Although relatively few Chinese companies have invested in Russia so far, the post-soviet area remains quite a promising investment destination for industry majors from Beijing and beyond. The response was remarkably strong when Luxembourg’s Fund managing company Creon Capital invited on Tuesday to Beijing’s Sofitel Wanda. Almost 100 top-managers of well-known Chinese companies such as CGGC, Wison, COOEC, CRRC, CRCC and HQC joined the event, which has been supported by Russia’s ambassador Andrey Denisov.
“Project opportunities in Russia & CIS” was the encouraging title of the half-day-event. And Dr. Fares Kilzie, Chairman of Creon Group and Creon Capital, didn’t hold back with promises: Successful and high value-adding projects are possible in CIS countries, even without access to superior political levels or the leading state-owned-enterprises such as Gazprom or Rosneft. Kilzie: “The most valuable projects in the region are medium-sized and of private ownership.” And it’s the Fund’s task to help Asian or European partners to enter these opportunities.
This should be the right time for investments in CIS countries and especially in Russia. As Ambassador Denisov underlined, political relationships between both countries have barely ever been as good as they are right now. Alexander Gabuev, a senior research fellow of the Moscow-based think tank “Carnegie Center”, added western sanctions imposed against Russia as push-factor for the bilateral economic relations: “Russia is simply forced to do more business with Asian countries, whereas investments from Europe remain stagnant.”
Yet the Chinese companies remain reluctant, when it comes to investments in Russia/CIS. Gabuev argued, Chinese companies prefer to purchase either high-technology companies in western countries, where investment conditions are more predictable. Or they go for assets in African countries, which local governments don’t claim sophisticated conditions for investors. “Russia falls in-between”, said Gabuev, “and probably the Russians are too proud to open the doors for Chinese investors.”
Meanwhile, the Chinese participants themselves named the obstacles when doing business in Eastern Europe. Ms. Yan Wang, Partner of the auditing company Ernst & Young in Beijing, mentioned the lack legal predictability and stability to explain why the Chinese are so far less committed to Eastern Europe. Mr. Xin Zongyi, Executive Vice-President of the industrial giant CGGC, drew the conclusion: “You always need a strong local adviser such as Creon Group as a partner.”
Indeed, Creon Capital is capable to reduce investment-risks associated with investments in CIS countries by structuring them through the Sicav-SIF-Fund. This applies not only for Chinese investors: European (co)-investors, partners from Japan, South Korea or Singapore are likewise interested to enter the Russian market together with Creon Capital, which facilitates a better market-access and increases the investment protection as the Fund is subject to EU-legislation and Luxembourg’s sophisticated asset-monitoring standards.
Dr. Fares Kilzie, Chairman of Creon Capital, introduced investment opportunities in Russia and CIS countries.
Download the conference material here:
– Corporate Presentation “Creon Energy Fund” (EN | CH)
– Creon Group Presentation (EN | RU)
– Conference Program “Project Opportunities in Russia & CIS. China Roadshow 2017” (EN | CH)
– Presentation of Creon Capital Chairman Dr. Fares Kilzie (EN | RU | CH)
– Market overview Russia by Nikolay Asatiani, Head of Creon Energy Asia (EN | RU | CH)
– “Overview of latest trends in Russian economy, its investment climate and FDI policies”, by Alexander Gabuev, Carnegie (EN | CH)
– “Overview of Chemical Sector in Russia and Opportunities for Chinese Enterprises”, by Sandjar Turgunov, Creon Energy (EN | RU| CH)
– “Overview of Plastic & Packaging Sectors and Opportunities for Chinese Enterprises”, by Rafael Grigoryan, Inventra (EN | RU| CH)
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For further information please contact:
Florian Willershausen
Director Business Development,
Marketing and Communications
Creon Capital S.à.r.l.
T (GER) +49 151 162 44 591 (WhatsApp)
T (RUS) +7 968 783 84 12
T (LUX) +352 621 235 126
E willershausen@creoncapital.lu