The Russia Forum 2013: Day Two. Investment opportunities, prospects of specific sectors and development of the stock market

April 19, 2013

 

The agenda of the second day of The Russia Forum 2013 will include a wide range of topics that are relevant to both the Russian economy and economies of other countries. Implementation of major infrastructure projects, large-scale institutional investment, stock market regulation amid volatility and forecasts of development for key sectors of the economy, are just a few of the pressing topics that will be covered by panel discussions featuring authoritative speakers and renowned industry experts.

The Forum will commence at 10:00 this morning with three panel sessions running in parallel. Participants of the discussion “Can Russia Replicate China’s Infrastructure Miracle?” will exchange experience and opinions and identify the paths for resolving the infrastructure problems that Russia has inherited from the USSR. In the coming decade this will require trillions of rubles worth of investment. Approximately twenty years ago China faced the same sort of dilemma. The joint work applied by the Chinese public and private sectors in order to address it resulted in unprecedented, highly successful and rapid construction of infrastructure projects. In the People’s Republic this process is continuing: from 2012 to 2017 the Chinese plan to complete around sixty new projects to a total cost of $157 bln. But can Russia successfully apply the “Chinese model”? The panel will be moderated by Alexander Bazarov, Senior Vice President and Member of the Management Board of Sberbank, Co-head of Sberbank CIB. Among others speakers, the discussion will include Li Hui, Ambassador of China to Russia, Jonathan Anderson, President of Emerging Advisors Group, Sergei Belyakov, Deputy Minister of Economic Development of the Russian Federation, and Sergey Kelbakh,
Chairman of the Management Board of Avtodor.

The session “Where does the big money go?” will focus on a question that is imperative for institutional investors: What should I invest in? World-class investors such as Michael Vlahovic, Member of the General Management Committee, Head of Private Banking for Eastern and Central Europe at Coutts & Co, Rick Lacaille, Global CIO of State Street Global Advisors, Norihiko Nakagawa, Director of the Government Pension Investment Fund of Japan, and a number of experts from Russia and the wider world will share their macroeconomic predictions. These influential investors will give their outlook on how stock markets will perform, regional prospects and various fund hedging strategies.

The panellists of the session “Paths of Development for the Stock Market” will take a closer look at what is going on in the Russian financial sector. Currently the sector is undergoing a profound transformation due to various factors: strengthening of competition, technological advances, specific features of global and domestic regulation, and so on. At what point will Russia be able to achieve the goal of creating a global financial center that has been set by the government? At the moment, Russia’s share in the MSCI World Index is a mere 0.7% and the country has practically zero presence in the structures of many investment funds. Dmitry Pankin, Head of the Federal Service for Financial Markets, Olga Dergunova, Head of the Federal Agency for State Property Management, Alexander Afanasiev, Chairman of the Managing Board & CEO of the Moscow Exchange, Nadya Wells, Vice President of Capital International Research Inc. and other panellists will attempt to ascertain the reasons for the risk-averse stance taken in regard to Russia. The discussion will be moderated by Bella Zlatkis, Deputy Chairman of the Management Board of Sberbank.

After a short break The Russia Forum 2013 will continue with panel sessions that focus on the primary problems and specific features of development of sectors of the economy such as gas, retail trade and the telecoms market.

The panel “The Domestic Gas Market: on the Path to Increased Competition” will be of particular interest to representatives of the energy industry. Russian industrial and utility companies are looking to diversify their gas supply portfolio in order to reduce their dependence on supplies from Gazprom, which has ceded part of its domestic market share to Russian independents in recent years. How will the Russian gas market develop in the medium-term? How can Gazprom best adjust to the new competitive environment? These hot topics and several others will be discussed by representatives of major Russian corporations, including Mark Gyetvay, Deputy Chairman of the Management Board of NOVATEK, Vladimir Feygin, Principal Director of the Institute for Energy and Finance, Evgeny Karpel, Head of Strategic and Corporate Development at Gazprom Mezhregiongaz, Sergey Kogogin, General Director of KAMAZ, and others. The discussion will be moderated by Tatiana Mitrova,
Head of Oil and Gas Sector Development Department for Russia and the World, Energy Research Institute of the Russian Academy of Sciences.

Participants of the discussion entitled “Russian Retail and Consumer: How to Play the Theme in 2013?” will focus on growth of consumer demand in Russia, middle class prosperity, growth and profitability of the sector’s companies, the redistribution of power in the market and competition with online retailers. Under the moderation of Mikhail Kusnirovich, Founder and BoD Chairman, Bosco di Ciliegi, panellists will discuss pressing issues related to retail. Speakers will include CEOs of major Russian retailers such as Maelle Gavet (Ozon Holdings), Jan Dunning (Lenta), Sergey Rumyantsev (Enter Svyaznoy) and others.

The panel discussion “Finance and Telecoms: Two Sectors Converging” also promises to be pertinent. Mobile operators around the world are already offering various financial services to their subscribers. This trend is bringing the two sectors together. Will telecommunications companies start to compete with banks? The participants of this session – Sureyya Ciliv, CEO of Turkcell, Andrei Dubovskov, President of MTS, Jane Zavalishina, CEO of Yandex.Money, Ivan Tavrin, CEO of MegaFon, Abraham Foss, Senior Vice President and Head of Financial Services of Telenor Group and others – will discuss how financial institutions and operators can interact, new communication channels for financial services, among other issues. The discussion will be moderated by Denis Bugrov, Member of the Management Board and Senior Vice President, Sberbank of Russia.

TV presenters will also play an active role in shaping the agenda of the second day of The Russia Forum 2013. At 13:00 a RUSSIA 24 round table hosted by one of channel’s presenters – Evelina Zakamskaya – will begin. It will feature Alexander Bazarov, Ekaterina Novokreschenykh, Senior Vice President, Moscow Exchange, Leif Pagrotsky, former Swedish Minister of Trade, former Minister for Industry and Trade, former Minister for Education and Culture, and Oleg Tinkov, BoD Chairman, Tinkoff Credit Systems. They will discuss the relationship between Europe and Russia in light of the recent events that took place in Cyprus, and also the possibilities of a catalyst for growth emerging for the region’s economies. The round table will be broadcast live on RUSSIA 24.

The Russia Forum 2013 will be brought to a conclusion by Elvira Nabiullina, Aide to the President of the Russian Federation, Professor Leszek Balcerowicz, Former Polish Deputy Prime Minister, Finance Minister, President of the National Bank of Poland (2001–2007), and Gazi Ercel, Governor, Central Bank of Turkey (1996–2001) at CNBC’s Summit entitled “Banking on an Unconventional Future.”