Russia
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Russian Companies: Gazprom, Lukoil, Evraz, Wimm-Bill-Dann

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International business

Master International Business


 

Learning unit: Russian Companies. Syllabus:

- Energy: Gazprom, Rosneft, TNK-BP, Lukoil, Surgutneftegas.
- Industrial: NLMK, MMK Group, Evraz, Severstal, Mechel, Norilsk Nickel, Raspadskaya.
- Agribusiness and retail: Wimm-Bill-Dann, Sedmoi Kontinent, Magnit, X5 Retail Group, Lebedyansky.
- Others sectors: Polyus Gold, Polymetal, Kalina.

M Course learning materials: En Business in Russia

M Educational level: Continuing education / Executive education programs.

M Related International Trade Courses and Masters: Business in Russia - Master in Emerging Markets and BRICM - Master Business Asia Pacific Region. Spanish: Negocios en Rusia

M  Master in International Business (MIB Executive) for Russian students

Course summary Russian Companies:

Global strategies of companies of the Russian Federation. NLMK, MMK Group, Severstal, Mechel, Norilsk Nickel, Raspadskay

Gazprom is one of the world’s largest energy companies. Its major business lines are geological exploration, production, transportation, storage, processing and marketing of hydrocarbons as well as generation and marketing of heat and electric power. Gazprom supplies around a quarter of the total amount of gas consumed in Continental Europe and about a half of the amount imported there. Among the major buyers of Russian gas are Germany, Turkey, Italy and France.

Rosneft is the leader of Russia’s petroleum industry, and ranks among the world’s top publicly traded oil and gas companies. Rosneft is widely engaged in exploration and production across all key hydrocarbon regions of Russia: Western Siberia, Southern and Central Russia, Timan-Pechora, Eastern Siberia and the Far East. In addition, the Company participates in several exploration projects in Kazakhstan and Algeria. Rosneft had retail business in 39 regions of Russia in 2009, from Murmansk in the north to the North Caucasus in the south, and from Bryansk in the west to Sakhalin Island in the east.

TNK-BP is a leading Russian oil company and is among the top ten privately-owned oil companies in the world in terms of crude oil production. TNK-BP is a vertically integrated oil company with a diversified upstream and downstream portfolio in Russia and Ukraine. The Russian Government Relations Division formulates the strategy of interaction with government bodies, manages risks and represents the company before government authorities. The Division employs 36 persons.

Krasnodar based, Magnit operates more than 2,400 supermarkets and hypermarkets in 760 towns and cities across Russia, after a rapid expansion in the period from 2004-2008. The company has more than 58,000 employees and generally focuses on the discount end of the retail sector. With the help of its regional distribution centers OJSC “Magnit” set up effective logistics system. There are now 11 owned distribution centers which process about 79% of the Company’s turnover.

Example of the course Russian Companies:
Magnit Russia

LUKOIL is a major international vertically-integrated oil & gas company, accounting for 2.2% of global output of crude oil. LUKOIL currently produces a wide range of high-quality petroleum and gas products and petrochemicals, selling them via wholesale and retail in over 30 countries. The Company’s retail network extends to 26 countries, including Russia, the near-abroad countries and European countries (Azerbaijan, Belarus, Georgia, Moldova, Ukraine, Bulgaria, Hungary, Finland, Estonia, Latvia, Lithuania, Poland, Serbia, Montenegro, Romania, Macedonia, Cyprus, Turkey, Belgium, Luxembourg, Czech Republic, Slovakia, Croatia, and Bosnia and Herzegovina) as well as the USA.

Surgutneftegas is a major Russian oil producer focused on production, exploration oil field development, refining and marketing. Surgutneftegas’ crucial competitive advantage lies in advanced petroleum production technology successfully applied by its own service subdivisions. Oil is supplied to Russian refineries and exported to CIS and Western Europe.

Novolipetsk Steel, or NLMK, is one of Russia’s largest steelmakers, with operation across mining steelmaking and processing, as well as logistics operations and the management of the Black sea port of Tuapse. During the last decade, global steel production moved from the developed world to emerging markets and closer to new consumers.

X5 Retail Group N.V. is the largest retail company in Russia in terms of sales. The company uses a multi-format strategy to develop three formats simultaneously: soft discounters, supermarkets and hypermarkets. Their key strategic objective is to become the main consolidator of the Russian food retail market and the absolute leader of Russian retail, able to compete with leading international chains as an equal.

X5 Retail Group Russia 

Magnitogorsk Iron and Steel Works OJSC (MMK Group, MMK) ranks among the world's largest steel producers and is the leader in the Russian steel sector. In 2010 exports accounted for 31.2% (compared to 44.1% in 2009) of total shipments. MMK's traditional key markets are the Middle East, Asia and Europe.

EVRAZ Group S.A. is a large vertically-integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, Europe, USA, Canada and South Africa and employs approximately 110,000 people. In North America the Company is represented by its subsidiary EVRAZ Inc. NA which has steel making and rolling production facilities in the USA and Canada. In 2010, the Company’s share of the Russian market in beams, channels and rebars totalled 86%, 56% and 22% respectively.

Severstal is one of the world’s leading vertically integrated steel and mining companies with key assets in Russia, the US and Europe.

Mechel is one of the leading Russian companies. Its business includes four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power. Mechel owns three trade ports and a transport operator. Mechel’s products are sold in Russia as well as on international markets. Mechel employs more than 80 thousand people.

Norilsk Nickel is the world’s largest producer of nickel and palladium and one of the leading producers of platinum and copper. Norilsk Nickel’s production facilities are located on three continents and in five countries: Russia, Australia, Botswana, Finland, and South Africa.

Wimm-Bill-Dann is the market leader in dairy products and children’s food in Russia and one of the leading players in the market for non-alcoholic drinks in Russia and the CIS. Wimm-Bill-Dann has more than 35 production facilities in Russia, Ukraine and Central Asia. More than 18,000 people work at WBD’s production facilities and trading affiliates. The core market for their products encompass a population of around 280 million people. These markets, including Russia, Ukraine, Belarus, and the countries of Central Asia, are extremely diverse, with dietary habits shaped by many different national traditions, environments, and differences in spending patterns. At the same time, these markets have some important things in common.

Sedmoi Kontinent. JSC «The Seventh Continent» was founded in 1994 and is an international retail chain and one of the leaders in the Russian retail market. The stores of the chain offer their customers a wide range of goods and services of high quality, with a flexible price policy, always meeting the demands of the market and being high-tech retail sites.

Lebedyansky JSC is the largest natural juice producer in Eastern Europe and one of Russian baby-food market leaders.

Lebedyansky Russia

Polyus Gold is an international company, the leading gold producer in Russia and Kazakhstan and the only Russian company among the world’s largest gold producers.

Polymetal is a leading precious metals mining company. The Company is the top five global primary silver producers, the largest silver and fifth gold producer in Russia.

Ekaterinburg based Kalina is a leading Russian perfume, cosmetics, and personal care products maker, with operations in Germany and the Netherlands. It is the market leader in the skin care and oral care sectors of the Russian market.

Founded in 1973, Raspadskaya is now one of the leading coal producers in Russia. Raspadskaya is a compact integrated coal mining and enrichment complex located in the Kemerovo region of the Russian Federation.

The Russian Federation - Russian economy - Ports in Russia - Foreign direct investment in Russia - Russian payment system 

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