Russian-American Chamber of Commerce in the USA Business opportunities for Georgia-Pacific Corporation in the Russian Federation and CIS countries

Benefits for Georgia-Pacific Corporation Access to new markets in the field of U.S.-Russia and U.S.-CIS economic, investment and trade relationship: Ukraine, Komi Republic, Kirov Region, Belgorod, etc.; Organization of meetings with Russian counterparts: government officials, business executives from lumber, wood production & timber industry; Sochi-2014 winter Olympic Games. 2

3 Geography Area: 17 million sq. km. (6.5 million sq. mi.); about 1.8 times the size of the United States. Cities: Capital--Moscow (pop. 8.3 million). Other cities--St. Petersburg (4.6 million), Novosibirsk (1.4 million), Nizhniy Novgorod (1.3 million). People Population (2007 est.): million. Annual growth rate (2007 est.): % (population declining) Education (total pop.): Literacy--99.4% Health: Life expectancy (2007 est.) yrs. men, yrs. women RUSSIA

4 GDP (official exchange rate): $1.286 trillion (2007 est.) GDP - real growth rate: 8.1% (2007 est.) GDP - composition by sector: agriculture: 4.6% ; industry: 39.1% ; services: 56.3% (2007 est.) Labor force: 75.1 million (Nov est.) Investment (gross fixed): 19.4% of GDP (Jan.– Sept est.) Stock of direct foreign investment - at home: $271.6 billion (2006) Stock of direct foreign investment - abroad: $209.6 billion (2006) Russia possesses one-fifth of the world's timber reserves 3 % of foreign investments goes to the timber industry I.RUSSIAN ECONOMY

5 The Chamber: Serves as an umbrella organization for promoting trade and commerce between the USA and the Russian Federation and the CIS countries; Serves as an advocacy group for the American and Russian businesses; Over 200 corporate members in the USA, Russia, CIS and Baltic States.

6 RACC Services Advisory Services Investment consultancy, market research, implementing an effective action plan, data and information research; Representation to federal and regional administrations and representation of American investors to corporate boards of Russian counterparts; Proprietary computerized databanks of American, Russian, and CIS countries companies and individuals.

7 RACC Services (Cont.) Transactional Support Evaluate and assist in the implementation of business deals; Investment and business partner search; Assist in in gaining access to the Russian regional markets Visa and passport services, incorporation, registration, accreditation, representation, negotiations, confidentiality, translations.

8 RACC Services (Cont.) Corporate Intelligence Background check; Corporation and corporate executives intelligence reports; Trade Show and Business Meeting Services Educational Services Language courses and cross-cultural trainings

Current Sponsors and Clients Total number of corporate members: over 200 The Coca-Cola Company Delta Air Lines, Inc American Airlines Smith, Gambrell & Russell, LLP Delloite Gazprombank Arnall Golden Gregory LLP InterContinental Hotels Group, Rosneft The Related Group The Trump Organization etc. 9

Chamber’s Key Events International conference "Russia & WTO“; Sochi-2014 winter Olympic Games Russian Government roundtable, Ambassador reception; Delegation of Real Estate Developers & Constructors from St. Petersburg, Russia to Chicago, IL; Official visit of Belgorod government officials and corporate executives to Atlanta, GA; US-Russia Energy Conference in Houston, TX, in March of 2010; 10

Business Opportunities in Russia Russia possesses one-fifth of the world's timber reserves, and increased world demand for paper will lead to growth in both domestic and foreign investments in Russia's timber industry. Because the finished product is inexpensive and bulky, transportation costs can be a significant part of the total delivered cost. Due to high transportation costs, small manufacturers can compete effectively with big producers in their local market. The effective sales area for corrugated boxes, for example, is only about 150 miles from the production plant. Business connections with wood suppliers in Komi Republic, Kirov and Belgorod Region, the Ukraine and Belarus. Delegation of Builders and Real Estate investors from St. Petersburg, Russia to Chicago, IL. 11

Investment Climate in Russia According to the Economist Intelligence Unit, Russia is one of the most attractive nations for foreign investment among transitional economies. In particular, Russia is expected to become a leader in raising direct foreign investment in 2006–2010 among ex-USSR states and Eastern European countries. By the end of September 2006, cumulative foreign investments in the Russian economy came to approximately USD130 billion. 12

Foreign Investment in Russia: Top Sectors (Amounts in percent) 13

The role of the timber industry in Komi Republic Second biggest output of the industrial products Export, 431 million dollars(39%) Total size of production, 1.1 billion dollars (24%) Employment of the population, 28,7 thousand people (32%) 14

Timber industry in Komi Republic 15

Profitableness of various fields of timber industry 16 Values — millions of rubles In blue — forest harvesting In violet — wood processing In light yellow — pulp and paper

The field structure of the timber industry 17

18 RussianAmericanChamber.com