ECONOMIC RELATIONS BETWEEN AUSTRIA AND RUSSIA RUSSIA S ECONOMY CHANCES AND RISKS FOR AUSTRIAN COMPANIES

KEY FACTS Area (sqkm): Russia: 17,075,400 Austria: 83,870 200 3,6 GDP (bn. EUR) : Russia: 1,333.3 Austria: 366.1 Source: Economist 17 x Population (mln.): Russia: 146.8 Austria: 8.6

GENERAL DEVELOPMENT Shrinking consumer spendings since 2013 Russian economy under pressure since 2014 Ukrainian crisis and sanctions drop in oil prices devaluation of national currency Attempt of approach to Europe 2016 Prolongation of EU-Sanctions until 2018 New US-Sanctions 2017 3

TRADE DEVELOPMENT WITH AUSTRIA 2013 all time export high EUR 3.48 bn. 2013 2016 export dropped by -46 % Turnaround in Oct. 2016; Jan. Aug. 2017 exports +17.9 %, imports +24.4 % Russia 16 th most important trading partner Trade volume between Austria and Russia (2010 2017, in bn. EUR) Σ 7,28 Σ 6,66 Σ 6,27 Σ 5,49 Σ 4,86 4,09 3,18 3,33 2,29 2,32 2,55 2,94 3,19 3,48 3,19 Σ 4,42 Σ 4,31 2,44 2,43 Σ 3,28 1,86 1,98 1,88 1,42 Source: Statistik Austria 2010 2011 2012 2013 2014 2015 2016 I-VIII 2017 Export Import

SPECIAL DEVELOPMENTS IN RUSSIA Import substitution and localization Preferential treatment of local tenderers North-Stream 2, Turkish-Stream and Sila Sibirii FIFA Football WC 2018 World Expo candidate Yekaterinburg 2025 Orientation to Asia pros and cons for Russia? Chinese companies invest in Russia Investments from Korea, also increasing from Taiwan Special economic zones and promotion of the Far East

STRUCTURE OF EXPORT AND IMPORT Most important export goods: machines & equipment (incl. electronics, car & train equipment), pharmaceutical products, metal & metal goods, food Most important import goods: mineral fuels, metals & metal goods, as well as wood and products made of wood 6% 7% 36% 37% 27% 87% Machines & equipment (incl. Electronics, car & train equipment) Pharmaceutical products Others Mineral fuels Metals & metal goods, wood Others

KEY EXTERNAL FACTORS AND INTERESTS SHAPING RUSSIA S WAY IN THE FUTURE Artic: oil reserves, strategic interests Increasing EU influence in CEE NATO Russia tensions Russia s international interests Interests in middle east: oil, foothold (Syria) External interests and policies affecting Russia Integration project Eurasian Economic Union Increasing Chinese influence in central Asia and Russia

St. Petersburg and Oblast Durisol Hoos HandelsgesmbH Magna Mayr-Melnhof Holz Pskow Tanngroup 500 AUSTRIAN COMPANIES IN RUSSIA Archangelsk Pulp Mill Holding GmbH Smolensk Voestalpine Shuya Egger Nizhniy Novgorod Magna Collini Syktyvkar Mondi OMNYA Eastern Europe Management GmbH Vladimir und Region Greiner Packaging Senoplast Klepsch Wienerberger (Kiprevo) Kazan FACC Wienerberger Kaliningrad Hipp Moskau and Region Agrana (Serpuchov) Backaldrin (Novoe Stupino) EVN (Moskau und Ljuberzy) Julius Blum GmbH (Domodedovo) Kronotec Consulting GmbH (Egorievsk) Murexin AG (Dubno) Kaluga MACO Magna Krasnodar Constantia Packaging Tambov Isoroc Tschaplygin Hawle Armaturenwerke Saransk Knill-Gruppe Wolgograd Benda-Lutz GmbH Ufa Lasselsberger GmbH Kronotec

RUSSIA LARGEST MEMBER OF EAEU 80% of the population are Russian citizens (146 of 183 mln.) 85% of the area is Russian national territory (17 of 20 mln. sqkm) over 85% of the total EAEU-GDP is produced in Russia (1,280 of 1,480 bn. USD) Inhabitants 1.6% 9.8% 3.3% GDP 0.7% 0,4% 8.8% 3,7% 5.1% 80.3% 86.3% Russia Belarus Kazakhstan Armenia Kyrgyzstan Source: EIU Russia Belarus Kazakhstan Armenia Kyrgyzstan 10

RUSSIA AS MAIN INVESTOR OF THE EAEU EAEU: inbound FDI reaches USD 26.8 bn. +15.9 % in 2016 78% of inbound FDI in EAEU from Russia USD 21 bn. Inbound FDI in Belarus USD 8.6 bn. Inbound FDI in Kazachstan USD 8.3 bn. Inbound FDI in Russia USD 5 bn. EAEU sectors inbound FDI fuel and engergy 43.3 % metallurgy 10.9 % Russia sectors inbound FDI chemical industry 35.1 % agroindustry 15.8 % transport & logistics 14.2 % 11

AUSTRIA AND THE EURASIAN ECONOMIC UNION Trade turnover of Austria with the EAEU: 2010: EUR 6.2 bn. 2014: EUR 7.7 bn. 2016: EUR 5.3 bn. Import: EUR 3.15 bn. Export: EUR 2.15 bn. Austrian direct investment in the EAEU approx. EUR 6 bn. More than 700 Austrian companies in the EAEU 12

AUSTRIA AND THE EURASIAN ECONOMIC UNION Austrian direct investment in the EAEU approx. EUR 6 bn. More than 700 Austrian companies in the EAEU Trade volume between EAEU and Austria (2015 Aug 2017, in bn. EUR) Σ 5.7 Σ 5.3 Σ 4.1 3.3 3.2 2.4 2.4 2.1 1.6 2015* 2016 2017 (Jan-Aug) *Kyrgyzstan member since 12th August 2015 Source: Statistik Austria Export Import 13

UPCOMING EVENTS 2017 Forum Eurasian Economic Union 14 November Forum Moscow city infrastucture 15 November Events abroad Press workshop Tourism St. Petersburg 16-17 November Business Council Austria-Russia/Economic Mission Moscow/Kazan 22-24 November Austrian Business Circles in Moscow, monthly networking Webinar Investments und Localization 6 December 14

EVENTS PREVIEW 2018 Interplastica Moscow 23-26 January Prodexpo Moscow 5-9 February Sochi International Economic Forum 15-16 February Exhibition Education and Career exhibition Moscow 2-4 March Workshop Northern Caucasian Food/Agri/Tourism/Energy Moscow April Austria Showcase Automotive Supply with AC-Cluster at GAZ June Economic Mission Far East Vladivostok/Chabarovsk/Kamchatka September Economic Mission NW-Russia St. Petersburg/Pskov/Riga September Exhibition Ecwatec Moscow 25-27 September Austria Showcase Agriculture Moscow and Krasnodar November Exhibition Medtravelexpo Moscow 3-7 December 15

Thank you for your attention! Rudolf Lukavsky Head of ADVANTAGE AUSTRIA Moscow STAROKONYUSHENNY PEREULOK 1 115127 PCI-2 MOSCOW, RUSSIAN FEDERATION T +7 495 725 63 66 F +7 495 725 63 67 MOSKAU@ADVANTAGEAUSTRIA.ORG WWW.ADVANTAGEAUSTRIA.ORG/RU