Canada Eurasia Russia Business Association (CERBA)Association d'affaires Canada Russie Eurasie (ACCRE)Канадская деловая ассоциация в России и Евразии (СЕРБА)www.cerbanet.org

NATIONAL BOARD OF DIRECTORS

ChairmanNathan Hunt (interim) –Ronald A. Chisolm InternationalChairman Emeritus: PiersCumberlegeDirectorsHonorable J. Trevor EytonBoris Aryev – Stans Energy Renee Chernecki – Consultant Ron Denom – SNC�LavalinInternational Paul Drager – Macleod Dixon LLP Piotr Dutkiewicz – Carleton University Sandy Ferguson – BC BioenergyNetworkPeter Harder – Fraser MilnerCasgrain LLP John Place – Heenan Blaikie LLP Neil Withers – Vice ChairmanSilkRouteFinancialJames Crossland – KinrossLou Naumovski – Kinross (Observer)

MOSCOW BOARD OF DIRECTORS

ChairmanNathan Hunt, Ronald A. ChisholmInternationalDirectorsNeil Withers – Vice ChairmanSilkRouteFinancialAnatoly Andriash – Macleod Dixon LLPLou Naumovski – Kinross Gold Carlo de Benedictis – Scotiabank Carol Patterson – Baker & McKenzie Sergey Lobov – Fedorovo Resources(Barrick)Jeffrey Sutton – KPMGLuc Jones – AntalRon Lewin – TerraLinkBrad Pielsticker – Mikhailovsky Devt.GroupAlex Shifrin – The Creative FactoryJohn Campbell [Observer] –PricewaterhouseCoopersKlaus Buttner [Observer] – SeniorTrade Commissioner

CALGARY BOARD OF DIRECTORS

ChairmanHans Gjerdrum – KUDU IndustriesDirectorsLaurent Auger – Alberta InternationalIntergovernmental RelationsRichard Ball – FSI International Shawn Beamish – Canadian MatSystemsRenee Chernicki – CPTIPaul Drager – Macleod Dixon LLP

John Wither – EDC Mietka Zieba – CMHC

TORONTO BOARD OF DIRECTORS

ChairmanJohn M.Place, Heenan Blaikie LLPDirectorsBoris Aryev – Stans Energy Vadym Kozub – Export Trader Marina Dessiatkina, TradeCommission of the Republic of Sakha(Yakutia) Richard J. Lachcik, Macleod Dixon LLP Cristian Mandachescu, Scotiabank Vitaly Paroshyn, Ministry of EconomicDevelopment and Trade (Ontario) Alina Pekarsky, Schulich Schoolof Business Alexander Shipilov, TD BankFinancial Group Ian McColl, Hatch Yury Manukhov, YYZ Travel

MONTREAL BOARD OF DIRECTORS

ChairmanRon Denom – SNC�Lavalin InternationalDirectorsPierre D'Avignon – ScotiabankDiane Dube – EDCAndrei Ivanov – MDAAndre L'Ecuyer – Rabaska Alexander Lokshin – L&L Ecocity Inc.Redouane Mekideche – DFAITBertrand Millot – Cordiant Edouard Namts – WE Consulting Inc.Marie�Andree Bernard – MDEIE,Quebec Government

OTTAWA BOARD OF DIRECTORS

ChairmanPeter Harder – Fraser MilnerCasgrain LLPDirectorsChristopher Westdal – Silver BearAndre Asselin – CMHC Robert Blackburn – SNC–LavalinPiotr Dutkiewicz – Carleton UniversityDavid Gray – Agriteam CanadaRobert Hage – DFAITGeorge Haynal – Bombardier Kimberley Lok – EDC Nicolas Temnikov – QIT Rio Tinto

CERBA News Editor:Olga MazurovaPhotos by: Elena Settles, OlgaMazurova, Brendan Scully, FrankKense, Natalia Gorelik.

MOSCOW CHAPTER

Elena Settles – Regional DirectorTel: 7 (495) 735�4132Fax: 7 (495) 937�4763E�mail: elena@cerbanet.org

CALGARY CHAPTER

Frank Kense – Regional DirectorTel: 1 (403) 218�4164Fax: 1 (403) 218�8727E�mail: frank@cerbanet.org

TORONTO CHAPTER

Natalia Gorelik – Regional DirectorTel: 1 (416) 360�2299Fax: 1 (416) 360�8425E�mail: natalia@cerbanet.org

MONTREAL CHAPTER

Brendan Scully – Regional DirectorTel: 1 (514) 975�3347Fax: 1 (514) 371�4605E�mail: brendan@cerbanet.org

VANCOUVER CHAPTER

Tatyana Domilovskaya – RegionalDirectorCell: 1 (604) 720 2905 Landline: 1 (604) 464 2900 E�mail: tatiana@cerbanet.org

CERBA Quarterly News (spring / summer 2010) 3

CERBA Offices International:

CERBA Boards of Directors: In This Issue:

Page 3

Content

Page 4�5

Vancouver – 2010, XXI Olympic Games

Page 6�7

Canada�Russia Executive Business Summit 2010

Page 8�9

9th Annual Charity Auction in Moscow

Page 10

SNC�Lavalin establishes company with Russian

Bank

Page 11

PDAC–2010, Toronto

Page 12

Welcome new Toronto member SciCan

Page 13

Welcome new Calgary member Velosi

Page 14

Welcome new Vancouver member DEC

Page 15

Trade and Investment Opportunities between

Canada and Russia

Page 16

Upcoming events

Page 17�19

Looking Back

Page 20

Thanks to our sponsors

From left:Alastair Summerlee, Guelph University;Georgy Mamedov, RF Ambassador to Canada;Peter Van Loan, Minister of International Trade;Nathan Hunt, CERBA;Vladislav Tretiak, Russian State Duma.

4 5CERBA Quarterly News (spring / summer 2010)CERBA Quarterly News (spring / summer 2010)

VANCOUVER – 2010 XXI OLYMPIC GAMES

dislav Tretiak, now a prominent politician, member of the Rus�sian parliament, and close co�operator with CERBA and thegreat Igor Larionov who travelled to Vancouver from his Chicagohome to enjoy the Olympics and introduce his exemplary Cali�fornia wines. CERBA was pleased to present individual bottles toVIP speakers after the event.

