June 29, 2000 (11:15 a.m. EDT) No. 167

PETTIGREW WITNESSES OVER $800 MILLION IN DEALS SIGNED

DURING TRADE MISSION TO RUSSIA

International Trade Minister Pierre Pettigrew today witnessed the signing of over $800 million in business deals for Canadian firms at a ceremony in Moscow during the Canada Trade Mission to Russia.

"The deals signed today demonstrate how trade missions are an important part of our efforts to spur trade growth and create jobs in Canada," said Minister Pettigrew. "The networking opportunities this mission provided helped Russia's corporate and political leaders realize the advantages of doing business with Canadian companies."

The deals signed today include contracts valued at $385.1 million, memorandums of understanding worth $157.2 million, letters of intent totalling $37.8 million, and a co-operation agreement valued at $220 million.

Representatives from more than 60 Canadian businesses participated in the mission, which concentrated on Canada's key sectoral interests in Russia, including natural resource development, infrastructure updating, agri-food and a range of professional services, such as communications, engineering and training. It was also the first international trade mission to Russia since the inauguration of President Vladimir Putin's new government.

While in Moscow, Mr. Pettigrew also co-chaired a session of the Canada-Russia Intergovernmental Economic Commission that addressed trade, investment and transfer of technology issues between the two countries.

For more information about the mission, visit the Team Canada Web site.

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A list of business highlights, including deals signed during this mission, is attached.

Backgrounder

BUSINESS HIGHLIGHTS DURING THE

CANADA TRADE MISSION TO RUSSIA

CANDESAL TECHNOLOGIES LTD., Ottawa, Ontario

CANDESAL Technologies Ltd. and Russian partners Malaya Energetika and Rosenergoatom of Moscow are pleased to note their continued development of a floating nuclear desalination system. CANDESAL and Malaya Energetika have also signed a letter of intent to jointly develop and market this floating desalination system, which will provide potable water and electrical power for use in developing countries.

EARTH'S VITAL EXTRACTORS LTD., Calgary, Alberta

Earth's Vital Extractors Ltd. and All Russian Research Institute for Chemical Technology (ARRRIChT) of Moscow have signed a letter of intent where ARRIChT will develop metallurgical processes for the recovery and refinement to pure form of precious metals acquired by Earth's Vital Extractors Ltd. The renewable two-year deal will cover itemized contracts. This multimillion dollar project will create a minimum of 150 mining jobs in the Cranbrook area of British Columbia, with a minimum of 600 associated indirect jobs created in the region.

EMS TECHNOLOGIES INC., Ste-Anne-de-Bellevue, Quebec

EMS Technologies Inc. has signed a contract with Khrunichev State Research and Production Space Centre of Moscow to design and manufacture a communications system for the Russian commercial communications satellite program, known as the Dialog System. The Dialog System involves the design, manufacture and launch in geostationary orbit of three satellites that will provide communications services over Russia, Europe and Asia. The Canadian content value of the contact is worth $15 million to EMS, and will create 60 jobs over the next three years.

INTERNATIONAL INFORMATIZATION ACADEMY, Montreal, Quebec

International Informatization Academy has signed a memorandum of understanding with OSC Salavatnefteorgsintez of Salavat, Bashkortostan Republic to jointly develop oil concessions in Tatarstan Republic. The Canadian content value of the project for International Informatization Academy is worth almost $9 million in the first year, and will be a minimum of $60 million over five years, based on 85 percent ownership of the total value of proven oil reserves of 122 million tonnes. The deal will also create at least 18 jobs in Canada. The United Nations Development Program is an external administrator of the project to guarantee its economic viability.

International Informatization Academy has signed a letter of intent with the Tatarstan Ministry of Health to introduce Canadian health care expertise and standards to reform the health care sector in Tatarstan Republic. International Informatization Academy will also implement and install a computer health network system as a pilot project at the Diagnostic Centre in Kazan, Tatarstan.

