July 1999

DOING BUSINESS IN

CENTRAL ASIA

(continued on p. 4) (continued on p. 5)

URALS DYNAMIC CAPITAL

ENTICES INVESTORS

by Yelena Zheberlayeva

Straddling the border between Europe and Asia,

Yekaterinburg is the capital city of Sverdlovsk Oblast

and plays the role of capital to the entire Urals region. A

receptive business climate and strategic location, combined with the presence of a U.S. Consulate General and

numerous foreign companies, makes Yekaterinburg one

of Russia’s most promising regions for foreign investment and trade.

Yekaterinburg is among the top four most populous

cities in Russia with over 1.5 million well-educated residents. Named for Peter the Great’s second wife, Catherine

I, Yekaterinburg has maintained its historical importance

as the center of Russia’s industrial heartland.

Today, Yekaterinburg is well known both as a center of heavy industry and steel production and as a major transportation hub. Its primary industries include

ferrous and nonferrous metallurgy, chemicals, timber,

pulp, and paper. Sverdlovsk Oblast produces the majorby Donald R. Nicholson II

With a total population of 55 million and a wide array

of natural resources, the five countries of Central Asia

present a challenging opportunity for U.S. business interests. The Central Asian-American Enterprise Fund

(CAAEF) has been operating in the region since 1994.

Maintaining offices in Almaty, Bishkek, Tashkent,

Khujand, Dushanbe, and Ashgabat, CAAEF works closely

with local banks and other investor groups to provide smalland medium-sized businesses with a blend of financial support ranging from micro-loans to investments of up to $5

million. As of June 1999, CAAEF had disbursed almost

$100 million in equity investments and loans to more than

1,100 businesses and entrepreneurs in the five countries.

Doing business in Central Asia is not easy. In addition

to the cultural and language barriers, legal, tax, and banking reforms are still in their early stages, making it difficult to do business openly and transparently. There are

wide differences between the individual countries, especially in the levels of bureaucracy and governmental controls. Government regulations and zealous bureaucrats

present obstacles to private companies. Therefore, a newly

arrived American businessperson looking to quickly reach

an agreement and begin implementation will need to be

patient and understanding. Local entrepreneurs may look

and sound like their Western counterparts, but there are

wide differences between appearances and reality.

Although the Soviets and Russians have been the major sources of external influence for more than 100 years,

the region is multicultural, multilingual, and currently bereft of hegemonies. In dealing with local businesspersons,

it is usually more important to know their tribe, clan, or

Published by the Business Information Service for the Newly Independent States (BISNIS)

U.S. Department of Commerce • International Trade Administration

BISNIS

BULLETIN
BISNIS BULLETIN - July 1999

2

BISNIS is an information center for U.S. companies doing business in the Newly Independent

States of the former Soviet Union. Operated by the Market Access and Compliance unit of

the International Trade Administration, BISNIS disseminates information in print form, electronically, and through consultations by its staff of trade specialists. For more information,

please contact:

202-482-4655 (phone)

202-482-2293 (fax)

bisnis@ita.doc.gov (email)

To call BISNIS toll free, dial

1-800-USA-TRAD (872-8723)

press 2 and then press 2 again

or visit the BISNIS Online website at

www.bisnis.doc.gov

BISNIS

The Business Information Service for the Newly Independent States

In This Issue

Doing Business in Central Asia

Urals’ Dynamic Capital

Moldova Investment Event Is a Hit

Ukraine FEZs Offer Advantages

Tricks of the Trade: Opening an

Office in Yekaterinburg

Regional Corner: Imereti Region,

Georgia

Agency Spotlight

Trade Events Calendar

BISNIS Move

Articles by non-U.S. Government employees express the views of the authors and

should not be construed as a statement of U.S. Government policy.

Director

Anne Grey

Deputy Director

Trevor Gunn

Managing Editor

 Ellen S. House

Assistant Editors

 Juliana Kinal, Kelly Raftery

Contributors

David Khurtsia, Ellen House,

Donald Nicholson, Yuriy Prykhodko,

Yelena Zheberlayeva

Moldova Investment Event at BISNIS Is a Hit

1999 CIS & Eastern

Europe Business Forum

The University of Arizona in Tucson is

pleased to announce the upcoming sixth

annual CIS and Eastern Europe Business

Forum to be held November 1214, 1999.

