Calgary - Wild Apricot · delivered an interactive presentation urging the audience to think deeper...

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Calgary Global Energy Matters GEM Conference 2006 Conference de Montreal: CERBA Panel on Business Opportunities in Russia Amendments to Legislation Affecting Foreigners in Russia Business without Borders Vision of a Latvian Bank cebra_setka.qxp 9/15/2006 10:54 AM Page 1

Transcript of Calgary - Wild Apricot · delivered an interactive presentation urging the audience to think deeper...

Page 1: Calgary - Wild Apricot · delivered an interactive presentation urging the audience to think deeper about the issues of fraudulent actions, ethical standards, and man agement practices.

CalgaryGlobal Energy Matters

GEMConference 2006

Conference de Montreal:

CERBAPanel on BusinessOpportunities in Russia

Amendmentsto LegislationAffecting Foreigners in Russia

Business without BordersVision of a Latvian Bank

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Canada Eurasia Russia Business Association (CERBA)Association d'affaires Canada Russie Eurasie (ACCRE)Канадская деловая ассоциация в России и Евразии (КДАРЕ)www.cerbanet.org

CERBA Offices International:MOSCOW CHAPTERElena Settles � Regional DirectorTel: 7 (495) 230�6132Fax: 7 (495) 787�2701E�mail: [email protected] CHAPTERFrank Kense � Regional DirectorTel: 1 (403) 218�4164Fax: 1 (403) 218�8727E�mail: [email protected] CHAPTEROksana Ermolenko � Regional DirectorTel: 1 (416) 867�8097Fax: 1 (416) 352�5183E�mail: [email protected] CHAPTERBrendan Scully � Regional DirectorTel: 1 (514) 344�3347Fax: 1 (514) 371�4605E�mail: [email protected]

CERBA Boards of Directors:National Board of DirectorsChairmanDonald Whalen, High River Gold MinesDirectorsPiers Cumberlege, StraightviewPaul Drager, Macleod Dixon LLPNathan Hunt, Ronald A. Chisholm InternationalMoscow Board of DirectorsPresidentNathan Hunt, Ronald A. Chisholm InternationalDirectorsAnatoly Andriash, Macleod Dixon LLPSheldon Bennett, Ernst & YoungIan Bird, Golden Telecom, Inc.Luc Jones, Antal InternationalJohn Kur, Embassy of CanadaRon Lewin, TerraLink TechnologiesRene Marion, Barrick Gold CorporationCarol Patterson, Baker & McKenzie Gerald Rohan, PricewaterhouseCoopersNeil Withers, Bank VozrozhdeniyeCalgary Board of DirectorsChairmanJim Chernyk _ Foremost IndustriesDirectorsHans Gjerdrum _ KUDU Industries Inc.; Paul Drager _ Macleod Dixon LLPKurt Kennedy _ IMV ProjectsRandy McCord _ Schenker Steines LogisticsLinda Niro _ Export Development CanadaToronto Executive CommitteeChairmanDonald Whalen, High River Gold MinesBoard of DirectorsFrank Herbert � Centerra Gold CorporationPeter Antonoff � Aluma SystemsBoris Aryev � Marhope SystemsDmitri Buterin � BonasourceRuth Fothergill � Export Development CanadaPiers Cumberlege � StraightviewJohn Ivany � Kinross Gold CorporationSteven C. Nichols � Canadian Urban InstituteAlina Pekarsky � York University, Schulich School of BusinessPeter Solomon � University of TorontoSergei Timoshenko � Access AirMontreal Local BoardChairmanRon Denom � SNC� Lavalin International DirectorsPiers Cumberlege � StraightviewAnne Leahy � Foreign Affairs CanadaAlexander Lokshin � Dana & Co. Trading Inc.Edouard Namts � WE Consulting Inc.Jocelyn Neron � Quebec Ministere of Economic and RegionalDevelopmentElise Paul�Hus � McMillan Binch Mendelsohn (Law Partners)Jo�Ann Roux � International Trade Canada

CERBA News Elena Settles, Oksana Ermolenko, Frank Kense, BrendanScully, & Alex GrichineCERBA News Publisher and Layout: Troy MediaCover Photo: Lake Louise, AB, Canada

Page 2�4Looking Back � Past CERBA Events

Page 5On the Horizon � Upcoming events

Page 6�7Calgary Global Energy Matters (GEM)Conference 2006 Report

Page 8Moscow board

Page 9Amendments to Legislation AffectingForeigners in Russia

Page 10Business without Borders � Vision of a LatvianBank

Conference de Montreal, Local Board Members joinSandy Ferguson and CERBA Regional Directors after theCERBA panelFrom left: Standing � Anne Leahy (FAC), Jocelyn Neron(MDEIE), Sandy Ferguson (EBRD), Brendan Scully (CERBA�Montreal), Piers Cumberlege (Cordiant); Seated � OksanaErmolenko (CERBA�Toronto), Elise Paul�Hus (MBM), ElenaSettles (CERBA�Moscow)

1

CERBA Quarterly News (summer 2006)

In This Issue:

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Moscow

The Breakfast Brief on FraudInvestigation & Dispute Services(FIDS) with PETER SCHIMMEL,Partner, Leader in Central Europe,Fraud Investigation & DisputeServices, Ernst & Young was held inMoscow on May 25th. This turned outto be a very exciting and engagingevent. The speaker, Peter Schimmel,delivered an interactive presentationurging the audience to think deeperabout the issues of fraudulentactions, ethical standards, and man�agement practices. He stressed theimportance of establishing the riskmanagement strategies [i.e., assess�ment, prevention, detection, anddeterrence] to address each elementof the fraud triangle � opportunity,pressure and rationalization.

