Palms & Company Document

Ukrainian Venture Capital Company of America

by

Dr. Pyotr Johannevich van de Waal-Palms

Update to "BISNIS Sources of Finance for Trade and Investment in the NIS requested by United States Department of Commerce - BISNIS Information Service for the Newly Independent States

Russian Venture Capital Company of America

Managed by Palms & Company, Inc, Investment Bankers, this fund will co-invest as passive investors alongside strong Western operating companies and other funds. The fund may invest on Western operating companies to enable them to meet "matching-funds" co-investment requirements of DNA, EBRD, USTDA, World Bank, and other government agencies and institutional investors.

Region: NIS

Investment Type: Debt and Equity, Counter-trade & Barter Finance, Currency Trading, Social Service Self Help Financing. Commercial & Government Debt Refinancing, Debt for Equity Swaps, Debt for Humanitarian Aid Swaps, Export Finance, Defense Conversion, Bank Reorganization.

Contacts:

EMAIL (INTERNET)

ARMENIA:

Yerevan, Cheeboukhchian Anatoli <anatole@bcc.arminco.com>

BELARUS:

Minsk, Klugun, Vadim N. <root@iiep.minsk.by>

ESTONIA:

<reinberg@rubiin.physic.ut.ee>

GEORGIA:

Gocha, Tskitishvili <paata@gsrc.kheta.georgia.su>

LATVIA:

Richter, Andrey arichter@glas.apc.org

LITHUANIA:

For further information contact
in Lithuania
Електроника Почта
Грегори Колесников
Тел: 3702 71-11-34
Факс: 3702 77-68-31

MOLDOVA:

Kishinev <latiy@kompass,moldova.su>

Kirov, Semakov, Alexander B <rareinc@glas.apc.org>

Krasnoyarsk Kim Serge, Larissa Malinova, <root@root.afon.krasnoyarsk.su> Murmansk <rho@vesta,teldata.se> , <jiji@kassi.murmansk.su>

Moscow, <sim@idacen.msk.su> , <sirus@savam.com>, <root@norma-press.msk.su> Novosibirsk <info@inka.com>, <at@kassi.nsu.nsk.su>

Yakuti, Alexandr, Lushkin <al@hq.infonet.yakutia.su>

TURKMENISTAN:

Ashkabad, Aranbaev Andrei <catena@glas.apc.org> UKRAINA:

Cerkassey <dave@caaa.freenet.kiev.ua>, <caaa@sovam.com> Kiev <vladimir%unibank.gan.kiev.ua@gan.freenet.kiev.ua Dnepropetrovsk <arkadiy@fiesta.alkar.dnepropetrovsk.ua> Kharkov <victor@vbinf.kharkov.su

Crimea Kostrov, Sergey <root@cdubank.crimea.ua>

UZBEKISTAN:

Tashkent, Bisnis Tsentr Gazety Chebakova Galina A <info@inka.tashkent.su>

Street Addresses, telephone and fax:

Tel 1-425-828-6774 & 1-425-827-5528

PREVIOUS PORTFOLIO INVESTMENT AND SYNDICATIONS OF CAPITAL

Protection and Filing of Intelectual Property Rights Defense Industry Business ClUB

Food processing, packaging and storage

Dr. Pyotr Johannevich van de Waal-Palms, Sovetnik Pravitelstva CWA, Tovarichestvo Palmsa, Inc. Investment Bankers. Washington, USA World Wide Web home pages - Palms Portal to Russia (50Mb)

http://www.aa.net/~mwm/palm/palnode.html or ftp.eskimo.com:/usr/ftp/palbank

Description

Typical cases of Russian defense conversion investments by American multi-national corporations

