Analyzing the Effects of the New Renewable Energy Policy in Russia on Investments into Wind, Solar and Small Hydro Power

This thesis presents an analysis of recently enacted Russian renewable energy policy based on capacity mechanism. Considering its novelty and poor coverage by academic literature, the aim of the thesis is to analyze capacity mechanism influence on investors’ decision-making process. The current research introduces a number of approaches to investment analysis. Firstly, classical financial model was built with Microsoft Excel® and crisp efficiency indicators such as net present value were determined. Secondly, sensitivity analysis was performed to understand different factors influence on project profitability. Thirdly, Datar-Mathews method was applied that by means of Monte Carlo simulation realized with Matlab Simulink®, disclosed all possible outcomes of investment project and enabled real option thinking. Fourthly, previous analysis was duplicated by fuzzy pay-off method with Microsoft Excel®. Finally, decision-making process under capacity mechanism was illustrated with decision tree. Capacity remuneration paid within 15 years is calculated individually for each RE project as variable annuity that guarantees a particular return on investment adjusted on changes in national interest rates. Analysis results indicate that capacity mechanism creates a real option to invest in renewable energy project by ensuring project profitability regardless of market conditions if project-internal factors are managed properly. The latter includes keeping capital expenditures within set limits, production performance higher than 75% of target indicators, and fulfilling localization requirement, implying producing equipment and services within the country. Occurrence of real option shapes decision-making process in the following way. Initially, investor should define appropriate location for a planned power plant where high production performance can be achieved, and lock in this location in case of competition. After, investor should wait until capital cost limit and localization requirement can be met, after that decision to invest can be made without any risk to project profitability. With respect to technology kind, investment into solar PV power plant is more attractive than into wind or small hydro power, since it has higher weighted net present value and lower standard deviation. However, it does not change decision-making strategy that remains the same for each technology type. Fuzzy pay-method proved its ability to disclose the same patterns of information as Monte Carlo simulation. Being effective in investment analysis under uncertainty and easy in use, it can be recommended as sufficient analytical tool to investors and researchers. Apart from described results, this thesis contributes to the academic literature by detailed description of capacity price calculation for renewable energy that was not available in English before. With respect to methodology novelty, such advanced approaches as Datar-Mathews method and fuzzy pay-off method are applied on the top of investment profitability model that incorporates capacity remuneration calculation as well. Comparison of effects of two different RE supporting schemes, namely Russian capacity mechanism and feed-in premium, contributes to policy comparative studies and exhibits useful inferences for researchers and policymakers. Limitations of this research are simplification of assumptions to country-average level that restricts our ability to analyze renewable energy investment region wise and existing limitation of the studying policy to the wholesale power market that leaves retail markets and remote areas without our attention, taking away medium and small investment into renewable energy from the research focus. Elimination of these limitations would allow creating the full picture of Russian renewable energy investment profile.

Narrow Gap flux-cored arc welding of high strength shipbuilding steels

This thesis is part of the Arctic Materials Technologies Development –project. The research of the thesis was done in cooperation with Arctech Helsinki Shipyard, Lappeenranta University of Technology and Kemppi Oy. Focus of the thesis was to study narrow gap flux-cored arc welding of two high strength steels with three different groove angles of 20°, 10° and 5°. Welding of the 25 mm thick E500 TMCP and 10 mm thick EH36 steels was mechanized and Kemppi WisePenetration and WiseFusion processes were tested with E500 TMCP steel. EH36 steel test pieces were welded without Wise processes. Shielding gases chosen were carbon dioxide and a mixture of argon and carbon dioxide. Welds were tested with non-destructive and destructive testing methods. Radiographic, visual, magnetic particle and liquid penetrant testing proved that welds were free from imperfections. After non-destructive testing, welds were tested with various destructive testing methods. Impact strength, bending, tensile strength and hardess tests proved that mechanized welding and Wise processes produced quality welds with narrower gap. More inconsistent results were achieved with test pieces welded without Wise processes. Impact test results of E500 TMCP exceeded the 50 J limit on weld, set by Russian Maritime Register of Shipping. EH36 impact test results were much closer to the limiting values of 34 J on weld and 47 on HAZ. Hardness values of all test specimens were below the limiting values. Bend testing and tensile testing results fulfilled the the Register requirements. No cracking or failing occurred on bend test specimens and tensile test results exceeded the Register limits of 610 MPa for E500 TMCP and 490 MPa for EH36.

