Krasnodar region - Success stories - Ernst & Young - Russia

Greetings from the Governor of Krasnodar region

Dear Ladies and Gentlemen,

Krasnodar region is one of the best regions of Russia for effective capital investments.

The region's enormous potential, its unique geopolitical position, natural and recreational resources, fertile land, a developed transport infrastructure and especially comfortable conditions
for developing business brought Kuban to the top of the most prestigious investment ratings.

Experts from Forbes magazine, the Ministry of Regional Development of the Russian Federation, and several Russian and international publications say that our region is the best
place for business.

Over one trillion rubles were invested in the region's economy in the last three years. In 2010, Krasnodar region drew investments worth roughly 493 billion rubles at a growth rate of over 118%. This year, we intend to draw at least 550 billion rubles into the region's economy.

The hundreds of large-scale projects implemented in our region by foreign and Russian investors are confirmation of the high ratings and figures. Many of these investors have been working in Kuban for years and have become its good friends.

We are proud to say that the region's strategic investors include such world renowned companies as Knauf, CLAAS, Nestle, Philip Morris, Bonduelle, CECAB and Metro Cash and Carry, to name but a few.

Krasnodar region is always open for a dialog with Russian and foreign business circles. There are enormous opportunities for investments in our region, ranging from the establishment of agrarian and industrial enterprises as well as ports and housing units to the implementation of Olympic projects, the construction of Formula 1 routes and preparations for the 2018 World Cup.

All investors in Krasnodar region receive benefits and preferences, access to state procurements and orders and maximum support at the administration's level. It is advantageous and reliable to do business in our region.

Welcome to Krasnodar region.

Governor of Krasnodar region
А. N. Tkachev

Raiffeisenbank

Company profile
CSJC Raiffeisenbank is a subsidiary of Raiffeisen Bank International AG. The bank has been operating in Russia since 1996. It offers a full range of services to retail and corporate customers, both resident and non-resident, in rubles and foreign currencies.

Raiffeisenbank, which aims to strengthen its position as one of the leading universal banks in the region, is regarded as one of the most reliable banks in Russia by the ratings agencies.

Raiffeisenbank ranks 9th among Russian banks in terms of assets, based on Q1 2011 results (Interfax-CEA). According to the same Interfax-CEA data, Raiffeisenbank ranked 5th in terms of private deposits and 8th with regard to consumer lending.

Activity in the south of Russia
The history of Raiffeisenbank in the South of Russia starts in 2006. First, the Kubanskiy branch of Raiffeisenbank opened in Krasnodar (Krasnodar region). Later, it was renamed South branch and became the Bank’s regional center in the Southern Federal District and Northern-Caucasus Federal District. Currently, the Southern Regional center consists of 16 offices all around the South of Russia: Krasnodar, Sochi, Anapa, Novorossiysk, Rostovon-Don, Taganrog, Stavropol, Pyatigorsk, Volgograd, Volzhskiy.

The branches offer a full range of banking services for individual clients, including current accounts service, issuing and distribution of debit cards, fixed-term deposit intake, credit programs for individual clients (consumer loans, credit cards, car loans, mortgages) as well as money transfers in rubles and foreign currency. Like at other branches of the bank, clients are able to receive detailed consultations and make use of the bank’s network companies, Raiffeisen Capital Asset Management Company and Raiffeisen Non-Governmental Pension Fund.

Intesa Bank

Description
CJSC Intesa Bank is a Russian subsidiary of the Intesa Sanpaolo group, which, by virtue of its market capitalization, is a major banking group in the Euro zone and the absolute leader of the banking services market in Italy. The history of Intesa Sanpaolo dates back over 400 years. Today, the company has over 20 million customers. Intesa Sanpaolo has foreign branches, representations and subsidiary banks in over 40 countries. The Italian banking group Intesa Sanpaolo has been represented in Russia for almost 40 years, where it has become one of the key participants in the economic relations between Russia and
Italy.

