Development of Rouble Exchange Rate in Russia

This 45th volume deals with the development of the Russian rouble, which suffered a severe depreciation crisis in 1998. In the aftermath of this event, a strong investment boom started in Russia. The new devalued rouble exchange rate gave price competitiveness to local industry. In addition to that, increasing export prices of Russian oil and natural gas deliveries have contributed to economic growth lately. Amid this boom period, inflationary pressure has remained high. Price increases have been higher than in the EU, Russia’s main trading partner. However, rouble/euro exchange rate has remained nominally rather stable in the current decade. This means, that rouble appreciates against euro in real terms, which is weakening Russia’s international competitiveness.

Distribution systems of the food sector in Russia: the perspective of Finnish food industry

Finnish food producers' trade with Russia has experienced profound changes since the collapse of the Soviet Union. Simultaneously, the distribution systems of foodstuffs have changed remarkably. This study sheds some light into these changes and analyses the current situation in distribution systems of foodstuffs in Russia. In addition, the study discusses the possibilities of Finnish food producers to get more of their products to the shelves of Russian food retail stores. Before the 1998 financial crisis, the import of foreign foodstuffs was booming in Russia due to the overvalued rouble. As a result of the financial crisis, food import collapsed. The export of Finnish foodstuffs to Russia has been slowly recovering during the past few years, but in the most important product categories the pre-crisis levels have so far not been reached and maybe will not be reached. In certain product categories the growth has been only marginal. It seems that starting localproduction will become increasingly important in the future. This is further encouraged by the fact that Russian consumers favour domestic food products. Russian consumers are very price conscious and demand quality in food products. The perceived price-quality ratio is an important criterion in the purchase decision.The majority of foodstuff retail is still conducted via unorganised forms of trade (e.g. kiosks and marketplaces) but modern retail chains are developing at a fast pace in Russia. They are also expected to dominate the retail trade in foodstuffs over the unorganised forms of trade in the future. This will change the distribution systems as well. The retail chains are trying to shorten the distribution chain, similarly to what has been seen in the Western countries. This together with the strengthening of retail chains is likely to shrink the role of wholesalers, as the chains increasingly want to work directly with the producers. Many large retail chains are acquiring or have already acquired a distribution centre or centres in order to boost efficiency and control the flow of products. The strengthening of the retail chains also gives them power in negotiations, which the producers and distributors have to adjust to. For example store entry fees and retail chains' own private label products pose challenges to the food producers. In the food production sector the competition is fierce, as large Russianand foreign producers want to ensure their piece of the market. The largest producers utilise their size: they invest in big marketing campaigns and are willing to pay high entry fees to retail chains in order to secure a place on the store shelves and to build a strong brand in Russia. This complicates the situation from the viewpoint of small producers. Currently, the most popular type of distribution system among the interviewed Finnish food producers is based on a network of local distributors. There is, however, a strong consensus on the importanceof starting local production in order to be a serious actor in Russia in the future. Factors that hinder the starting of local production include the lack of local infrastructure and qualified staff, and the low risk tolerance of Finnish firms. Major barriers for entry in Russia are the actions of authorities, fierce competition, fragmented market and Finnish producers' heavy production costs. The suggested strategies for increasing the market share include focusing geographically or segment-wise, introducing new products, starting local production, andcooperation between Finnish producers. Smallness was one reason why Finnish producers had to cut down their operations in Russia due to the 1998 crisis. Smaller producers had fewer resources to tolerate losses during the period of crisis. Smallness is reflected also on trade negotiations with retail chains and distributors. It makes it harder to cope with the store entry fees and to differentiatefrom the mass of products propped up by expensive advertising. Finally, it makes it harder for Finnish producers to start or expand local production, as it is more difficult for a small producer to get financing and to tolerate the increased risks. Compensating for the smallness might become the crucial factor determining the future success of Finnish food producers in the Russian market.

Higher education and national identity : Polish student activism in Russia 1832-1863

Doctoral dissertation, University of Helsinki

Within and beyond oral history in Russia

Reviews

Convergence withEU environmental legislation in Russia and Kyoto Protocol effects on certain power plants in Russia

