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RUSSIAN VIP DELEGATION IN PHILADELPHIA

PHILADELPHIA, PENNSYLVANIA - July 11, 2000 from 1:00 P.M. to 2:30 P.M. the Pennsylvania-Russia Business Council will be hosting a delegation of top executive managers of eight Russian manufacturing operations and would like to invite you to meet in person with Russian business leaders. The luncheon, sponsored by the Schnader Harrison Segal & Lewis LLP, will take place in the main conference room of the Schnader Harrison Segal & Lewis LLP on the 38th floor, 1735 Market Street, Philadelphia, Pennsylvania.

The Russian delegation is coming to Washington D.C. to receive the Awards at the Embassy of the Russian Federation. They will be visiting Philadelphia on July 11, 2000 to meet with interested business representatives from our region.

Following is the list of top Russian executives.

  1. Academic V.D.Schugorev, the general director of ASTRAKHANGAZPROM, a gas processing plant located in Astrakhan, Russia. Products: natural gas, gasoline, and a variety of fuels, including diesel and mazut.
  2. V.S.Grigorjantz the general director of OAO Kizlyar, a brandy plant located in Republic of Dagestan, Russia. It is the oldest Russian brandy plant, founded in 1885. Products: brandy "Russia", "Bagration", Moscovsky Jubilileiny", "Kizljarsky Prazdnichny", just to name a few.
  3. Dr. V.V.Griguletsky, the general director of OAO KRASNODARNEFTEGAZ-BURENIE, the leading oil and gas enterprise in the Krasnodar Region. Products/services: drilling and capital repairs of gas wells.
  4. E.U.Pshenichnikov, the general director of OAO Vyatsko-Polyansky Machine Building Plant "Molot" located in Kirovskaia Oblast, Russia. Products: consumer goods, auto equipment, equipment for food processing and forestry industries, hunting rifles.
  5. V.V.Vitenko, the general director of OAO Bryanskspirtprom located in Bryansk, Russia. Products: over 40 kinds of spirits and vodka manufactured from natural products without artificial additives.
  6. V.P.Klochkov, the general director of Lianozovsky electromechanical plant, the largest enterprise in Russia manufacturing radar and aviation control systems.
  7. Leather Factory "Arschy". One of the largest Russia's leather enterprises. Products: manufactures over 400 types of leather products, primarily consumer goods. Leaders of Russian Quality Award, laureates of international exhibits and fairs.
  8. M.V.Filippov, the general director of AO "TUIMAADA DIAMOND", the largest Russian manufacturer of diamonds, which comprises 16 diamond-cutting plants in Siberia.

Registration is required. For more information, visit the PRBC website at www.fita.org/prbc/. To register contact Val Kogan, PRBC President at (215) 708-2628, (215) 963-7079 or e-mail at prbc@worldnet.att.net RSVP deadline is before Noon, July 10, 2000.


COMPANY INFORMATION

ASTRAKHANGAZPROM

The construction of the Astrakhan gas processing plant began in 1981. In "The guidelines of the economic development of the USSR for 1981-1985 and for the period till 1990 it was recorded: "...to begin the formation of an industrial facility for gas and condensate production and processing, as well as for sulphur recovery on the basis of the Astrakhan gas and condensate field".

The construction of the Astrakhan GPP was carried on in a difficult environment with a rough climate and hard living conditions for the workers of the complex. The formation of the gas processing plant operating personnel began by the order of V. Chernomyrdin - the minister of gas industry - in May of 1985. From that time on in the waterless steppe of Aksaraisk, experts in processing of gas and gas condensate started to work alongside geologists, drillers and constructors.

The young collective of gas processors took an active part in the completion of construction works. The successive start-up occurred in a short span of time. On December 10, 1986 at the first commercial gas was received at the plant, and the first flare was lit. On December 31, at 6:00 a. m., during the work shift supervised by M. Tikhonov, sour gas was received at the plant. After bringing into operation the wells, two preliminary gas preparation stations, and transporting pipelines, the first phase of the Astrakhan gas processing plant, the industrial operation of the Astrakhan gas complex--designed to process 6 billion cubic meters of gas per year--started. The first commodity sulphur was produced on January 3, 1987. The production of commercial Al-76 gasoline started on August 24, 1988 after the units of hydrotreatment and catalytic reforming were brought into operation. A creative engineering search of plant experts resulted in the development of new types of products: Al-93 unleaded high octane gasoline and L-02-62 diesel fuel supplied for export. These have allowed the construction of gas stations in the Astrakhan region.