Company’s activity in the South Federal District and Krasnodar region
Intesa Bank has been represented in the South Federal District for over 10 years already, opening its first department in Rostov-on-Don in February 2001 and a year later, in July 2002, another department in Krasnodar. Today there are eight divisions in the South Federal District. They are located in five cities of the region: Krasnodar (three divisions), Sochi, Rostov-on-Don (two divisions), Volgograd and Volzhsk, and are combined into Yuzhny CJSC Bank Intesa.

In Krasnodar region, the bank grants loans to corporate business, actively finances small and medium-sized enterprises and offers services to individuals. The growth of the bank’s loan portfolio in Krasnodar region shows that the bank is active in the market, that it is integrated in the region’s economy and that it has long-term plans for financing the enterprises in the Region.

The bank’s clients in Krasnodar region are energy companies, food manufacturing companies (dairy production), agricultural and retail enterprises, hotels and restaurants and transportation and construction companies.

Intesa Bank takes an active role in the work of social organizations and associations operating in Krasnodar  region such as the Chamber for Trade and Industry of Krasnodar region, the Association of Financial Managers of the Southern Financial Club etc.

In its work in Krasnodar region, Intesa Bank takes account of the agreement on the general principles of organizing cooperation in attracting investments into Krasnodar region. During the implementation of the agreement, which took three years, the bank allocated over 5 billion rubles for the programmed support of small and medium-sized businesses. The bank also invested over 85 million rubles in the infrastructural development of Krasnodar region by opening three new bank divisions: two in Krasnodar and one in Sochi.

Knauf Gips Kuban LLC

Company profile
The international industrial group Knauf was established by the brothers Alfons and Karl Knauf in 1932 as a small enterprise for processing gypsum stone. The company is now a leading global producer of construction materials. It incorporates about 150 enterprises with 22,000 employees in over 40 countries.

Today, Knauf is a major German investor in the construction industry of Russia, Ukraine, Kazakhstan, Moldova and Uzbekistan. It produces high-quality goods from local raw materials and works with local specialists.

History of success in Russia and Krasnodar region
Knauf Gips Kuban LLC is a major construction enterprise in Krasnodar region which has been operating in the region since 1995. The enterprise is based in the populated area of Psebay in Mostovsk District, which has rich deposits of Europe’s best gypsum.

Knauf Gips Kuban has been holding the leading position for several years now in the rating of 100 enterprises of the construction materials industry as well as the construction industry that are leaders of the building complex of Russia.

Investment projects in Krasnodar region
Our enterprise is an indisputable leader of the construction industry of Krasnodar region. The main directions of the enterprise’s investment policy are the further modernization of production, the replacement and repair of equipment, and the acquisition of spare parts.

In 2011–2012, eight million rubles will be spent on the expansion of the railway approaches. One of the major investment lines (in the amount of 100 million rubles) will be the projection and construction of the enterprise’s own production unit with the grinding and sorting factory to produce powder and lime sand.
In the next few years, the Northern Departure, a roundabout motorway, will be built along the perimeter of our enterprise. It will settle the inhabited area’s environmental problems because traffic will be outside the Psebay settlement.

Under the auspices of Knauf Gips Kuban, the agricultural enterprise Knauf Agro Kuban will be formed to breed cattle for milk and meat by using intensive land cultivation methods with farm machinery of a high European standard and by engaging advisors from the Company for Project Management and

Agricultural Development, GmbH & CO KG, from Germany. This project is very important in promoting agricultural development in the piedmont area of Kuban.

Anadolu Cam Sanayii A.S.

Company profile
Anadolu Cam Sanayii A.S. company is the glass packaging part of the Sisecam group of companies.
The Sisecam group of companies was established in 1936 and occupies 98% of Turkey’s total glass market. It also owns enterprises in Russia, Bulgaria, Georgia, Egypt, Bosnia and Herzegovina and Italy.

Nowadays, the Sisecam group of companies is one of the world’s top ten glass manufacturers and has ambitious plans both for Russia and other countries in Europe and Asia.

