1. Yaroslavl, the capital of Yaroslavl Oblast, is advantageously situated 150 miles north of Moscow. Its proximity to Moscow facilitates the logistics of imports into the region. Yaroslavl Oblast is surrounded by Vladimir, Tver, Kostroma, Ivanovo, and Vologda regions. Yaroslavl oblast covers 36,400 square kilometers of land and is divided into 17 districts. 96 percent of 1,442,900 people living in Yaroslavl Oblast are Russian. The population of the oblast possesses great science and technology potential. Large state enterprises used to be the primary employers in the oblast; they have also created intensive infrastructure in the region.

2. In 1997, the Yaroslavl Oblast achieved 7 percent industrial growth and its industrial output for capita was the largest among the Central Russia regions. The oblast is famous for its heavy machinery (diesel engines, electrical equipment), refined petroleum products, textiles (one of the oldest and largest textile mills in Russia is located in Yaroslavl), aviation apparatuses, and synthetic rubber and tires. Coal-burning electric plants as well as Rybinsk and Uglich hydroelectric stations are the main suppliers of power for the Oblast.

3. The following is the industry sectors breakdown for the Yaroslavl Oblast:

Industry Sector                 Percentage of Regional
                                Industrial Output

Machine Building and Metal Processing       31%
Chemical and Petrochemical                  22%
Fuel                                        15%
Electrical Energy                           12%
Food Processing                             10%
Textiles                                    3%
Flower and Cereals and Mixed Feed           3%
Construction                                2%
Other Sectors                               1%

4. Machine building sector plays an important role in Russia's economy - for a significant period of time, Yaroslavl enterprises have been and continue to be the main suppliers of its products to various Russian and NIS companies. The sub-sectors of the machine-building industry are: electric-technical (production of electric-technical machinery, cable industry); chemical and petrochemical machine-building (polymeric machine-building, refrigerating equipment, gas-purifying equipment); machine-tool construction (wood-processing equipment, metal-cutting); instrument-making (production of defense, aviation, shipbuilding, and radio equipment); diesel engines building; road machine building.

5. The Yaroslavl Oblast is taking active steps towards utilizing its multiple advantages and promoting the oblast as an investment-friendly region:

-- Regional Government has created the legislative frame for attracting investment. It passed a regional law "On State Support of Investments on the Territory of the Yaroslavl Oblast" that rendered various tax breaks to companies operating in the region. Combined with the decree on "Authorized Banks in the Region", this law is a part of the Strategic Regional Development Plan compiled by the government. In order to complete the plan, the Regional Duma is currently working on the creation of an Investment Guarantee Fund. The Government has also identified a number of projects to be actively promoted. These projects include development of tourism in Yaroslavl Oblast, further developing regional infrastructure, and over 100 projects in agribusiness, radio electronics, oil and petrochemical sector, power engineering, ship-building, textile industry, and consumer goods. To attain international recognition, the regional government has exhibited Yaroslavl-made goods in Vermont. It also cooperates with the regional Chamber of Commerce and Industry that has developed an intensive database of international contacts.

-- Yaroslavl Chamber of Commerce and Industry supports its members (mainly large and former state enterprises) through business consulting services and assistance in searching for partners. It takes an active role in promoting such projects as equipment renovation for the watch factory Chaika (estimated cost USD 5 million); development and launching production of new types of road-rollers on the premises of the Rybinsk Motors Factory. The Chamber has also set up a used-equipment exchange.

-- Led by a former Russian Federal Duma Deputy, International Investment Center is also very active in providing support to the local businesses. The IIC management has vast international business and educational experience. IIC members - small and medium-sized companies - receive assistance from the center while writing a business plan, developing business directions, searching for partners, attending international trade shows, etc. However, the IIC's mission is much broader: it was founded in 1992 as a non-profit organization for promoting international relations and facilitating foreign investment into the Central Russia, for conducting research and launching professional exchange programs. The center works closely with such organizations as United Nations, World Bank, VOCA, IREX, Eurasia Foundation, and others. In 1997, the IIC opened its representative office in Florida, U.S., and in 1998 was accredited by the UN's Board on Economic and Social Affairs.

