THE recent thawing of East-West relations has resulted in a massive
spin-off for a Scots company with the news that it has secured a #25m
contract to revamp one of Russia's largest hotels.
The Trade Advisory Service, based in Glasgow, has been selected ahead
of stiff worldwide competition to refurbish one of Moscow's leading
hotels, the 10,000-bed Izmailovo.
Yesterday, the company, which specialises in establishing trade links
with the CIS, urged other Scottish companies to explore the wealth of
business opportunities opening up in the once forbidden lands.
Mr Joe O'Neill, executive director of TAS, said it was vital that
Scottish firms recognised the long-term potential of the Russian
marketplace and quickly established a foothold there.
He warned that German, Italian and Japanese companies were already
moving in to build up a presence with a view to securing lucrative deals
once the Russian economy had stabilised itself.
''It is imperative that Scottish companies move in now to establish a
niche and make crucial long-term contacts before it is too late,'' Mr
O'Neill, formerly a senior lecturer in applied economics in Glasgow,
explained.
''Make no mistake the trade opportunities which will shortly arise in
Russia will be enormous and it would be extremely short-sighted of
Scottish companies to miss out.
''That is why I would urge Scottish businessmen to look to the East
now as the eventual business spin-off will be considerable in the long
term. Despite its current economic problems, Russia offers outstanding
potential in the future, although the groundwork must be done now,'' he
added.
Established nearly six years ago, the Trade Advisory Service is
certainly showing the way in lining up the Izmailovo Hotel deal, work on
which will begin shortly.
A 50-strong team of Scots tradesmen will be deployed to carry out the
refurbishment programme with nearly 98% of the goods used in the
contract also coming from Scottish companies.
The success follows on from TAS being invited to take part in an
international hotel exhibition staged in Russia. The decision to offer
four-star accommodation, the likes of which had never been seen before
in the East, captured the imagination of the Russians.
Ms Anna Dyer, an executive director of TAS, said: ''The Russians were
absolutely astounded when they viewed our stand and, in fact, we won the
best stand award at the exhibition.
''They recognised that we were offering them something outwith their
conception, and this is what they are now looking for. They want and,
indeed, need western standards if they are to compete successfully with
the west,'' she added.
Next week, a Russian delegation will arrive in Glasgow in an attempt
to encourage further business links and discuss the growing trade
opportunities arising within its free market economy.
The party will involve senior representatives from two Russian cities,
Samara and Ekaterinburg, who have secured the services of TAS to train
personnel in their respective business development centres.
The move follows on from the success of the Scots company in building
up a similar venture in Moscow. Until recently, both Samara and
Ekaterinburg were restricted areas to westerners because of they housed
sensitive military factories.
Now, however, the Russians are keen that the expertise of the
engineers, once employed within the military sector, are put to proper
use to earn badly-needed hard currency.
Ms Dyer continued: ''The expertise is enormous and the factories
extremely modern by Russian standards. The strategy is that companies in
the west, especially Scottish, establish links and contract them to
provide components and the likes.
''In return, any monies gained by the Russians would be used to buy
Scottish goods, which would help secure jobs here. The plan is
relatively straightforward but it needs Scottish companies to show
interest before these opportunities are snapped up by other foreign
competition.''
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