International Finance Corporation Private Enterprise Partnership

1. International Finance Corporation Private Enterprise Partnership Survey of the Fish Industry in Russia Presentation Reykjavík, Iceland 28 October 2005

2. IFC Products and Services The International Finance Corporation (IFC) is the private sector arm of the World Bank Group • Loans • Equity & Quasi-Equity • Syndicated loans • Guarantees • Underwritings, Private Placements, and Equity Funds • Advisory Services and Technical Assistance Products and Services include:

3. IFC Technical Assistance IFC Technical Assistance (TA) seeks to: • Promote Private Sector Investment • Support the Growth of Small & Medium Enterprises (SMEs) (particularly through building viable financial institutions) • Use IFC experience at the enterprise level to help improve the Business Enabling Environment

4. IFC Technical Assistance in former Soviet Union • Approximately 300 staff • 100% in the field • 90% local • 25 offices (9 capital city, 16 regional) • 30 programs in 11 countries • 22 projects in pipeline

5. IFC’s Private Enterprise Partnership Financial Mkts Agri & Forestry Corp Gov’nance BEE / Linkages Central Asia Leasing Russia Ukraine SME Policy Ukraine Agribusiness Ukraine Azerbaijan Leasing NW Russia Forestry Uzbekistan SME Policy Azerbaijan Russia Agri-leasing Russia Leasing Tajikistan SME Policy Georgia Dmitrov Dairy & Potato Ukraine Leasing Belarus Business Associations Ukraine Banking Southern Ukraine Vegetable S/C Mongolia Leasing Russia Banking Russia ICT Connector Central Asia Microfinance Vinnytsya Fruit Supply Chain Kazakhstan Magadan Mining Linkages Tajikistan Microfinance Vinnytsya Dairy Supply Chain Russia Automotive Supply Chain Russia Mortgage Ukraine Pulp & Paper Dev Program Russia Energy Efficiency Russia Fish Survey Kazakhstan Mortgage Uzbekistan Dairy Supply Chain

6. Three Platforms for Agribusiness Advisory Work • Policy Reform • Facilitate improvements in the business enabling environment. • Business Development • Facilitate linkages between investors, local authorities and other stakeholders. 3. Supply Chain Development • Improve the structure and efficiency of supply chains

7. Agribusiness & Forestry Advisory Work in Russia

8. Example: NorthWest Russia Forestry Project Promotes direct investments in wood harvesting and processing Activities: • Screen forest areas and Russian partners • Evaluate investment proposals • Implement sustainable forest management practices Botnia Sawmill, Podporozhie, Russia Commissioning due Jan 2006 Results: Facilitation of Finnish investments: • $189.3 million in completed investments • $24.3 million in progress • $348.9 million in committed investments

9. IFC Investments in Russia IFC Portfolio in Russia by Sector June 30, 2005 IFC Portfolio by Country FY2004 Total IFC account in Russia: US$ 1.695 billion

10. Farm Production Agri Marketing Food Marketing Inputs Distribution Processing IFC Food and Agri-Investments in Russia IFC primarily invests in Food Processing and Upstream & Downstream Linkages Upstream Downstream Campina Yogurt Russia • IFC Food & Agribusiness Portfolio: • $1.2 Billion Worldwide • $56 Million in Russia

11. Russia Ukraine Russia Russia Russia Russia Lebedyansky Experimental Cannery Stavropolsky Broiler (Agros) Agro industrial Finance Company Bravo International Sandora Campina Loan $35 million Expansion and modernization of the existing juice production facilities, reduction of production costs and diversification of business Equity $0.5 million Loan $5 million Syndicated loan $10 million Creation of a new financial intermediary to finance agricultural enterprises with supply links to major food and agribusiness companies in Russia Loan $15 million Syndicated loan $7 million Expansion of beer production, transfer of efficient technologies, quality control, and transport and distribution systems. Loan $10 million Expansion and modernization of the existing juice production lines, expansion of distribution, provision of working capital Loan $10 million Construction of a yogurt factory. Technical assistance on local supply chain development. Loan $15 million Rehabilitation and expansion of commercial poultry production in the Stavropol region. Advice on strategic development and corporate governance. Signed: June 2004 Signed: June 2004 Signed: June 2003 Signed: September 1999 Signed: September 2002 Signed: August 2001 Ukraine Mironovsky Khleboprodukt I & II Equity $20 million Loan $60 million Supporting the company’s expansion strategy. Signed: May 2005 IFC Food and Agri-Business Investments in Russia and Ukraine

12. Survey of Fish Industry in Russia Purpose: Provide an updated and accurate source of industry information to facilitate investment and business decisions Direct Funding: $97,000 IFC’s Role: • Facilitate development of Terms of Reference • Supervise the selection, appointment, and work of the Consultants Agreement signed by Ambassador Benedikt Jonsson and IFC Director Edward Nassim in Moscow, 15 Nov. 2004

13. Survey of Fish Industry in Russia Consultant Selection Selection criteria: Eight Bids received: • Fish Industry Expertise • Russia Expertise • Market Expertise • Links to Iceland • Overall Presentation & Methodology Contract awarded to EUROFISH

14. Survey of Fish Industry in Russia The Terms of Reference addresses major fishing regions, consumer markets, and fish processing, distribution and storage facilities in the Russian Federation. • Market • Fish Industry Statistics • Investment Activity and Prospects • Fishing Fleet and Fish Harvesting • Fish Processing • Fish Farming The TOR focuses on these issues: These issues were excluded from the TOR and addressed internally: • Policy, Legal and Regulatory Environment • Fisheries Management • Fishing Fleet and Fish Harvesting (Future Developments only)

15. Thank You Ian Luyt Senior Operations Manager Agribusiness & Forest Products – Technical Assistance Programs International Finance Corporation Moscow, Russia iluyt@ifc.org 28 October 2005 Reykjavik