are able to offer innovative, cost-saving technologies are well placed to take advantage of the current boom climate.

Canadian companies that will find this mission useful include:
-Companies with expertise in mine project management; upgrading of processing/smelting facilities; workplace safety; education and training for the mining industry; cold climate drilling, vehicle and extraction equipment;
-Services and equipment suppliers active in Russia who are looking to strengthen business ties and learn of potential new opportunities;
-Mining companies with projects underway, or in the development stage, in Russia, and who would benefit from high-level support to enhance relationships with local government and business partners;
-Mining companies interested in exploring investment opportunities in Russia, particularly in precious metals;
-Representatives of capital markets and banking industry looking to attract Russian mining companies to raise capital in Canada.

Additional Market Information

Global Commerce Strategy - Russia

Russia Fact Sheet

Construction and Building Materials Sector Profile

Export Development Canada - Doing Business in Russia

Export and Import Controls

Interested Canadian companies that want to learn more about this trade mission will have the opportunity to participate in our webinar on Friday, April 13th.

For more information contact:

Pierre Chalifour
Trade Commissioner
Foreign Affairs and International Trade Canada
Tel.: 613-944-1227 Fax: 613-996-3406

Canada Trade Missions


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