The forum will provide an up-to-date analysis of political, economic, and legal aspects

of business ventures in the former Soviet

Union and Eastern Europe and will present

case studies of successful American businesses and strategies for success.

If you would like to be a presenter at the

forum, please call or fax Roza Simkhovich

at (520) 298-6599, or call or fax the University of Arizona, Department of Russian

and Slavic Languages at (520) 626-4007.

On June 10, BISNIS held another successful event in

its new facilities at the USA Trade Center in the Ronald

Reagan Building and International Trade Center. Some 50

businesspeople turned out for a roundtable on investment

opportunities in Moldova, discussing the advanced state of

the market transition and favorable climate for investment

in this small western NIS state.

The roundtable, organized by BISNIS Moldova Specialist Derek Nowek and Embassy of Moldova Minister-Counselor Vlad Spanu, featured Moldovan parliamentary

chariman Dumitru Diacov as the keynote speaker. Attendees learned about Moldova’s progress toward implementing market reform and promising investment opportunities

from William Taylor, U.S. State Department Coordinator for

Technical Assistance to the NIS, and Dumitru Croitor,

Moldovan Deputy Foreign Minister, as well as from representatives of the Ministry of Industry and Commerce, the

U.S. Trade Development Agency, the U.S. Agency for International Development, and the Overseas Private Investment Corporation.

American companies, such as Deloitte & Touche and

DTR/FoodMaster, shared their experience in the region,

telling success stories about involvement in Moldovan energy sector privatization and setting up dairy ventures. The

Citizen’s Network for Foreign Affairs described its

Agribusiness Partnership and Agribusiness Volunteer programs. Other companies outlined investment and trade ventures in telecommunications, energy, privatization, agricultural production and food processing, banking, and trade.

Other BISNIS events in its new offices have covered

opportunities in Ukraine’s telecommunications sector and

the Russian automotive industry, and a briefing on Asian

Development Bank activities in Central Asia.

by Ellen House

Mark your calendars!

The 7th annual

BISNIS Open House

will be held on

September 17, 1999.

Visit BISNIS Online at

www.bisnis.doc.gov in

August for more information.
BISNIS BULLETIN - July 1999

3

UKRAINE SEZS OFFER INVESTMENT ADVANTAGES

by Yuriy Prykhodko

For more detailed information on the YSEA, interested

U.S. companies are encouraged to contact:

Mr. Stepan Lukashyk

Head, Yavoriv Regional Administration

8 Ivana Franko St., Yavoriv

Lvivska Oblast, Ukraine 292160

Tel: +380 (322) 798-246

Tel/fax: +380 (3259) 213-69, 210-90

Ms. Zoryslava Romovska

Member of Parliament (represents Yavoriv)

Verkhovna Rada of Ukraine

2 Shovkovychna St., Office 417

Tel: +380 (44) 291-7372, 291-7097

Fax: +380 (44) 293-0427

Dr. Ihor Yukhnovskiy

Member of Parliament

Verkhovna Rada of Ukraine

3 Sadova St., Office 319

Tel: +380 (44) 293-3361, 226-2900

Fax: +380 (44) 293-0414, 226-2420

Ms. Kristina Marlow

U.S. Embassy Kyiv, Economic Officer

Tel: +380 (44) 246-9750; Fax: +380 (44) 244-7350

Mr. Yuriy Prykhodko

U.S. Commercial Service, Kyiv

Tel: +380 (44) 417-2669; Fax: +380 (44) 417-1419

Email: Yuriy.prikhodko@mail.doc.gov

In the last year, Ukraine has been actively setting up special (free) economic zones (SEZs) in areas of the country with

the greatest industrial or other potential, as well as the greatest economic need. The zones provide investors with favorable tax, customs, and economic treatment and each has its

own set of specific privileges and conditions for investors,

depending on the features of the region. Currently, eight zones

have been created: Syvash in northern Crimea, Azov in

Donetsk Oblast, Donetsk in eastern Ukraine, Zakarpattya in

western Ukraine, Slavutych in Chernihiv Oblast, Truskavets

in Lviv Oblast, and Yavoriv rayon in Lviv Oblast. The decree

for the latest zone, the Interport Kovel Free Economic Zone,

to start operation on January 1, 2000, was signed on June 23,

1999.