Activity in Russia: facts and figures
Since 2001, Anadolu Cam has opened gigantic plants in Russia – in the Vladimir Region, Vologda Region, the Republic of Bashkortostan and Leningrad Region. Total investments in Russia amount to more than USD300 million. The company’s current plant construction plans call for around USD400 million to be invested.

Investment projects in Krasnodar region
The current capacities of existing glass packaging plants in Krasnodar region fail to meet the latest requirements of glass containers. The annual requirements of major Kuban processing, wine producing and distilled beverages enterprises alone figure up to 500 million glass containers.

Therefore, a modern production system of high quality glass packaging for a wide range of processing, wine producing, brewing and distilled beverages enterprises was established in the Krymsk district of Krasnodar region.

The history of partner relations between the company and Krasnodar region began in 2006. In Istanbul on 11 December 2006, Alexander Tkachev, Governor of Krasnodar region, and the President of Anadolu Сam Sanayii A.S. signed a protocol of intent to implement the construction of a new glassware plant.

On 12 May 2009, the grand opening of the first line of a new glassware plant with a capacity of 350 million glassware units annually, RUSJAM-KUBAN LLC, was held in the town of Krymsk. Today RUSJAM-KUBAN LLC serves 80 companies which are not only in the South Federal District, but also abroad (in Turkey and Kazakhstan).

At the beginning of 2012, the company plans to start construction on a second line of the plant with a capacity of 350 million glassware units annually. When the enterprise starts working at full capacity, its productivity will reach 700 million glassware units annually.

CLAAS KGaA mbH

Company profile
The German machine-building company CLAAS KGaA mbH (CLAAS), founded in 1913, is among the leading manufacturers of farm equipment in the world.

CLAAS has 14 plants in Europe, Asia and America, with more than 8 thousand employees. In North America, the company’s products are sold under the LEXION trademark. The list of CLAAS’s manufactured goods includes grain and forage harvesters, tractors, press pickups and telescopic loaders.

History of success in Russia and Krasnodar region
CLAAS’s management and Krasnodar region’s leaders signed an agreement on cooperation in Hannover, Germany in 2003. The agricultural orientation of Krasnodar region and the southern regions of Russia was the main reason why the company’s management decided to build a plant producing grain harvesters and tractors in Krasnodar region.

The plant, with a capacity of 1,000 CLAAS harvesters, the first of its kind in Russia, opened in Krasnodar in 2005. At the plant, workers learned how to assemble the Mega-350/360/370 harvesters, the Atles 946 RZ and Xerion 3800 tractors, and the Tucano 320, 430, 450, 470 and 480 grain harvesters.

The construction of that plant was a decisive step in providing Russian agriculture with modern, highly productive equipment. The plant became a full-fledged Russian producer five years after CLAAS began its production in Krasnodar. Its output is found in all the Russian regions where crops are cultivated.

Plans and prospects

In the long term, CLAAS plans to expand capacity in an effort to meet the demands of a growing market. In the next three years, CLAAS will build new production units in Krasnodar to ensure a full production cycle, including coloration and independent production of several components.

Philip Morris Kuban

Company profile
The Philip Morris Kuban factory is one of the affiliates of Philip Morris International in Russia together with the Philip Morris Izhora factory and Philip Morris Sales and Marketing, with offices approximately. Today, more than 4000 professionals work for the affiliated companies of Philip Morris International in 100 cities of Russia.

Philip Morris Kuban (Krasnodar, Russia) is a technologically advanced production facility and one of the biggest production centers of Philip Morris International in the world. Philip Morris Kuban has been successfully working for over 17 years thanks to investments, high-skilled personnel and the efforts of the Krasnodar region administration to create an environment conducive to foreign investment.

Today, Philip Morris Kuban is one of the largest companies in the region. It is an integrated production enterprise which comprises all steps of the production process, from primary treatment of raw tobacco to production and packaging of high quality cigarettes.

History of success in Krasnodar region
The history Philip Morris International in the Krasnodar region is one of the most successful examples of direct investments in the regional economy of the country.