9th Annual LobsterfestOn June 3 CERBA organized its 9thAnnual Lobsterfest. The event washeld at the beachfront of theInternational Residential ComplexRosinka, famous for its beautiful sur�roundings. Over one hundred 100CERBA members, friends, and fami�lies arrived to Rosinka for this event.According to a long�standing tradi�tion, this event featured freshCanadian lobsters brought in fromNew Brunswick, barbecued to per�fection by experienced chefs from"Wine and Dine" catering. After a wel�coming word to the guests made byCERBA�Moscow President Nathan

Hunt the feast commenced. Thecaterer prepared a wonderfully richspread of delicacies to accompanythe lobsters. Having given a chancefor the guests to take in the serenecalm of the lake's mirror surface, amusical band started a live concert. Araffle lottery was held with prizesranging from gift certificates to two�way air�tickets to Thailand. Theguests admired an informal and fes�tive atmosphere of the event, dancedto the music and enthusiasticallygreeted the raffle lottery winners.

The event also featured two presen�tations by CERBA business partners �NewspaperDirect and AustrianAirlines� who informed the eventattendees about their services andanswered the questions from inter�ested guests. CERBA would like toexpress its gratitude to the mainsponsors of the event � BARRICKGOLD, PEPSI, and SUN INTERBREWfor their continued generous supportof CERBA and its events and activi�ties. We are also grateful to everyonewho donated the prizes for the rafflelottery: Austrian Airlines, Hotel

Baltschug Kempinski, Ian McColl,Macleod Dixon, Marriott Grand, andCourtyard by Marriott Moscow CityCenter.While the Federation Council dis�cusses the Big Golden Ring of Russiaproject, businesses are alreadyinvesting in restoration of towns witha cultural heritage.On June 23 CERBA Charter memberand valued sponsor Pricewater�houseCoopers in conjunction with the L. Tolstoy Heritage Fund and YasnayaPolyana Museum�Reserve held itssecond charity evening, KrapivnaPromenade, in the State PushkinMuseum. CERBA served as an infor�mation sponsor for this event. Theevening continued a series of charityevents to raise funds for restoration ofKrapivna � a unique provincial town ofthe 19th century, which is closelyconnected to the life and work of LevTolstoy. Over $30,000 was raised atthe event and will go to restore thefacades of town buildings and give itback its historical appearance. Fundsraised at last year's charity eveningwere used to restore Krapivna's St.Nicholas church. Mike Kubena,Managing Partner of PWC said: Wehave all seen Russia's Golden Ring.Why shouldn't we create a Silver Ringaround Moscow? It would unite thesmall towns and estates linked withcultural and literary figures andevents. We would like this and othersimilar towns to welcome tourists,receive more investment, and raisetheir standard of living. We believethat by combining our efforts we can

From left: Graham Lyon (Petro�Canada),Sheldon Bennett (Ernst & Young) andNeil Withers (Bank Vozrozhdeniye) con�template the methods of fighting fraud.

CERBA Quarterly News (summer 2006)

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LOOKING BACKPast CERBA Events

PricewaterhouseCoopers helps to createRussia's 'silver ring'

Ambassador Westdal and Sheila Hayescutting a celebration cake at the CanadaDay celebration in July 2006

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restore the Russian cultural province."

Canada Day BBQThe Canada Day celebration organ�ized by the Canadian Embassy jointlywith CERBA took place on Sunday,July the 2nd at the Anglo�Americanschool of Moscow. The event wasopen to all Canadian citizens inRussia, the Canadian Embassy staff,and all CERBA members. It featuredbarbeque, variety of food and drinks,and a live concert by the "The StreetBand". The guests of honor were theCanadian Ambassador in RussiaChristopher Westdal with his spouseSheila Hayes, who greeted the guestswith the welcome speech. Mr. Westdaltook active part in the celebration,helping the volunteers with the bar�beque preparation, slicing holidaycake and distributing it to the guests.The event also featured many attrac�tions for children � Games, FacePainting, Balloons, and Clowns. Themain attraction was an hour perform�ance by the circus artists, including amagician, trained animals � dogs,monkeys, etc. By all accounts, theevent was a great success. Theatmosphere was festive and cheery.The speech delivered by AmbassadorWestdal was very well received. Theguests enjoyed tasty barbeque andapplauded to the celebration cake.The live concert of the musical bandwas met with great admiration fromthe public. The children enjoyed thecircus performance and other attrac�tions and games. CERBA and the Canadian Embassy inRussia would like to express theirgratitude to the sponsors of the event:Petro�Canada, Marriott, Pepsi,SunInterbrew, MacDonalds, RadissonSAS, Metropol, Holiday Inn, MacleodDixon, Warren's, The Expat, MoveOneRelocations, Sovetskaya hotel; alsoour thanks to the information sponsorof the event NewspaperDirect com�pany. CERBA would also like toexpress its special thanks to BarryRossiter from the Canadian Embassy,who was in charge of the event organ�ization.