The law on the Yavoriv special economic area (YSEA)

was signed in mid-January 1999 and established the zone for

20 years. The rayon (district) administration acts as the managing and regulatory authority for the YSEA, approving and

registering all investment projects worth at least $500,000.

The YSEA legislation stipulates the following privileges

for investors and project implementers:

 ̈ A 5-year corporate profit tax exemption for investment

projects.

 ̈ Imported equipment, spare parts, and other nonexcise

items required for implementation of investment

projects are exempt from import duties for up to 5

years and from value-added tax (VAT);

 ̈ The import of goods for use within the territory of the

YSEA, as well as the export of goods completely or

partially manufactured/processed within the territory of

the YSEA, are not subject to licensing and quotas;

 ̈ Owners and users of land within the territory of the

YSEA are exempt from land tax during the first 3

years of implementation of a project.

In addition, the government of Ukraine guarantees full

compensation of losses in case of the liquidation of the YSEA.

These stipulations and privileges are similar to those for the

other zones.

A concise description of 14 priority investment projects

for the area as determined by the Yavoriv district administration can be found on BISNIS Online at www.bisnis.doc.gov/

bisnis/country/9906yav.htm. The listed projects offer opportunities in the areas of electric power generation, production

of agricultural chemicals, construction and operation of an

oil enterprise, construction of a petroleum extraction and processing enterprise, production of concrete and building lime,

poultry processing, construction and operation of a milk processing plant, construction and operation of a donor plasma

processing plant, reconstruction and operation of a textile

factory, production of PET plastic bottles at an existing plastics factory, construction and operation of a customs post and

service plaza, and the construction of a toll road.

Yuriy Prykhodko is a commercial specialist with the U.S.

Commercial Service of the American Embassy in Kyiv.

Locations of free economic zones in Ukraine.
BISNIS BULLETIN - July 1999

4

(CENTRAL ASIA, continued from p. 1)

horde, than their specific nationality. Private business activities have always existed in this region, but they are only now

being conducted openly and legally. Knowledge and understanding of Western style legal agreements is a new and still

generally unknown phenomenon. It should also be noted that,

while local businesses may willingly sign our extensive and

all encompassing documentation, experience in enforcing contracts in the local courts is still limited.

CAAEF has learned a number of key lessons from its

involvement in Central Asia. Some notable ones are:

Ø There are major differences between Soviet and Western

accounting principles. Therefore, it is critical that all

parties understand and agree to the same common financial terms, conditions, and expectations of the business.

Ø Marketing is a relatively new skill, and its importance is

often ignored or understated. Adequate provisions need

to be included from the very outset of any business.

Ø Government involvement is usually far greater than in

the United States. We recommend establishing clear

lines of communication with relevant government

ministries, agencies, or other regulatory bodies.

Ø When acquiring Western-made machinery and equipment, it is essential that after-sale servicing and spare

parts be available. Although it may seem advantageous

to buy certain equipment, the true test comes when

there is a need for spare parts or servicing.

Ø Investing in a joint venture or new business is usually

easier than exiting. With no real capital market, and a

somewhat limited number of other interested investors,

divesting can be a long and protracted process.

Ø In some countries, currency conversion regulations

make it difficult to transfer dividends, repatriate

capital, remit interest payments on loans, or pay

royalties and licensing fees. With higher rates of

devaluation, these impediments can result in

significant currency losses.

Ø Good communications are of paramount importance.

As businesses operate in multiple languages, management must be bilingual or supported by qualified

translators versed in the relevant terminology.

For U.S. companies, CAAEF is an interested and willing supporter provided the conditions are right and the proposal makes sense. CAAEF’s financing can range from a few

thousand dollars under the micro-loan program, to $5 million as a direct loan or equity participation. Since inception,

CAAEF has invested in, or financed, businesses in almost

every sector of the local economies with the exception of hard

liquor, tobacco, and armaments. It can provide three different types of financial assistance for a U.S. company looking

to finance a local joint venture: (1) as an equity partner in the

venture, provided it meets CAAEF’s requirements and has

local private participation; (2) as a source of medium-term

financing; or (3) as a source of a shorter term “micro” credit.

