Americans - Friends of Novosibirsk - Point the City Marks

Local Businessmen Do Not Consider Investment Climate in Novosibirsk Favorable.

Two rounds of questionings were conducted in Novosibirsk. As of September 1, 1994, 51 organizations were interviewed, 95 investment projects belonged to these organizations. As of December 1, 1994, 54 organizations were surveyed, 103 projects belonged to these organizations. Nearly 80% of surveyed organizations were just the same as in the first round.

1. Do you consider the present economic situation as favorable for your project carrying out?

                               Sep. 1         Dec. 1
yes                              14             12
yes/no                           59             65
no                               22             26

2. Do you hope for domestic or foreign investor?

                              Sep. 1           Dec. 1
domestic                         5              10
foreign                         11              15
both                            79              78

3. Did you receive any support from local authorities?

                        Sep. 1                 Dec. 1
yes                     10                      12
no                      81                      91

P.S. consulting small-medium business/3.5 months
J.L. non-profit organization/9 months
D.C. small business consulting/1 year
E.S. trade (food, clothing, cars, household hardware)/3.5 years
S.L. non-commercial/non-government organization/3.5 years

SECURITY
Your feeling of safety in Siberia?
2/2/1/0/2

SERVICE
To what extent are you satisfied with services available?
0/-1/-3/-3/0

MUTUAL UNDERSTANDING
Do you feel and to what extent mutual understanding with Russian partners in Siberia?
-/3/-2/0/1

COMMUNICATIONS
Is it easy to communicate by fax, phone, etc. with partners:
a) in Siberia? -2/1/-3/2/-2
b) in the world? -1/3/0/-3/-1

ECONOMIC CLIMATE
To what extent are the economic conditions in Siberia favorable for your business?
1/3/-3/0/0

ENVIRONMENT
Your estimation of ecological conditions in Siberia
0/-1/-2/-2/0

SIBERIA'S RATING AMONG OTHER RUSSIA'S REGIONS

List 1-2 Russia's regions where business conditions are
1. better than in Siberia - D.C.: Moscow, St.Peterbourg; P.S.: Moscow region, Lower Volga;
2. worth than in Siberia - D.C.: Far East, (Vladivostok); P.S.: Moscow, St.Peterbourg, Far East.

The elements of market environment & infrastructure, inefficient or non-existent in Siberia: opinions by persons questioned

P.S.:

capital expenditures, lending;

roads;

regular air routes to/from other cities in Russia;

telecomminications;

J.L.:

customs;

mail.

D.C.:

guest services (hotel, restaurants, laundry, entertainment);

government relationship toward private sector (taxes, customs, other regulatory areas);

advisery services (lawyer, consultants, etc.).

communications within Russia

E.S.:

entertainment infrasructure (restaurants, pubs, clubs) - an indispensable aspect of building business relationships;

opportunity to obtain reliable information about potential Russian partners a'la Dun & Bradstreet;

multiproduct distributors that will help foreign firm to bring products directly to the market.

S.L.:

banks;

communications.