SUMMARY
1. ON JUNE 15 AND 16, 1995, FOLLOWING A RECENT VISIT BY THE AMBASSADOR, CO STEFFENS HELD A U.S. TRADE AND INVESTMENT DAY IN SAMARA. THE PRESENTATION WAS JOINTLY ORGANIZED BY THE SAMARA REGIONAL GOVERNMENT. IT WAS THE FIRST U.S. PRESENTATION OF ITS KIND IN THE REGION, AND HELPED FCS IDENTIFY SEVERAL TRADE AND INVESTMENT OPPORTUNITIES IN LOCAL MANUFACTURING. END SUMMARY.
U.S. TRADE AND INVESTMENT DAY EVENTS
2. CO STEFFENS BEGAN THE VISIT WITH A MEETING WITH LOCAL GOVERNMENT OFFICIALS, FOLLOWED BY A MEETING WITH REPRESENTATIVES OF THE LEADING MANUFACTURING FIRMS IN SAMARA. THIS WAS FOLLOWED BY A SERIES OF VISITS TO LOCAL FACTORIES. ON JUNE 16, THE AMBASSADOR AND CO STEFFENS MET WITH REGIONAL OFFICIALS TO REVIEW RESULTS OF THE PREVIOUS DAY.
OVERVIEW OF THE SAMARA REGION
3. THE SAMARA REGION IS IN THE VOLGA RIVER VALLEY IN SOUTH RUSSIA NEAR THE ZHIGULI MOUNTAINS. OUTSIDE SAMARA ARE COLLECTIVE FARMS, VILLAGES, AND A FEW SMALLER CITIES, AS WELL AS TOGLIATTI, A LARGER CITY KNOWN FOR CAR MAKING.
4. SAMARA ITSELF IS RUSSIA'S SIXTH LARGEST CITY, WITH A POPULATION OF 1,250,000 PEOPLE. DURING WORLD WAR II, THE SOVIET GOVERNMENT EVACUATED MANY INSTITUTIONS TO SAMARA, WHICH BECAME, IN EFFECT, A SECOND CAPITAL. UNTIL RECENTLY, SAMARA, A CENTER OF AEROSPACE PRODUCTION, WAS DESIGNATED A CLOSED CITY (ALTHOUGH A TEAM OF ENGINEERS FROM DRESSER WORKED IN SAMARA FOR SEVERAL YEARS DURING THE EARLY 1970'S). SAMARA SPRAWLS ALONG THE BANKS OF THE VERY WIDE VOLGA RIVER. MOST OF ITS BUILDINGS APPEAR TO DATE FROM THE SOVIET ERA, THOUGH AN OLDER SECTION OF TOWN HAS WOODEN BUILDINGS FROM PAST CENTURIES. SAMARA HAS MANY NATIONALITIES, AND IS NOW ABSORBING REFUGEES FROM NEARBY NIS COUNTRIES.
MAJOR INDUSTRIES
5. SAMARA IS A CENTER OF MACHINERY MANUFACTURING, AEROSPACE, AND OIL EXTRACTION AND REFINING. IT ALSO BOASTS OF FOOD PROCESSING, BUILDING MATERIALS, AND ELECTRIC POWER INDUSTRIES. THE WELL-KNOWN PROGRESS PLANT MANUFACTURES THE SOYUZ AND PROGRESS SPACE VEHICLES, AND MOTOROSTROYTEL MAKES AIRCRAFT AND ROCKET ENGINES.
6. KEY CONTACTS IN INDUSTRY INCLUDE:
SAMARA ASSOCIATION OF ENTREPRENEURS AND ENTERPRISES NOVO-SADOVAYA ULITSA 108, SAMARA 443068 PHONE: 8462-348-371
MIDDLE VOLGA CHAMBER OF COMMERCE AND INDUSTRY UL. ALEKSEYA TOLSTOVA, 6, SAMARA 443099 PHONE: 8462-321-159; FAX: 8462-327-662
ECONOMIC SITUATION
7. OVER THE LAST FIVE YEARS, SAMARA'S BUSINESS LEADERS HAVE LEARNED TO COPE WITH REDUCTIONS IN GOVERNMENT FUNDING IN THE DEFENSE AND SPACE SECTORS. BUSINESS LEADERS HAVE FOUND BOTH RUSSIAN AND INTERNATIONAL MARKETS FOR THEIR PRODUCTS, AND HAVE STEADILY SHIFTED PRODUCTION FROM DEFENSE TO COMMERCIAL PRODUCTS. DESPITE THIS ADAPTABILITY, THE MACHINERY MANUFACTURING SECTOR HAS LOST OVER 50,000 JOBS. THE REGION IS ALSO FINDING PLACES FOR LARGE NUMBERS OF RUSSIAN REFUGEES FROM NEIGHBORING NIS COUNTRIES BY GIVING NEW ARRIVALS FARM LAND TO GROW CROPS UNTIL BETTER POSITIONS ARE AVAILABLE.