With five years of experience CAAEF can be a good

source of information and advice on how to do business in

Central Asia, and what a new investor can look for or expect.

Having financed hundreds of local entrepreneurs, CAAEF is

also a source of information on how select markets are doing

and what the prospects are. CAAEF is able to introduce potential local agents and representatives to U.S. companies

that may be new to the region and can help arrange introductions to state-owned companies and agencies involved in specific sectors.

CAAEF welcomes the interest of U.S. companies and

feels that good opportunities exist in such areas as health

care, distribution, business/financial services, and franchising. With most investors focusing on oil and gas, many smaller

opportunities where the risks and rewards can be very attractive have been neglected.

Donald R. Nicholson II is President and CEO of the Central

Asian-American Enterprise Fund.

For more information on CAAEF, contact its U.S. office at:

1634 Eye Street, NW, Suite 200, Washington, D.C., 20006.

Tel: (202) 737-7000, Fax: (202) 737-7077, or visit its website

at www.caaef.com.

DEAR READERS

Please note that the BISNIS

Bulletin will not be published in

August. However, a double

issue will come out during the

first week of September.
BISNIS BULLETIN - July 1999

5

(URALS’ CAPITAL, continued from p. 1)

ity of Russia’s bauxite, titanium, and vanadium, and a quarter of its iron. Long an important trading area for goods from

Europe, Central Asia, and Siberia, Yekaterinburg also has a

reputation as a center of higher learning and research, housing over 18 institutes and numerous research facilities linked

to industrial production. Politically, Sverdlovsk Oblast has

produced some of Russia’s most prominent politicians, including Boris Yeltsin, Russia’s first president, and Eduard

Rossel, its first elected governor.

Economic and Political Climate

Yekaterinburg and Sverdlovsk have worked hard to

implement reforms in both the economic and political spheres,

and economic reform appears to have achieved irreversible

momentum. The majority of the Oblast’s industries have been

privatized. Currently, over three-quarters of retail sales and

industrial output is produced by private enterprises.

Sverdlovsk Oblast has the largest GDP in the Urals and is

one of the few administrative regions in Russia that is currently a net contributor to the federal budget.

Since the federal government in Moscow granted permission to Sverdlovsk oblast to negotiate its own foreign economic relations, the region enjoys a great deal of local autonomy and has been aggressive about pursuing foreign

investment. Sverdlovsk Oblast’s independence allows it a

greater range of freedom to negotiate directly with foreign

companies interested in investing or developing relationships

locally. Moreover, the Oblast’s history of economic and political reform bode well for future development in the region.

Trade Potential

Russia’s financial crisis has not left Yekaterinburg and

Sverdlovsk Oblast unmarred and, much like the rest of Russia, emphasis is now being placed on local production over

more costly imports. One of the best bets for exporting to the

Urals region is food processing equipment as many firms are

now purchasing new equipment to upgrade facilities and meet

new demand for locally produced food products. Many of

Yekaterinburg’s food processing facilities, such as Konfi

Chocolate Factory, Myasomoltorg Ice Cream Plant,

Myasokombinat Meat Packing Plant, and Patra Brewery

have remained stable and are likely to grow in the near future.

Opportunities also exist for sales of price competitive

Western products in a variety of other sectors including telecommunications, safety and security systems, medicine, and

construction materials. The United States leads in trade relations with Sverdlovsk Oblast. The Netherlands, Kazakhstan,

Germany, and the United Kingdom round out the region’s

top five trading partners.

Investment Potential

Sverdlovsk Oblast’s major attractions for foreign investors are its wealth of mineral resources and its highly qualified and low-cost work force. Currently, approximately 138

foreign companies have branch offices in Yekaterinburg. The

modest expatriate community is also drawn from the U.S.

Consulate General, a British Consulate, and a Hungarian

Trade Representative office. Yekaterinburg is by far the most

cosmopolitan city in the Urals, with direct international flights

to many European and Asian capitals.