Forest inventory information needs in Northwest Russia

This thesis applies the customer value hierarchy model to forestry in order to determine strategic options to enhance the value of LiDAR technology in Russian forestry. The study is conducted as a qualitative case study with semi-structured interviews as a main source of the primary data. The customer value hierarchy model constitutes a theoretical base for the research. Secondary data incorporates information on forest resource management, LiDAR technology and Russian forestry. The model is operationalised using forestry literature and forms a basis for analyses of primary data. Analyses of primary data coupled with comprehension of Russian forest inventory system and knowledge on global forest inventory have led to conclusions on the forest inventory methods selection criteria and the organizations that would benefit the most from LiDAR technology use. The thesis recommends strategic options for LiDAR technology’s value enhancement in Russian forestry.

Baltic. Gulf of Finland. Sheet VII, Hogland to St. Petersburg / Hydrographic Office.

0-meridiaani: Greenwich.

The northern provinces of Sweden and Norway with part I, of Russia / published under the superintendence of the Society for the Diffusion of Useful Knowledge.

[N. 1:4400000].

Russia in Europe / engraved by J. & C. Walker.

Janamittakaavat: Russian verstes ; English miles.

Russia or Moscovy in Europe. Drawn by the latest authorities, by Tho.s Kitchin geo.r.

Janamittakaava: Russian wersts.

The role of network competence and international business competence in multinational corporations: Subsidiary perspective

On-going process of globalization makes companies all over the world to go beyond the national markets and internationalize. Organizational form of multinational corporation (MNC) has capabilities for establishing the affiliate companies in several countries. Thus, the relocation of resources occurs and particularly, the cross-border transfer of knowledge which possesses the competitive advantage. However, differences in countries` business environments and cultures may constrain this capability. The research aim of this thesis is to investigate the role of subsidiary’s network competence (ability to build and manage the relationships with other local business units) and international business competence in relation to the benefits that MNC receives from a subsidiary. Additionally, subsidiary’s business adaptation, partnerships and knowledge transfer mechanism with parent company and external partners are investigated. This research, conducted in the Finnish-Russian context, consists of theoretical and empirical parts. The qualitative approach in the form of multiple case studies is employed. The empirical data incorporated primary and secondary data in the form of interviews collected in 2013 and 2015 years. Interviews were collected from four Finnish case companies in Saint-Petersburg and Kaluga region and five Russian partner companies. Results are drawn from two cases from Saint-Petersburg. The abductive research approach for the results analysis is adopted. The results indicate that both competencies lead to the subsidiary’s local embeddedness in the form of mutual business activities with local business partners and product adaptation for the local market needs. In addition to the monetary benefits in form of payments or turnover share, local embeddedness brings the knowledge of the local environment which is utilized by an MNC in the long-term planning. Another found tacit benefit is the access to the national market. This is strategically useful benefit not only for parent MNC but also for the subsidiary’s partners, i.e. international suppliers.

Determinants of capital expenditures: Evidence from oil and mining sectors in Russia

This master’s thesis investigates the significant macroeconomic and firm level determinants of CAPEX in Russian oil and mining sectors. It also studies the Russian oil and mining sectors, its development, characteristics and current situation. The panel data methodology was implemented to identify the determinants of CAPEX in Russian oil and mining sectors and to test derived hypotheses. The core sample consists of annual financial data of 45 publicly listed Russian oil and mining sector companies. The timeframe of the thesis research is a six year period from 2007 to 2013. The findings of the master’s thesis have shown that Gross Sales, Return On Assets, Free Cash Flow and Long Term Debt are firm level performance variables along with Russian GDP, Export, Urals and the Reserve Fund are macroeconomic variables that determine the magnitude of new capital expenditures reported by publicly listed Russian oil and mining sector companies. These results are not controversial to the previous research paper, indeed they confirm them. Furthermore, the findings from the emerging countries, such as Malaysia, India and Portugal, are analogous to Russia. The empirical research is edifying and novel. Findings from this master’s thesis are highly valuable for the scientific community, especially, for researchers who investigate the determinant of CAPEX in developing countries. Moreover, the results can be utilized as a cogent argument, when companies and investors are doing strategic decisions, considering the Russian oil and mining sectors.