Since 1943, the region has had a tobacco plant, which was among the largest tobacco enterprises in the Soviet Union. By the early 1990s, the factory did not have the financial resources to invest in facility modernization.

On 17 October 1993 Philip Morris Investment Corporation won the investment project tender and acquired the controlling shares in JSC Krasnodartabakprom. The factory was renamed Philip Morris Kuban in 2000.

Since that time, the factory has increased its production capacity by almost nine times and has become a modern tobacco full-cycle factory with an annual production capacity of more than 30 billion cigarettes. The factory manufactures about 30 line extensions of such cigarette brands as “Appolo Soyuz,” “Optima,” “Next” and “Bond Street.”

Nestle Kuban LLC

Company profile
Nestle is the largest manufacturer of foodstuffs and beverages in the world; the expert in the sphere of  nutritious and healthy lifestyles. In Russia, Nestle has 12 enterprises and the company is
constantly investing in their development.

History of success in Krasnodar region
The company came to Kuban in 1998. That is when Nestle Group’s Khladoprodukt began to produce Nestle® ice cream in Timashevsk. In 2001, Russia’s first line in packaging NESCAFE® Classic instant coffee was put into operation.

At the Sochi International Forum in 2004, Nestle signed an investment agreement with Krasnodar region’s administration on the construction of a new plant. A year later the Nestle-Kuban plant, Russia’s first complete cycle plant producing instant coffee, was put into operation in Timashevsk. Investments in the project amounted to roughly USD120 million.

From 2006–2008, the variety of products produced at the Nestle-Kuban plant was enlarged. About 950 million rubles were invested in the development of production, the social sphere and environmental safety.

Today, Nestle-Kuban is a major enterprise of the food industry of Krasnodar region and Russia as a whole. The company produces a large variety of natural instant coffee and soluble coffee beverages under the NESCAFE® trademark.

Development of the plant
In October 2008, an agreement between Krasnodar region’s Administration and Nestle-Kuban on the expansion of the plant in Timashevsk was signed in Moscow at the annual plenary session of the Foreign Investment Advisory Council in Russia under the guidance of the Russian Prime Minister, Vladimir Putin.
Total project investments from 2009 to 2011 will amount to 240 million Swiss francs (over 7 billion rubles).

Contribution to economy of the region

Nestle Kuban is one of Krasnodar region’s biggest taxpayers. In 2010, the Nestle Kuban factory paid more than 467 million rubles in taxes.

Group Bonduelle

Company profile
The history of the French Group Bonduelle dates back to the year 1853. It was founded by the Bonduelle family and they continue to run it today. The administrative board, headed by the president and consisting mainly of members of the Bonduelle family, defines the strategy and investment policy of the company whose annual sales turnover is more than 1.7 billion euro. 64% of the company’s revenue comes from outside of France. Production and commercial departments of Bonduelle are located in 18 countries; the Group employs 10,000 people.

History of success in Russia
Bonduelle started its activity in Russia in 1994 with the sale of canned vegetables. Back then, the company was part of a network of importers and distributors that had opened a representative office in Moscow.

Today, about 80,000 tons of canned vegetables produced by Bonduelle are sold in Russia. The distribution network comprises more than 100 clients and covers all of Russia. During the last 10 years, Bonduelle has led the Russian market of canned vegetables with the highest indexes for consuming, brand awareness and loyalty of the consumers. Bonduelle’s market share is about 40%.

Company’s activity in Krasnodar region
At the Sochi International Forum in 2003, the company’s management and Krasnodar region’s administration signed an agreement on the construction of a modern vegetable cannery in the Novotitarovskaya area.

The first line of the Bonduelle-Kuban plant was commissioned in 2004. There was an official ceremony when the second line was commissioned in 2007. The company invested 30 million euro in that project.
The Bonduelle-Kuban plant has 110 regular workers and 200 seasonal workers.