The government of British Columbia was well represented atthe reception with appearances by Honourable Berry Penner –BC Minister of Environment,

Honorable Pat Bell � BC Minister of Forests and RangeDouglas Horne – MLA Coquitlam and Burke Mountain.Reception attendees were able to follow the action of the Gold

Medal women's hockey round which was shown at one end ofthe hall on closed�circuit television. The tenacious Canadianteam defeated their American rivals in that contest, contributing

1 of Canada's 14 Gold Medals, a record count for any country ina single Winter Olympics.

After the reception many participants continued the celebra�tion at a British Columbia government reception hosted by BCPremier Gordon Campbell and later an evening reception at theRussia House, headquarters of the Sochi Winter Olympicssponsor organizations. All participants were able to enjoy anexclusive showing of the BC Heritage Pavilion on the upper floorof the Art Gallery as they departed.

Kind thanks go to Gold Sponsors Kinross Gold and Researchin Motion, as well as Silver Sponsors Bombardier, Cirque duSoleil, CMHC, Macleod Dixon, SNC Lavalin and Rabaska. TheSME segment was represented by Michael Elinson and his com�pany Amelin Resources Inc. who provided a Silver Sponsorship.

6 7

CERBA members, Russian corporate partners, Canadian gov�ernment representatives, and officials representing the Russiangovernment met in Vancouver on the occasion of the 2010Olympic Games on February 25th to discuss their activities andareas of mutual interest. The top floor of the Vancouver ArtGallery provided an elegant setting for the event with impressiveviews of Robson Square and downtown Vancouver.

The event was chaired by the CERBA National ChairmanNathan Hunt with the government of Canada represented by theHonourable Peter Van Loan, recently appointed Minister ofInternational Trade and co�Chairman of the Canada�Russia Inter�governmental Economic Commission. CERBA membership waswell represented, including introductory speeches from GoldSponsors Tye Burt of Kinross and Jim Balsillie of Research in Mo�tion (Blackberry). Also at the head table were Dr. Alastair Sum�merlee, President of Guelph University and Russian Ambassadorto Canada His Excellency Georgy Mamedov.

Twenty�five Russian and Canadian companies were represent�ed at the table, each of whom introduced themselves and expla�ined to the Minister their plans and role in the Canada�Russiabilateral commercial relationship. Several companies involved inplanning and construction of the Vancouver Olympics were pres�ent, a fact not lost on Russian participants involved in preparationfor Russia's own Olympic games in Sochi in 2014.

Ambassador Mamedov gave a rousing speech noting theimproved political and investment climate in Russia and chal�lenging summit participants to re�assess Russia in view of therecent very positive economy news. More than one speakermade reference to the previous night's Olympic quarter�final inmen's hockey in which a lightning�fast Canada team defeatedthe Russians 7�3. While no one knew then that the Canadian

team would go on to a 3�2 victory over the Americans in the Goldmedal round, the Russians assured all present that they wouldbe rooting for Canada during the remainder of the competition!

The Summit was followed by an upbeat and well attended«Celebration Reception» for CERBA members and friends. Withover 150 attendees, the Celebration reception brought togetherrepresentatives from the BC business community, CERBA mem�bers from across Canada, Federal and Provincial Governmentofficials, and a strong Russian delegation representing Moscow,the Krasnodar region, and Sochi, the 2014 Winter OlympicGames host, at the event. Minister Van Loan gave a speech wel�coming those presentand thanking partici�pants for briefing himon their investment plansand trading activities inRussia. This was the mi�nister's first official func�tion as co�Chair of theCanada�Russia Intergo�vernmental EconomicCommission, a positionhe accepted soon afterassuming the interna�tional trade portfolio onemonth earlier.

A special treat for at�tendees was the partici�pation of two hockey ce�lebrities from Russia – le�gendary goaltender Vla�

CANADA – RUSSIA EXECUTIVE SUMMIT

VANCOUVER – 2010

International Trade MinisterPeter Van Loan

CERBA team

Linda Morris, EDC; Chris Clark, PwC, Carol Patterson,Baker&McKenzie; Ken Seitz, Cameco

Ambassador to Canada Georgy Mamedov

CERBA Quarterly News (spring / summer 2010)CERBA Quarterly News (spring / summer 2010)

Left to right: Alastair Summerlee, Guelph University; Jim Balsillie, RIM; Nathan Hunt, Chairman, CERBAPeter Van Loan, Minister of International Trade; Tye Burt, Kinross Gold; Georgy Mamedov, Ambassador

On the 4th of February 2010 the Moscow Chapter of CERBAheld its 9th Annual Charity Auction together with Vladislav TretyakFoundation and the Canadian International Development Agency(CIDA).

We are absolutely delighted to report that this year CERBA

was more successful than ever before � our hope was not

only met; it was considerably exceeded! We raised over

US$212,000 beating all previous years!

From the very beginning, the joint Canadian�Russian CharityAuction was an essential component and one of CERBA's mostimportant and popular events. However the Charity Auction hasnot only been outstanding in fundraising, as it has always been anexample of international collaboration where Canadian andRussian business help under�privileged and disabled people.

The evolution of the Auction, since it was first held in 2002, hasbeen outstanding: from our first event in 2002 garnered over USD5,000 to benefit the Ronald McDonald House charity in Moscowto 2009 when we amazingly raised over $127,000 USD to help thechildren's and elderly institutions. In 2009 we purchased specialequipment for the Saratov burns center, a children's fibrobron�choscope for the Irkutsk regional children's TB hospital, videostudio for the juvenile correctional facility, medical equipment andfurniture for the children's hospital in Krasny Kut, furniture for thechildren's libraries, several children's playgrounds, sports equip�ment and furniture for the Saratov schools, sports equipment forthe sports and rehabilitation school, sports centers and sportsplaygrounds for various regions.

This year's event took place again at the famous gourmet venueof high society, the legendary Yar restaurant. As last year theguests got into the atmosphere of the early 20 century: gorgeoushalls a la Russian Empire and Gypsy cabaret. The magic spirit of adashing place where Russian merchants liberally feasted thenights away inspired additional generosity.

