Expert roundtable in Moscow: Economic growth and sociocultural development go hand in hand in Russia.

Munich / Moscow. Russia is fast developing into one of Europe's largest
and most important markets, and is now the world's third most important
emerging market after China and India. For international corporations
looking to participate in this development, quality, substance and
sustainability are the keys to success. This was an area of unanimous
agreement for the participants of a BMW-initiated roundtable on 9 July
in Moscow, which included representatives from the fields of Russian
politics, economics and culture. They discussed the challenges and
perspectives for companies and brands in a country which, according to
the appraisal of the assembled experts, is going to assume a leading
role in terms of world economics. The new BMW 7 Series had been
presented publicly for the first time the previous night at the Red
Square, based on the theme "Never Stand Still". According to
the discussion panel members, the profound changes have affected all
areas of society. The Russian market is aligning itself ever more
towards Western-style free-market practices and structures, according
to Sergei Afontsev, Chief Specialist from the Institute for
International Relations und World Economic Studies. "We are
essentially living in a new country every two years", he added.
However, the acceptance of essential strategies and processes still
remains a major challenge. Russian President Medvedev recently made it
clear that Russia cannot fully modernise without foreign investment.
The automotive industry will form a central role in this process. This
year Russia is set to overtake Germany as Europe's largest automobile
market. This assessment was the result of a study published on 10 July
2008 by management consultancy firm PricewaterhouseCoopers. Christian
Kremer, President of BMW Russia, pointed out that in terms of the
premium segment, Russia is still under-represented when compared on a
worldwide scale. "This makes us optimistic in relation to further
development." In the first six months of 2008, BMW recorded a
33.4% increase in volume sales over the same period last year.
According to Kremer, it is a stereotype to view Russia purely in terms
of luxury and grandeur. The middle-classes are gaining in significance.
The decision to present the new BMW 7 Series publicly for the first time
in Moscow serves to underline the importance of the market, stressed
Jan-Christiaan Koenders, Head of BMW Brand Communication and Group
Marketing Services. "The fact that we access markets at the right
time is one of our strengths. The decision to unveil our flagship model
here makes it clear that we see the major potential of the Russian
market in the long term." The experts also recognise new
developments in socio-political and cultural areas. Russian architect
Nikolai Lyzlov remarked in this respect: "Public funds are
increasingly being made available to matters of social concern, and
business is displaying a greater level of social orientation." In
his opinion, future orientation and dynamic growth are being combined
with a pronounced awareness of tradition. "This is not a
back-to-the-roots movement, rather an endeavour to maintain
values", he said. The director of the world-renowned Moscow-based
Bolshoi Theatre, Iksanov Anatoliy Gennadievich shares a similar point
of view. "The Bolshoi Theatre is currently undergoing a process of
comprehensive modernisation, and this in itself is a reflection of
positive change, as a new generation of visitors are experiencing
". Sergei Afontsev from the Institute of International Relations
and World Economic Studies emphasised that international companies
operating in Russia have a huge influence on public attitudes. "If
international corporations start establishing social projects here
(Corporate Social Responsibility), this will serve as an excellent
example to Russian firms in creating even more environmental awareness
in Russia." BMW brand boss Koenders considers public sensitivity
to ecological aspects to be proof that Russia is undergoing a process
of profound change. "Ecological matters are also a huge topic
here. This is a further example of the dynamics in this market and
society as a whole." Innovative technologies such as BMW
EfficientDynamics serve to increase awareness of environmental matters,
added Christian Kremer, President of BMW Russia. The panel members
concluded the discussion - which was hosted by presenter Horst
Kläuser, longstanding German television correspondent for Moscow -
with a positive prognosis for the world's largest territorial state.
BMW brand boss Koenders summarised his assessment of future development
as follows: "In five years' time we will be saying New York,
Shanghai, London, Moscow." In case of queries, please contact:
BMW Germany Birgit Hiller, Business Communications Tel. +49 89 382
39169 Mail to: Birgit.Hiller@bmw.de Milena Pighi, Corporate
Communications Tel: +49-89-382-66563 Mail to: Milena.PA.Pighi@bmw.de
Internet: www.press.bmwgroup.com