1. The Ministry of Industry, Trade and Labor, Foreign Trade Administration Добро пожаловать ברוכים הבאים Welcomes the Visitors of the Russian Companies to Israel Tel-Aviv 14.03.2007

2. Israeli Economy: Where the Breakthroughs Happen

3. Israel’s Economy – Main Characteristics Export Oriented Growth Rapid Development of Technology & Hi-Tech Industries High Skilled Human Resources Entrepreneurial Culture Supportive Environment for Business Investment & R&D Incentives

4. Foreign Direct Investment (B$) Source: Bank of Israel, Not including traded securities * - Jan-Jun 2006 High-Tech Boom High-Tech Bubble Burst

5. Expenditure on Civilian R&D in Israel & in Selected OECD Countries (% of GDP, 2002) Source: Central Bureau of Statistics, Bank of Israel

6. Policy and New Tools for Development of the Trade and Economic Relations between Israel and Russia

7. Government Incentives Investment Incentives R&D Incentives Industrial Technology Incubator Program Industrial Innovation Support Program International Cooperation ( Trade, R&D, Investments) Programs aimed at assisting SME’s (Consulting Services, Financing, Marketing)

8. The Joint Commissions The economic activity between Israel and Russia is settled through the Joint Commissions. Until now Six joint commissions have taken place, the last of them are: 6 th Joint Commission November 2006, Jerusalem 5th Joint Commission, June 2005, Moscow 4th Joint Commission, November 2002, Jerusalem 3rd Joint Commission, January 2000, Moscow

9. Inter-Governmental Economic Agreements between Israel and Russia MFN agreement (1994) Agreement on avoidance of double taxation (1994) Agreement on cooperation in customs (1998) Aviation agreement (1998) Framework agreement on cooperation in science and culture (1995) Agreement on cooperation in industrial R&D between MATIMOP and Rosnauka (2006) Israel’s support of Russia’s bid to join WTO

10. Inter-Governmental Economic Agreements under negotiations between Israel and Russia Agreement on investment protection Agreement in the area of standardization Agreement on cooperation in industrial R&D on the governmental level

11. Inter-Organizational Agreements Israel - Russia Agreement between SME authorities Agreement on insurance of credit lines between ASHRA and Russian commercial banks Quadruple cooperation agreement between Manufacturer’s Association of Israel, Israeli Export Institute, Israel-Russia Chamber of Commerce and Association of Entrepreneurs and Industrialists of Russia (2006) Cooperation agreement between Manufacturer’s Association of Israel and Federation of Chambers of Commerce of Russia (2006)

12. Russia as one of the priority countries for the Israeli foreign trade Announcement of Russia as one of the priority countries for promotion of the Israeli exports and of the bilateral trade in general. Opening in St. Petersburg of a regional office of the Trade & Economic Department of the Israeli Embassy in Moscow. Concentration of efforts in selected sectors with high potential for bilateral cooperation (Telecom, HLS, Agriculture, Software) ASHRA - The Israel Export Insurance Corporation provides additional financial tools for development of Israel-Russia trade cooperation. Russia as an Technology partner for Israel.

13. Trade and Economics Relations: Latest Developments Working group in standardization – negotiations toward mutual recognition of the laboratories in the selected sectors Diamonds – announcement of the President of Alrosa about starting of direct marketing of rough diamonds to Israel

14. Israel’s Foreign Trade and Israel – Russia Trade Relations

15. Exports as a % of GDP Source: Central Bureau of Statistics, Bank of Israel, EIU *Forecast

16. Israel’s Free Trade Agreements USA (1985) EFTA (1992) Jordan (1995): Bilateral Trade Agreement Canada (1997) Turkey (1997) Mexico (1999) Romania (2000) European Union – Association Agreement 2000 Bulgaria (2002) MERCOSUR (Under Negotiation)

17. Exports of Goods by Region 2005 (exc. Diamonds) Source: Central Bureau of Statistics, Bank of Israel

18. Imports of Goods by Region 2005 (exc. Diamonds) Source: Central Bureau of Statistics, Bank of Israel

19. Israel’s Major High-Tech Exports 2005 Source: Israel Export & International Cooperation Institute, Israel Association of Software Houses Total High-Tech Export (Including Software): 15 B$

20. Israel’s Trade with Russia

22. Thanks Wishing you a Fruitful and Enjoyable Exhibition Спасибо за внимание תודה על ההקשבה Ministry of Industry, Trade and Labor Foreign Trade Administration