DEFENSE CONVERSION INVESTMENTS

• Allied Signal (Bendix King Air Transport Avionics Division joint venture with Scientific Research Institute of Aviation Equipment (NIIAO) of Zhukovsky, Russia. Will provide avionics to the Russian commercial air transport market. Allied Signal will outfit the Tu-304 regional airliner (Tupolov) and the Yak-112 and Yak-42M (Yakoloev) with integrated Bendix King cockpit avionics.
• Allied Signal joint venture with Rubin, Russia's largest supplier of wheels and brakes to design, develop and manufacture carbon brake systems for commercial aircraft being built in Russia. The joint venture will supply systems to Ilyushin for the Il-96 and to Tupolov for the Tu-204.
• Kearfott Guidance & Navigation Corp., a subsidiary of Astronautics Corporation of America joint venture in St. Petersburg known as "AKE". Kearfott provides a wide range of equipment for various programs including Space Shuttle, Voyager, Magellan, B-1, B-2, F-14, F-16.

Elektriavtomatika, a Russian aerospace design bureau, designs avionics and flight management systems for Russian commercial and military aircraft (MiG-31, MiG-29, MiG-21, Su-27, Il-96, Tu-334. and Tu-204. It also builds display systems for the Buran Space Shuttle and power units for satellites.

AKE has won several contracts to supply avionics to Tu-334 ( a 100 passenger commercial airliner built by Tupolov) and for the Tu-204 ( similar to the Boeing 757 and Airbus 320 aircraft) Another project will provide throttle sensors to provide inputs to control the engines powering the Tu-204 airliner. A contract to supply an airport air traffic control holographic transparent window display system for Moscow airport .

• ITG, a California based agricultural equipment manufacturer/ First of may Machine Building Factory (Pervomayskiy Mashzavod -PMZ) Kirov ( now produces railroad cranes). will manufacture components for agricultural machines
• Analytic Services Inc. (ANSER) to receive background information from TsAGI on wind tunnels, flight simulators, engine testing facilities, components and materials.
• Astronautics Corporation of America, manufacturer of navigation and flight instruments, displays and communication equipment, joint venture with Russian electronics company Elektroavtomatika called AKE Astronautics Kearfott Elektroavtomaktika
• ATASCO U.S.. SALES AND LEASING COMPANY JOINT VENTURE WITH AEROFLOT ST. PETERSBURG TO FORM A STARTUP RUSSIAN AIRLINE ASA.
• Rockwell opened a Science Center in Moscow to conduct research in association with a number of Russian research institutes and production enterprises to develop avionics integration software for the new Ilyushin Il-96M commercial jet liner for which Collins will supply the entire avionics configuration. Rockwell Collins has provided the integrated avionics for the Il-96M wide body jet with Pratt & Whitney Engines.. Collins Commercial Avionics has been awarded a contract by Bravia to supply communications and navigation equipment for the TU-204 airliner.
• Rockwell Space Systems Division in a joint development with NPO Energies, is developing the docking hardware for the ten docking missions planned for the Russian Mir Space Station and the U.S. Space Shuttle.
• Rockwell Automotive Division is working with KaMAZ (a heavy truck producer) and with AvtoVaz ( an automobile producer in Togliatti) to provide components for the vehicles produced by these companies. The Allen-Bradley Division is participating in the modernization and conversion of Russian industry by supplying automation and control equipment and systems for a wide range of industries.