From the first months of the operation the company was rapidly developing its capacities, increasing the production of commodities which were in short supply at domestic and international markets, such as: gas, condensate, sulphur, dry gas, motor gasoline, diesel fuel, furnace fuel oil, technical kerosene, straight-rum gasoline, and liquefied gas. The Astrakhangazprom production in these categories covers the needs of the Astrakhan region consumers by 100%. The share of Astrakhangazprom in the total volume of production in the Astrakhan region in the middle of 1996 was about 30%.

Great achievements in work result in powerful revenues, which Astrakhangazprom generously shares with the region. Their generosity has helped to radically change the appearance of the towns and villages of this ancient fishermen land and to allow an opportunity to successfully solve the problems of social development. "A Pearl in the Crown" of the Astrakhan gas complex is the gas field. Its automated system of gas production is the only one in Russia. The gas production personnel now keep in production 124 wells. It was the drillers who provided them with the access to the bowels of the earth from which gas and condensate are being recovered at the depth of 4100 meters.

OAO Kizlyar

The enterprise was founded in 1885 and has a very rich history. The current glory of Kizlyar Brandy-Making Factory is preceded by the hard work of many brandy makers. These makers were confronted with a task of restoring the previous Kizlyar glory and achieving the success in development of brandy-making industry. Plant director Vladimir Sarkisovich can be praised for the great brandy handling in compliance with the internationally accepted standards. His achievements were well acknowledged: he is conferred with the medal "For the Honors before Homeland" of second degree, "Honored Worker of the Republic of Dagestan".

Information on the most well known brands of brandy:

BRANDY "RUSSIA" (OLD BRANDY)

The brandy "Russia" is the result of the extended creative work of specialists at the Kizlyar brandy factory. These spirits have been matured for no less than 15 years. The extended maturation of brandy spirits for more than 10 years smoothes the flavor, ennobles the bouquet, and develops tones of aging with subtle tints.

This brandy of light brown color with golden tints is very delicate and harmonious with a honey aftertaste in its flavor.

For its high flavor qualities and subtle aroma brandy "Russia" has received many awards at international contests:

  • 1976 in Sofia - big golden medal
  • 1984 in Sofia - big golden medal
  • 1995 in Yalta - golden medal
  • 1995 in Moscow - honored diploma of 2nd degree of ministry of agriculture and food industry in Russia
  • 1995 in St.Petersburg - golden medal
  • 1996 in Moscow - honored diploma "Interdrink-96"
  • 1996 in St.Petersburg - bronze medal

The manufacture of brandy Russia was launched in 1976.

BAGRATIONE BRANDY (OLD BRANDY)

The sparkling, dark amber color is complimented by a soft, delicate and velvety flavor. The bouquet is rich and intricate with a bright expression of vanilla-chocolate tones. The great mastery of creating a unique, harmonious, yet complex drink is embodied in this brandy.

For its high flavor qualities, Bagratione brandy has received awards at international contests:

  • 1995 in Yalta - golden medal
  • 1995 in St.Petersburg - golden medal
  • 1995 in Moscow - honored diploma of 1st degree of ministry of agriculture and food industry in Russia
  • 1996 in Moscow - honored diploma Interdrink-96
  • 1996 in St.Petersburg - golden medal

The brand-name brandy, Bagratione, has been manufactured by the Kizlyar brandy factory since 1990.

KIZLYAR HOLIDAY BRANDY (OLD BRANDY)

Brand-name brandy Kizlyar Holiday is produced by the Kizlyar brandy factory since 1994.

Spirit matured for no less then 17 years used in production of this brandy. The brandy was launched for the 110 anniversary of Kizlyar brandy factory.

Its dark golden color is complemented by harmonious subtle oily flavor. The bouquet is expressed by the vanilla and resin tones.

The brandy Kizlyar Holiday has received many awards:

  • 1995 in Yalta - golden medal
  • 1995 in St.Petersburg - golden medal
  • 1995 in Moscow - honored diploma of 2nd degree of ministry of agriculture and food industry in Russia
  • 1996 in Moscow - honored diploma Interdrink-96
  • 1996 in St.Petersburg - silver medal.