6. Foreign companies are taking advantage of created investment incentives. Thus, according to the statistics of the Investment and Foreign Relations Committee of the Yaroslavl Regional Administration, during the period of January-July 1998, 16 companies with foreign investment were registered in Yaroslavl Oblast. Most of these companies operate in the industry, construction, and trade and food services sectors.
Yaroslavl Regional Administration provides information on a number of international companies already present in Yaroslavl. Thus, Baltic Beverages Holding (Sweden) is participating in the reconstruction on a brewery plant belonging to Yarpivo. General Electric (USA) and Aero Support Corporation (Canada) have set up a joint production of airplane engines togeter with Rybinsk Motors company. French company Eurobach jointly with Lakokraska produces environmentally-safe vanishes and paints. Belgium Tracosa company is involved in milk-processing production. Other pending projects with foreign investment include modernization of the diesel engine production, implementing a housing construction program, renovation of textile factory Krasny Pereval, construction of a baby-food plant, project for poultry breeding and processing. The estimated cost of these projects range from USD one million to USD 300 million.

7. Small and medium-sized companies represent great interest to foreign investors. Unlike a number of their former state-owned counterparts, these companies do not have accumulated debts, many of them have new management and are flexible.

LEADS INTRODUCED BY THE INTERNATIONAL INVESTMENT CENTER:

COMPANY: FATSET
Private company Fatset was founded in 1990 and currently employs 85 people. Its annual sales total USD 940,000. It manufactures mirrors, glass furniture and does glass-processing; produces aluminum trading equipment; and also Venetian blinds. Fatset has developed a distribution network throughout Yaroslavl, Kostroma, Ivanovo, and Moscow regions. It also has two retail stores in Yaroslavl.

Currently, Fatset seeks to purchase spare parts for assembling trading equipment, Venetian blinds, and roll-shutters, and become a distributor of a U.S. manufacture for these items.
CONTACT INFORMATION:
Chegenyov, Sergey
General Director
Yaroslavl, Russia 150001
Tel: (7-0852) 23-68-12
Tel/Fax: (7-0852) 30-46-06;

COMPANY: SOBOS
Private company SOBOS, founded in 1996, has expanded into a holding SOBOS that currently consists of two security companies, two technical installation companies, two retail and grocery stores, travel agency, and a publishing company. Altogether, over 2,500 people are employed by the holding.

Keeping tuned-in with the security aspect of the holding, SOBOS has volunteered to create a security team in the city and to support the team and the municipal police financially. Furthermore, SOBOS seeks to import security and fire alarm systems from a U.S. company. SOBOS has conducted market research to determine the need of private housing and production facilities for installed security devices. An interesting fact: SOBOS holds a patent on special dry additives to ice-cream mix that allows maintain smoothness qualities of the product despite low-fat content.
CONTACT INFORMATION:
Tyurin, Alexander
President of SOBOS Holding
Chkalova St., 54a, office 606
Yaroslavl, Russia 150043
Tel: (7-0852) 27-66-17
Fax: (7-0852) 23-73-62; 27-69-23

COMPANY: YARTEX
Private company Yartech was founded in 1989 and currently employs 49 people. Yartech produces polygraphic items (brochures, business cards, etc.), and is a supplier and service provider for office technologies including copying machines and computer networks in Yaroslavl and neighboring regions. The company's annual sales total USD 2,400,000.

In 1992, Yartech became an official dealer for Xerox company, and in 1996, a distributor for Olivetti Texicon. Yartech is an authorized distributor for Klondike and works closely with IBM and Conquest. Currently, Yartech seeks a U.S. partner to establish a printing house based on digital offset machine in Yaroslavl. Business plan is available upon request.
CONTACT INFORMATION:
Titov, Igor
Director
Nakhimsona St., 21a
Yaroslavl, Russia 150000
Tel: (7-0852) 32-90-38
Fax: (7-0852) 30-38-18
E-mail: tiy@yartech.yaroslavl.su

COMPANY: FOBOS
Private company Fobos is located in Rybinsk, Yaroslavl Oblast (the city where General Electric started joint production of motors with Rybinsk Motors Factory). Fobos produces lock-regulating framework as well as metal structures for manufacturing ferro-concrete items for the Russian joint stock company Energy Electro-Systems.