• Litton Industries (U.S.) is providing inertial navigation systems to Aeroflot Airlines and has been selected to provide equipment for the new Il-96-M and the Tupolev Bravia Tu-204-222 transport aircraft. Litton is also negotiating with the Russian authorities to provide air traffic control communications equipment for airports.
• Lockheed- Khrunichev - Energiya Inc (LKEI) a joint venture between Lockheed, a U.S. Corporation and two Russian aerospace companies to provide launch services and help market the Proton launch vehicle ( which Khrunichev manufactures) to the West.
• Pratt & Whitney/Ilyushin Il-96 Pratt & Whitney and other U.S. Suppliers have provided the Russian firm Ilyushin with equipment and technical support to manufacture a prototype Il-96M long range, wide body aircraft which is now being flight tested. Full scale production of this aircraft and a cargo version-both of which will receive Russian and U.S. FAA certification is scheduled to commence in early 1996. The value of Pratt & Whitney engines and other U.S. content items used in each aircraft will range between $40-$45 million. Ilyushin currently holds Letters of Intent for 30 aircraft. Current market estimates through the year 2005 represent potential export sales for U.S. suppliers of $10 billion.
• PRATT & WHITNEY IS PROVIDING PW2337 ENGINES FOR THE IL-96M FOUR ENGINE WIDE BODY JET. IT HAS ESTABLISHED AN AGREEMENT WITH RUSSIAN ROCKET ENGINE MANUFACTURER NPO ENERGOMASH TO MARKET THEIR RD-170, RD-701 AND RD-180 ENGINE. Pratt & Whitney Canada has formed a joint venture with Klimov Corp to develop and manufacture small gas turbine engines for civil applications in Russia and NIS.
• Pratt & Whitney has invested $150 million dollars to create joint ventures with two Russian companies- Perm Motors and Aviadvigatel- to make aircraft engines.
• Hamilton Standard (U.S.) has signed long term collaboration agreement with the Nauka Scientific and Production Enterprise, a large manufacturer of aircraft environmental control systems in Russia to create a joint stock company in Moscow. The company will design and build these systems for the Tupolev Tu-334 and Tu-204 aircraft.
• Hamilton Standard and Perm Unit Design Bureau have agreed to jointly design and produce aircraft engine control systems for the new PS-90P engine being developed for the Ilyushin Il-96 and the Tupolev Tu-204
• Hamilton Standard has business agreements with Russian enterprises Zvezda- for space suits, portable life supports, ejection seats and pressure suits; Nauka - aircraft and spacecraft environmental and thermal control equipment; and NIIKhimMash - spacecraft regenerable life support systems/life support hardware used on the Mir station for NASA. It is also working on developing a common spacesuit for use during space-walks on upcoming Shuttle to Mir missions.
• Westinghouse Electric Corporation signed agreements in atomic energy, power generation and air traffic management. The agreements with MINATOM, The Russian Ministry for Atomic Energy, entail capitalizing a joint Russian/Westinghouse technology investment to enhance key sectors of Russian infrastructure. The results will be enhanced safety of operating nuclear power plants and incorporating safety technology in the nuclear plants under construction. There will be four partnerships in plant engineering, instrumentation and control, nuclear fuel, and low level waste management. MINATOM operates 23 civilian nuclear power plants in Russia.