MOSCOW JUBILEE BRANDY (OLD BRANDY)

This brandy production was begun for the 850th anniversary of Moscow. The spirits, used for the production of the brandy Moscow Jubilee, have been matured for no less than 25 years in oak barrels. The extended maturation of brandy spirits in carefully selected oak barrels smoothes the flavor and develops tones of aging. The brandy's dark amber color works harmoniously with its extractive flavor. The bouquet is intricate with a bright expression of chocolate and resin tones and tones of aging.

OAO KRASNODARNEFTEGAZ-BURENIE

Oil has been known to exist in Kuban-river region for a long time. First exploration of this land gift was conducted in 1864 when the first Russian oil well was mechanically drilled. Despite the more than centennial drilling history oil production in Krasnodar province remains on the high level on the edge of the second millennium.

The OJSC Rosneft-Krasnodarneftegas Board of Directors founded Open Joint Stock Company OJSC Krasnodarneftegas-Drilling on May 21, 1996. Drilling company OJSC Krasnodarneftegas-Drilling has traditionally high technical and technological potential within the Russian oil and gas industry. This potential allows conducting drilling under various geological, technical, and regional conditions both in Russia and abroad. The record depth of 6750 m was achieved by drillers of OJSC Krasnodarneftegas-Drilling in the exploration of well #250 of Levkinskoye field.

High, professional-level specialists from OJSC Krasnodarneftegas-Drilling have allowed the development and implementation of horizontal drilling and such new technology as subsurface workover of deep wells, workover of shut-in development wells by side-tracking and deviation drilling. Technical specialists have work experience under complicated geological conditions of Russian south, western Siberia and in various countries (India, Libya, Iraq, Vietnam, Kazakhstan, and Georgia). They acquired production string workover technology using the installation of metallic patches, the elimination of tubing stickings, flushing of sandy bridges, installation of cement bridges, water isolation using wide variety of materials, and casing of friable rocks in the hole-bottom zone.

OAO Vyatsko-Polyansky Machine Building Plant

OAO Vyatsko-Polyansky Machine Building Plant Enterprise was founded in 1940. Number of workers: 7856.

Offered production: consumer goods, auto and motor equipment, equipment for the food and woodworking industries, hunting guns.

The company has innovation projects for the production of hunting guns and motor-equipment. The company has practically all kinds of cutting machines and has technologies of cold stamping, welding, coating, thermal processing, and galvanic coating. The company also has production lines of ferrous and non-ferrous metal casting; polymer shop; tool manufacturing facility; well developed laboratories of linear, angular, electrical, radio- and thermo-technical measurements; mechanical, metallographic, x-ray, spectral, and other labs; stand, thermal, and road testing labs.

The company holds patents on consumer good, auto- and motor equipment, and hunting guns.

The State Standard of the Russian Federation certifies all companys production. Expiration of ISO 9000 certification is due in 2000. The company has been substantially diversified during the last four years with establishment of three new production lines (hunting guns, auto- and motor equipment, and heating equipment) and the introduction of aggressive marketing methodologies.

OAO Bryanskspirtprom

Founded in 1901 manufactures very popular brands of vodka and vodka-based brands. They now use German and Italian bottling and washing equipment. Using ecologically pure products, they do not use ANY chemical additives or dyes.

Bryanskspirtprom manufactures over 40 brands, utilizing old recipes and modern technology.

They are the recipients of numerous awards in international competitions.

During last 3 years, they have received 13 golden, 12 silver, and 6 bronze medals. Vodka Radix (with ginseng) received Grand Prize at the 1999 St. Petersburg, Russia International Exhibit.

Vodka Snezhet received a Diploma at the International Exhibit "Salima 2000" in Brno, Czechoslovakia.

Vodka brands "Slavic Star", "Holiday", "Partizan", "Tzarina", "Bryanskaia Partizanskaia", Vodka-based "Cranberry" drink and balsam "Debryansk" received golden medals.

Sweet vodka based drink "Kurazh" and bitter tasting "Bryansky Zapovednik" received silver medals.

Vodka-based bitter tasting drink "Green Lemon" received bronze medal.

Vodka "Snezhet" is exported to Germany.

Bryanskspirtprom also manufactures its own spirit from grain.

Lianozovsky Electromechanical Plant

The plant was founded 65 years ago. For the last 50 years LEP has been manufacturing radiolocation equipment used in more than 50 European, Asian, African, and Latin American countries. Even today, under the current Russian economic conditions, the plant continues to develop and manufacture world-level radiolocation equipment in industrial quantities. Equipment produced by the plant has been always of high effectiveness, reliability and simplicity in terms of maintenance. Major attention is currently being paid to the production of equipment required for air traffic control, maximal control automation, and the creation of the comfortable working conditions for the shift crews.