CERBA Quarterly News (summer 2006)

03

Fred Boyce and Barry Rossiter, CanadianEmbassy, and Alex Grichine, CERBAMoscow enjoying Canada Day in Moscow

CERBA Annual General Meetingand Business Lunch in Honor ofthe Canadian AmbassadorChristopher WestdalOn July 25 CERBA Moscow held aluncheon in honor of the CanadianAmbassador Christopher Westdal,who has left Russia after three verysuccessful years. The event was heldat the Baltschug Kempinski hotel, aplace, which welcomed manyCanadian events over the years. Oneagain, Chris delivered a very dynamicand optimistic speech expressinggratitude to all those who have madehis stay in Russia "a highlight of thiscareer." The address was extremelywell received by over one hundredguests who came to honor and thankAmbassador. Barrick Gold, Petro�Canada, and Bombardier generouslysponsored this reception in recogni�tion of the support and assistanceAmbassador Westdal provided overhis term heading the Canadian diplo�

matic mission in Russia. The eventalso featured introduction of theCERBA Moscow chapter Board ofDirectors � please see details on page8 of this Newsletter.

Elena Settles and Nathan Hunt of CERBAMoscow presenting Chris Westdal with afarewell present.

CERBA Happy Hour with Australianand New Zealand Business ClubOn July 28 CERBA jointly withAustralian and New ZealandBusinesspeople in Russia (ANZBIR),organized an after�hours reception,which was held at the beautiful

Australian Ambassador Residence.The event began with the welcomespeeches made by CERBA�MoscowPresident Mr. Nathan Hunt andAustralian Ambassador to Russia Mr.Robert Tyson, and the New ZealandAmbassador to Russia ChristopherElder. The quest speaker was Mr. IgorYurgens, Senior Vice President fromRenaissance Capital and Vice�President of the Russian Union ofindustrialists and Entrepreneurs. Mr.Yurgens delivered a speech entitled"Russia's Markets and Society: A NewGeneration", where he presented avery eloquent, sharp and expertanalysis of the present situation inRussia as well as his personal evalua�tions of the current trends and further

developments. The speech made atremendous impact upon the audi�ence not only because of its rele�vance and informativeness, but alsobecause of speaker's frankness andfine argumentation. Mr. Yurgens is avery dynamic speaker with goodsense of humor, which also scoredmany points with the diverse interna�tional visiting crowd. The speech wasfollowed by a lively discussion whenMr. Yurgens answered the questionsfrom the public. By all accounts, thiswas a very valuable and interestingcession, which provided an opportu�nity for those interested in the currentmarket situation in Russia and thetendencies of its further developmentto get first�hand information from awell�respected expert. The officialpart of the evening was followed by aninformal reception, which gave theguests a chance to network and inter�act while tasting Australian wines. Theevent once again highlightedCERBA's dedication to expandingcollaboration with other internationalbusiness communities in Russia aswell as promoting the common inter�ests of its members. Very positivefeedback received from CERBAmembers with regard to this eventconfirms the effectiveness of theseefforts. CERBA would like to expressits special thanks to Mr. Robert Tyson,Australian Ambassador to Russia, forhis hospitality. We are also grateful tothe Australian Embassy for sponsor�ing this event, and to Australian andNew Zealand Businesspeople inRussia for organizational assistance.We hope that this tradition of organiz�ing joint CERBA�ANZBIR events willcontinue into the future, and thecooperation of the two businessassociations will bring even morebenefits to both organizations.

Igor Yurgens looking positively but realisti�cally into Russia's future

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CalgaryThe Calgary Chapter of CERBArecently hosted the very successful6th Annual Global Energy MattersConference in June 2006. Pleaseread the full report in this issue.May 8th � Roundtable meeting withEBRD (in conjunction with AlbertaEconomic Development) � Sixteenmembers and non � members met foran informative morning with two rep�

resentatives of the European Bank forReconstruction and Development inthe beautiful McDougall Centre indowntown Calgary. Diliek Macit,Director for Consultancy ServicesUnit (London) and Sandy Ferguson,Advisor to the Executive Director forCanada and Morocco (London) pro�vided participants with updates as tothe procurement process works atEBRD, introduced the new webbased e�Selection tool and dis�cussed Canada's competitive edgeand how best to position themselvesfor increased opportunities.

May 26 � Calgary Chapter BoardMeeting � The Calgary Chapter met inthe offices of MD over lunch and

included President Jim Chernyk viaconference call from Moscow.Agenda items included a review offinancials for Calgary Chapter,approval of draft budget for theChapter and an update of prepara�tions for the upcoming GEM 2006Conference next month.

June 12 � Global Energy Matters(GEM) 2006 Conference � pleaseread a full report in this Newsletter.