The Russian company was founded in 1992 and currently employs 67 people. Its annual sales average to USD 700,000. It seeks to become a distributor for an American company an considers a possibility of establishing a joint venture for production of lock framework. At this point, the company is interested in buying carbon-steel/stainless-steel ball cocks with conditional passage from 15 to 150 millimeters.
CONTACT INFORMATION:
Ivanov, Alexander
Commercial Director
Kachalova, St., 26-16
Rybinsk, Yaroslavl Oblast
Russia 152914
Tel: (7-0855) 52-00-77
Fax: (7-0855) 52-21-25

COMPANY: FENIKS
Company Feniks is represented by its director, a former pilot-engineer, who has diversified its current business activities in order to stay afloat
The private company Feniks is a small business involved in various industry sectors:
heating, production of packaging materials, hydro-isolation, bottling of oils, and trucking. Its annual sales in 1997 totaled USD 250,000. Feniks has developed an intensive network of clients in Yaroslavl, Vologda, Arkhangelsk, Saratov, Volgogorad, Murmansk Oblast and Komi Republic. In Yaroslavl Oblast, it owns four stores.

Currently, Feniks seeks a partner for joint bottling of vegetable oil and production and packaging of soap. Feniks is also interested in becoming a distributor of U.S.-made autonomous heating units.
CONTACT INFORMATION:
Boldin, Yuriy
Director
Sobornaya Square, 4
Rybinsk, Yaroslavl Oblast
Russia 152901
Tel: (7-0855) 52-36-95; 52-34-11
Fax: (7-0855) 2-17-48

COMPANY: TRADING CENTER SEVERNY
Founded in 1993, private company Severny is the largest trading center in Uglich, Yaroslavl Oblast. It employs 60 people. Severny owns 3,000 sq.m. of trading premises, a restaurant, a bar, 15 retail stores, and unoccupied 2,000 sq.m. production premises. Its activities bring Severny USD 20 mln in annual sales. The Russian company is interested in finding a partner for joint processing milk and meats on its premises.
CONTACT INFORMATION:
Chistyakov, Alexander
Deputy Director
Zelyonaya Roscha Sq., 11-2
Uglich, Yaroslavl Oblast, Russia
Tel: (7-08532) 97-457
Tel/Fax (7-08532) 50-022

COMPANY: ORBITA
Private company Orbita is a trading company in Rybinsk, Yaroslavl Oblast. It specializes in trading food, automobile spare parts, instruments, corrugated cardboard, and metal. Orbita was founded in 1988 and currently employs 14 people in Rybinsk. The company also employs 15 trade representatives in Murmansk, Voronezh, Rostov, Stavropol, and Arkhangelsk Oblasts. Its annual sales account to USD 500,000. Orbita seeks to become a distributor for a U.S. building instruments manufacturer.
CONTACT INFORMATION:
Lebedev, Alexander
Director
Pushkina St., 29
Rybinsk, Yaroslavl Oblast, Russia 152934
Tel: (7-0855) 21-58-68
Tel/Fax: (7-0855) 52-30-39

LEADS INTRODUCED BY THE YAROSLAVL CHAMBER OF COMMERCE AND INDUSTRY

COMPANY: YAROSLAVREZINTEKHNIKA
Joint Stock company Yaroslavrezintekhnika (Yaroslavl Rubber Technologies) was founded in 1936 and privatized in 1992. Currently it employs 2,719 people and owns 220,000 square meters (sq.m.) of production premises and 846,000 sq.m. of land.

The company manufactures rubber technical product: form components, driving, ventilator and assembly belts, technical cloths, rubber mixtures, glues, gloves, etc. Retailers and well as Russian and NIS industrial companies purchase Yaroslavrezintekhika products. The Russian company is also a regular client of Bayer (Germany) and DuPont. Currently, Yaroslavrezintekhika seeks a U.S. partner for establishing a joint venture for production of rubber gloves.
CONTACT INFORMATION:
Krutikov, Andrey, General Director
Chebarykov, Dmitriy, Head Manager of the Foreign Economics Committee
Yaroslavrezintekhika
Yaroslavl, Russia 150036
Tel: (7-0852) 38-45-04; 38-21-95; 38-23-00
Fax: (7-0852) 38-42-48; 38-45-34

COMPANY: LAKTUSAN
Laktusan is the only producer of lactulose syrup in Russia. The company has patents on the following lactulose (C12H22O11) products: Alkosoft and Laktusan. Alkosoft, sold throughout Russia, is a carbohydrate module for alcoholic beverages that prevents an organism from intoxication. Laktusan is used in baby-mixes for improving micro flora of intestines.