8. OVERALL, SAMARA'S PEOPLE APPEARED TO BE FAIRLY WELL-OFF. THERE WERE NO VISIBLE BEGGARS, AND NO MASSES OF OLDER RUSSIANS SELLING GOODS ON THE STREET. STORES WERE STOCKED WITH MAINLY RUSSIAN (AND A FEW WESTERN) GOODS. PRICES WERE LOWER THAN IN MOSCOW FOR MOST PRODUCTS.
CRIME
9. COMOFF WALKED ABOUT THE CITY SEVERAL TIMES AND DID NOT FEEL IN ANY DANGER FROM STREET CRIME. NEITHER LOCAL BUSINESS LEADERS NOR GOVERNMENT OFFICIALS MENTIONED ORGANIZED CRIME AS A PROBLEM.
BEST EXPORT PROSPECTS
10. BASED ON A SHORT VISIT, COMMERCIAL OFFICERS IDENTIFIED SEVERAL PROMISING EXPORT SECTORS. THESE INCLUDE: -- CONSUMER GOODS OF ANY KIND, PARTICULARLY PROCESSED FOODS -- AUTOMOBILES -- CONSTRUCTION AND ENGINEERING SERVICES FOR THE RENOVATION OF SAMARA INDUSTRY. QUALITY CONTROL EXPERTISE IS PARTICULARLY VALUED.
LOCAL GOVERNMENT ATTITUDES TOWARDS BUSINESS
11. LOCAL GOVERNMENT REPRESENTATIVES WERE ENTHUSIASTIC ABOUT THE AMBASSADOR'S AND COMOFF'S VISIT, YET REALISTIC IN THEIR EXPECTATIONS. THE SAMARA REGIONAL GOVERNMENT HAS DEVELOPED A VERY HELPFUL BROCHURE ABOUT INVESTMENT OPPORTUNITIES IN SAMARA, AS WELL AS GUIDES TO THE SAMARA REGION IN BOTH ENGLISH AND GERMAN. SAMARA REGIONAL OFFICIALS WERE THE MOST ASTUTE ABOUT WESTERN BUSINESS COMOFF HAS ENCOUNTERED THUS FAR IN RUSSIA.
12. ONE OVERALL IMPRESSION WAS THAT SAMARA LEADERS WERE NOT WAITING FOR GUIDANCE FROM MOSCOW, BUT WERE MOVING FORWARD ON THEIR OWN TOWARD SECURING WESTERN INVESTMENT AND BUSINESS PARTNERS. SAMARA OFFICIALS ALSO VIEWED THEIR ROLE AS FACILITATORS, RATHER THAN CONTROLLERS, OF BUSINESS TO BUSINESS INTERACTION. FOR EXAMPLE, FOLLOWING AN INITIAL MEETING OF LOCAL BUSINESS LEADERS WITH COMOFF, THE SAMARA GOVERNMENT HOST ASKED WHICH LOCAL BUSINESSES WOULD BE MOST INTERESTED IN A FOLLOW-UP VISIT FROM COMOFF. (THIS CONTRASTS SHARPLY WITH THE IVANOVA GOVERNMENT, FOR EXAMPLE, WHICH TRIED TO RESTRICT COMOFF'S CONTACTS SOLELY TO ESTABLISHED TEXTILE MILLS.)