The agreement with Unified Electric Power System of Russia (YeES) the giant power generation company with 210 megawatts of installed capacity, will concentrate on power plant efficiency and reducing air emissions. The joint venture will modernize existing turbine generation equipment, re-power old stations with state-of-the-art equipment, and develop new projects. YeES operates 51 power plants and owns stock in Russia's 70 regional utility companies.

• Norden Systems ( part of Westinghouse) and the All-Russian Scientific Research Institute for Radio Equipment (VNIIRA) a Russian Manufacturer of air traffic controls and navigational equipment, formed joint venture "Norden-St.Petersburg" The JV will upgrade airports in Russia, the CIS and Eastern Europe.The JV will qualify Russian manufacturers of air traffic control equipment. The market for air traffic control equipment in Russia, Lithuania, Kazakhstan and CIS is estimated at $10.5 billion dollars.
• The Boeing Company ( U.S. Manufacturer of aircraft), has opened the Boeing Technical Research Center in Moscow for joint development with Russian universities and technical institutes providing employment for Russian scientists. Russia's Interstate Aviation Committee (MAK) has certified the Boeing 737 for ownership and operation by MS airlines. Potential sales exist over the next 12 years for 1,300 aircraft. The independent Russian airline Transero is leasing Boeing 737's and B-757's.
• The Boeing Company has agreed to team up with Russian company NIIKhimMash in order to jointly develop life-support systems, possibly for NASA's international space station.
• The Brooke Group (U.S.) joint venture with Mil Design Bureau to market and produce Brooke helicopters called Mil-Brooks Helicopters Ltd.
• CFM Int'l (General Electric will re-engine 20 Il-80's for Ilyushin Design Bureau.
• Dynair Technologies International is investing in the air cargo center at Pulkovo Airport in St. Petersburg and has been awarded the contract to develop the cargo center and free trade zone by the St. Petersburg Municipal Government.
• Fairchaild AircraFT (U.S.) joint venture NORMVEST a Russian fastener manufacturer Normal Production Association to manufacture quality fasteners for the aerospace industry.
• Gulfstream Aerospace Corporation is working with Saturn/Lyulka to develop business aircraft. It is also partners with Sukhoi Design Bureau to develop Si-21 and Su-51 business aircraft with Rolls-Royce Engines.
• McDonell Douglas Aerospace has established joint research pact with Russian Institute of Space Research (IKI) and Iavochkin Association and Mobile Vehicle Institute for development of moon rover vehicles
• Menasco Aerosystems and Gidromach will jointly manufacture aircraft parts.
• Moroloa Iridium Corp is partnering with Khrunichev and will use Russin proton launchers to help launch a commercial satellite from a Russian site.
• NASA (U.S.) has signed an agreement with NPO Energiya for Sotuz Docking System Evaluation and cooperation in aeronautical sciences with the Russian State Committee for Defense Branches of Industry (GOSKOMBORONPROM) Eight projects include high temperature composites, environmental concerns in aviation, advanced aerospace materials, hyper-sonic technologies, and experimental test facilities.
• Ralph M Parsons Co (U.S.) joint venture Khabarovsk design institute Dalaeroproekt for installation of ATC systems ansd construct a terminal at Khabarovsk airport and a new freight airport at Vanino. The consortium includes AMR Services Corp, Harris Corp. and Hughes Airport Systems.
• Space Commerce Corp.(U.S.) export markets space products for Glavcosmos, Zvezda Research, Development & Production Enterprise, Lavachkin Association and Mashinostroenia Scientific & Production Enterprise
• Westinghouse Electric Company $10-$12 billion project to modernize air traffic management system of the CIS in the "Raduga Consortium" The consortium includes Thomson-CSF (France) the Joint Venture Company Buram (which includes Italy's "Alenia", and several other Russian companies.

Dr. Pyotr Johannevich van de Waal-Palms, Sovetnik Pravitelstva CWA, Tovarichestvo Palmsa, Inc. Investment Bankers. Washington, USA

World Wide Web home pages - Palms Portal to Russia (50Mb) http://www.aa.net/~mwm/palm/palnode.html or ftp.eskimo.com:/usr/ftp/palbank

Description:

How to retrieve home page files on the World Wide Web WITHOUT A BROWSER, WITHOUT A SLIP ACCOUNT, AND WITH ONLY E-MAIL CAPABILITY

Today we announce a new service by which folks without direct Internet access can browse the World Wide Web materials available from "PALMS

PORTAL TO RUSSIA. Anyone with email access to the Internet can now retrieve WWW, gopher, and ftp documents.

There is now a facility for users of our services to

"browse" the Internet via email. This is provided for those folks who do not yet have direct Internet connectivity.

To use this facility, just send an email message to:

fp@solar.rtd.utk.edu

The message should consist of lines which look like:

send URL

where URL is any valid Internet URL address. For example, to request the home page of Palms & Company, Inc., Investment Bankers, just include the

line:

send http://solar.rtd.utk.edu/friends/home.html

Almost immediately, you should receive via email the contents of the specified page. Hyper-text links are indicated with a [x] and the address for the links listed at the bottom of the page. This serves as a handy "directory" which enables you to browse an area of the server.

Dr. Pyotr Johannevich van de Waal-Palms, Sovetnik Pravitelstva CWA, Tovarichestvo Palmsa, Inc. Investment Bankers. Washington, USA

World Wide Web home pages - Palms Portal to Russia (50Mb) http://www.aa.net/~mwm/palm/palnode.html or ftp.eskimo.com:/usr/ftp/palbank

RETURN to Palms' Lobby RETURN TO HOME PAGE