Forest inventory information needs in Northwest Russia

This research report applies the customer value hierarchy model to forestry in order to determine strategic options to enhance the value of LiDAR technology in Russian forestry. The study is conducted as a qualitative case study with semi-structured interviews as a main source of the primary data. The customer value hierarchy model constitutes a theoretical base for the research. Secondary data incorporates information on forest resource management, LiDAR technology and Russian forestry. The model is operationalised using forestry literature and forms a basis for analyses of primary data. Analyses of primary data coupled with comprehension of Russian forest inventory system and knowledge on global forest inventory have led to conclusions on the forest inventory methods selection criteria and the organizations that would benefit the most from LiDAR technology use. The report recommends strategic options for LiDAR technology’s value enhancement in Russian forestry. This work has been conducted as a part of the project ‘Finnish-Russian Forest Academy 2 - Exploiting and Piloting’, which has been supported financially by the South-East Finland- Russia ENPI CBC 2007-2014 Programme.

Venäjän kaupan liikeriskien riskienhallinta: Case Martela

Tässä kandidaatin työssä tutkitaan suomalaisen pk-yrityksen kannalta merkittävimpiä liikeriskejä Venäjällä sekä keskeisimpiä keinoja näiltä riskeiltä suojautumiseen. Työn empiirisessä osassa on käytetty valitun case-yhtiön sekä Suomalais-Venäläisen kauppakamarin edustajan näkemyksiä tukemaan työn teoreettista pohjaa.

Capital investments planning and life cycle simulations for the new valves manufacturing facility in Russia

The focus of the research is on the derivation of the valid and reliable performance results regarding establishment and launching of the new full-scale industrial facility, considering the overall current conditions for the project realization in and out of Russia. The study demonstrates the process of the new facility concept development, with following perfor-mance calculation, comparative analyzes conduction, life-cycle simulations, performance indicators derivation and project`s sustainability evaluation. To unite and process the entire input parameters complexity, regards the interlacing between the project`s internal technical and commercial sides on the one hand, and consider all the specifics of the Russian conditions for doing business on the other hand, was developed the unique model for the project`s performance calculation, simulations and results representation. The complete research incorporates all corresponding data to substantiate the assigned facility`s design, sizing and output capacity for high quality and cost efficient ferrous pipe-line accessories manufacturing, as well as, demonstrates that this project could be suc-cessfully realized in current conditions in Russia and highlights the room for significant performance and sustainability improvements based on the indexes of the derived KPIs.

Punaisten naisten tiet. Valtiorikosoikeuteen vuonna 1918 joutuneiden Porin seudun naisten toiminta sota-aikana, tuomiot ja myöhemmät elämänvaiheet