The plant is furnished with state-of-the-art manufacturing and testing equipment used for cutting-edge-technology production.

ISO 9000 certification of the entire manufacturing process provides for the high quality of production. Currently Lianozov Electromechanical Plant is among handful of military complex enterprises, which after overcoming the overall crisis, not only identified itself on the market but also is progressing successfully. The plant not only increases its production but also invests substantially into the design and development of the new equipment while constantly offering new lines of production to its customers.

Leather Factory "Arschy"

OJSC Arschi was founded in 1993.

As of 01.01.2000 assembly and the start-up of waste water treatment facilities, Spanish and Italian equipment for the sol-barking leather processing, dressing and apparel production have been completed with the full-scale engineering support in place. Production technology is fully developed and provides for the application of the wide variety of domestic and imported chemicals and dyes.

The plant processes leather and fur raw materials supplied from Republic of Kalmykiya and adjacent regions with the production of a wide variety of consumer goods for the domestic and foreign markets. Developed technologies and commissioned production lines allow processing of furs, saygak, goat, and pigskins, and KRS. Finishing technologies include mouton, nappalan, embossing, crack, double shape, nappa, wet blue, crust leather, and karakul.

Technical specialists and technologists of all production lines have technical degrees (from MTILP, VZITLP, KkhTI, and LkhTI), with some of them having completed additional courses provided by the Spanish and Italian firms.

Plant production line capacity allows manufacturing of half-finished furs and leather in amounts of 300 thousand units per year. Enterprise manufactures more than 70 brands of fur and double shape articles including the following: fur coats, tan skin coats for men, women, and kids, fur hats, camouflage combinations (jacket, coverall, vest, hat, and gloves) with a fur back, auto seat covers, and leather articles, including vests for men, women, and teenagers, as well as skirts, pants, coats for men and women.

Despite the overall financial crisis of Russian light industry, OJSC Arschi has successfully represented its production at international and domestic exhibitions since 1995. From 1995 to 2000 the plant has been awarded by more than 15 nominations, tens of golden and silver medals for the know-how, high quality, technologies, and models at the prestigious Russian contests (the list of contests is attached), was included in the golden list of The Best 100 Russian Consumer Goods of 1999 and Northern Athens of 2000 for the Far North Supply of fur articles.

OJSC Arschi has been visited several times by the top authorities of Presidential Administration, Government, Federation Council, and Duma of Russian Federation. By Presidential Decree of December 17, 1994 the OJSC Arschi General Director was conferred with the medal of People Friendship for the development of new technologies.

AO "TUIMAADA DIAMOND"

There had been virtually no diamond cutting industry in the Sakha Republic (Yakutiya) prior to the foundation of OJSC Tuymaada Diamond (TD). Next year our company will celebrate its tenth anniversary. During this period of time both fully structured diamond cutting industry and its development potential have been established in the republic. Currently there are more than twenty diamond cutting plants in the republic. TD controls the majority of shares of 16 plants with 12 plants included in the TD holding structure. It is quite natural, that practically all plants have been founded on the basis of our holding. After the diamond cutting industry emerged in the Sakha Republic (Yakutiya) graduation of new specialists took place in Yakutian State University and Department of Elementary and Middle Education of the Sakha Republic (Yakutiya).

The company produces diamonds of classic Russian Quality cutting using laser equipment and automatic and semiautomatic lathes. All cutting plants are furnished with Russian and imported equipment and tools. Raw diamond supplies are sorted per international standards of AK ALROSA. Worker's qualification level allows for production of round diamonds from 0.0025 to 6.0 carats (1 carat = 0.2 g) in weight, as well as diamonds of all major fantasy forms. Manufacturing technology corresponds to the classic raw diamond processing technology.

OJSC Tuymaada Diamond was founded in 1991, and since that time it:

  • has estalished the network of diamond cutting plants on the territory of the Sakha Republic (Yakutiya) which produce near 10% of the overall Russian diamond production; and
  • has established raw diamond supply network based on the support provided to the local manufacturers by such republican agencies as YaPTA and KDM.

Since more than 90% of OJSC Tuymaada Diamond production is exported, cutting plant technologies are in accordance with the internationally accepted quality standards. Diamonds exported to the US are certified by the American Gem Institute and are in a full compliance with both the Russian State Standard and firm standard requirements.



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