This year we were even more concerned and worried that the cur�rent instabilities in global markets and tightening of corporatebudgets could reflect on the sponsorships and community partici�

pation in the Charity Auction. However, the Yar restaurant whichkindly sponsored the venue for the Auction hosted around 250businessmen, civil servants, diplomats, and cultural and socialcampaigners. The support was much needed and will be tremen�dously appreciated by those in need that are especially vulnerableduring these difficult times. We would like once again to thank

our Gold and Silver sponsors: Kinross, Aktis�Stroy, Ernst&Young,

Parallels, First Czech bank, RUZA, Smolensk Diamonds,

Denta�euro, Pepsi, Scotiabank, Lufthansa, Kauffman, and

our media sponsor radio Business FM. All these companies dis�played good corporate citizenship by associating with a worthycause supported by notable Canadian and Russian businesspeople.

Those attending the dinner were spurred into the generosity bythe presence of State Duma Deputy and ice hockey legendVladislav Tretyak, a triple Olympic champion who famouslystunned the Canadians with his performance for the Soviet side inthe summit series in 1972. The Canadian Ambassador to RussiaRalph Lysyshyn, the CERBA President Nathan Hunt, and VladislavTretyak welcomed the auction's guests. After the first addressesa presentation about the recipients of previous Auctions' funds aswell as the recipients of the current Auction was presented to theguests. The 2010 Auction recipients are the Inclusive secondaryschool in Engels town and Engels's Special correctional schoolfor mentally challenged children.

The live cabaret show fascinated as actually the Yar is a big the�ater with a large stage, artistic decorations, professional light and

sound. The Russian and gipsy dances were kindly sponsored bythe Theater Show Yar of Irina Knyazeva. The show was reallyimpressive and made our Auction notable and unforgettable.However the most remarkable piece of the Auction was a perform�ance of the young chapmen that were selling bubliks (the Russianprototype of bagles) and some small toys, dolls and whistles to theAuction guests accompanied by the famous Russian song «Kupitebubliki, goryachi bubliki…» The background melody, the Russiannational costumes and the evening atmosphere helped our youngchapmen to (proudly!) collect over $1,000 in cash.

US $212,000 was raised from five sources: sponsorships,donations, the raffle lottery tickets' sale, sale of the memorablesport items signed by Vladislav Tretyak, and the auction itself.Among many items up for grabs throughout the evening wereautographed hockey jerseys of Vladislav Tretyak, 60,000 miles on«Your miles & more» card donated by

Lufthansa, a framed original painting of Katarina Ricci «Underthe Tuscan sun», a painting of S.Korotkov «Let the Lord bless you»and painting of L.Korotkova «Transformation» which were donat�ed by the legal company LEAD Consulting, a dinner with VladislavTretyak, a dinner hosted by the Canadian Ambassador, Tissotwatches (Vladislav Tretyak limited edition), excursions to the StateDuma and Bolshoi Kremlin Palace, an autographed goalie stick, aMacedonian Wine gift (courtesy of Lou Naumovsky), luxurioushotel stays and exquisite dinners, a fashion orylag fur vest (VogueItem), a two�night weekend stay for two guests in a Ararat ParkHyatt room with buffet breakfast as well as many items of culturalinterest for Canadians and Russians. These items were all pre�sented for the Silent Auction. And were all sold!

The superb evening was capped by a live auction. The main lot �the Gold platinum diamond ring for World Ice Hockey ChampionTeam 2009: Gold 750, 16 gram, 37 diamonds, total weight 0,3carat was sold for $15,000 (starting bid was $10,000), and anexclusive doll «Tanusha» hand�made by Vladislav Tretiak was soldfor $12,000 (starting bid was $1,000).

Thus, the 9th Annual Charity Auction was a great victory overthe crisis, a marvelous party, a visible event with many high�levelbusiness people from both Russia and Canada and, most signifi�cantly, a wonderful opportunity to raise so much money in spite ofthe hard times.

CERBA would like to thank all sponsors and all guests for

your generosity!

8 9

ANOTHER RECORD

CERBA Quarterly News (spring / summer 2010)CERBA Quarterly News (spring / summer 2010)

CERBA 9TH ANNUAL CHARITY AUCTION SETS A NEW RECORD BY RAISING US $212,000!

A record cheque of $212,000 USD

Lou Naumovsky, Kinross is presenting a USD$5,000 chequeto Vladislav Tretyak in addition to Kinross' gold sponsorship of the event

Nathan Hunt, Ambassador Ralph Lysyshyn (in the centre) and Vladislav Tretyak are welcoming guests

On the 27th of January, 2010 SNC�Lavalin and the StateCorporation 'Bank for Development and Foreign EconomicAffairs (Vnesheconombank)' announced the formation of VEBEngineering LLC, a Russian company that will be jointly ownedby SNC�Lavalin and the Bank (Vnesheconombank 51% /SNC�Lavalin 49%). VEB Engineering will provide technicalassistance to the Bank and perform technical and budgetaudits on infrastructure and industrial projects where theBank is providing financing.

«We have had a constant presence in Russia for over 30years and we are very pleased to be partnering with Vnesh�econombank in this new joint undertaking,» said PierreDuhaime, President and CEO, SNC�Lavalin Group Inc. «Wehave carefully considered our Russian business develop�ment strategy, which includes our recent acquisition of48% of Vnipineft, and we believe that this new initiative ser�ves our objective to continue to grow our business inRussia in a planned way.»

The State Corporation 'Bank for Development andForeign Economic Affairs (Vnesheconombank)' wasestablished in 2007 through a reorganization of Vnesh�econombank of the USSR and acts in accordance withthe Russian Federal Law 'On Bank for Development'. TheBank's activity is designed to modernize and boost thenon�raw materials economy and high�technology indus�tries as well as to stimulate innovations, infrastructuredevelopment and the export of high�tech products, and toprovide support for small and medium�sized enterprises.

SNC�Lavalin (TSX:SNC) is one of the leading engineer�ing and construction groups in the world and a majorplayer in the ownership of infrastructure, and in the provi�sion of operations and maintenance services. SNC�Lavalin has offices across Canada and in over 35 othercountries around the world, and is currently working insome 100 countries.

10 11

For more than 10 years CERBA is organizing CERBA'sannual mining conference dedicated to Russia andCentral Asia. The conference has been a joint effort ofCERBA, Canadian Government agencies (DFAIT, NRCan,DIAND, Ontario Government) and CERBA private sectorsponsoring members.

