Donetsk summarizes the results of the Annual International Investment Summit of the Donetsk Region

972 participants from 22 countries visited the largest investment event in Donbas history, which took place in Donetsk 29-31 October 2008.

4 November, Donetsk – the results of the first Annual International Investment Summit of the Donetsk Region, which took place in Donetsk from 29-31 October 2008, have been reviewed. The event was visited by 972 participants, of which 430 were foreign delegates from 21 countries: Austria, Brazil, Bulgaria, Canada, China, the Czech Republic, Finland, France, Germany, Great Britain, India, Indonesia, Italy, Lithuania, Poland, Romania, Russia, Slovakia, Spain, Switzerland, and the U.S. The Summit’s grand opening on 29 October was attended by the President of Poland Lech Kaczynski, President of Ukraine Viktor Yushchenko, Head of the Donetsk Regional Council Anatoliy Blyznyuk, the Shareholder of SCM Company Renat Akhmetov, and representatives of organizers from Deloitte, Ernst & Young, and Altera Finance.

During the Summit, the following took place: 3 thematic conferences entitled “Real Estate and Infrastructure. Euro 2012”, “Investment in to Real Sector of Donbas”, and “Innovations and Energy Saving Technologies”, presentations on investment projects, profiled discussions, bilateral meetings and business trips to the Region’s enterprises. One project even had an agreement concluded for over several million dollars during the event. The Donetsk National Technical University and Engler Enterprises Ltd. (Hong Kong) signed a licensed agreement for user’s rights to Chamber Electroslag Remelting (ChESR) technology, a new method in the production of high quality ingots from titanium and titanium alloys for use in aviation and rocket construction, chemical industries, medicine, atomic energy, auto construction, and others. According to the Rector of the Donetsk National Technical University Oleksandr Minayev, the successful deal at the Summit owed to preceding extended discussions and project presentations abroad.

According to organizers, the goal of the Summit was not the conclusion of agreements, but the creation of an environment for business dialogue, which will open the road to establishing business contacts and the development of inter-regional and international cooperation. “The Summit met its goal – it demonstrated the openness and investment potential of the Donetsk Region. Contracts are not signed at the first, third or even tenth meeting, similar events only set the scene for further discussion and long term cooperation,” stated the Head of the Donetsk Regional Council Anatoliy Blyznyuk.

Despite the unfavourable economic situation in the world, the Summit was visited by a string of international investors. Many other potential partners and investors showed their interest in the investment projects presented, and continued to work with organizers and Donetsk Region businesses on an individual level. Jock Mendoza-Wilson, Director of International and Investor Relations for SCM: «As a national sponsor, we’re very satisfied with the Summit results. Despite the difficult current economic environment, the Summit was well attended both in the numbers and the quality of delegates. As for the results, we hadn’t expected contracts to be signed at the Summit. Instead, the goal was to put Donetsk on the international map as an investment destination, and we have achieved this. International delegates I spoke with were impressed by the opportunities Donetsk has to offer, and they’ll carry this message to their colleagues and contacts when they return home».

Andriy Stepanov, Partner at Deloitte – organizer of the conference on “Real Estate and Infrastructure. Euro 2012”: “In terms of the global economic crisis, it is particularly important to establish a long-term partnership with strategic investors and international financial institutions, and that is why we are very happy that organizations like EBRD, the IFC, Morgan Stanley, HSBC Bank, UBS, ING Bank, the Warsaw Stock Exchange, etc. took an interest in the Summit.”

International organizations already established in the Donetsk Region actively participated in the section on “Investment in to Real Sector of Donbas”, confirming the continuation of their activities and realization of investment programs in the Region, despite the global downturn. “The real sector of the economy was represented by great international investors in the Donbas economy such as Cargill, Knauf, Lafarge, Siemens and others. In addition, 11 French companies took part in the section, forming their own “French Club” headed by the Commercial and Economic Counsellor of the French Embassy in Ukraine Philippe Pegorier – explained Manager of Business Development at Ernst & Young Ihor Zahlada. – It is admirable that all of the companies affirmed their objectives to continue nurturing investment in the Region”.

Organizers stated their readiness to lead the International Investment Summit of the Donetsk Region on an annual basis, and to initiate activity by creating an attractive investment image for the Region, and increasing the culture of business dialogue for representatives of regional businesses and sciences. “Our sciences have learned how to invent, how to create, but not how to sell themselves. We should help them with this,” - stated Mykhailo Zhernov, Chair of the Board of Directors for Altera Finance investment group – organizer of the section on “Innovations and Energy Saving Technologies”.

“Thanks to the Summit I now understand that the Region, first of all, must learn how to interact on the same level as investors and representatives from foreign delegations. This is the first step on the road to renewing Donbas not only at the industrial, but also at the business level. Then Donetsk should become the business capital of Ukraine,” – stated the Head of the Donetsk Regional Council Anatoliy Blyznyuk.