keep. going back to watching r t live from moscow these are the top stories the. catastrophic debt and ballooning bailout budget as other countries join the have second thoughts. about how to stop the crisis happening again major business and political leaders have discussed just that at the international atomic forum wrapping up in st petersburg. syria faces third round of sanctions

a bit more deadly anti-government crackdowns which saw more than a dozen dead and thousands rage nationwide. next we head back to saying that has worked where peter wells and quizzing delegates of the form over boosting the investment mood in russia. hello and welcome to on the money with the business of russia business. today we're broadcasting from the st petersburg international economic forum and we're talking about branding. to discuss branding i'm joined by robert sassing he is senior managing director at u.f.c. private equity also we have. one of the board of the retail chain. and robert me. when they were in st petersburg and i'd like to ask you robert the first question we think of the term branding the country japan technology china

the factory of the world germany decision united states maybe too much financial market you think of russia brain and comes to mind if if that is what one does come to that broadly what i can say about that i live here in russia for a long time and i've watched a lot of changes and improvements happen over the ten to fifteen years i had to describe russia in short i would say it continues to be a country in transition with considerable long term potential that a brand that's the brand in my opinion it is because i'm not sure how last you could describe it because we went from one system in we went from one another brand and so we're in transition to create their own model here in russia i would say it's not going to match the model you'll see in other countries but what i can say it is it has considerable long term potential naturism but long term i think the

vision is there the policy vision is there on behalf of the president in this race and in the government it's just the biggest step is taking this syrian policy and putting it into practice and then means changing the institutions changing the the infrastructure changing the mentality of a lot of the people there me taking a very long time robert trying to use private equity when you look at investors what kind of brand do they see in russia will it be is a plus deficits or a void especially what we've seen recently is a lot of successes in the in the eyeteeth technology i mean take a brand which may be some pussy i say paid with russia but i think it has very strong russian roots which is good but. a great company dubai world anti-viral program exactly like mo recently there's been an i.p.o. and executed right. and right that we are actually in a better life in india and that. there are a lot of very very bright russians a lot of people who have very good computer skills software development skills and

i think about is becoming a brand with russia you know you are you actually growing a chain electronic. goods chain how hard is it in russia today two thousand and eleven to create a lasting viable valuable brand. i think that you can create as a brand in a day you know because the station changed so quickly even in our segment of electronics after almost léontine year so if you will of all existing chains know we just. make changes in the industry because in course of internet because of the change of the customer him a source of people and people will want to fly and for some some tells them they want to buy and for us right here support them years ago. we're going to hold russia as this really unique solution especially in the new deal if you go where was used in europe going to go three in. one as a company which is the existence of really strong national brands you know using

local brands we will call birds in all signals so for repeal all the. national brands he's used or in some blue needs a little boy it's going to make me here to here you're striving to be the biggest in the best in your field have you learned certain branding cake meek's from western maybe a western competitors or western peers i mean how do you when you look at your consumer how do you match brand and your consumer do you look at certain specific local issues that you can play upon or do you look outside and say hey well you know in britain they did this or in argentina they did that i mean is it a combination how do you do it for instance always it's always trust it means a. really got going to stereotypically edition will be no. use it just in your books. will the child in your stories. those who that excites all these things the

child the really beautifully. is it on the principle be at two different tables let's literally. dinner which should be the way. you can wish. for any twenty people that really read you to please bring them because you get a lot of international competition because they're difficult to on the film the quality of the of the title but if you buy some. stuff like that. you can feel the call if you feel you feel and people really get to see. it through the way that are almost more strong brands in producing this interesting and we never go back to robert here i mean before the program we we were both discussing i mean if we look at an international audience international customers. i can only think of one international russian brand and i'm sorry it's twenty years after the end of the soviet union and that's kalashnikovs ok i can think maybe gentlemen can help me out here but i can't think of another brand here that's

a real deficit here but this is also an opportunity i think it's a considerable opportunity because as michael with saying there probably are some very good brands that are known here in russia and i know that there are some russian consumers that would really love big by the russian brands instead of the foreign brands so they're just waiting for someone to please do something with them or improve them. russia has considerable potential because they can take the best practices from around the world they can apply them here in freight brands and really export them out i mean they have really. limited what they can do it's right open and i'm sure in the world i mean sure there's somebody in some other brands that are being exported now but there's a whole broad range of literature going into it whatever that also is a i won't name the brand but i like my boutique wristwatches ok and i came across the russian brain only machine and it's actually explicit maybe a little god. ok a little bit too much this is the right idea say ok well this isn't good i should have worn my russian one but my point is that technologically speaking it's need to

be are if you can go up against any swiss brand but it's a third of the price you can afford the price well what it will what does that manufacturer have to do i'd like to point out their presentation that was the box where they sold it was awful ok wasn't attractive ok but the product itself was how do they get around that is it just investing enormous amount of money or just to repeat what everyone else has done but i think it's a process that i mean it's going to take time in any case it's only been you know twenty odd years older somebody here when what russian quality it was was not something that was was really considered to be good i mean i mean from a to consumer you can see a great races in watches but things are changing i mean we're seeing we're seeing russian russian brands which are now b. b. b. being pushed forward to the west end and the association of russia we have even western brands is very personal take chelsea football club i mean russia has done

a lot for me and individual certainly have done a lot for russia and hope of british football and that's fantastic so you know there are certain things where you can definitely see there's been a lot of progress in pushing a russian association we are going to do you mean russian brands have to be better than the best to be equal i just gave the example of a wristwatch manufacturer i mean what do you have to do to get the eye of a consumer because they're so there's so many brands out there that people identify with i mean i'm holding a painting here again i won't name it here but i mean this is one of the nicer ones but most of them are just pure plastic and they still cost a lot of money ok you're buying the brand how hard it is is it for you in russian companies to really meet that challenge. group to bring the city a challenge especially if you are just exhibiting those away. easily in. to win this money it was also the people he feels normal to miss money. you

almost believes about zone put in some week if you want to bret's you know good news of people scenes of the really big brands people. do you think it'll be no one could remove has a sense of those people as friends it's it's like it was before you know one little bit a little nobody was going to be pretty lousy since those of the old would see business they still have a hammer and sickle i'd like to point out is their logo which again you know their place to a local consumer here because ideas are branded is considered of value though it may be ambiguous to a foreign. consumer and i can tell you what is so i think it's an interesting story that they kept that that mark the hammer and sickle and they kept it in after the soviet union because it's so well known among russian citizens you know but i think that makes our brand x. really changed and you know we're very sad because before when you try to verify

what you know i started to follow on from people who are iraq's borders or something like that and now you have we made the international flights on our flight are great there are services for a good ferry international standard and they have a lot of direct flights of places that are very very low it wherever you are there are old brands think they can actually be made international i think the first company that ever listed global on a local stock exchange was bolshevik biscuits have now ok i mean well known in russia but that's a hard it's a hard sell i was trying to push as you've ever seen several i.p.o.'s companies which have you know associations very close associations with russian names and and . it is a bit off that is a very hard sell but i think that when people actually get into these companies and the quality of management look at the fundamentals driving the company forwards and the market they have in. russia i am now concedes that intrigues found outside of russia you know we've seen quite a few successes you know it's really interesting across our culture of beer for

confectionery again if you translate it into english red october it still does not have an appeal to outside discover the borders of this country which i can attest via their product is excellent ok it is competitive but you know i mean they are there can you think of any brands outside of kalashnikov which is a real negative one mostly because of any other brand that can be sold outside of russia's borders using its name no. we will name we named our hero far that's probably the most prevalent they will spread believe probably of what car you see in la a t. in the software if you ever use such a school if you are in love it will store i think girl must pump a whole program speech of her in large enough. problem the problem company sourcing stupidity and some people's will. so you can use a mini or a little monkey jumping here we're going to go to

a short break and after that short break we'll return discuss russia's branding state charges. is. just. east is just it's just.

to a substantial degree and one time or another socialism has spread the shadow of human regimentation over most of the nations of the earth and the shadow is an approaching. to leave early twenty first century military bases a network of military bases all around the former sleep empire that the united states is trying to get it's astonishing most americans have no idea there are more than a quarter of a million or more than two hundred fifty thousand u.s. troops stationed on these bases all around us. we don't have foreign bases of america we don't have any british base we don't have any korean base we don't have any french bases or you know we just all american bases in bases or fly or the noise is our north who doesn't bother us at all because they're our bases but

for other people it's almost like a cancer here from speedo since the end of world war two the space is so big. we're here to provide a safe and secure environment for everybody. the questions the appeals to get everything you need to. welcome back to on the money i'm peter lavelle in this episode we're discussing branding ok robert i want to go to you we've heard a lot of good things about brining in the first part of the program but i always tried to pour a little bit of cold water on things is really branding all that important when so many people in this country because there's a huge income difference here is branding so important only just for a small small percentage of the population is it just for aspirational people and i

think many. things are really quite pleased with russian products that i mean depends what we're talking about and the aspirations i mean they want something of good quality that's affordable and there's a lot of historical and traditional aspects to some of the brands that have been around for a long time you like to reminisce about it remember the old days this wine this. will be whatever so i think. some of the people are never going to reach a point where they can expire to the most expensive brands but for them it's not particularly driver today i think it's very interesting of a bedroom in moscow they have. a store gastineau and ten years ago even five years ago i would say that no one no one of whom would never have dared and i just went to our viewers a huge huge apartment store dared to put a soviet almost replica and now you go there it's very very popular robert for the same reasons that you mentioned brands that you grew up with it reminds me of something very much when i lived in poland before i came to russia was there was

a me post to we all went movement among some producers to say look you had all of the wonderful western goods the serials the soaps the paintings were just in the clothes but we had some good stuff here i do see that trend there really picking up some steam here because a drink that almost disappeared here in the kind of an equivalent of coca-cola or some kind of coal in the west came back i guess it's just a game i don't know but i'm seeing it more sophisticated russian buyers are actually actually beginning to understand the value of some of the older better russian brands to keep getting into products and drinks in type to be involved definitely had been paying back the prices whether these brands can then be marketed outside of russia and the fact that so now they're not only been a market in the military you know i mean this could be a tell point in your russian soul in answer to question here i mean russia's reputation is problematic in many parts of the world because of the soviet power.

even in some cases even before that i mean how how do those russia in russian companies get over that i mean it's history i mean this is a market economy people are very very savvy here they certainly have the abilities and knowledge in now even money here really is is that kind of all the brand of russia is i could be still a major barrier for companies that want to go beyond the borders to sell to consumers because it is a globalized economy and to be a global winner you have to go global. you can create brand smally if you will be useful as a strong. side in each legion of. missional share of those if you look at the world russia it's good if you play the you know everybody in all of russian live in the asian will. was supposed program. if you see on a national brands of exist. the brands in. the

people because you don't. see as a high quality even the growth even the muslim companies each other in the bowl. like they do it also russian are stupid and it's a stupid law and you always need to be. used for all those gold you michel felicia if you go strong image of it ok with you again you know i'm going to pour a little bit of cold water on this here unlikely name the companies because i don't want to promote them and i don't want them to get angry with me at the same time vision energy companies in russia they when there is a dispute with a neighboring country. i don't see that they put a whole lot of effort into p.r. and creating a brand you know what authoritative responsible corporate citizen i mean. when you get too big and too powerful this it isn't a risk of being lazy and saying it doesn't matter because we're here and people have to deal with this me is that you think that any. the case and just how

dangerous is it because it is dangerous i'd say so you're speaking more on russia russia is the brand as opposed south consumer product because i consumer products i think it will take extreme a long time to have something very competitive in the world and mention the large energy companies they are directly associated with the russian state using some gas they're owned by the russians but in that respect. it's true and it's very important because in russia it's a little bit different where you see the fine line between business and politics it's much finer in russia than it is in many other countries and you still have a lot of these companies that are speed owned or there's a high level of state participation so again on this transition i was talking about once we get to the point where there's more privatization when there's more institutions that are set up that are really better rule of law and the conditions that are good for foreign investors then i think you'll start to see bit of a change in the mentality and basically how russia presents itself overseas.

when you think about how do you think oh i like a lot i mean small and medium companies have to go out of their way to make a good impression but let's go beyond the wife and i my sims i just sit on the board of one of the large state shipping companies in russia that non-executive independent director and i was brought on along with several other. independent directors to try and help help me with dealing with corporate governance issues and steve always the image of the company and him out of markets and we're trying very hard to to improve a business you know what's the biggest barrier what's the biggest challenge you face from doing well i think the biggest challenges is that has been one of mentality at least to change but again it's a question time and i do see a generational shift i think it will take us in that i mean i think it's you know i think it's going to be a couple of years but generally but i think of it still a ten fifteen years you know loves a lot of progress and i think that's going to continue you know it will always go back to this year and i in western media. russian companies often get

a bad rap certainly the russian state. how can the russian business in your opinion being a businessman yourself help improve the image of russia as a brand on the international stage because you know when a lot of critics and the west still look at banks or look at oil companies you know it's these evil institutions and things i got as we've already pointed out on this program here there's not that much of people make that kind of differentiation what does business have to do to disassociate itself with government institutions and politicians even. usually when people see the bowl as a company owned company made sure it's a brand these trades is legally expedients if you come in or earlier in france look it was the french people or. you have. experience on some you and something brushing from the species or if you buy all the little babies just say. i

don't like japan this technique or. you'll. like it. as far as the color choices i had them suppose a little jerk but. it seems that only with our shotgun it is very strong it's possible to be more but. really. it's not that there was a god it's a matter of business as was weakly that is strong business oriented war purists for people who come in the shot guns but here. these weeks spent money will be off the books on people's use in russia and the schools. will do you not only consumables maybe it will be in order bill bills maybe it will be. it will be . know what steve says you know like you see kalashnikov what a national. oh he was cool you could call this program beyond kalashnikov here

let's talk about this forum that we're out here at home valuable as this forum in st petersburg because it's really a mess and so a lot of people come here in columbus a lot of what i read in western media about media that about what interest it is in russia i mean there's this community and there are so many civilians in this complex here and it's hard to keep track of who's here and you can't meet everyone obviously i mean you are forums like this worthwhile and why do you guys come to. i think he said to be on this program what are you going to pick up by this storm in particular has improved dramatically i would say six seven years ago was a completely different four and i think once the government of president said look this is going to be our forum and they showed a real commitment it's a great opportunity for networking it's it's quite incredible incredible you won't find a better forum i think than this to meet anyone who's either a senior in government or senior and business so for with respect to the dialogue

the ability to meet people face to face exchange ideas i think it's really quite good in syria transparency it's really kind of for open access i mean you don't have. pretty much you walking by you can be where there is the president the minister the head of severus all whoever it might be and it's the access is really quite impressive we think over about why i'm sure i do because there's quite a few of them but this is seems to be one of the issues it was just i mean i should give you some piece by seventeen years so i mean here it is you know right now it's anyway but i i found that it's going to look better but over the past years and suddenly he did leave the organizers of trying very hard to maintain its national form not only focusing on russia but on these national issues and that he was very proud of them and to try to write high quality people from business obviously people coming into this into what the president's going to say. and that's a super important as well but there's no need to say this one is more business driven than politics than policy i think that yeah i definitely would have probably explains the attraction to the home why did you come to this when you can do this

for. or to this forum here the st petersburg. show you can surely you should it feels a complaint. always i don't like to spend too much male poses for him because he. usually is a little. useless usually useless you just spend plenty of little to get him to see everybody but this one especially the last years is suddenly. with everybody. you have a chance to meet louise so we will most difficult to meet you you can become people who commute and. homes in the city d.c. you can see people with whom you can swim appealed to me. you can also hear some really interesting new soil for all those bells. will move you the last word here what would you like to see change in russia over the next five years when it comes to brand. bring for the country. i don't see

a really driven by business where it's less given by politics less driven by government but actually business setting the course setting the pace and then you'll get a feel for that this country really has made the transition and it operates functions like any other you know driving is different than any other place in the world that regimen would run out of time i want to thank all my guests here in the studio when i think our viewers for watching us here on the money see you next time in state charges.

all. they faced this is not a provocation but war and. the forces of the shittiest steppers are you sure it's a pretty trish because they have no idea about the hardships that we would face. by one of the says it is open to new things for any army the life of a usaf is the most precious thing in the world. is of self-sacrifice and her.