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The neighbors

DIALOGUE WITH AN OPTIMIST:
"We Have Much in Common",

says Marjatta Punin

        - I may be resolutely called a post-crisis council. I happened to be in Russia at a time when this country seemed to be very close to the brink. The banking system was paralyzed, a lot of Russian firms went bankrupt, all trade agreements were ineffective. Suffice it to say that our export at that time fell nearly two-fold and a great and unexpected shock hit food producers, particularly those whose share before the crisis had been more than one third and their share in St. Petersburg was as much as 80 percent.
        - And how did the process continue and change? The shock was rather strong, and could either side suggest ways for overcoming such a major crisis?
        - But why not? We had previously experienced (and I had been an eyewitness of that) similar situations. I mean the period of perestroika. Prior to the collapse of the Soviet Union all agreements were based on clearing, and the goods of either side were definitely determined beforehand. At that time there were about a hundred of large firms involved in export and very few of them were familiar with their customers. After the disintegration of the Soviet Union everything began from scratch. Partners had to be sought again, new agreements had to be signed and export terms were determined at our own risk. There was a lot of hard work to be done! I really benefited from the knowledge and experience that I have gained while studying and working in your country. I enjoy recalling those difficult, yet memorable days.
        - And in general how are the relations between our countries stand today?
         - You see, your country, and Petersburg above all, is of particular significance for Finland. We have much in common, even the gauge of our railway tracks is the same. That's why both sides realized that we can not exist apart from each other.
        After the August crisis almost no Finnish firms have left Petersburg. More than six hundred companies are registered here; they are active in various branches of the economy, both production and service.
         - Marjatta, I notice you have not only been an eyewitness, but have also taken part in the significant events crucial for our country. Is your attitude to Russia at all colored or influenced by all those disagreeable moments?
         - Not in the slightest. I have faith in our friendly relations as good neighbors, I have faith in your country which is associated in my mind with the image of Vanka-Vstanka (a toy) who invariably returns to his standing position whenever he is knocked over.

Interview by Marina Alexeeva

The neighbors

LEMMINKAINEN IS A CONCERN PAR EXCELLENCE

        Finnish firm Lemminkainen occupies one of the leading places in the construction complex of Europe. During its 90 years history this multi-branch concern has been undertaking and successfully realizing contracts not only in its own country, but also far beyond its borders. It is constructing living houses and industrial buildings as well as complicated engineering complexes, such as tunnels, underground collectors, and viaducts. A separate branch of its activities is road works, bitumen and construction materials production.
        The firm has left good signs on the Russian land. It has constructed a good number of sites that are successfully operating in different branches of economy of the city of St.Petersburg, of the entire North-West, and of other regions of Russia…

Veikko Oyala, Regional Director for St.Petersburg:
"WE APPRECIATE FRUITFUL COOPERATION"

        Connoisseurs of beer, who will soon have a chance to taste new sorts of beer with the trademark of the St.Petersburg Vena Brewery, may very well address their "thank you" words to Finnish specialists from the Lemminkainen concern. It was them who had constructed the shops for the brewing and bottling productions, which will enable the brewers to effectively broaden the assortment of the "amber" drink.
        New construction at the Vena Brewery is one of the sites where Finnish builders have been working. They have long ago made themselves at home in the city on the Neva river, in the Leningrad region industrial centres, in Karelia, and in other regions of the Russian Federation. And, wherever they are, the scale of their professional interests is diverse. They include cultural and sports centres, banks, hotels and offices. In Moscow alone they have constructed dozens of buildings. The Finns have built new buildings for the Kostomuksha Mines. They have taken a significant part in the setting up of new production capacities at the Svetogorsk Pulp and Paper Mill. The Hermitage, the Astoria hotel and one of the mansions on the English embankment in St.Petersburg are of special significance and of great historical value. Builders and restorers often had to be experts in arts and history in order to preserve the "hand" of brilliant architects, carpenters and joiners of the XVIII-th and XIX-th centuries.
        "Long-term experience in Russian-Finnish cooperation", says Veikko Oyala, "has helped us in the realization of the current contracts. One of them is directly connected with the Ice Hockey World Championship- 2000. I mean the Peterburgsky Sports and Concert Complex, which, along with the Ice Palace, will be the official arena for the review of the world's best hockey players. The changing rooms and the press-centre we have renovated, will, from now on, fully comply with the highest European standards. Our fitters, welders, carpenters and other specialists have demonstrated consummate craftsmanship in modernizing the ice arena and the different engineering constructions.
        By the way, the Lemminkainen office in St.Petersburg is located, literally, a few steps away from the Sports and Concert Complex.
        "But our neighbourship isn't the point," smiles Veikko Oyala. "It's just that here, like on all our construction sites in Russia, we followed our main principle, which is, to qualitatively perform a contract, because we do value cooperation with your city, as well as with the entire Russia, and we seek fruitful partnership."

Olli Lipponen,
Regional Director for St.Petersburg:
"WE WANT TO BUILD A CIRCULAR ROAD"

        In many regions of Russia the Lemminkainen concern specialists in road building and in construction materials production have literally left a good sign. They are given high praise in Moscow, Saratov, Samara and, certainly, in St.Petersburg, where, thanks to their efforts, many roads have acquired new and durable "garments".
        "Road building", says Olli Lipponen, 'is a large part of our firm's activities. For a number of years we have been cooperating with organizations in different regions of the Russian Federation. We have especially close contacts with the North-West of Russia. For example, we took part in the renovation of the Petrovsky stadium in St.Petersburg for the Goodwill Games and in the reconstruction of a number of roads, including the reconstruction of the Vaalemaa-St.Petersburg section of the E-18 international highway.
        In Olli Lipponen's opinion, the experience of the past years may be and must be used on the construction sites of the XXI century. Above all, he means the Circular Highway, which he considers the construction site of the century. His firm is going to take part in the tender for the construction of a very significant stage in the Scandinavia Trans-European autobahn, which is of great interest for Finland.
"We want to build the circular road", says Olli Lipponen.
        The Finnish firm has great expectations in connection with this project. Olli Lipponen is excited about the scale of construction. He says the road will be a six-line high-speed artery with dozens of junctions and bridges over the highway and the railways. It is planned to build 18 small and 13 big bridges, 55 viaducts and 18 piers.

Interview by Frol Andreev

The neighbors

We Have Come to Stay

Olavi Suomalainen,
Managing Director, Neste St. Petersburg

        We have invested about 200 million dollars into the city and its region's economy. We built 22 petrol stations and recently opened an oil terminal in Lomonosov. Our main purpose is the retail and wholesale of high-quality fuel for cars. More than 330 people work at our three diesel and 19 petrol stations.
        Up to 1998 our company was systematically developing but after the August crisis the situation worsened. Even high-quality goods are not bought if their prices are suddenly increased. Nevertheless we found a way out and completely avoided layoffs. We minimized our production expenses, reduced our sponsor expenses, and, what is most important, we began to use Russian oil products. Today they make up about 60 percent of our company's total sales volume.
        This does not mean that the quality of our products has decreased. Our company is widely known both in Finland and St. Petersburg for its high-quality products and service. We are proud of our recent victory at the competition held in Finland by the popular World of Technology magazine.
        As to our plans for the future, we hope that no more financial crises will occur. Such crises are very harmful for your city and the foreign companies working in it. But Neste's activities in St. Petersburg will not be stopped even in case of acts of God. We have come to the Russian oil market and plan to stay. That means we must constantly develop, regardless of the difficulties.

Interview by Aleksandr Belikov

The neighbors

"Think Total Time!" is the Company's Motto


Mr. Arttu Seppyanen,
the first vice-president of
Skanska East Europe Oy

        The Skanska trademark is widely known in many countries. It has deservedly become a symbol of professionalism in building. This concern's thousands of clients and partners also include St. Petersburg and other Russian cities. In Russia the Scandinavian builders have proved their company's motto "3T", which stands for "Think Total Time!" This phrase illustrates the company's strategy. The company is a prosperous leader in world building. It is oriented towards the thorough realization of its clients' orders. Skanska's clients from Petersburg and Leningrad region fully agree with this evaluation.
        Mr. Arttu Seppyanen is the first vice-president of Skanska East Europe Oy, a Finnish branch of Skanska. He is also the director of the company's St. Petersburg branch.
        - Please tell us how the concern came to Russia, in particular to its Northern capital?
        - In 1902, 15 years after its foundation, Skanska, a Swedish building company, spread its international activities to St. Petersburg, the then Russia's capital. In Vasilyevsky Island's Kozhevennaya Line Skanska constructed its own plants producing the cement and concrete construction elements that corresponded to the latest scientific and technical achievements and were used, in particular, for the construction of St. Petersburg's water supply lines in Nevsky prospect and for the reconstruction of the Taurida Palace's cupola. The company's other numerous plans were interrupted in 1917 when Skanska had to stop working in the Russian market.
        More than half a century later, in 1976, Skanska returned to the banks of the Neva. In Vasilyevsky Island it built Hotel Pribaltiiskaya which was the largest and most comfortable Petersburg hotel at that time. Skanska also built some other objects in Russia. But it was not until the spring of 1994 that Skanska's Finnish branch came to Petersburg to stay.
        - What objects have lately been built by the company in Petersburg and Russia's Northwest?
        - In Petersburg the company built Skanska House on 8th Sovietskaya Street, the House of Sweden on Malaya Koniushennaya Street, the Gillette plant that produces razor blades, the Rothmans cigarette plant, the operating department of the Chupa-Chups caramel plant, the Zolotaya Kazanskaya Residential and Office Center, and several other buildings. In Leningrad region Skanska built several contractual high-quality objects. These include Buslovskaya railway station on the Finnish border and the Philip Morris cigarette plant. Our company's consulting work and numerous meetings with businesspeople, investors, and customers, prove that our company is popular both in Petersburg and Russia's Northwest. It is not for me to evaluate our company's work; that is for our Russian colleagues to do. However, I think that it is our company's reliability, strict observance of agreed upon time limits, and our staff's professionalism that attracts them. Our company's advanced approach to all problems and its ability to choose experienced and reliable associate contractors able to provide a "3T" level of work, are also points that keep drawing new clients to us.

        Today Skanska is taking part in the creation of the Ice Palace, a prestigious modern sports complex in St. Petersburg's Nevsky district. In March 2000 this Palace will house the world hockey championship.
        As Mr. Seppyanen avoided speaking about his company's participation in this project, we asked Sergey Izotov, director general of the Ice Palace joint stock company, to tell us about Skanska's role in its construction:
        - Early in 1999 Skanska won a tender for our project. Our necessary limitation was that a company may win this tender if during the last five years it has built some large object comparable with the Ice Palace. Our special commission chose this Finnish company out of numerous applicants. This choice was the right one and I am very indebted and grateful to our partners. As a prime contractor, the Finnish company is occupied with organizational, financial, and contractual activities. It has enlisted approximately 14 subcontractors who are carrying out the installation, construction, and finishing operations. This object is unique and so it requires application of special methods and the quality of work that the Finnish professionals know how to provide.
        Sergey Izotov stressed that their common goal was to maintain the highest level of building quality, something that corresponds to the "3T" motto: "Think Total Time!"

Interview by Lev Frolov

The neighbors

DIALOGUE WITH AN OPTIMIST:
"A PLACE WHERE YOU FEEL AT EASE",

- Nataly Grigorieva thinks

        Nataly Grigorieva of the Department for Foreign Economic Collaboration, knows Finland well and greatly admires Russia's northern neighbor.
        - You have cooperated with Finland at the intergovernmental level for a long time. Please tell us about the nature of your work.
         - Certainly. Russian-Finnish relations are regulated by special acts. The agreement of regional cooperation is among the basic documents. Russia never signed such agreements before. This document was signed in 1992, when it was necessary to establish new links after the destruction of the former clearing relations. This agreement is still very important, particularly as it includes practically all economic fields, from environmental protection and telecommunications to the development of regional self-administration.
        - Is it the only important document?
        - No, there are many other agreements and protocols. Among them there are the documents for consolidation of relations between our cities, for example between St. Petersburg and Mikkele, Lappenranta, Imatra, Tampere, and the sister-city of Turku. Such contacts are very important because they provide an opportunity to get to know the life of both countries much better. Many people remember the Finnish Festival held last summer in Palace Square. This year the Days of St. Petersburg will take place in Helsinki. Besides, the Finnish-Russian Chamber of Commerce actively works in our city, and there is also a group of Finnish advisers including representatives of influential Finnish business circles who work together with the St. Petersburg administration to promote a favorable investment climate and economic collaboration.