Suomen sisällissotaan osallistui vuonna 1918 naisia molemmin puolin rintamaa erilaisissa tehtävissä. Taisteluiden jälkeen yli 5500 punaista naista joutui valtiorikosoikeuteen syytettynä valtiopetoksellisesta toiminnasta. Ne noin 2000 naista, jotka palvelivat punakaartissa aseistettuina, ovat pitkään hallinneet sitä kuvaa, joka suomalaisilla on ollut punaisista naisista. Sen sijaan on tiedetty hyvin vähän niistä naisista, joiden valkoiset katsoivat edistäneen valtiopetosta muilla keinoilla. Tässä tutkimuksessa tarkastellaan, millaisia olivat Porin seudulla ne kapinasta syytetyt naiset, jotka eivät olleet tarttuneet aseisiin ja mikä oli heidän myöhempi kohtalonsa. Työn ensimmäisessä osassa tutkitaan valtiorikosoikeuteen joutuneiden naisten taustaa, toimintaa sota-aikana ja tästä aiheutuneita välittömiä seuraamuksia. Millaisia henkilöitä päätyi valtiorikosoikeuden eteen tuomittavaksi? Millaisissa tehtävissä he olivat sota-aikana toimineet ja miksi? Mitkä seikat olivat oikeudessa raskauttavia, kun valtiorikostuomioita jaettiin? Työn jälkimmäisessä osassa tutkitaan, mitä punaisille naisille tapahtui sodan jälkeen ja miksi näin kävi. Sisällissodan jälkeistä maailmaa hahmotetaan etsimällä vastauksia seuraaviin kysymyksiin: Millainen oli se yhteiskunnassa vallinnut ajan henki, jonka vaikutuspiiriin naiset valtiorikosoikeudesta ja vankilasta palasivat? Miten yhteisö otti heidät vastaan? Miten heihin suhtauduttiin työmarkkinoilla? Miten käsiteltiin punaisia leskiä ja orpoja? Mitä punaisilta odotettiin kansalaisina ja miten heistä pyrittiin muokkaamaan yhteiskuntakelpoisia? Miten poliittisen elämän uudelleenvirittely onnistui ja kiinnostiko se enää näitä naisia? Miten suomalaisen yhteiskunnan muuttuessa myös sen suhtautuminen punaisiin muuttui? Millaisilla toimilla valtiovalta pyrki eri vaiheissa yhtenäistämään rikkirevennyttä kansaa ja miten se näkyi yksittäisten ihmisten elämässä? Ajan kuluessa asenteet muuttuivat ja naiset vanhenivat. Miten naiset kuvasivat kokemaansa myöhemmin omaisilleen? Kysymyksiä pohditaan paikallisesta, Porin seudun näkökulmasta, mutta niitä peilataan kuitenkin jatkuvasti valtakunnalliseen tilanteeseen. Kontekstualisoi- malla paikalliskokemukset laajempaan kokonaisuuteen on voitu paremmin selittää tapahtunutta, ja paikallistutkimuksen kautta on nähty myös koko maassa vallinneita yleisiä olosuhteita. Tutkimuksen kohteena on 267 Porista, Porin maalaiskunnasta ja Ulvilasta kotoisin olevaa naista, jotka joutuivat valtiorikosoikeuden tutkittaviksi. Keskeisimpänä lähdeaineistona ovat seurakuntien rippikirjat ja maistraattien henkikirjat sekä Kansallisarkiston, Kansan arkiston ja Työväen arkistojen sisällissotaa ja sen jälkeistä poliittista elämää valottavat kokoelmat. Tutkimuksen naisista enemmistö oli 18−37-vuotiaita työläisnaisia. Aiemmin rikoksista tuomittuja heidän joukossaan oli hyvin vähän. Suurin osa (n. 71 %) työskenteli punakaartin huollossa keittiö-, siivous- ja vaatetusosastoilla. Noin 21 % työskenteli sairaanhoidossa, ja loput kahdeksan prosenttia olivat punakaartin hallintoa avustavissa muissa tehtävissä. Naiset saivat pääosin lieviä, 2−3 vuoden ehdollisia tuomioita. Vain joka kymmenes nainen tuomittiin ehdottomaan rangaistukseen. Punakaartiin vasta pakomatkalla liittyneet ja kaartissa vähäisissä tehtävissä lyhytaikaisesti toimineet henkilöt vapautettiin syytteistä. Tutkimuksessani olen osoittanut, millaisia vaikeuksia paluu sodanjälkeiseen arkeen tuotti naisille. Varsinkin yksin lastensa kanssa jääneillä oli monenlaisia ongelmia. Sodan aikana levitetty propaganda oli osaltaan lisäämässä vaikeuksia. Toisaalta työtilanne parantui monen naisen osalta jo vuoden 1918 aikana, ja oman punaisen yhteisön tarjoama tuki helpotti arjesta selviytymistä. Elämä tasaantui, naiset perustivat perheitä ja osa palasi työelämään ja politiikkaan. Säilyneiden lähteiden valossa sisällissota näyttäisi radikalisoineen vain pienen osan naisista, kun taas enemmistö kannatti maltillisia sosialidemokraatteja tai jäi kokonaan pois politiikasta. Punaiseksi leimautuminen valtiorikosoikeudessa ei pakottanut naisia muuttamaan uudelle paikkakunnalle; Porin seudulla ja yleensä vielä omassa suvussakin oli riittävästi entisiä punaisia luomassa kollektiivista tukea. Myös valtiovalta pyrki rauhoittamaan poliittista tilannetta ja sopeuttamaan punaisia yhteiskuntaan monin uudistuksin. Naisten kannalta merkittävin myönnytys tapahtui jatkosodan aikana, kun punalesket lopulta oikeutettiin valtiollisen eläkkeen piiriin. Tämä tutkimus on ensimmäinen punaisista naisista laadittu eräänlainen kollektiivinen elämäkerta, jossa on tarkasteltu heidän sodanjälkeistä elämäänsä. Yhteenvetona voidaan todeta, että Porin seudulta valtiorikosoikeuteen joutuneet naiset olivat tavallisia työläisnaisia. Sota ja osallisuus siihen ei tätä asiaa muuttanut. Naiset sopeutuivat yhteiskuntaan nopeasti ja elivät pääosin tavallista työläisperheen arkea sodan jälkeenkin.