Facts, figures and plans
In 2010 Bonduelle-Kuban had revenues of more than 3.5 billion rubles, with a net profit of more than 400 million rubles. Bonduelle-Kuban contributes to the budget of Krasnodar region by way of taxes. In the period from 2006 to 2010, Bonduelle-Kuban paid 467 million rubles in taxes.

Among the plans for the future, it is worth noting Bonduelle- Kuban’s intention to increase its production volumes, enlarge its assortment of products and build a new warehouse.

GROUPE CECAB

Company profile
The Cecab Group is an agricultural cooperative that was created in France in 1968. Today, Cecab Group is the second largest producer of canned vegetables in Europe. In early 2006, Cecab Group acquired a controlling stake in the Group GLOBUS, a leader in the Hungarian and Polish food industry.

Today, Cecab Group comprises 8000 farms, 41 manufacturing sites, and 4,700 employees. Revenue in the cooperative in 2010 was 1.1 billion euro. Production of canned vegetables is located in three geographic zones of Europe: France, Hungary, Russia (Kuban).

Activity in Russia
In Russia, the subsidiaries of Cecab are Kubanskie Konservy LLC and Company Generale de CANNED EAST LLC. Canned food production by the Cecab Group is represented in Russia by two brands: d’aucy and GLOBUS. This production is intended for the Russian market and for the market of CIS countries.

Why the French have chosen Russia and Krasnodar region for capital injection
Cecab Group’s decision to locate its business in Krasnodar was influenced by the dynamic development of Russia and the market penetration of the CIS countries. Krasnodar region has created a favorable investment policy. As a result, this region has become the most successful for producing canned vegetables and cultivating vegetables and other crops.

Also influencing the choice were an advantageous transport location site, the plant in Timashevsk, the ability to lease the land for agricultural purposes and the opportunity to introduce a modern irrigation system on land in Rogovskaya, Timashevsk region.

The investment project in Timashevsk region

• The cost of the project is 2.3 billion rubles.
• The projected capacity is 80 million containers annually.
• The date of completion of the initial products was June 2007.
• The products are canned green peas, sweet corn and beans under the trademarks of d’aucy and GLOBUS.
• Farmland with an area of 6,000 hectares in the populated area of Rogovskaya in Timashevsky District has been leased for 25 years.

Kubanskie Konservy LLC has 188 workplaces, and during the growing season the number of employees reaches 250. Over the entire period of the company Kubanskie Konservy, total revenue has been 202.5 million rubles.

Azersun Holding

Company profile
Azersun Holding Group of Companies, which started operating in Azerbaijan in 1991, is a major non-oil holding group in Azerbaijan. The group of companies includes over 20 enterprises.

They are plants producing and processing oil and fat products, as well as tea plantations, tea packing plants, canneries, plants producing packing and paper products, the largest sugar plant in the region, a lump sugar production plant, an iodized salt production plant, a bakery, a dairy, a filbert processing plant, a plant producing ethyl alcohol and cattle fodder and a wide range of agricultural enterprises which cultivate various crops on an area of over 4,000 hectares with a drip irrigation system from Valmont Industries.

Today the holding group has representations and offices in many countries including Russia, UAE, Turkey, Switzerland, Sri Lanka, Georgia, Iran and Iraq. Azersun’s output goes not only to the country’s and region’s markets. It has a wide-scale export network and is a distributor for the transnational company Unilever, in Azerbaijan. Today it has over 5,000 employees at its enterprises.

By using a wide distribution network, the company has been selling tea and canned goods in the Russian markets for over 10 years.

Investment projects in Krasnodar region
During the 8th annual investment forum in Sochi in September 2009, Mr. Abdolbari Goozal, head of the Azersun Holding Group, signed an agreement on investments in Krasnodar region with Mr. A.N. Tkachev, Governor of Krasnodar region. Under the agreement, 150 million rubles were to be invested in Krasnodar
region for a tea factory, a cannery and an agricultural complex. The amount to be invested grew to 360 million rubles as a result of the market research conducted later.

At the initial stage in September 2010, the tea factory Kuban Tea LLC, with a production capacity of 25 million packs annually, was commissioned in Belorechensk. The enterprise packs tea with the brand names of Kuban Tea, Azerchai and Mariam.