13. LOCAL GOVERNMENT CONTACTS INCLUDE:
PYOTR P. KOROLYEV, HEAD OF FOREIGN ECONOMIC AND
INTERNATIONAL RELATIONS DEPARTMENT
STANISLAV V. GRISHIN, CHIEF OF INTERNATIONAL
RELATIONS DIVISION
SAMARA REGION ADMINISTRATION
210 MOLODVARDEYSKAYA ST, SAMARA 443006
PHONE: 8462-323821; FAX: 8462-321769
VICTOR N. BUROV, HEAD OF DEPARTMENT FOR INDUSTRY
COORDINATION
SAMARA REGION ADMINISTRATION
210 MOLODVARDEYSKAYA ST., SAMARA 443006
PHONE: 8462-323-457; FAX: 8462-321-340
ACTIVE U.S. COMPANIES
14. A NUMBER OF U.S. COMPANIES ARE ACTIVE IN SAMARA. BOEING, TELEDYNE, AND OTHER U.S. AEROSPACE FIRMS HAVE VISITED SAMARA FACTORS TO NEGOTIATE POSSIBLE JOINT VENTURES. DURING HIS VERY SHORT STAY IN SAMARA, COMOFF ENCOUNTERED DELEGATIONS FROM DRESSER INDUSTRIES AND WETHERILL ASSOCIATES, EACH DEVELOPING ACTIVE JOINT VENTURES WITH SAMARA FIRMS. COMOFF, HOWEVER, SAW VERY FEW WESTERN FOOD PRODUCTS OR CONSUMER GOODS FOR SALE IN LOCAL KIOSKS AND STORES. THE PEACE CORPS OPERATES A BUSINESS CENTER IN SAMARA TO HELP LOCAL COMPANIES.
LOCAL SERVICES
15. SAMARA HAS SEVERAL CLEAN, SAFE, SOVIET-STYLE HOTELS WITH SMALL BUSINESS CENTERS. THE RESTAURANT SCENE DID NOT LOOK PROMISING, THOUGH THE COOKING AT LOCAL FACTORY CANTEENS WAS GOOD. SAMARA HAS MANY BANKS, WHICH OFFER EXCHANGE AND OTHER SERVICES.
16. KEY LOCAL SERVICE CONTACTS INCLUDE:
BUSINESS CENTERS:
SAMARA CENTER OF BUSINESS DEVELOPMENT
UL. NOVO-VOKSALNAYA 12, SAMARA 443010
PHONE: 8462-519-963; FAX: 8462-519-963
OFFERS TRANSLATION, INTERPRETATION, INTERNATIONAL
TELEPHONE, FAX, AND E-MAIL, PROTOCOL.
PEACE CORPS BUSINESS CENTER
MOSKOVSKOYA SHOSSE 34, KORPUS 5, SAMARA 443086
PHONE: 8462-357403; FAX: 8462-345722; E-MAIL ROOT
AT SAMBC.SAMARA.SU
MAINLY ASSISTS SAMARA BUSINESSES. GOOD SOURCE OF
CONTACTS.
EXPOSITIONS:
EXPO-VOLGA
MOSKOVSKOYA SHOSSE, 264, SAMARA 443125
PHONE: 8462-561-603; FAX: 8462--325-166 NUMBER 966
TOURIST SERVICES:
INTOURIST - SAMARA DIVISION
UL. ARTSYBUSHEVSKAYA 143, SAMARA 443001
PHONE: 8462-348-244; FAX: 8462-354-472
AIRLINE RESERVATIONS:
TICKET AND RESERVATION OFFICE
PHONE: 8462-520-445
AVIACOMPANIA SAMARA
KURUMOCH AIRPORT, SAMARA 443064
PHONE: 8462-227-530; FAX: 8462-227-834
SELECTED HOTELS:
OKTYABRSKAYA
UL. AVRORY 209, SAMARA
PHONE: 8462-222-985
VOLGA
UL. ST. RAZINA, 128, SAMARA
PHONE: 8462-323-682
SELECTED BANKS:
SAMARA GUBERNSKIY BANK
UL. CHERNORECHENSKAYA, 50, SAMARA 443-013
PHONE: 8462-380-614
NATIONAL SAVINGS BANKS OF
RUSSIA
PR. LENINA, 2-A, SAMARA
PHONE: 8462-386-286
CUSTOMS SERVICE:
UL. SKLARENKO, 20, SAMARA 443068
PHONE: 8462-355-757