International Informatization Academy has signed a letter of intent with OJSC Kazan Synthetic Rubber Factory of Kazan, Tatarstan Republic to introduce and implement Canadian technology and equipment for use in the production of new, ecologically clean petrochemical materials. International Informatization Academy will maintain a 35 percent interest in this joint venture.

International Informatization Academy has signed a contract to create a partnership with the Academy of Informatization of Kazan, Tatarstan Republic. This joint venture will create a long distance Internet-based training centre in Kazan for a number of projects between the Tatarstan Government and various Quebec-based corporations.

International Informatization Academy, on behalf of Renaissance KG Investment Group of Montreal, has signed a letter of intent with OSC Kazan Milk Plant of Kazan, Tatarstan Republic to create a joint venture company to produce and package mineral water and juice. The Canadian content value of the deal is worth at least $825 000 over the first two years.

International Informatization Academy, on behalf of Ural-Quebec Investments Inc. of Montreal, has signed a memorandum of understanding with OSC Stroyindustria and OSC Orglit of Perm, Perm Republic, where Ural-Quebec Investments will provide at least 1600 prefabricated Canadian homes to be assembled, built and sold in Perm Republic over four years. The Canadian content value of the project is worth over $2.2 million.

KNOWLEDGE EXCHANGE INTERNATIONAL CENTRE, Toronto, Ontario

Knowledge Exchange International Centre and Nortel Networks Global Corp. have signed a letter of intent with Moscow Technical University of Telecommunications and Informatics and Network Training Centre of Moscow to jointly create a telecom technologies centre of excellence in Moscow, with a network of regional branches throughout Russia. The centre will provide training in Russia and Canada, as well as information and consulting services to introduce and promote Canadian telecommunications technologies and expertise in the Russian market.

NEWCON INTERNATIONAL LTD., Toronto, Ontario

Newcon International Ltd. and ROMZ of Rostov, Russia have signed a letter of intent to increase further co-operation through technology transfers and the manufacturing of night vision optical devices and other sophisticated optical products. The Canadian content value of the deal is worth $37 million over five years and will create seven jobs at Newcon.

R.A. CHISHOLM, Toronto, Ontario

R.A. Chisholm has signed a framework contract with the city of Moscow's trading arm, Mosprodcontract, to open a trade facility to supply Canadian meat products to Russian distributors through letters of credit.

SNC-LAVALIN, Montreal, Quebec

SNC-Lavalin has signed a co-operation agreement with the Government of Moscow to build a rapid transit system between Sheremetyevo Airport, the Moscow International Business Centre and Moscow city centre. Initial feasibility studies undertaken estimate the value of the first phase of the project for SNC-Lavalin at over $220 million. This phase includes the construction of the section from Leningradsky Terminal to Mezhdunarodnoye schosse in the corridor of the Oktyabrskaya Railway.

SNC-Lavalin has signed a memorandum of understanding with OAO NK LUKOil to design, finance and construct a reformer unit at LUKOil's Volgograd refinery. The reformer will produce high-grade gasoline to meet strong demand in Russia. It is a continuation of the collaboration between the two firms to modernize the Volgograd refinery. The deal is estimated to have a value of between $90 and $100 million for SNC-Lavalin.

SNC-Lavalin has signed an umbrella contract with the Region of Samara, Russia, to provide feasibility studies, engineering, procurement and project management for the Centralnaya Toll Road Project. The initial phase of the project includes the construction of a 13-kilometre section of highway in the City of Samara, and could be worth an estimated $370 million to SNC-Lavalin.

TRIUMF, Vancouver, British Columbia

TRIUMF has signed a five-year contract to develop closer collaboration with the Institute of Nuclear Research in Moscow. The agreement will facilitate exchanges of personnel, studies and experiments in research programs in the field of radioisotope production for medical applications, including Palladium-103 production for prostate cancer therapy; development of other radioactive nuclides for medical applications; and development of new techniques for cancer treatment. The total Canadian content project value is worth up to $500 000 over five years, and will create 10 jobs at TRIUMF.