Moreover, the construction of a cannery is in full swing in Belorechensk. It is due to be commissioned at the end of 2011.

METRO Cash & Carry

Company profile
METRO Cash & Carry, the largest international wholesale company, is a part of METRO GROUP holding, which is the third largest company in the world in terms of revenue (sales in 2010 were about 67 billion euro).

METRO Cash & Carry was founded in Germany in 1964. Nowadays METRO Cash & Carry is represented by more than 680 stores in 30 countries. With more than 100,000 employees worldwide, the company achieved sales of around 31 billion euros in 2010.

History of success in Russia and in Kuban
METRO Cash & Carry entered the Russian market in 2000. A year later, in November 2001, the first two stores opened in Moscow. Russia became the 21st country where small and medium sized businesses were able to take advantage of the METRO Cash & Carry concept. The company developed rapidly, with a focus on regional expansion.

In 2004, the first regional stores opened. Krasnodar region is among the first Russian regions where
METRO Cash & Carry came.

On 10 December 2004, the Krasnodar store opened its doors for the first time. The Krasnodar store continues its successful operation today. With a total sales area of 12,000 m., the company exclusively caters to professional customers like hotels and restaurants as well as small and medium sized retailers,
companies and offices. The store’s assortment includes 30,000 articles of food and nonfood goods of the highest quality offered at attractive prices. Our knowledge and understanding of our customers’ businesses has helped us to an exclusive line of its own brands.

The number of employees has now reached more than 200 people.

Auchan

Company profile
Auchan is a large international megastore chain which has been operating in the Russian market since 2002. In all, Auchan has over 1,300 stores, 559 megastores and over 740 supermarkets in the world with about 262,000 employees. Auchan stores are visited by about 1.5 billion customers annually. In 2010, the company had revenues of 42.5 billion euro.

History of success in Russia
The company’s first store in Russia opened in the town of Mytischi, Moscow Region on 28 August 2002.
In Krasnodar, the company’s first hypermarket opened on 7 December 2007.

As of today, there are 44 Auchan megastores in Russia, 28 of which are classical Auchan megastores (14 of them are in Moscow, four in St. Petersburg, two in Rostov-on-Don, and one each in Adygeya, Samara, Krasnodar, Yekaterinburg, Nizhny Novgorod, Novosibirsk, Omsk and Voronezh), 14 of which are Auchan city megastores (eight of them are in Moscow, two in St. Petersburg, and one each in Podolsk, Orekhovo-Zuevo, Yekaterinburg and Novosibirsk) and two of which are “Our Rainbow” megastores (one each in Kaluga and Penza). There are also three garden centers (Auchan Garden), two of which are in Moscow Region, and one of them is in Voronezh.

Company strategy
Auchan is setting up its own production in Russia, whereby the quality of the output will be on a high level at minimum production costs. More than one hundred enterprises are cooperating with Auchan in accordance with the program for production under their own trademark; 80% of them are small and medium-sized businesses. Currently, over 1,600 items of the chain trademark are available in Auchan.
Auchan promotes the development of its suppliers. Local suppliers, who prove that the quality of their products is excellent, may enter the market on the federal level and export their goods to other Auchan countries. This not only helps to improve the economic situation in the regions, but also promotes social development since new workplaces appear and the population’s living standards improve.

In Russia, Auchan currently has over 24,000 employees, 40% of whom are working in the regional stores.

Leroy Merlin

Company profile
Leroy Merlin is an international retail company selling goods for home, cottage and garden improvement, construction, and decoration. In 2006, Leroy Merlin Group became GROUPE ADEO. The brand consolidated nine DIY (Do-It-Yourself) brands into four professional categories:
– Hypermarkets: LEROY MERLIN
– Medium-sized stores: AKI, BRICOCENTER, WELDOM, DOMPRO
– Warehouse stores: BRICOMAN, BRICOMART
– Innovative concepts: ZODIO, KBANE
GROUPE ADEO ranks 2nd in Europe and 4th in the world in terms of sales.