Venäjällä uudistetaan sähkömarkkinoita. Uudistamisella pyritään vapauttamaan sähkömarkkinat ja lisäämään kilpailua energiasektorilla. Sähkömarkkinoiden vapauttamisen tarkoitus on energiasektorin hyötysuhteen nostaminen ja investointien houkutteleminen sektorille. Venäjä on ratifioinut Kioton protokollan, mikä energiasektorin kannalta on tärkeää, koska protokollan yhteistoteutusmekanismin kautta saadaan houkuteltua investointeja sektorille. Venäjän sähkömarkkinoiden vapauttamisen pitkäaikainen tähtäin on Venäjän ja Euroopan sähkömarkkinoiden integroituminen, joka tarkoittaa myös ympäristölainsäädännönyhtenäistämistä. Tämä tutkimus on osa Fortum Oyj:n tarjoamaa teknistä katselmusta Venäjällä toimivalle sähköyhtiölle, TGC-9:lle. Tässä työssä keskitytään TGC-9:n omistamien energiatuotantolaitoksien happamoitumista aiheuttaviin ilmapäästöihin ja pölypäästöihin. Tutkimuksessa pyritään myös löytämään Kioton protokollan yhteistoteutusmekanismi hyödyntämiskohteita. NOx -päästöt tulevat olemaan suurin haaste TGC-9:lle, jos ympäristöstandardit yhdenmukaistetaan. Yhteistoteutusmekanismin hyödyntämiskohteita löydettiin neljä: koksaamokaasun hyödyntäminen, maakaasun korvaaminen kuoren poltolla ja kaksi tapausta liittyen laitoksien hyötysuhteen nostamiseen.

Managing Subsidiary Integration During Corporate Expansion in Russia

Kansallisten rajojen yli laajentuvat yritykset kohtaavat kasvavia paineita yhtenäistää eri yksiköiden toimintatapoja, prosesseja ja järjestelmiä. Hyvin toteutettuna organisaation sisäinen integrointi voi johtaa tytäryritysten tuottavuuden parantumiseen ja strategisiin mittakaavaetuihin, kun taas huonosti toteutettuna integrointi voi johtaa lisääntyviin konflikteihin ja emoyhtiön kontrollin katoamiseen. Integroinnin kannalta Venäjälle perustettavat tytäryritykset asettavat suuria haasteita. Kasvava ja kehittyvä kansantalous on jatkuvassa muutoksessa kohti edistyneempiä ja tuottavampia toimintamalleja, mutta toisaalta yritystoiminnantaustalla vaikuttaa edelleenkin Neuvostoajan perinnöt, jotka muokkaavat yritysten johtamisrakenteita ja prosesseja. Nämä taustavaikuttajat vaikeuttavat kansainvälisen yrityksen yhtenäistämistä, mutta toisaalta tarjoavat suuria mahdollisuuksia yrityksille, jotka oppivat elämään Venäjän markkinoiden ehdoilla. Tämä tutkimus käyttää apunaan konstruktiivista tutkimustyötä ratkoakseenYIT:n Venäjälle perustettavien yritysten integrointiin liittyviä ongelmia ja mahdollisuuksia. Työn lopputuloksena syntyy oppimiseen pohjautuva integraatiostrategia ja tätä strategiaa tukeva integroinnin johtamisjärjestelmä.

Development of FDI Climate in Russia and Estonia in the Post-Soviet Era

Tämän diplomityön tavoite on selvittää Venäjän ja Viron investointi-ilmapiirien kehitystä suorien ulkomaisten investointien osalta. Tarkastelujakson pituus on Neuvostoliiton hajoamisesta tähän päivään. Työn teoriaosassa käydään läpi suoran ulkomaisen investoinnin määritelmä ja siihen liittyviä teorioita sekä investointi-ilmapiirin käsite ja osatekijät. Venäjälle ja Viroon tulleiden suorien ulkomaisten investointien vuosittaista kehitystä tarkastellaan empiirisen osan alussa. Diplomityön loppuosassa käydään läpi erilaisia taloustieteellisiä mittareita, jotka kuvaavat investointi-ilmapiirin tai ainakin joidenkin sen osatekijöiden kehittymistä. Kyseisiä mittareita on lopulta verrattu investointivirtoihin ja samalla on etsitty mahdollisia korrelaatioita. Mittarit paljastavat eroja Venäjän ja Viron investointi-ilmapiirien kehityksissä. Ne selittivät ainakin osittain suorienulkomaisten investointien virtoja Venäjälle ja Viroon.

Green Field fluteboard factory infrastructure requirements in Russia

Russian corrugated board market is rapidly developing. Owing to that Russia becomes more and more attractive to the companies ¿ world leaders in corrugated board production. Thus, in order to strengthen or even to maintain its market position the firm should uninterruptedly develop improving volume and quality of the products. At the same time operations in the Russian market are commonlyassociated with various types of risks which should be avoided. Unfortunately, the information of the Russian corrugated board market is not systematized yet there is almost no theoretical background in this areaand, therefore, the thesis is mainly based on the practical experience of the managers of Stora Enso. The goal of the paper is to define and describe the main particularities of Russian corrugated board market which are lying in different areas and to concentrate on the difficultieswith which a corrugated board factory may face while functioning in the Russian market. The contribution of the thesis consists of forming general requirements and principles while establishing a corrugated boardproduction facility and maintaining its operations in order to avoid risks, to save time and financial resources and as a result to operate in the Russian market obtaining higher profits.