Currently, the company employs 12 people and rents 1,200 sq.m. of office and production facilities. In 1998, the company produced five metric tonns of lactulose syrup. However, Laktusan wants to increase its production, and therefore, the Russian company seeks a U.S. partner for establishing a joint venture. Estimated project cost for increasing production is USD 3 million. Business plan is available upon request.
CONTACT INFORMATION:
Kim, Valfram, General Director
Kiselyov, Stepan, Chairman of Directors' Board
Shkolnaya St. 6, pos. Mikhaylovskiy,
Yaroslavskaya Oblast, Russia 152217
Tel: (7-0852) 34-25-47
Fax: (7-0852) 34-85-33
Tel/Fax: (7-095) 251-0835
E-mail: leonmak@elnet.msk.ru
Bezik@elnet.msk.ru

COMPANY: contact Yaroslavl Chamber of Commerce and Industry
The enterprise is a leading road compactor producer in Russia. Its products are intended for compacting asphalt concrete and various types of grounds used in construction and repair works on roads, airfields, dams, etc. Presently, the company produces 17 types of automotive road compactors. They come in three categories: heavy (12-16 tons), medium (8-10 tons), and light (5-7 tons). The enterprise has all the necessary technical documentation, production premises, qualified staff, and the technology for mass production. It has established a procurement and distribution network. The company seeks a U.S. investor for further development and expansion local production. The estimated project cost is US$ 9 mln, and the expected implementation period is 3.5 years. A detailed business plan is available upon request.
CONTACT INFORMATION:
Vadim V. Vilgelmi, 150000 Yaroslavl, Sovetskaya pl. 1/19,
Yaroslavl Chamber of Commerce and Industry, Russia
Tel: 7 (0852) 328-053, 328-071
Fax: 7 (0852) 328-885
E-mail: tppdhl@adm.yar.ru

COMPANY: contact Yaroslavl Chamber of Commerce and Industry
This enterprise has a 65-year long experience in production of civil and military ships, including fire-fighting and hydrographic ships, fishing trawlers and seiners, small cutters and boats for the navy and for the engineer troops. The enterprise has all the necessary production facilities and well-trained employees and can receive materials and ship its produce by all means of transportation. There is also a reservoir near the production site where the ships and boats that are being produced can be tested.

Currently, the company is looking for an American investor for building medium trawlers-refrigerators equipped for catching, processing, and transporting fish. These ships will have the displacement of 1200 tons, the speed of 12 knots, the main engine with the power of 1420 kw, and a refrigerating hold with the capacity of 500 m3. The Russian company intends to produce 10 such trawlers and to sell them to the Russian Fisheries Committee that has ordered them for its Far East fishing projects. The estimated project cost is US$ 10 mln and the expected implementation period is 4 years. A detailed business plan is available upon request.
CONTACT INFORMATION:
Vadim V. Vilgelmi, 150000 Yaroslavl, Sovetskaya pl. 1/19,
Yaroslavl Chamber of Commerce and Industry, Russia
Tel: 7 (0852) 328-053, 328-071
Fax: 7 (0852) 328-885
E-mail: tppdhl@adm.yar.ru

CONTACT INFORMATION FOR ORGANIZATIONS:

Abrosimova, Irina, Head of the Investment and Foreign Economic Activity Department
Yaroslavl Regional Administration
Tel: (7-0852) 22-36-15
Fax: (7-0852) 32-78-35
E-mail: abro@adm.yar.ru

Lavrov, Valeriy, President
Vilgelmi, Vadim, consultant
Yaroslavl Chamber of Commerce and Industry, Russia
Tel: 7 (0852) 328-053, 328-071
Fax: 7 (0852) 328-885
E-mail: tppdhl@adm.yar.ru
Homepage: www.adm.yar.ru/tpp/tpp.htm

Generalov, Andrey, President
Kashina, Olg, Director
International Investment Center
Tel: (7-0852) 22-28-23
Fax: (7-0852) 22-52-56
34-70-57

Please find the contact information for companies seeking partners in the U.S. in the above report.