Suitability of LiDAR technology for forest inventory in Russia

LiDAR is an advanced remote sensing technology with many applications, including forest inventory. The most common type is ALS (airborne laser scanning). The method is successfully utilized in many developed markets, where it is replacing traditional forest inventory methods. However, it is innovative for Russian market, where traditional field inventory dominates. ArboLiDAR is a forest inventory solution that engages LiDAR, color infrared imagery, GPS ground control plots and field sample plots, developed by Arbonaut Ltd. This study is an industrial market research for LiDAR technology in Russia focused on customer needs. Russian forestry market is very attractive, because of large growing stock volumes. It underwent drastic changes in 2006, but it is still in transitional stage. There are several types of forest inventory, both with public and private funding. Private forestry enterprises basically need forest inventory in two cases – while making coupe demarcation before timber harvesting and as a part of forest management planning, that is supposed to be done every ten years on the whole leased territory. The study covered 14 companies in total that include private forestry companies with timber harvesting activities, private forest inventory providers, state subordinate companies and forestry software developer. The research strategy is multiple case studies with semi-structured interviews as the main data collection technique. The study focuses on North-West Russia, as it is the most developed Russian region in forestry. The research applies the Voice of the Customer (VOC) concept to elicit customer needs of Russian forestry actors and discovers how these needs are met. It studies forest inventory methods currently applied in Russia and proposes the model of method comparison, based on Multi-criteria decision making (MCDM) approach, mainly on Analytical Hierarchy Process (AHP). Required product attributes are classified in accordance with Kano model. The answer about suitability of LiDAR technology is ambiguous, since many details should be taken into account.

2014 Ukraine crisis – Implications for corporate crisis management

In the late year 2013 events started to unfold in Ukraine’s capital city Kiev that would change the political and economic environment of the EU and Russia. The tension had been building for years between the two parties with Ukraine in the middle and during 2014 the tension blew up and events started to escalate into a crisis, which we now know as the 2014 Ukraine crisis. The crisis would include political, economic, and even military actions by all the parties involved with Ukraine slipping close to civil war. Both political and economic hardships followed for others as well with both the EU and Russia placing heavy political and economic sanctions on each other. Most notably in terms of this paper, the Russian federation placed total import embargo sanctions on food imports from the EU and some other countries. This meant that a Finnish dairy company, Valio, had to engage in corporate crisis management as almost a fifth of its total revenue was cut in a heartbeat. Valio had been prepared for some kind of complications with their Russian market as events started to unfold in Ukraine in the beginning of 2014 but never did they suspect that a complete shutdown of the Russian market would follow. The company is still recovering after more than a year after the sanctions were posed and have not been able to supplement the lost revenue streams. This research is a qualitative research aiming to find answers to the main questions: 1) What is the 2014 Ukraine crisis and what kind of special implications does it have and 2) How did the crisis affect Valio and how did Valio fare in its crisis management efforts. The data has been collected both from secondary document sources and primary sources. The main findings of this research are that the political and economic environment of the EU and Russia has gone through a profound change during the years 2013-2015. The companies and governments should re-evaluate what kind of environment they are now facing and what kinds of risks the new situation poses. This also calls for a deep academic analysis from the academic community. In corporate crisis management of Valio the main findings are that the former literature has looked into crisis management as one-time occurrence but the new crises and global events would call for a more on-going crisis analysis and active crisis management. Thus, corporate crisis management should be viewed as a cycle. Valio specifically handled the situation surprisingly well, considering that their revenue was indeed cut by a fifth. The main aspects of crisis management, which Valio did not handle as well, concern the learning curve of crisis management. They could be doing more in order to prepare for future crises better by learning from this experience. The situation is then still on-going in the autumn 2015 both in Ukraine and within Valio.