Sverdlovsk Oblast’s favorable investment climate has resulted in its leading the Urals in attracting foreign investment, with $52 million and 689 joint ventures in 1998. The

top foreign investors are the United States, the United Kingdom, and Germany. The United States is Sverdlovsk Oblast’s

number one investor with $114 million in cumulative investment and 79 joint ventures.

Over 70 foreign firms have opened representative offices

in Yekaterinburg, including DHL, Ford, IBM, and Procter

& Gamble. Coca-Cola and Pepsi both opened bottling plants

in 1998, and MediaOne Group has formed a joint venture,

UralWestCom, which has become Yekaterinburg’s leader in

cellular phone sales and service. Lufthansa has a regional

presence in the Urals as well, offering flights three times a

week between Frankfurt and Yekaterinburg.

One promising sector in Yekaterinburg is building materials; U.S.-Russian joint venture Denek is already capitalizing on this market. Another sector that offers opportunities

for rapid growth is telecommunications. U.S. MediaOne

Group has invested $1.4 million in the region since 1995.

According to UralWestCom public relations manager Mariya

Kuznetsova, “We have reduced costs to our customers in order not to lose a single client. Our company continues to invest in order to broaden its network in the Urals.”

Sverdlovsk Oblast has a foreign investment support center and a website that profiles over 200 local companies

(www.midural.ru/ek.en/). The oblast’ Business Assistance

Center, formed in 1992, can assist foreign companies in finding local partners (www.csp.mplik.ru/english/bac.html). The

Yekaterinburg government has its own investment support

center, opened in 1998.

For more information about Yekaterinburg, visit BISNIS

Online at www.bisnis.doc.gov/bisnis/country/990525ur.htm.

Yelena Zheberlayeva represents BISNIS and is colocated with

the U.S. Consulate General in Yekaterinburg.

NOTICE

BISNIS Online has a new address:

www.bisnis.doc.gov
BISNIS BULLETIN - July 1999

6

TRICKS OF THE TRADE

Securing Office Space and Services in Yekaterinburg

by Yelena Zheberlayeva

Yekaterinburg, with a population of 1.5 million, is the

capital of Sverdlovsk Oblast, and serves as the de facto capital of the entire Urals region. Both Sverdlovsk Oblast and

Yekaterinburg city officials have encouraged foreign investment and created a receptive business climate.

Office Rental

Businesses seeking to set up in Yekaterinburg may choose

to rent office space from another establishment (sublet), to

rent an office in a business center, or to purchase office space.

Several hotels also provide office space on their premises.

Modern facilities close to the city center command high prices.

The price of a square meter of office space in the city center

city varies from $7-20 for medium-quality offices. The cost

may also depend on the landlord, who can sometimes assist

in establishing a relationship with local authorities and even

in finding new customers and business partners.

Because there is currently a surplus of available office

space, all prices should be negotiated. However, it is difficult

to find offices ready for occupancy in Yekaterinburg that meet

Western requirements. Older buildings usually require significant renovation, and the style of offices in new buildings

can vary greatly from U.S. standards. Both the World Trade

Center and the Business Center cater to Western firms.

The World Trade Center opened in August 1998. It is

the most modern business center in the city. Its facilities include conference halls, office equipment, fax-modems, restaurants, parking space, and security services. The price is

$500-800 per square meter annually. The price includes membership in the World Trade Center (WTC), which provides

access to the WTC database and some discounts for services.

The Business Center on Gogol Street, opened in 1992,

has only unfurnished offices available. The complex does not

provide conference or other business services. Telephone lines

may be installed in individual offices on request. Some official foreign representation offices are located in the building.

Commercial leasing begins at $300 per square meter a year.

Educational, science, and research institutes and factories can provide inexpensive office space. These facilities often require considerable additional investment to bring the

offices up to Western standards.

It is also possible to purchase office space, which can be

an inexpensive option in the long run. Firms interested in

purchasing offices should contact the City Property Committee, which can provide a current listing of available properties.

Telecommunications

A written request must be submitted to the head of the

City Telephone Exchange to install telephone equipment in

Yekaterinburg. The cost of telephone installation changes frequently. Currently, it is $200-400. Telephone lines are connected within a month after payment.