Traditionally, CERBA's annual mining conference washeld at the Intercontinental Hotel, adjacent to the PDACannual international mining exhibition venue.

This year for the first time the CERBA Mining Con�ference was a part of the PDAC program. It was a bigdevelopment for our mining conference, resulting in bothhigher level profile event and wider business exposure forCERBA members and other participants.

CERBA's annual mining conference offered a full day pro�gram dedicated to developments in the Russian mining sec�tor; regional mining opportunities in Russia: MagadanRegion, Chukotka Autonomous Okrug, Republic of Sakha(Yakutia); Central Asia Mining opportunities for Canadiancompanies. Participants included representatives of lead�ing Canadian mining companies such as Kinross GoldCorporation, Highland Gold Mining Ltd, Silver Bear Re�sources, Stans energy Corp, Centerra Gold Inc, CamecoCorp as well as Russian and Canadian government officials.

We would like to thank the lead corporate sponsors of theevent � Kinross Gold Corporation and MacLeod Dixon LLP.

Kinross Gold Corporation, a founding member of CERBAand the largest foreign investors in the Russian mining sec�

tor (as well as the largest Canadian investor in Russia), waskeenly engaged in organizing the conference. Kinrossbrought to light all of the opportunities and challenges ofinvesting and doing business in Russian mining sector.

In addition we would like to congratulate Kinross GoldCorporation to be appointed to Russian Government AdvisoryCouncil on Foreign Investment. As it was announced onMarch 17th, 2010 by the Ministry of Economic Developmentof the Russian Federation, Kinross has been appointed toRussia's Foreign Investment Advisory Council (FIAC).

FIAC was established in 1994 to assist Russia in forgingand promoting a favourable investment climate based onglobal expertise and the experience of international compa�nies operating in Russia. FIAC functions on the basis of directdialogue between the chief executives of investor compa�nies and the Russian Government, with a focus on the crucialaspects of fostering a healthy investment climate.

Macleod Dixon LLP is one of World's leading interna�tional law firms. The firm holds the distinction of being thefirst Canadian law firm to open offices in Moscow andAlmaty and to receive accreditation from the respectivegovernments of the Russian Federation and the Republicof Kazakhstan.

The reception was generously sponsored by StansEnergy Corporation. The warm environment gave anexcellent opportunity to network in an informal setting.

On behalf of CERBA, we would like to thank organizingcommittee, sponsors, supporter, speakers and attendeesand we are looking forward to see you next year.

SNC�LAVALIN ESTABLISHEScompany with Russian Bank

Canada Eurasia Russia Business

Association (CERBA)

International Mining Conference

CERBA Quarterly News (spring / summer 2010)CERBA Quarterly News (spring / summer 2010)

The Centers for Disease Control and Prevention estimates thatevery year, nearly 2 million infections are acquired in healthcaresettings, and around 90,000 people die from those infections.This dangerous threat to patients' safety also threatens hospital'sfiscal health. To reduce the financial burden, enhance quality ofcare, and most importantly, save lives, real�time tools are neededfor infection prevention and control.

SciCan is a full spectrum infection control solutions providerworking together with industry professionals and regulators toprovide the market with the most innovative and effective prod�ucts available. The Canadian family�owned enterprise specializesin infection control products, training, consulting and services inboth the dental and medical industries in over 100 countriesaround the world.

Originally founded in 1957, SciCan has over 50 years experiencein the healthcare market. With roots in the distribution of high qual�ity German medical products, SciCan developed and produced itsfirst internationally recognized infection control innovation by themid 1980's. Through a sustained legacy of growth and expansion,SciCan is a leader in 3 specific business areas in the field of infec�tion control in over 100 countries around the world:

SciCan Dental – Complete systems that are designed to meetthe highest international standards and prevent the occuranceand spread of infections for staff and patients alike.

SciCan Ophthalmology – SciCan's full spectrum solutionsdesigned for the washing, disinfection and sterilization and stor�age of delicate instruments.

SciCan Endoscopy – SciCan offers complete systems for thereprocessing of flexible endoscopes (washing, disinfection, ster�ilization) including storage and transportation for any size facility.

While the initial focus of the company was the Canadian health�care market, SciCan's current business includes dental and med�

ical markets throughout the world. To this end, the company hassales representation and distribution in Europe, Central and SouthAmerica, Africa, the Indian subcontinent, Australasia, the MiddleEast, Japan, China, Eastern Europe and Russia.

SciCan's current headquarters and manufacturing facility inToronto, Canada, provides a base of operation for more than 400dedicated and talented employees operating worldwide.

In addition to the 5,400 medical and dental products, SciCanprovides total support and technical service for all productssold. In fact, SciCan's R&D and Technical Service departmentsform one of the largest of any Canadian manufacturer in its mar�ketplace. SciCan's subsidiary operations are located in theUnited States in Pittsburgh, Pennsylvania, Zug, Switzerland, andmost recently in Gersthofen, Germany.

SciCan's foray into Russia began some 15 years ago. Dr. Sim�khovitch, area manager, guided Statim's introduction into Russia in1995 when he met Russian businessman, ophthalmologist andpolitician Dr. Svetoslav Fedorov, a founder of the Federov EyeMicrosurgery Centre. Dr. Fedorov highly estimated SciCan medicalequipment. The meeting in Moscow resulted in the sale of a dozenStatims to be used throughout the Fedorov network of clinics.Some of the units are 15 years old and still working, they just havehad regular maintenance.

Russia is undergoing rapid and constant change. Health care isbecoming far more important than it has been in the past. Thegovernment and private companies are spending much moremoney for reliable and modern sterilization and infection controlequipment. Currently SciCan has a chain of dealers in Russia,Ukraine, Belarus and Kazakhstan, Azerbaijan and is always look�ing for business expansion and new partners.

SciCan name has become well known for its proven innovation,high quality and dependability.

12 13

VELOSI IS A NEW CALGARY

CHAPTER'S MEMBER

SciCan IS A NEW TORONTOCHAPTER'S MEMBER

RUSSIAN & KAZAKH

CERTIFICATION

Velosi offers the complete range of federal reg�ulatory approval documents required to legallyimport and use all types of industrial materialand equipment anywhere in Russia, Kazakhstanand many of the other countries belonging tothe Commonwealth of Independent States.