June 14 � Energy Group meeting ofthe Canada Russia Business Council� The Energy Group of the CRBC heldits second meeting (first one was inMoscow in October 2005). The infor�mal and small meeting of 14 partici�pants was co�chaired by NeilCamarta of Petro�Canada andFarhad Sattarov of ITERA and held in

the Boardroom of Macleod Dixon.Rory Campbell, the Deputy Ministerof Alberta Economic Developmentwas in attendance and announcedthat Alberta will be opening an officein Russia within the year. The meetingresulted in a number of proposed ini�tiatives that that will be facilitatedthrough CERBA.

July 26/27 � CERBA was pleased tohost the Canadian AmbassadorDesignate to Russia, Mr. RalphLysyshyn, to a series of meetings withlocal business active in Russia as wellas an interactive luncheon on July27th hosted by Macleod Dixon. TheAmbassador designate was veryinterested to hear of local experi�ences in developing their businessventures in Russia � both the suc�cesses and challenges. There were29 attendees at the luncheon.

July 28 � Ambassador DesignateRalph Lysyshyn also spoke to a groupof 12 interested parties (business andeducational) in Edmonton who haveties to Russian based activities. Thisevent was co�hosted by CERBA inconjunction with Alberta Economicdevelopment and Industry Canada.

MontrealOn June 7th, in cooperation with the12th International Economic Forumof the Americas (Conference deMontreal) CERBA organized a panelon Business Opportunities in Russiasponsored by EDC including JeanLemierre, President of the EuropeanBank for Reconstruction andDevelopment (EBRD) and VitalySaveliev, Deputy Minister ofEconomic Development and Trade ofthe Russian Federation.

CERBA Quarterly News (summer 2006)

04

From left: Benoit Daignault, EDC, Bertrand Millot, Cordiant Capital, Don Whalen, HighRiver Gold, Anne Leahy, Jean Lemierre, EBRD, and Vitaly Saveliev, Russian Minister

Frank Kense, CERBA�Calgary Regional Director and Paul Drager, Macleod DixonPartner preparing for a meeting

From left: Rory Campbell, AED DeputyMinister, Farhad Sattarov, ITERA, EvgenyKozyukov, ITERA, and Jacob Kunzer,Canadian Embassy in Moscow

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CERBA�Wide:Canada�Russia Business Council (CRBC)Plenary SessionCERBA Annual General Meeting

MoscowSept 14Real Estate Breakfast Brief with "Green &Green Realty" Sept 28"Back to Business" receptionOct 8Thanksgiving Brunch

MontrealSept 18�27Canadian Pulp & Paper Mission to NothwestRussia and Urals

TorontoMining Industry EventInternational Conference: New EuropeTSX Project�Mission To Russia

Please visit CERBA website often for currentevent information:www.cerbanet.org/events

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ON THE HORIZON

CERBA Quarterly News (summer 2006)

Upcoming CERBA Events

CRBC Energy Committee Meeting In Calgary In June 2006.

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The Calgary Chapter of CERBA recently hosted the verysuccessful 6th Annual Global Energy Matters Conference.This year's conference, with the theme "G8 Energy andCanada's Role", was held on Monday June 12th at theSheraton Suites Eau Claire Hotel in the heart of dynamicdowntown Calgary.OverviewPreceding the opening of the internationally known GlobalPetroleum Show (GPS) by one day, this all day conferencebrought together over 70 delegates from business, gov�ernment and educational agencies. GEM 2006 attractedparticipants from Russia, Ukraine, Kazakhstan and, ofcourse, from across Canada. Delegates heard presenta�tions from 13 speakers, enjoyed programmed time to askquestions and had several opportunities throughout theday to mingle and network. Participants were also treatedto a continental breakfast, a delicious buffet lunch and aprivate evening reception with numerous hot snacks inBarclay's Pub in the Hotel.Program DetailsGEM 2006 opened with welcoming remarks by the Masterof Ceremonies for the day, Paul Drager of the internation�al law firm Macleod Dixon LLP. Paul extended greetings toall delegates present, and especially thanked those whohad traveled a fair distance to come to Calgary. ThePresident of the CERBA Calgary Chapter, Jim Chernyk, VPwith Foremost, also greeted everyone to this annualCalgary event and expressed his great pleasure at seeingthe number of participants from overseas.Michael Reshitnyk, of the Department of Foreign Affairsand International Trade in Ottawa, reiterated the impor�tance of exploring and developing trade relations betweenCanada and Eurasia and stated that the current businessand political environments were very encouraging for newopportunities in entrepreneurial ventures. Michael wasvery pleased to see the Trade Commissioners fromRussia, Kazakhstan and Ukraine presenting to this gather�ing and urged everyone to speak to them while they werehere. Michael also affirmed the important the role ofCERBA in creating the type of networking and informa�tional events as this conference and urged non�memberspresent to seriously consider becoming involved with theAssociation.The next portion of the program saw several speakersaddress matters relating to Russia business interests.Jacob Kunzer, Trade Commissioner for Russia, spoke tothe increasing opportunities for business development inthe energy sector in Russia, especially important intoday's uncertain investment climate in other parts of theworld. Nicolai Vladimir, Deputy Director for North

