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24 May 2002 Fact Sheet: U.S.-Russian Business Development, May 24, 2002 (Issued in conjunction with Bush-Putin summit May 24) Following is a White House fact sheet on U.S.-Russian Business Development issued in
conjunction with the May 24 Moscow summit between President George W. Bush and Russian
President Vladimir Putin: The White House FACT SHEET U.S.-Russian Business Development Ford Motor Company Vsevolozhsk Plant Ford is investing $150 million in an automobile assembly plant in Vsevolozhsk, in Russia's Leningrad oblast, near St. Petersburg. Production is expected to start in late Spring 2002. Initial output for 2002 is expected to be between 5,000 -- 8,000 units on the Ford Focus platform. The site Ford has chosen to produce the Focus for the Russian market is a former diesel engine factory that Ford has transformed into a body, paint, and final assembly plant. The site has capacity for assembly of up to 100,000 units. Currently, the facility is producing test vehicles that have been provided to corporate clients for test driving on the roads around St. Petersburg. ExxonMobil Sakhalin I Amur Shipbuilding Contract As its first major contract in developing Sakhalin I, ExxonMobil has awarded a $140 million contract to the Amur Shipbuilding for the refurbishment of the "Orlan" oil production platform. The contract involves engineering, procurement, construction, and platform installations. This contract is one of the largest-ever awarded to a Russian company by a U.S. firm in Russia. It represents ExxonMobil's commitment to incorporate Russian expertise, skills, and experience where Russian organizations are competitive, qualified, and environmentally responsible. ExxonMobil is embarking on the initial, $4 billion phase of its investment in energy production in the Sakhalin-1 consortium project with its Russian partner Sakhalinmorneftegaz. This offshore development in Russia's Far East, with total projected investment of $12 billion, could unlock 2.5 billion barrels of oil and 17 trillion cubic feet of natural gas. Mars Mars, Inc., which has already invested roughly $500 million in confectionery and pet food production and distribution in Russia, recently concluded a new agreement to acquire and modernize a Russian cannery to produce instant, packaged soups, representing an additional investment of between $9 to $13 million. General Motors Recognizing the growth potential of Russia's market for modern automobiles, General Motors is teaming with major Russian automaker AvtoVAZ to produce an upgraded version of the popular "Niva" sport-utility vehicle under the Chevrolet brand name in Samara Oblast. The project, in which the European Bank for Reconstruction & Development is participating as a lender and equity-holder, will represent combined foreign and Russian investment of more than $300 million. Boeing Boeing's high-tech partnership with Russian aerospace company RSC-Energiya and other international partners in the "SeaLaunch" project continues to bear fruit. SeaLaunch's one-of-a-kind, ocean-borne, equatorial space-launch platform is now being prepared for the June launch of the GalaxyIIIC communications satellite, which will provide internet, video, and data services in the United States and Central and South America. Volga-Dnepr Russia's Volga-Dnepr Airlines has demonstrated unique capabilities in providing millions of dollars worth of super-heavy cargo airlift services to leading American aerospace companies such as Hughes, Lockheed-Martin and Loral, as well as to several U.S. Government agencies, for humanitarian and other shipments. Caspian Pipeline Consortium The Caspian Pipeline Consortium, led by ChevronTexaco in partnership with other U.S., Russian, and third-country companies and the Governments of Russia, Kazakhstan and Oman, shipped its first oil in late 2001, a major milestone for this ambitious project. The 1,500 km, $2.6 billion pipeline, most of which traverses Russian territory, constitutes the largest, single foreign direct investment to date in Russia. International Paper Since 1998, International Paper has invested over $100 million in the Svetogorsk paper mill. Svetogorsk employs almost 2,700 workers, and has become a market leader in office paper supply in Russia and a key supplier to markets in Europe. This month, Svetogorsk became the first Russian paper mill whose forestry and wood procurement environmental management system was certified to the sustainability requirements of the International Standards Organization. (end fact sheet)
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