WE PROVIDE:

• Rostekhnadzor Permits to Use (Russia)• Gosgortekhnadzor Permit to Use

(Kazakhstan)• Technical Passports• Gosstandart Certificates of Conformity• Gosstandart Explosion�proof Certificates• Rostekhregulirovaniye Metrology Certificates• Kazakhstan Institute of Metrology Certificates• MChS Fire Safety Certificates• Sanepidnadzor Hygienic Certificates• Russian translation services

All of our certification work is managed andcoordinated in North America with cooperationfrom our local experts at our offices in Russia(Moscow + Yuzhno�Sakhalinsk) and Kazakhstan(Almaty + Atyrau).

Velosi is licensed by Rostekhnadzor andGosgortekhnadzor to prepare ExpertConclusions necessary to obtain Permits toUse. We are also accredited by Gosstandart toissue Certificates of Conformity. Having the abil�ity to do this work internally using our ownRussian and Kazakh experts significantly expe�dites completion. We can often issueCertificates of Conformity within five days orless after obtaining a small amount of vendordocumentation.

We have experience of dealing with all sizes ofprojects. Our clients range from domestic man�ufacturing companies exporting spare parts andindividual pieces of equipment to large multi�national corporations responsible for the engi�neering, construction and operation of entire

offshore drilling platforms, oil terminals, refiner�ies, power plants and other types of industrialfacilities. We utilize proven documentationtracking, management and progress reportingprocedures to ensure that our clients are alwayskept informed throughout the course of ourprojects.

For Russian or Kazakh certification

services inquiries please contact

Jeff Rushing by telephone

at (281) 872�3600

or by e�mail: j�rushing@velosi.com

INSPECTION

Velosi also offers a wide range of quality assur�ance & quality control services. The servicescan be used individually or combined to providea total project quality management solution.

• Vendor Inspection & Expediting• Provision of Specialist Personnel• Asset Management Services• Project Quality Management Services during

Construction projects• Certification of Management Systems• Maintenance Quality Management Services of

existing facilities & equipment• Statutory Inspection Services for compliance

with legislative requirements for new & exist�ing equipment

For inspection services inquiries please

contact Ken Eaton by telephone

at (281) 872�3600

or by e�mail: k�eaton@velosi.com

CERBA Quarterly News (spring / summer 2010)CERBA Quarterly News (spring / summer 2010)

1514

Since the fall of 2009, the Trade Sectionat the Embassy of Canada in Moscow hasstarted a series of new initiatives to broad�en the scope of the Government ofCanada's trade and investment develop�ment efforts beyond the sectors of tradi�tional strength for Canadian companies.While continuing to support our clients inlong�standing priority sectors such as agri�culture, natural resources, and construc�tion, the Trade Section has increasinglygiven attention to non�traditional sectors inRussia, including consumer goods, sci�ence and technology, aerospace, andservice industries like tourism and educa�tion. These sectors not only hold greatpromise for Canadian companies andorganizations, they also respond directly tothe needs of Russia's growing middle andupper classes.

The upcoming Sochi 2014 Olympicsholds a particularly wide range of opportu�nities, given Canada's great success ashost of the 2010 Winter Olympics inVancouver. Canada's expertise in con�struction and infrastructure can helpRussia prepare to host the world in 2014.Russian organizers and investors havealso expressed a strong interest inCanadian expertise related to event�man�agement, tourism and other support serv�ices necessary to a successful Olympics.The Canadian Embassy is actively workingwith its partners and clients to connectCanadian expertise to these opportunities.

Canadian and Russian political and busi�ness leaders have also recognized the

importance of innovation to a strong 21stcentury economy. There are many oppor�tunities for partnerships between the pub�lic and private sectors in both countries inthe area of science and technology co�operation. To capture these opportunities,in March, the Canadian Embassy organ�ized the first ever science and technologymission by Canadian organizations toRussia. The mission attracted 14 Canadianparticipants, and helped them make con�tacts with potential partners in Russia.During the first networking reception heldin the Official Residence, McMaster Uni�versity signed a Memorandum of Under�standing with the Russian company, NT�MDT (see photo). Another participant,

NEPTEC, found so many opportunities inRussia that they stayed in Moscow forthree additional weeks of business devel�opment meetings after the Embassy's mis�sion had ended. The Embassy is activelyworking to follow�up on the many tradeleads generated by the mission, and is plan�ning a similar event for March 2011.

Russian interest in Canada's modern gov�ernance structures is also strong. A repre�sentative of the Canadian Embassy's TradeSection made a presentation at the openingsession of IT Forum 2020, held in NizhnyNovgorod in April, on the Government ofCanada's experience in implementing e�government initiatives. This is yet anotherexample of how a specific area of Canadianexpertise is deepening Canada's long�standing relationship with Russia.

Finally, the Embassy is developing amajor promotional event to be held laterthis year, focused on showcasing every�thing Canada can offer to Russia's middleand upper classes in terms of higher�endconsumer goods and services Canadacan offer to its international customers.You will hear more from us on that initiativein due course!

The Trade Section of the CanadianEmbassy in Moscow can be reached at +7495 925 6000 (phone), +7 495 925 6025(fax), email: mosco�td@international.gc.ca,website: www.tradecommissioner.gc.ca.

Trade and Investment Opportunitiesbetween Canada and Russia –

There is More Than You Might Think!

McMaster University is signing a Memorandum of Understanding with NT�MDT

In the Official Residence

On March 14�19 the Regional Coordinator of CERBAVancouver Chapter Tatyana Domilovskaya accompaniedDEC�Design Mechanical Consultants to the InternationalReal Estate Show (MIPIM) in Cannes. DEC Design � a newVancouver CERBA member – is an innovative, Canadianengineering corporation working at the leading edge ofsustainable systems design and construction for over 30years. At the forefront of engineering sustainability, DEChas developed a district heating and cooling solution calledDistrict Energy Sharing System (DESS), a low�tempera�ture, shared�resource approach that distributes heating,cooling, and in some cases reclaimed water to intercon�nected buildings within a community and has the ability toreduce the required energy consumption by up�to 50%.When recovering heat from wastewater treatment plants orother industrial processes, the DESS provides a vehicle fordistributing reclaimed water for non�potable applications,further reducing potable water demand by up to 40%.