The brand Leroy Merlin is the signboard of 302 stores all over the world and offers its customers a wide selection of quality goods, attractive prices, and a high level of service.

History of success in Russia
The first Leroy Merlin store in Russia opened in 2004 in the city of Mytishchi, Moscow region.
Today, Leroy Merlin in Russia represents:

• The number 1 DYI company in Russia
• 18 spacious and comfortable stores, from 8,000 to 16,000 m2, open seven days a week in Moscow and Moscow region, St. Petersburg, Krasnodar, Rostov-on-Don, Samara, Novosibirsk, Omsk, Voronezh, and Ufa
• A wide range of quality goods in five major areas: home, interior, building materials, repairs, and gardening
• Guaranteed lowest prices in town across all product categories
• 15 departments carrying up to 40,000 different goods (SKU)
• Additional services, including glass cutting, curtain making, overlocking, picture framing, paint tinting, after-sales services, delivery, merchandise return, spacious parking, professional advice and a free “Renovation Academy” for customers
• Professionalism, responsibility, and kindness from 7,000 Leroy Merlin employees all over Russia

Activity in Krasnodar region
The Leroy Merlin SBS Krasnodar store opened its doors to clients in April 2008.
Krasnodar region was chosen due to several factors:

• Strong economic growth of the region. Krasnodar is among the eight most developed cities of Russia.
• Successful development of Leroy Merlin in the South of France. Favorable climate, large number of sunny days per year, the peoples’ cheerful temperaments – these are some common characteristics both for the South of France and the South of Russia.

Mentality of the local people: they are energetic and hardworking, willing to improve the world around them and to make their homes and gardens as comfortable as possible.

Ernst & Young

About Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, the organization’s 141,000 people are united by shared values and an unwavering commitment to quality. The CIS practice is part of the EMEIA Area of the company’s global organization, which operates across Europe, the Middle East, India and Africa and brings together over 67,700 people in 93 countries.

Ernst & Young is the first professional services organization to bring a truly borderless approach to the CIS market. The company does business wherever business people are and wherever they plan to expand their businesses.
Ernst & Young expands its services and resources in accordance with clients’ needs throughout the CIS. 3,500 professionals work at 18 offices in Moscow, St. Petersburg, Novosibirsk, Ekaterinburg, Kazan, Krasnodar, Togliatti, Yuzhno-Sakhalinsk, Almaty, Astana, Atyrau, Baku, Kyiv, Donetsk, Tashkent, Tbilisi, Yerevan, and Minsk.

The organization aims to help business people identify and reduce business risks, find alternatives that will work and open up new opportunities for your company. Ernst & Young’s important offerings include services at all stages
of preparing for an IPO and transforming a company from a closed into a public entity.

Facts and figures

• With the opening of the Moscow office in 1989, Ernst & Young was the first professional services firm to establish operations in the Commonwealth of Independent States. The practice has a large corporate network.
• The company provides multidisciplinary and professional services to more than 2,000 clients.
• Since 1996, Ernst & Young has acted as auditor on IPO transactions for 20 companies in the CIS, with a total of $28.4 billion raised in these offerings.
• Ernst & Young was appointed auditor on 10 of the 18 FTSE 350 cross-border IPOs since 2000.
• Ernst & Young is the leader on the London Stock Exchange in terms of the number of IPOs from the CIS, providing audit services to 30% of London-listed companies.
• Ernst & Young is committed to serving not only its clients, but also the community in which it operates. This is underlined by the company’s involvement in the Foreign Investment Advisory Councils (FIAC) in Russia, Kazakhstan, Ukraine and Belarus.

Activity of the company in Krasnodar region

Ernst & Young opened its new office in Krasnodar in May 2011. The organization made this strategic decision with the aim of promoting activity in the local market. The region has great potential. It has demonstrated strong economic growth and attracted keen interest from foreign investors. Ernst & Young works with major regional enterprises and is developing relationships with most of the important market players.