Major Events International

Business Networking Group

MAJOR EVENTS IN RUSSIA:

CHALLENGES AND OPPORTUNITIES

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 Programme

• Introduction to the Russian Market

David Cant, Managing Director, Albion (Overseas) Ltd, UK

• Opportunities Around Upcoming Major Sporting Events: 2013 Kazan

Universiade, 2014 Sochi Olympics and 2018 FIFA World Cup
Natalya Tueva, Key Account Executive - Russia, MEI, UK/Russia

• Market Experience Case Study: “Sochi 2014: Overview, PwC's role,

Opportunities for International Companies”
Evgeny Otnelchenko, Advisory Consulting Partner, PwC's Sochi 2014 Program Leader,
PricewaterhouseCoopers Russia B.V., Russia

• Business Culture in Russia: Working with Local Partners and Management

Teams
Yevgeny Merkel, Partner, Excelion Partners International, Russia

• Discussion Session
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 About MEI

MEI Core Model

• Bid and Host City - Mobilisation and Subject Matter Expert Support
• Suppliers:
– Access to a highly experienced MEI Staff for advice and research
– Market Intelligence on opportunities, competitors and opportunities
– Client Access covering the numerous and widely dispersed market stakeholders
– Representation to provide an in-country presence for rapid deployment when
needed
– Profile at conferences and events which companies cannot cover; and through
the MEI Global Web Portal and MEI Journal

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 Major Events International

ASE STUDY: BRAZIL

Opportunities Around Upcoming Major Sporting
Events

Natalya Tueva
Key Account Executive, Russia
ntueva@majoreventsint.com

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 Why Russia?

 One of the BRIC countries

 Emerging market with growing middle class: 107%
growth in 6 years since 2000
 The country with one of the lowest foreign debts
among major economies
 Politically stable with sustainable economic growth of
4.5% (2010).
 Home of next major events.

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 Why Russia?

 10th largest economy in the world by nominal GDP and the 6th

largest by purchasing power parity (PPP)

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 Russian Current infrastructure

• The total length of common-used railway tracks exceeds 85,500 km (second

only to the U.S.)

• Over 44,000 km of tracks are electrified – the largest number in the world

• 85,500 km of rail network track (second largest in the world)

• 1216 airports

• 62 sea ports and 131 river ports: capacity for over 526 million tonnes/year

• 44.9 million telephone lines

• Stable banking system according to the Fitch rating agency

• The government plans to invest $1 trillion in development of infrastructure by

2020
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 Major Events in Russia

• 2012 IAAF World Race Walking Cup in Saransk (12-13 May)

• 2013 World Student Games in Kazan (13-23 July)
• 2013 IAAF World Championships in Athletics in Moscow (10 - 18
August)
• 2014 Sochi Olympic Winter Games (7 February – 23 February)
• 2014 Sochi Paralympic Winter Games (7 March – 16 March)
• 2018 FIFA World Cup (8 June – 8 July)
• 2014-2020 Russian Grand Prix in Sochi

Other Bids:
• 2014 World Junior Athletics Championship in Kazan
• 2015/2017 World Aquatics in Kazan
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 2013 World Student Games in Kazan

 Budget: 515 million USD

 Additional investment in security: 47.6 million USD

 64 venues, including 36 specially built

 Universiade Village: residential area for14.5 thousand people

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 2013 World Student Games in Kazan:
Opportunities

Source: http://kazan2013.ru

Live videos from the venues are available on-line: http://camera.tatar.ru/

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 2013 World Student Games in Kazan:
Opportunities

9 new road junctions:

Source: http://kazan2013.ru

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 2013 World Student Games in Kazan:
Opportunities

11 roads are reconstructed (35.6 km)

Road from Tankovaya Street to Pushkina Street is constructed ( ):

Source: http://kazan2013.ru

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 2013 World Student Games in Kazan:
Opportunities

 Transport Infrastructure Sector:

• Kazan AeroExpress
• Kazan Underground (Metro)

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 2013 World Student Games in Kazan:
Opportunities

Source: http://kazantransport.by.ru/

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 2013 World Student Games in Kazan:
Opportunities

 Sponsorship Categories:

• General Partner
• Official Partner
• Official Supplier

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 2014 Winter Olympics in Sochi

 Budget: 10.85 billion USD

 35 % of the budget:
– Tourist infrastructure — $2.6 billion;
– Olympic venues — $500 million;
– Transport infrastructure — $270 million;
– Power supply infrastructure — $100 million

 Investments in telecommunications – $580 million

 24 thermal and hydro-power stations

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 2014 Winter Olympics in Sochi:
Opportunities

Source: http://sochi2014.com

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 2014 Winter Olympics in Sochi:
Opportunities

Coastal Cluster:

Source: http://sochi2014.com

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 2014 Winter Olympics in Sochi:
Opportunities

Mountain Cluster:

Source: http://sochi2014.com

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 2014 Winter Olympics in Sochi:
Opportunities

 Transport Infrastructure Construction:

• The Sochi Light Metro (starts 2013)

• Tuapse to Adler railroad, 102 km (by
2014)
• High-Speed Moscow-Adler Link
• Sochi International Airport (by 2012)
• Roads, 186 miles
• Tunnels, 6 (by 2013)

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 2014 Winter Olympics in Sochi:
Opportunities

 Tourist Infrastructure Construction:

• 2 Olympic media-villages
• 30 hotels
• 9 sanatoriums

Total room capacity:

5-star rooms – 1,737
4-star rooms – 5,136
3-star rooms – 13,167
Source: http://www.sc-os.ru

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 2014 Winter Olympics in Sochi:
Opportunities

 Partnership Opportunities:

• Telecom Equipment
• Beer
• Confectionery
• Packaged dairy products
• Language technologies and services
• Gas
• Road/tunnel/pipeline construction

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 2018 FIFA World Cup

 Budget: $10 billion

– $ 4 billion – reconstruction and construction of stadiums;
– $ 0.3 billion – training centres;
– $ 0.4 billion – accommodation facilities for sportsmen

 16 venues in 13 host cities: 13 new and 3 renovated

 20 cities will be given the right to host festivals of supporters

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 2018 FIFA World Cup:
Opportunities

US$ 415 m US$ 200 m

US$ 210 m US$ 160 m

US$ 240 m

US$ 250 m
US$ 280 m US$ 260 m

US$ 180 m
US$ 240 m US$ 180 m

US$ 290 m US$ 210 m

US$ 220 m

US$ 225 m Source: http://sport.rbc.ru

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 2018 FIFA World Cup:
Opportunities

 Transport Infrastructure
Construction:

• Fast tram line in four Moscow

districts (started May 2011) €425
million
• Railway system (the concept will be
announced in June 2011)
• Yekaterinburg Underground (Metro)
(started May 2011)
• Other host cities

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 2018 FIFA World Cup:
Opportunities

Source: fifa.com

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 Major Events International
Business Networking Group

Thank you

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