DEC's participation at the show followed a successfulinitial contact with Yury Rysin, the Head of KrasnodarUrban Development and Architecture Department visit�ed Vancouver during the Olympics 2010 within the dele�gation of Krasnodar region. CERBA Vancouver Chapterhad organized for Mr. Rysin a program of meetings withBC companies involved into the Olympic construction.

At MIPIM DEC was represented by President Mr. DaleCarter and Senior Project Engineer Mr. Erik Lindquist. Bothmet with Vice Governor of Krasnodar region Mr. Khtuov,Mayor of Krasnodar Mr. Evlanov, Regnum bank Chairmanof Directory Board, Mr. Primakov and a number of govern�ment officials and investors. Meetings and negotiationsresulted by signing a framework agreement with RegnumHolding and Urban Development and ArchitectureDepartment of Krasnodar region for application of districtheating, cooling and water purification system at the newlydeveloped project «Southern Star» in Tuapse area.

A number of other promising opportunities for CERBAmembers were identified during this visit and CERBAVancouver will continue to develop this area of cooperation.

At the photo (left to right): Signing the Agreement for«Southern Star» project at MIPIM Show in Cannes

Igor Golovkin, Deputy Head of Urban Developmentand Architecture Department, Krasnodar Region;Tatyana Domilovskaya, CERBA�Vancouver Chapter; ErikLindquist, Senior Project Engineer, DEC Design; YuryRysin, Head of Urban development and ArchitectureDepartment, Krasnodar Region; Dale Carter, President,DEC Design.

DEC DESIGN – A NEW

VANCOUVER CERBA MEMBER

CERBA Quarterly News (spring / summer 2010)CERBA Quarterly News (spring / summer 2010)

JANUARY 29th – Ministry of Economy

of Ukraine Roundtable

The roundtable was kindly supported byHeenan Blaikie LLP. The main purpose of theevent was to exchange experience in exportdevelopment and discuss perspectives of bilat�eral cooperation between Ukraine and Canada.

MARCH 8th – Canada Eurasia Russia

Business Association (CERBA)

International Mining Conference

You can find an article devoted to the PDACConference on the page 11.

MARCH 9 – Roundtable: Beyond Crisis�

Promoting Northern Business Linkages

Roundtable shared best practices and lessonslearned from the Global Economic Crisis. Par�ticipants explored new strategies for promotingbusiness linkages between Canada and Russiain the North. The roundtable was supported byCERBA, Ontario Ministry of International Trade &Investment and Indian Northern Affairs Canada(INAC).

Chair, Vitaly Paroshyn in his opening remarkscalled on Canada and Russia to continue tooptimize the opportunities for trade develop�ment. While countries mobilize to overcomethe global financial crisis, they must see wherethey are going next if they are to return to mod�erate economic growth.

In the opening remarks Mr. Couturier provid�ed an overview of current trade statisticsbetween Canada and Russia, stressing thediverse opportunities, and given the reliance ofboth economies on natural resources. He alsopointed to other key sectors of interest withinCanada�Russia northern trade relationship

which include Oil and Gas, Agriculture, Forestryand construction. In terms of long term inter�ests, Canada is positioning itself for downstreamopportunities from the Shtokhman Mega Projectwhich is currently under development.

Mr. Trofimov, Senior Trade Commissioner,

Trade Mission of the Russian Federation

expressed optimism about the future ofCanada�Russia trade and economic relations,stressing that challenges can only be solved bycollective effort. He acknowledged the role ofthe regions in facilitating trade, also noting thevast potential in the north � where the opportuni�ties are untapped. He mentioned that althoughsome regions may be ahead of others in theirengagement in trade, in the past 3 years, about50 regions of the RF were involved withCanadian provinces in one way or the other.However, the northern regions are special, asthey have less advantage due to inherent con�straints relating to isolation and limited infra�structure.

Harald Finkler, Director, Circumpolar Liaison

Directorate, Northern Affairs Organization,

Department of Indian Affairs and Northern

Development focused on the perspective ofIndian and Northern Affairs Canada work inpromoting and strengthening northern busi�ness partnerships with Russia, within the Ca�nada�Russia Cooperation Agreement on theArctic and the North.

During the first panel «Capacity Building &

Strategies for Sustainable Trade», Came�

ron Bodnar, Manager, Trade Logistics,

Innovation, Trade and Rural Development,

Government of Newfoundland and Labrador

provided an overview of his Department'sInnovation division; Cluster development; tradeand export as well as rural strategy. The De�partment strives to get initiatives from exporters,while helping them to identify markets. The TradePolicy Division helps to overcome barriers totrade and to raise awareness on markets.

Vyacheslav Seliverstov, Institute of Econo�

mics and Industrial Engineering, Novosibirsk

acknowledged the positive outcomes achievedthrough Canada's cooperation with the SiberianFederal District to date. Past implementationsof projects were one optimistically, but therecent economic crisis jeopardized a number ofthese projects. The economic crisis in Russiaspread from the western areas in Europe to theregions of Russia in Asia. Dr. Seliverstov acknow�ledged that Russia had developed a new strate�gy for the North, but at the moment it is not offi�cial. When discussing Canada�Russia relations,Dr. Seliverstov identified that both countriesshared mutual interest in the others priorities,but when discussing Siberia, he stated that theWorld wishes for Siberia to remain a resourceindustry, and not develop its value added indus�

tries. There must be a shift to long term cooper�ation, which can be achievable through theimplementation of Public�Private Partnerships.Youth should be encouraged to participate toensure continuity. Novosibirsk Oblast organizesan Annual Youth Forum called Interra and Ca�nada should take advantage of this event andinvolve youth participants. The next event will beheld in Novosibirsk, September, 2010.

Indira Singh, Director, Executive Projects

Office, MMDMF: Pilot Cluster Development

in the Northern Regions under the Canada�

Russia Development Partnership Program

shared Canada's and Ontario's experience withcluster development with Russian businessand government officials through the PilotCluster Development Project under the Ca�nada�Russia Northern Development Partner�ship (NORDEP). Through this process, inter�re�lated industries and institutions are able todrive wealth creation.

Nikolay Matyash, Executive Director, Mi�

ning Advisory Council discussed the impactof laws and policies that limited the develop�ment of resources in the northern territories ofthe Russian Federation. These laws restrict thesubsoil resource access by several companies,and have the ability to confiscate any finds if theresources are deemed «Strategic Resources»by the government.

