Russia has long been attractive as a strong market for foreign manufacturers. Another attempt to enter the market was made by Peruvian businessmen.
"A couple of years ago, several jewelry companies from Peru attempted to enter the Russian market, and visited the JUNWEX Exhibition in Moscow," Angel Ramon Solanilla, President of ARIN SA says. "Russian hospitality and interest from potential partners - it was more than tempting. But when the question of cooperation came up to its most important stage, it turned out that financially it was absolutely unviable. Customs duties in Russia were taking 40% of the cost, and this figure did not fit in our budget in any possible way."
So, the desire of foreign visitors to work on the Russian market melted even before their departure from Moscow.
"Visiting international exhibitions, such as the JSK, Hong Kong, Feninjer, we feel a strong interest from buyers, and taxes are not as high, which allows us to work and grow in those markets," Angel Solanilla continues.
"A few years ago, the brother of the President of Peru was in Russia, and there he met a Russian beauty, whom he later married. After such an event, which has political connotation, a lot of efforts were made to tie a strong relationship with Russia both in terms of business and in terms of a simple rapprochement. Russian women, as we thought, appeared to be the kind of connoisseurs who loved expensive bulky items, which were produced by Latin American craftsmen. Russian female buyers are more bent on jewelry goods bearing world renowned trademarks."
"Peru is known to all as a gold producing country, and it is here where Yanacocha, the well-known large gold mine is located. People mine gold here from time immemorial. Peru is also a leading world producer of silver. There are many different fields of precious stones as well," Angel Solanilla says.
"The Peruvian government has always been concerned about gold miners. For example, new companies were given a two year lift from taxes. Currently, the mining sector in Peru employs about 600,000 people. Moreover, small savings banks (cajas de ahorro) also made a step to meet the needs of small miners, giving them miner loans on good terms sufficient for the development of small projects. The amount of these loans does not exceed $30,000. This financial pattern was borrowed from European banks - such banks first emerged in the late eighteenth century in Germany and England as a means of improving living conditions of the working class. In its turn, the Peruvian government has extended guarantees to protect such banks," Angel Solanilla continues.
"Also, the government of Peru established Prom Perú - Government Institution of Perú, an organization similar to the APEX Agency established by the government of Brazil. Prom Perú helps the most important companies in terms of promotion and exports in various sectors. The Peruvian government opens up great opportunities to domestic companies in the world markets, constantly providing funds to assist them, because with such a support it is easier to establish contacts, taking into account that not everyone knows about the existing opportunities. Peru is not so popular and well-known in the world, and in fact no one knows about the performance capabilities and capacities of Peruvian companies. People know Italy as a country producing fine jewelry, but Peru has enough power to reach the international market," Angel Solanilla concluded.
According to the Gold Committee of Peru, this country produced 164 tons of gold in 2011 and its gold export reached 22% of total national exports. Thus, Peru established itself in the sixth place in the world in gold production, turning out 7.7% of the global gold output.
Veronica Novoselova, Rough&Polished, from Brazil