American in the Russian Department of Foreign Affairs,provided a very upbeat and positive review of economiccooperation potential between Canadian and Russian

business interests. Alexei Shalin, President of Kontstand,gave a PowerPoint presentation demonstrating the suc�cessful business relationship he has established over

recent years with a number of Canadian companies.Stefan Simek provided an informative and humorousreview of some key do's and don'ts he has gleamed fromhis 15 years of experience of working in Russia. RafaelNuriev, President of Siberian Service Company, gave aninformative talk about how his company too has devel�oped successful business partnerships in Russia withCanadian (and other) companies. Yuri Ermakov of theRussian Trade Mission in Canada reviewed the numerousbusiness opportunities now available for Canadian com�panies interested in expanding their business into Russia. The morning concluded with a presentation by DmitryTsvetkov from the Calgary office ofPricewaterhouseCoopers which covered the various legaland financial aspects that prospective businesses seek�ing to do business in Russia need to consider.At the conclusion of the buffet lunch, and over coffee anddessert, delegates were treated to an informative (andanimated) PowerPoint presentation by Harry Heuser, ofPetro�Canada, about the challenges of undertakingexploration and production in an "ice" environment � atopic to which Canadians are well versed and experi�enced.The afternoon program was divided into three parts � a setof 4 papers relating to Ukraine, 2 papers about business inKazakhstan and two more general papers.The Ukraine session was opened by GeorgeGrushshenko, Canadian Trade Commissioner to Ukraine,who provided an overview of growing business opportuni�ties in that country, particularly in the area of the energysector. His paper was followed by one by the 1st DeputyMinister of the Environment in Ukraine, Stepan Lyzun, whospoke about the specifics of oil and gas licensing legisla�tion and rules. The former Deputy Minister of theEconomy of Ukraine, Volodymyr Ingashchenko,addressed the economic potential and viability of the oiland gas sector development in his country for the inter�mediate and longer term futures. The Ukraine session wasclosed with a paper by Mykola Iaroshenko, DeputyDirector General of the company Fakel, who spoke aboutthe equipment needs of gas transportation and the poten�tial of partnerships in this sector.Rod Lever, about to head up the first office in Moscow forExport Development Canada, talked about the changingand improving financial climate in Russia today and howEDC is ready and willing to assist Canadian companiesinterested in developing business opportunities in Russiain the months and years ahead.

CERBA Quarterly News (summer 2006)

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"G8 ENERGY AND CANADA'S ROLE"GEM 2006 � GLOBAL ENERGY MATTERS CONFERENCE

June 12, 2006

MC Paul Drager, Macleod Dixon LLP welcomes delegates to GEM 2006

Artur Iralin Canadian Trade Commissioner to Kazakhstan, HansGjerdrum, KUDU Industries and Michael Reshitnyk, DFAIT presentingat GEM 2006

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The Kazakhstan session saw two highly interesting andinformative papers. Artur Iralin Canadian TradeCommissioner to Kazakhstan, provided the conferencewith a general profile of a country as yet not so well knownto Canadians as Russia and Ukraine, as well as reviewingwhat business ventures have already taken place thereover the past few years (both in terms of the companiesand industry sectors) and highlighting what industry sec�tors present the greatest potential for growth in the com�ing years. A "hand's on" experience of doing successfulbusiness in Kazakhstan was provided by Hans Gjerdrum,Director of International Business Development at KUDUIndustries. One of the key ingredients for being success�ful in overseas ventures that was emphasized by Hans andother speakers today was the importance of understand�ing the culture (both business and social) within which youhope to do business.Rana Pudifin, Manager of the Client Services andOutreach section of the Global Partnership Program ofthe Canadian Government, rounded off the series ofafternoon presentation with a highly interesting review ofa federal program that facilitates the implementation ofresearch opportunities for Russian scientists and engi�neers formerly involved in military endeavours.Conference ConclusionPaul Drager closed the conference with appreciativewords of thanks to all the presenters for the time andeffort they put into preparing their presentations (and forkeeping well within their time allocations!). Each speakerhad been presented with a full colour photo book of theCanadian Rockies as a memento of their participation inGEM 2006. Everyone then retired to the private receptionfor hot and cold snacks, and of course, some refresh�ments in Barclay's Pub.

Participants all expressed their satisfaction with the day'sevent and presentations. The numerous opportunities tomeet business leaders and financial and government offi�cials were welcomed by participants already active inRussia, Kazakhstan and Ukraine as well as by thoseexploring the prospective of becoming so engaged. Thedegree of knowledge and experience in working in andwith this part of the world was a golden opportunity fordelegates to broaden their understanding of, and readi�ness to, being involved in business ventures in this excit�ing an d growing part of the world.

We look forward to seeing everyone (and more!) at GEM2007!

(PowerPoint presentations, where available, can bereviewed by members at www.cerbanet.org)

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CERBA Quarterly News (summer 2006)

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Moscow chapter of CERBA held its Annual GeneralMeeting on July 25, 2006. Nathan Hunt addressed theaudience of close to hundred people with a brief report onthe activities and accomplishments of the past year.CERBA Moscow was happy to report that it acquired twosponsor�level members � Nortel and Baker & McKenzie. Anumber of medium�size companies, an educational insti�tution as well as a several new individual members joinedthe Association in 2006�07.CERBA Moscow chapter held over 20 events in 2005�2006 fiscal year. Starting with June Lobsterfest and sum�mer networking receptions; moving to the fall CRBC inau�gural meeting with RSPP; several breakfast briefs featur�

ing prominent speakers on various topics; 5th AnnualCharity Auction, which gathered over $67,800 CAD[60,900 USD]; Tyumen oil and Gas trade mission; as wellas joint events with RBCC, AEB, and Club France. We havean even busier calendar for the upcoming year with morethan two events a month. The chapter has also been working on strengthening itsservice package offered to members. The new servicesinclude: � New corporate contracts signed with three MoscowMarriott hotels and a new Courtyard by Marriott MoscowCity Center.� Signed corporate contract with Austian Airlines.� Established partnership with the Russian Guild ofTranslators and R�Story Newspaper Direct news service.� Tremendous amount of visa requests processed to helpRussian businesspeople of CERBA member companiesvisit their Canadian counterparts.

CERBA as an organization has also improved collabora�tion among its four chapters and is working on joint initia�tives and furthering international collaboration to betterserve our members.

A new Moscow Board was announced at the AGM with thefollowing members:

Chair of the Board: Nathan Hunt � Ronald A. ChisholmInternationalAnatoly Andriash � Macleod Dixon LLPSheldon Bennett � Ernst & Young Ian Bird � Golden Telecom, Inc.Luc Jones � Antal International John R. Kur � Canadian Embassy in Moscow Ron Lewin � TerraLinkRene Marion � Barrick Gold Corporation Carol Patterson � Baker&McKenzie Gerald J. Rohan � PricewaterhouseCoopers Neil Withers � Bank Vozrozhdeniye

CERBA Quarterly News (summer 2006)

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CERBA MOSCOW ANNUAL GENERAL MEETING

From left: Nathan Hunt (R.A. Chisholm Intl.), Neil Withers (Bank Vozrozhdeniye), Anatoly Andriash (McLeod Dixon LLP), Luc Jones(Antal International), Ian Bird (Golden Telecom), John Kur (Embassy of Canada), and Sheldon Bennett (Ernst & Young)

CERBA Annual Planning Meeting in session. From left: Jacob Kunzer,Embassy of Canada, Carol Patterson, Baker & McKenzie, Luc Jones,Antal International, Gerald Rohan, PricewaterhouseCoopers

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A number of important changes tothe legislation affecting expatriatepersonnel in Russia have beenintroduced with the coming intoforce on January 15, 2007 of thenew Federal Law No 109�FZ "OnMigration Record of ForeignCitizens and Stateless Persons inthe Russian Federation" (the "Lawon Migration") and theAmendments to the Federal Law No115�FZ "On the Legal Status ofForeign Citizens in the RussianFederation (the "Amendments").This article provides a briefoverview of the main effects of thislegislation and the practical aspectsof its implementation.

MIGRATION RECORDThe Law on Migration is intended to combine rules previ�ously contained in various statutes. It was itself removedfrom a chapter in the Legal Status of Foreign Citizens Lawto become an independent act. The Law on Migration seeks to improve the existing migra�tion legislation by establishing a new administrative andlegal mechanism for the collection and recording of infor�mation on foreign citizens and stateless persons arriving inRussia.

Notice ProcedureIn particular, the Law on Migration replaces the so�called"application procedure" with the "notice procedure" as

regards the registration of foreign citizens.The new procedure expands the exchange of informationbetween state bodies responsible for immigration and willcover, for example, border control officers and territorialmigration bodies. Article 8.4 requires that border controlbodies notify migration authorities within 24 hours of theentry into/exit from Russia of foreign citizens. Registrationbodies must similarly inform migration bodies within 24hours of the birth of children to foreign citizens in Russia. The Law on Migration also simplifies the procedure for reg�istering foreigners in Russia. The responsibility to notifythe appropriate authorities of the arrival/departure of a for�eigner will rest with the inviting party. The requirement forall foreigners to be registered within 3 working days ofarrival (except for holders of a permanent residence permit"vid na zhitelstvo" who must register within 7 working days)will not change.The inviting party, upon the provision by a foreigner of anidentification document and stamped migration card, mustnotify the migration bodies within the required time, andthis may be done by registered mail with the post office ofRussia. Notwithstanding that the Law on Migration will be separat�ed from the Legal Status of Foreign Citizens Law and willcontain detailed provisions regarding the lists of docu�ments required for registration and the data to be recordedat a migration point etc, it is impossible to predict how thenew law will be enforced. As is often the case, the lawrefers to acts yet to be passed by the Government. It isonly when these acts are adopted and the new law is prac�tically applied that it will become possible to judge itseffectiveness.

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AMENDMENTS TO LEGISLATION AFFECTING

FOREIGNERS IN RUSSIA

CERBA Quarterly News (summer 2006)

Maria V. Kadlets, Associate Macleod Dixon ELPMoscow, Russia

The Amendments, also due to come into force on January15, 2007, are intended to substantially simplify the rules forforeign citizens entitled to enter Russia without a visa (pri�marily citizens of CIS countries). Migration bodies haverecently been required to marginally expedite their consid�eration of applications from CIS citizens. With the adoptionof the Amendments, CIS citizens will enjoy considerablyrelaxed restrictions on their employment in Russia.Term of Stay in Russia for Citizens Entitled to Comewithout a VisaCurrently, citizens not requiring a visa to stay in Russia maydo so for a maximum of 90 days. Article 5.1 of theAmendments allows this limit to be increased or reducedby a decision of the RF Government to a period of up to 180days on the territory of any one or more regions of the RF.Temporary Residence Permit (TRP)Article 6.1 of the Amendments addresses the issue of tem�porary residence permits for citizens entitled to enter theRF without a visa. The established quota on TRP's is notapplicable to these citizens. The article describes in detailthose documents that are to be submitted for a TRP appli�cation, which medical tests are to passed by an applicantand the period by which state bodies must consider theapplication and decide upon the issue of a TRP. This termis to be reduced to 60 days from the current 6 months.Work Permits for Citizens Entitled to Come without a VisaArticle 13.1 addresses employment issues for foreign citi�zens entitled to enter the RF without a visa. In particular, aforeigner will be able to file an application for a work permitto the migration bodies in person or through his/heremployer. The latter should not already have obtainedprior permission to attract and use foreign labor. Migration bodies will have 10 working days to consider a

request from a foreign citizen falling within the above cate�gory. Where he/she has provided the required documents(similar to those documents specified in the existing lists),the state must, within the required time, either issue a workpermit or provide grounds for a refusal (which may beappealed).Work in More than One RF RegionArticle 13 of the Amendments provides that the RFGovernment may allow a foreigner to work outside theregion in Russia where she/he received a work permit orTRP.We hope that the Amendments applying to citizens comingto Russia without a visa will shortly be followed by long�awaited amendments to work permit procedures for othercitizens, in particular, the proposed exemption of employ�ees of foreign representative offices and branches from thepermit requirements.

This article is prepared by Macleod Dixon ELP to provideinformation on recent legal developments and topicalissues in Russian legislation. Due to the general nature ofthe article, it should not be relied upon as legal advice.Macleod Dixon ELP would be pleased to provide addition�al details or advice upon request. For further informationplease do not hesitate to contact Maria Kadlets.

Macleod Dixon E.L.P.Paveletskaya pl., 2/3, 2nd floorMoscow 115054, Russian FederationPhone: + 7 (495) 931�9905, Fax: + 7 (495) 931�9914www.macleoddixon.com

THE AMENDMENTS TO THE LEGAL STATUS OF FOREIGN CITIZENS LAW

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Since 2005 the Baltic region of the European Union hasbeen represented in CERBA by the oldest commercialbank of Latvia, JSC "Trasta komercbanka" (TKB). At pres�ent ТКВ is the only bank from Eastern Europe, which rep�resents our region in Canada. Apart from Canada the net�work of representative offices of Trasta komercbanka cov�ers also Russia, Belarus, Ukraine and Kazakhstan.Opening of the Canada representative office in 2004 wasan important step in the development of TKB and realiza�tion of its international strategy. One of the basic operat�ing doctrines of TKB is to realize the principle "BusinessWithout Borders" for its customers. The access to theEuropean market and operational experience of Trastakomercbanka in the West and CIS countries allows thebank to be a medium, connecting clients from West andEast.

Alex Rednevs, the present manager of TKBRepresentative Office in Canada, worked for TKB as theHead of Trade Finance Department before his appoint�ment to Canada. In Canada Mr. Rednevs graduated withhigh honours from Seneca College "Import and ExportBusiness program" and is currently working under hisCertified International Trade Professional designation.

Alex Rednevs says: "Nowadays Russia, Ukraine,Kazakhstan and Baltic region are very attractive for invest�ments and doing business with. But the high return meansa bigger risk. Trasta komercbanka has been working inthese countries for 16 years and knows people and busi�ness, talking with its customers in their language.We usually think of a bank as a place providing financialservices only. However, our clients today expect from usmuch more, they need understanding, support, flexibility

and market�oriented attitude to realize their businessprojects. TKB offers a wide range of solutions for develop�ment of international business and trade relations. Tradefinance services remain in the focus of TKB and ourclients rely on Trasta Komercbanka in their internationalbusiness relations."

International factoring is an effective trade financing toolwhich protects exporters and importers from risks offinancial operations, enabling crediting against receiv�ables. In 2004 Trasta komercbanka became a member ofthe world's biggest international factoring associationFactors Chain International (FCI), thus gaining a numberof competitive advantages for traders and clients of TKBin international trade. FCI is a global network of leadingfactoring organizations with a common aim to facilitateinternational trade. At present FCI network counts 212participants, whose part in the world's factoring turnoveris 65%. Through International factoring our clients haveno need for collateral in crediting. It makes possible toguarantee a 100% protection against insolvency ofdebtors as well as local collection of invoices, executed byimport factor in the debtor's country.We wish to represent in Canada the Baltic businessregion, which is currently making good headway. Our aimis not only allowing our Canadian clients to value highquality of finance services and special attitude to eachclient � the basic principle of TKB. It's important for us tosupport businessmen in their international trade relations� from looking for a partner to the conclusion of contractson favourable conditions. That's why we are pleased to bea part of CERBA network, working together on strength�ening relations between the continents.

CERBA Quarterly News (summer 2006)

10

BUSINESS WITHOUT BORDERS �

VISION OF A LATVIAN BANK

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Tremayne Elson, Managing Partner announces that MichaelGermershausen, Luc Jones and Nick Rees have been pro�moted to Senior Partners of the Antal International, Moscow.

Michael Germershausen has worked for Antal since 2002when he joined as a consultant. In 2004 was promoted toteam leader of Sales and Marketing/Operations Department and was appointed topartnership in 2005.

Luc Jones joined Antal International in 1998 in Warsaw, to run the IT/Telecoms team inPoland and the Baltic States. In early 2002 he moved back to Moscow to grow theteam throughout Russia and the CIS countries, was promoted to partnership in 2005.

Nick Rees has been working with Antal International since 2004 as a Partner develop�ing the Finance, Banking, Accountancy and Legal disciplines.

With 65 recruitment consultants across Russia, Antal International is the largest inter�national firm focusing on mid�senior, volume, and quality management.

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Antal International Ltd

CERBA Quarterly News (summer 2006)

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Founded in 1964, Cascades produces, transforms andmarkets packaging products, tissue papers and finepapers, composed mainly of recycled fibres. Cascadesemploys some 14,300 men and women who work in 120modern and flexible production units located in NorthAmerica, in Europe and in Asia. Cascades' managementphilosophy, its more than 40 years of experience in recy�cling and its continued efforts in research and develop�ment are strengths that enable the company to createnew products for its customers and thus offer superiorperformance to its shareholders. Cascades is a group of distinct entities that operate in dif�ferent sectors and collaborate with each other to optimizesynergies. United by an attitude of respect for the individ�ual, these entities share a sense of belonging and pride.Each group ensures its own growth by taking advantageof interesting business opportunities that arise and are inkeeping with prevailing financial and economic marketrealities. Cascades' most important sector of activity is packaging.This sector includes the Boxboard Group, theContainerboard Group and the Specialty Products Groupthat is active in 7 niche markets. These groups are highlyintegrated and offer a wide range of packaging and print�ing solutions. The Tissue Group is a major producer of products for theretail and away�from�home markets and is considered aleader in many markets. Lastly, the Fine papers Group isamong the leading manufacturers of ecological specialtyuncoated fine papers.Over the years, Cascades has evolved from a small familybusiness to a major, multinational corporation. In spite ofits tremendous growth, its values remain constant.

It All Starts with Respect!Respect is woven into the very heart of Cascades' philos�ophy. It is clearly articulated in its vision and entrenched

in company's daily culture. And, with that foundation ofrespect, comes transparency in business and a spirit ofopen dialogue. By keeping its doors wide open, bothinside the organization and out to the world, Cascadesremains true to its origins. Simply put, Cascades is,despite its size today, a company with a human face.Cascades' thorough approach to business enables thecompany to continuously deliver quality products. Itnever stops raising the bar, elevating its standards in allthat it does.Long before Corporate Social Responsibility (CSR) was abuzzword, Cascades was operating in an environmentally,socially and economically sustainable manner. In fact, thecompany was built on a strong respect for the environ�ment, the people and the communities where it conductsits business and the solid values it embraced over 40years ago still hold true today. Every day Cascades strivesto be a fair employer and a good corporate citizen,respectful of the environment.

Environmental, Social and Economic Impact!Cascades believes that environmental and social respon�sibility do not preclude financial performance. On thecontrary, environmental stewardship and progressivemanagement practices underlie its success.Cascades started as a waste recovery and recycled fibrepulp business and then embarked on the manufacturingof paper made from recycled fibres. Since then, the com�pany has become a leader in paper recycling and energyconservation, developing environmentally friendly alter�natives for its customers and the community. Its sense ofrespect clearly extends to the environment, and the com�pany believes that this approach yields better profits anda better world.Cascades' financial performance has enabled the com�pany to reinvest, innovate and grow. This has had a posi�tive economic impact on shareholders, employees, sup�pliers, customers and communities. Cascades' profitabil�ity has also enabled it to invest in research and develop�ment, leading to new products and processes.Cascades has become recognized as a pioneer andleader largely because of its innovative vision in terms ofhuman resources, as well as its commitment to quality,technological development and the protection of the envi�ronment. And the company intends to continue being aleader in its industry.

For more information about the company, please visitCascades' official website: http://www.cascades.com/

CERBA Quarterly News (summer 2006)

12

Dear CERBA Members and Friends:CERBA is delighted to introduce its newest Member � the Cascades.

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CERBA would like to thankits sponsors for their commitment to making the association a success

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CERBA Quarterly News (summer 2006)

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