During the second panel «Trade and Invest�

ment Opportunities in Northern Regions»

Hal Timer, Executive Director, Baffin Cham�

ber of Commerce, spoke on behalf of BaffinRegional Chamber of Commerce (BRCC), men�tioning that the BRCC would be happy to act asthe initial point of contact in Nunavut for anyorganizations and businesses interested in theterritory. He stressed that businesses interest�ed in Nunavut need to form joint ventures (that

16 17

Looking BackUPCOMING EVENTS:Toronto Recent events:

May 13 Calgary Making the Most of an International Trade Show

May 18 Moscow Joint Networking Reception with Italian Business

Association ITAM

May 20 Moscow BREAKFAST BRIEF WITH ARKADY DVORKOVICH,

Presidential Aide, Russia's G�8 Sherpa –

On the Eve of the Summit:

Russia and the G�8 / G�20

May 29 Moscow 13th ANNUAL LOBSTERFEST

June 7�11 Irkutsk CANADA�RUSSIA FORESTRY FORUM

June 20 Moscow YACHTING REGATTA

OF THE MOSCOW BUSINESS CLUBS

June 22 Moscow CANADA PAVILION � NEFTEGAZ 2010

June 25�26 Huntsville, Ontario THE G8 SUMMIT

June 26�27 Toronto, Ontario THE G20 SUMMIT

June 27 Toronto Russian Festival

September 10�12 Moscow CANADIAN LUXURY FAIR

September 11 Montreal Canada�Russia Energy Forum

October 5 Calgary KIOGE 2010

CERBA Quarterly News (spring / summer 2010)CERBA Quarterly News (spring / summer 2010)

18 19

facilitate skills transfers) with local companies.Opportunities include: mining; fisheries; cultur�al industries; tourism; cold weather testing andconstruction.

Antoine Monnier, Manager, Soleica, sharedwith the roundtable an insight into Soleica, a com�pany that works to provide and promote IT servic�es to Aboriginal people. Their goal is to protect theculture and identity of First Nations through ITtools, while allowing them to keep pace with newdevelopments. The projects are financed by theCanadian and Quebec governments.

Sergey Bogachev, Chief, Department of Sub�

surface Management and Development of

Oil and Gas Complex identified four areas ofcooperation in the Tomsk region of Russia:geological oil and gas exploration, forestry,education, and science. Several of the oil andgas wells in Tomsk are owned publicly, but areoperated by private companies. The extractionof oil has experienced consistent growth overthe past decade, but the Tomsk region still re�ceives low levels of investment. There are smallreserves of hard minerals, but large undeve�loped peat deposits and cedar trees thatencompass 60% of the Tomsk territory. Tomskalso has a large student population, with 1/5 ofthe total population being students who attendone of its six universities.

Aleksandr Gert, Deputy Director, Economics

and Information Technologies, Federal State

Unitary Enterprise – Siberian Research Insti�

tute of Geology, Geophysics, and Mineral

Resources discussed the numerous opportuni�ties for investment in mineral resources in Siberia.The territory is divided into plots to be purchasedby companies who wish to develop gas, oil, andmineral resources without export duties or rentalpayments. There is a large abundance in golddeposits in the regions to be mined. Canada par�ticipates with Russian companies on several ofthese plots. Several databases exist to trackresources and maintain accurate information,such as the Geoinformation System on Hydro�carbon resources in Siberia.

During the Panel 3 «Support Mechanism and

Programs», Brock Dumville, Industry Advisor,

Aboriginal Economic Development, DIAND

provided an overview on the Aboriginal EconomicDevelopment «Federal Framework for EconomicDevelopment» that replaced a 20 year old strate�gy, and the Community Economic DevelopmentProgramming, to increase participation of FirstNations and Inuit communities in the economyincluding:

Robert Kadas, Senior Policy Advisor, Arctic

and North Working Group (ANWG) providedan overview of the role played by the Arctic andNorth Working Group as an advisory body to theIEC to facilitate bilateral northern business rela�tions. He reported on the broad range of proj�ects supported by ANWG, some of which have

helped to foster people to people links, indicat�ing that INAC has been DFAIT's primary partner.ANWG also has an ongoing transportation initia�tive, the Arctic Bridge, which emphasizes seaand air links, spearheaded by Manitoba.

Kimberly Fairman, Canadian Economic Deve�

lopment Agency (CanNor) spoke on behalf ofCanNor, to update the roundtable on its recentaccomplishments since its establishment onAugust 18, 2009. CanNor is responsible for de�livering regional programs, coordinating federalactivity in the North, and developing policies.Their staff consists of 80 personnel, howeverthey hope to add 60 more individuals in the next18 months. Operating on a budget of $14M, thedelivery of CanNor's program is currently basedon increasing funding from stimulus measures,and overcoming challenges that have arisenfrom its transition from INAC.

By the end of March of this year, the Chapterhad a total of 25 Corporate members and 1Individual member. The Chapter welcomesthree new members to CERBA. These are Sage

Energy, Canalta Controls Inc. and Cameco

Corporation. Cameco joins CERBA as a Cor�porate Sponsor member for the next threeyears. We look forward to a mutually rewardingrelationship over the next coming years with allour new members.

We are certainly enheartened by the growinginterest in the CERBA mandated part of theworld by more and more SME companiesacross Alberta and we anticipate a growingmembership over the months ahead in spite ofthe challenging economic times. The responseto the Neftegas Show in Moscow in June ofthis year has been positive and a number of newcompanies are willing to explore the Russianmarket.

CERBA Calgary is also prepared to put togeth�er a Canada Pavilion for KIOGE in October2010 in Almaty. We are seeking to hear frominterested parties fairly soon so we can beginthe planning of the pavilion. Please check thewww.cerbanet.org website for details.

Since the last Newsletter report, CERBA Calgaryhosted a breakfast meeting with Robert Hage,Director General of the Europe Branch at DFAITin Ottawa. Bob swung through Calgary on hisway back from the Canada Russia ExecutiveSummit in Vancouver on February 25th and wewere fortunate to host him through the sponsor�ship of Macleod Dixon LLP at an informal meet�ing chaired by Paul Drager.