The major cellular service providers in Yekaterinburg,

all U.S.-Russian joint ventures, are Uralwestcom, Beeline,

and Uraltel. Uralwestcom offers the widest roaming within

Russia and abroad. Beeline provides roaming within 90 cities of the NIS and 70 foreign countries. Cellular services run

$0.35-0.75 per minute.

Internet and Postal Services

Four firms—Global One, Uralrelcom, EMTC (City

Telephone Exchange), and Yekaterinburg Telegraph—provide Internet access. Service costs vary greatly and are subject to frequent changes. Currently, Uralrelcom charges $1.08

per hour for Internet service, with no additional monthly fee.

Global One, a U.S.-Russian joint venture, provides Internet

services for $1.80/hour, and a $10 monthly fee.

The local mail system is reliable, but the security of proprietary information cannot be guaranteed. DHL, Federal

Express, and UPS operate in Yekaterinburg. Delivery time

is about 3-5 days to the United States, and a bit longer to mail

documents from the United States to Yekaterinburg. For shipments other than documents, special arrangements should be

made to expedite customs clearance.

Employment Agencies

The financial crisis has had a great impact on Russia’s

labor market. Many employees who worked for foreign companies, banks, and other financial institutions have been laid

off. The labor market now includes large numbers of highly

qualified, relatively low-cost professionals.

Local recruiting companies such as Ankor, Triza, and

Uralskoye Kadrovoye Agentstvo can help to identify appropriate personnel. They also survey the labor market and

provide professional consulting services. Salaries have declined 30-50 percent since the August 1998 financial crisis.

For more information on opening an office in Yekaterinburg,

including the legal issues involved and a contact list, visit

BISNIS Online at www.bisnis.doc.gov/bisnis/country/9906ur.htm.

Yelena Zheberlayeva represents BISNIS and is colocated with

the U.S. Consulate General in Yekaterinburg.
BISNIS BULLETIN - July 1999

7

AGENCY SPOTLIGHT

REGIONAL CORNER: Imereti Region, Georgia

U.S. Civilian Research & Development Foundation for the

Independent States of the Former Soviet Union

(CRDF)—CRDF announces three competitive grants programs for 1999-2000 to provide support for a variety of civilian R&D collaborations between scientists and engineers in

the United States and the NIS. The programs are: Cooperative Grants Program, Next Steps to the Market Program, and

Travel Grants Program. For application guidelines, forms,

or further information, contact:

CRDF

(703) 526-9720; fax (703) 526-9721

Email: information@crdf.org

Website: www.crdf.inter.net

by David Khurtsia

Imereti is the most populous region of Georgia with more

than 800,000 inhabitants. It is located in the western part of

the country on the main transit road between the Caspian

and the Black Seas in proximity to Georgia’s main seaports

and easily accessible by road, rail, and air.

Imereti is one of the major traffic and transit points for

the flow of goods between Europe, the NIS, and Asia. Its

proximity to Georgia’s main seaports, Poti and Batumi, makes

Imereti Region a prime target region for investors interested

in assembling imported components or exporting to the European Union (EU) and the Near East.

Kutaisi, Imereti’s capital and Georgia’s second largest

city (250,00 inhabitants), as well as the two other major cities of the region, Samtredia (37,500) and Zestaphoni (27,000),

are major industrial and trading centers.

The region’s forest resources are considered to be among

the richest in the whole country. Although a good part of

wood from the region, such as beech, oak, and chestnut, is

already exported to Turkey and the EU, the wood processing

sector still offers plenty of opportunities for investors.

Imereti is a major agricultural region, producing many

fruits and vegetables, tea, spices, and various kinds of livestock. As a result of the decline of many traditional food processing enterprises, these commodities are currently available at very competitive prices. They offer investment opportunities in export-oriented processing activities such as deep

freezing, juice concentrates, or fruit pastes.

There are rich deposits of mineral waters, many of which

have already been famous in the NIS for decades. Although

some of them—such as Sairme—are already bottled, many

are still awaiting investment.

Imereti’s natural beauty and many historic sites offer

potential investments in the tourism sector. Its numerous

health spas, such as Tskhaltubo and Sairme, were visited by

half a million people per year during Soviet times.

Positive Trends

Martin Bauer, Germany’s largest importer of black and

herbal tea, has invested in several large tea plantations and

factories in Imereti.

After it was sold to a Georgian-Russian bank, the

Zestaphoni ferromanganese factory is expected to triple its

production to $50 million in 1999 (35 percent of Imereti’s

total industrial production).

The Kutaisi truck factory, one of the largest vehicle producers in the USSR, has successfully been restructured.

Spin-offs include a rubber product enterprise and, in a joint

venture with the Italian car manufacturer FIAT, production

of molded car details. The whole complex doubled its production in 1998 and is expected to continue growing strongly.

Several large, new mineral water bottling plants, among

them a German-Russian joint venture for bottling the famous

water from Sairme, started operation in 1998.

Tourist visits strongly increased in 1998. The planned

construction of a large hotel in Kutaisi by American investors should boost the tourism sector further.

David Khurtsia is director of the Business Support Center of

Kutaisi. For more information, contact the BSC at tel: +995

(331) 411-55, tel/fax: +995 (331) 010-01, email:

bsc@bsc.com.ge, or website: www.bsc.com.ge.

Look for Search for Partner leads from Georgia’s Imereti

Region on BISNIS Online at www.bisnis.doc.gov.

Gore-Stepashin Commission—U.S.-Russia Business Development Committee, jointly with the Chamber of Commerce

and Industry of the Russian Federation, has developed Basic

Guidelines for Codes of Business Conduct for Russia based on

widely accepted principles of good business practices. The

Basic Guidelines will be presented for discussion at the conference organized by the Organization for Economic Cooperation and Development to be held in Novgorod, Russia, July 22-

23, 1999. The Basic Guidelines have been posted on

www.oecd.org/daf/psd/acnetwork.htm and BISNIS Online at

www.bisnis.doc.gov. Because the Basic Guidelines is a working draft, comments and suggestions are welcome. Contact Igor

Abramov, (202) 482-1832 or email: igor_abramov@ita.doc.gov.
Penalty for Private Use, $300

Sender ________________

U.S. DEPARTMENT OF COMMERCE

International Trade Administration

Washington, D.C. 20230

BISNIS

OFFICIAL BUSINESS

FIRST-CLASS MAIL

PRE-SORTED

POSTAGE & FEES PAID

ITA/DOC

PERMIT No. G-54

This notice is provided solely as an informational resource and does not constitute U.S. Department of Commerce endorsement of these events. For a more

complete listing of NIS trade events, visit BISNIS Online at www.bisnis.doc.gov/bisnis/leads/tradecal.htm. All information published in the BISNIS Bulletin

regarding trade events is subject to change without notice by the organizers of those events.

Waste Tech ‘99

Moscow Intl. Auto

Salon (AUTOSALON ’99)

August 23–29, 1999 Moscow

Organized by:

Tel:

Fax:

Email:

Website:

ITE Group

+44 (171) 286-9720

+44 (171) 596-5111

press@ite-exhibitions.com

www.ite-exhibitions.com

 Sept. 21–24, 1999

Organized by:

Email:

Website

Sector:

Sibico International, Ltd.

waste-tech@sibico.com

www.sibico.com/waste-tech

Waste management technologies, waste disposal services,

collection & transport, storage

Moscow

TRADE EVENTS CALENDAR

BISNIS

HAS MOVED!

BISNIS has joined the new

USA Trade Center.

Tashkent

Organized by: Fairtrade GmbH

Telephone: +49 (62) 214-5650

Facsimile: +49 (62) 456-545

Email: fairtrade@messelatat-online.de

UralExpoCentre

+7 (3432) 493-017, 493-010

+7 (3432) 493-019

root@expo.e-burg.ru

Elcom Asia/

Elcom Office ‘99

Sept. 28–Oct 1, 1999

Our mailing address is:

U.S. Department of Commerce

USA Trade Center

Stop R-BISNIS

1401 Constitution Avenue, NW

Washington, DC 20230

Our physical location is:

BISNIS

USA Trade Center

The Ronald Reagan Building

Suite 800 (Mezzanine Level)

1300 Pennsylvania Avenue, NW

Washington, DC 20004

Wood Processing Sept. 8–11, 1999

Organized by:

Telephone:

Facsimile:

Email:

Yekaterinburg