The Chapter also held two sessions devoted to avisioning exercise based on the 5 questions out�lined in an easy to read and succinct book enti�tled The Five Most Important Questions You

Will Ever Ask About Your Organization (Peter

Drucker with Jim Collins, Philip Kotler, JamesKouzes, Judith Rodin, V. Kasuri Rangan, andFrances Hesselbein). The Calgary ChapterBoard met on January 13th to brainstorm ideasaround what it means to belong to CERBA, whatare its benefits for prospective and existing mem�bers and how do we know that we are successfulin what we are striving to accomplish. After wereviewed a summary of the January 13th meet�ing, the Board met again on February11th toidentify action steps. One key step was to plan avisitation of ALL Chapter members by one or 2Board members before the end of the fiscal year.A visitation roster has been prepared and circu�lated and visits will commence this week. Theidea is to get feedback and comments frommembers as to their satisfaction with CERBA.

The Calgary Chapter is preparing to host a boothat the semi – annual Global Petroleum Show(GPS) in Calgary in June. We are very fortunateto have the booth space proved by the Alberta

Government (also a CERBA member) and if youare in Calgary during June 8–10th, then pleaselook us up in the Alberta International House!

ON THE 21st OF JANUARY 2010 the CERBAMoscow's chapter together with Ernst & Youngheld a breakfast brief event «Key Developments

for Canadian Expatriates and Employers in

Russia».

The purpose of the event was to give attendees acomprehensive overview of the main technicaland market developments affecting individuals'personal taxation and HR management in Russia.

The presentations included the following topics:• Personal Tax Filings for 2009 • Personal Tax Developments in 2010 • Social Security Changes in 2010 • Latest Russian Immigration Challenges: Lawand Practice, and the Year Ahead• The New Economy and Resulting Trends inthe Russian Labor Market • New Hurdles for Russia�Based EmployeesParticipating in Share Plans?

Peter Reinhardt, Tax Partner, Co�Head of HumanCapital in the CIS, Ernst & Young, ValentinaBalykova, Tax Director, Human Capital Group,Ernst & Young and Elena Rybakova, Tax Senioradvisor, Human Capital Group, Ernst & Youngtook part in the event as speakers.

ON THE 28th OF JANUARY CERBA Moscow'schapter together with Clifford Chance held abreakfast brief on Bankruptcy Legislation andAsset Control. The programme contained 3 pre�sentations, i.e. «Buying distressed assets � thenew Mergers & Acquisitions market in Russia» byNick Armstrong, «Navigating the regulatory land�scape: practical implications of the new strategic

and anti�monopoly regimes» by Sergei Sulimsky,and «International transactions: views from aRussian tax perspective» by Alexander Anichkin.Participation in the discussion of the event helpedthe attendees to clarify the ambiguous points inthe international legal, tax and antitrust practiceand promoted the development of relations.

ON THE 16th OF FEBRUARY, 2010 CERBA,

the Russo�British Chamber of Commerce

(RBCC), and ABIE held a CANADA�UK�AUS�

TRALIA business networking event. The United Kingdom, Canada, and Australia arethe largest Commonwealth economies, and wethought the event might also establish partner�ships, and strength of friendly ties among thosethree nations in Moscow. The event took place inone of the Russian capital's key landmark build�ings, the grand Hilton Moscow Leningradskayahotel, one of seven famous 'Stalin' towers. We had three things to celebrate: the RussianMaslenitsa, the Chinese New Year (a Tiger year)and Mardi Gras. The guests of Honour Klaus Buttner, MinisterCounselor, Senior Trade Commissioner of theCanadian Embassy Russia, Rowan Ainsworth,Deputy Head of Mission of the AustralianEmbassy, Mark McCrory, Head of Commercial

Section, British Embassy, Joerg Beginen,General Manager of the Hilton Moscow Lenin�gradskaya, Ekaterina Newman, President, AMUR,Vyacheslav Konovalov, Managing Director ofAustralian Business in Europe, and NathanHunt, President of CERBA welcomed the guestsin the very beginning. The performance of the children's folk dancegroup «Solnyshko» added zest to the event. Ourguests had a chance to enjoy three Slavicnational dances: the Ukrainian, the Belorussian,and the Russian one. The event featuredmaslenitsa blinis with the Canadian maplesyrup, and two raffle lotteries, one of which wasdevoted to the Year of Tiger and was organizedby AMUR (AMUR is a Russo British charity thatcontributes to conservation activities to savethe Amur tigers and leopards from extinction).The lottery helped AMUR to raise funds to fur�ther develop conservation activities in theRussian Far East, and to promote a greaterawareness of the plight facing these big cats.The party was very well attended: we had over250 guests.

THANKS TO OUR SPONSORS – KPMG,

KLM, AMUR and The Hilton

Leningradskaya Hotel –

FOR KINDLY SUPPORTING THIS EVENT:

ON THE 1st OF MARCH CERBA – Moscowparticipated in the first science and technologyseminar organized by the Canadian Embassy.During the presentation the guests of the S&Tseminar learned about CERBA's mission andservices (conferences, trade missions, businessand networking events that we organize for ourmembers). The CERBA presentation caught theinterest of the auditory.

ON THE 11th OF MARCH, 2010 CERBA –Moscow together with its official travel partnerTMC held a business breakfast at the HolidayInn Moscow Lesnaya Hotel. The speakers(Roman Genis from Sheremetievo Airport,Valentina Kuznetsova from Star Alliance, DmitryAkimochkin from Aeroexpress, Maxim Pobe�rezhnik from Sky Express, Ekaterina Grigorianfrom Amadeus and Natalia Stolyarova fromTMC shared their vision on the most recentdevelopments of business travel and currentlycentral topic for the corporations «How to cutcosts on business travel». The Special StarAlliance offer for CERBA members was pre�sented during the breakfast (more details onhttp://www.cerbanet.org/public/index.php?page_id=4�2). There were many wonderful sur�prises from Lufthansa, Holiday Inn MoscowLesnaya and TMC during the raffle lottery. Afterthe breakfast the representatives of the hotelarranged a hotel tour for the guests.

THANKS TO THE SPONSOR – TMC:

FOR KINDLY SUPPORTING THIS EVENT

CERBA Quarterly News (spring / summer 2010)CERBA Quarterly News (spring / summer 2010)

Calgary Recent events:

Moscow Recent Events: