PM-EEM~2.AUG_',~-3_ 16:49 ~~F;~R
SAT EIF,
io-Rri-i993 17: 09 FROm
&
Touche
TWOOMS. M WS 261 60-
"I W
"t is
2910
PW M 006 gn .
761*16, 812134 SML:
phmp Morris
Ann: Mr. Andmw White. Mr. Mchud Rcavey
Yushintky per. 13/2
Moscow. RU%SiIL
DW Sirs.
Wc at p1casod to present to you our vi3~ of the
study an the ==mic imp-*f
tobacco, advwUng ban in Rwix
0216ig;;&T-2i Nu-~:--1;7P.C2
M 9=435
741 -C,
VO awrohvchny PaVuRk
I/a,00M MUM
Am"
Our w&d-j-qdbtg ofyour objecd-
Lut July the Moscow City Cauacg adopted a docision
to ban &U hn& of
tdvcrdscmtnc of "hol W tobacco (cmpt insWe
spe441sed shops). 'nc dacWon
s=ms to bc. not o* extrernist (moa courtrics took
mom Waaccid stance permiaing
nowspapa ads. commercitIs in the movie ftem, saw
bXboardg. m). It is Ubdy
to bc. =dvated, by aspirstiorts beyond the
procounarA abra of tho bim CLc. heft
plotaction), since ft ban was suppwa by 'patdodc"
populists suiving "to outlaw
tbs Madboro pack and 0 w1w allo zaincs in Moscow
sums*.
Your objc=ws am to pmpan a Wady which demonstrates
ft C=D=c iWad of
%)x ban whwh doxnansuzta ft wonomic impact of tbz
bax which can be used to
parsuado the appropsiaw Zroups to oppose it. -
Beyond the d1mot economic impUcations, wc also
bcHm you should explare the
undmiyft support and &ivcro of tho :c= Accision
(which may vary ftom the
p=uxdon!s= dtiva of thu Russian amufacmm hudly
spmft a pmy an
advew=&W to cao=n =cS of tho IOC4 miag Kd its
lobby in ft City
antbwitias)~. The Moscow Cky CAmincil suppmud the
notion of an appcal to tht
Svpj== Sovict of the Russian FWration to adap a
compl= bon of adveWs
of alv~ol and tobacco in ths =us =Ldfa of Russia.
If sU=WW this rwlim wiH
chup tbc Russian tobacco ma*ct d=Ldc4ly and wW
h&vc smious sbzts&
O"TWO
BAT Industries document for Province of British
Columbia 23 April 1999
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PM-EEM-2 16:49 31217 ;;F AIRS
03
10-QUC-'t9M 17:09 FFRCM TO 9732A35 P
Ddgb&
TOWS
10
impucaigus for intcraidonad tobacco nwUracbmers
who am major for4n inveam
izo ft Russian economy.
It is imporwd to understand bwa thg motivadon of
Um prohibition drive as wen as
its mmomfe impam In particular. the. dNds on
thc'adveidsing. spirits, tobacco
iadvM. madw structurr, promdon mchniquts..
distribuUon chamnels. - packeemg
iminsay. product quality. 002UMMer bdor=don, ta
iMp%~-Nnnt, Monow Sum (and
Russian) fiscal const-aints associated with "
pmposcd mu4surt may pcnuadc ft
Itrislo re to modify or drop the ban if pmocaW
with an undersumdins of the true
motivations behind the legiastion.
Our approac*
We propose a two pan approach to the pMjWL F=t. an
i--44-r eXanlinadw af
the ccowznic iz~ aW, Awe, d in p=Ucl. a rgvitw of
the cams of the ban to
belp rg:bo ft uhimatc. snzegy to dcfw jL
E=Mwnir in~ ituo
We win Work closely with you and the otha =AMbM of
the Coalition YOU we
dcvcloping on Yow ske. Ws will s"cr data from you
and the odw =mbers as
woo as fi= other sourom ayMM)c to us. In thit
valard we will usip a Russia
contulum to the mam with sl"cm tobwoo indusiry
expe&am
Our approuh to the proposed smdy will omidcr tho
Russian audl:enca atd dxs wM
noc assuz; that ft Moscow City CoUnril did not
stan D= bad bncnt but Amply
did W utdmtand the implication. It should
demonstraw-
The davelop=t of the lobamo iftbM will be
- the tow lales Of I pub= is not clastic to
advexismem; th Q9
oonsvinooft new go be a finwdon. of the counuys
kvd of deval T- -t
stage of the cconoMic eyGlo (r-g- dUTJTM the
U-itloA to tbM M"k GGQnMV. L
cuphamism for economic crisix. the tobaaco
ConSUMplion tends to 1ACMM):
ft image building of btand identity allows pricing
which financially suppmo
tho davz1opmam of broader food ud pa4Ated. ;oods
disMbution.
The ban wD1 have naptiva etTects on umok=:
2
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16-'50 BAT C
--Q
04
le-AUS-Im 3-7, 09 FRCM TO
Too*
- Ink of ft Womation DA ft quahtY of tbo 4=w9 wiD
spur tha
c*nsunVdon of low quality (mom hAmW) and dmpcr
bramir.
- W=1 aavat~wucut is "0 squWl- ami wiii fo~ OW
Wn**en of U111.
TWfty dpm-s to pay bigha pzi- or to switch to
cheap- (low quaft) bra0b;
- y-ftufactaws or class A dpratta post ft content
of the hannU subsunm
in, dicir ads vo g4r, & con;peadvo edge. rhc ban
wM push the, high qualky eWwws
fro= the rnadmt in ravour of chop and hamful OnCL
Ibcm will be scvcm =noxic *bcations of the baz
the madia, nowly free press and print ir-dusaits
covld be zcvarely hun,
-andon of tob%aco advatim= makcs a gubstasntial
part of ft =unicipal
fiscal rrvautL b4,knY local UNurtisavent AM PR
firms cMa am owned or closely
x4 ated to ibe C3ty sovanincut. Tba, ban will be a
sumt blow to tbm ailing chy
budM
..9"MRdOmal t0b8=0 M&DUfWMVM aft lcadiAg iUVOSCM
Into, the, R:ussian
industry. 1U c1ccision of thr Moscow Chy Council
-M redoce thc attracLivtness of
the city for fttcizn investort-,
- ft restrictive mcasums of the MOSWW councl wW
devim Cho Uldc: nows
from the capital to otha rueons. to ft p=judice to
the business cavirownent in tho
citr,
,thg Mu will impadt Um vowth of the nations'
advcniscuout iuduttrr.
toba= - m-tth-,,crs att UWy to be, their map? chcM
top1ber with clt&UvrA,-
comp=ioL W whom the xnoat assUtical and Idth
qualky a& am produced;
. ft Matm impaict of Lbe ban wiD bo opmcccA also
by the packagin$
kxNsuy ad the dist6utioa damnals of tim packapd
goods 4bpe dwir learntng
I;llrva will be more nn due to tho lack of
co-operation with ft tab&=
mautoctums.
-.1ast but na least imp== fs= is rdoomm of tbc;
tobwao =-W%c:=-
to tuppcat urp scaic chatrity Lad cultural eyeats
in Moscow and R9W& if ft ban is
imposed an thcz
C)
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13 AT Industries document for Province of British
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PM-EEMkz,`~,LP- 16-S0 Bq'~SqtF~RR
RS
------------
la-AUG-190 17: 2A FRM
PoUrka rewew
To j
As tod above, we believe that the sourcc of the
ban j= beyond bealth
In Parallel with the kbove effom we PMPOW to "dr
Russim
vansultmu fzom our Moscow staff wiLh siptificam
expmena iu tbo Russian
poHdW and legislative pn=s. Tray wM work with
their sources as well as rho
so=e3 of tht oodition to Wcutify ft spcUk
notivations and drivas bebind the
bm Rased on tit ratearch. we will davelop
m-mend-Aaw for the tarlatinS of
tho study and other effccu to defen the bm
Our team and qualoco4ons
We believe that, DckyitLe & Touche is the mort
qualified f= to address this u&
D&T Is the lagat W%madorW pmfcssional f= in Russia
%dih om 250
staff an tho pow d In the CIS.
- W9 h1VC a StntCgy And POUCY Df XMW64 ft NghW
RIMiM PMft4dW&U
into 'Our Organization bY comalitting PaftcrshiP
to ft Russin proftssionals who
buiW the &= This 1=4 ptcsa= is c3itn%W to achievin
& task of Ws typc~
- Wo am assipin; w-wal PhD level Rmsian =*nowm to
the usk who an
howz nadmally and immadoWly. Tbm individuals wM
know best how to shapo
the arjumenu for the Rossi= audioc&
- Our ormizaUon is U&Wy "tive iA the political am
to we Mdunmm how
the R=A&n poUtical pw=s Warks. WO led ft cmsord=
w1dch dtvclopcd ft I
Rwm pfivau=don process: and many of oax
consultants plav naW advisM raW
to tb!c gOvMU=L
- We undcrsund dw tobacco industry in Rusiia and
-* have staff me-
who have wmW dbwdy in tbc, Womy. Moreover, we,
undcutmad the madla and
adverUsing IMustry in RmsiL As zbe leader of tba
privatizWou wAsonium wo
=gap a S6 m9lion advatising &ub conaut for the
privatization pqpm and havt
sumS relatiam w0 mott of tho ad qmcics it Moscow.
N)
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4 CD
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BAT Industries document for Province of British
Columbia 23 April 1999


16 :51 BAT
le-ALr.-ISM 17:10 FRE;1
0
973243S . P. in
Mw study wM be curW out in dot co-ppersma with the
ClicaL ID&T consultutts
am zoady zo, spta a subst-61 pon of tW time at tbc
ClIeds offico to get be=
=4 astandibg of the Clicat's fiang, . views and
xvqvi;c=t:L A ccruiA peretwAp
of jUm w:U be spent on data Sathaft ud analysis,
imm akd. with Moscow W
Fedwal xutbOftOL
The prcjcct wiU be. carW out by a group of Russian
wonofWats and indm~q
speciahsts kAd by Dr. MlchW Fabov. Scnim DJMMT of
M-Rp- Consul*
Pracdces of D&T in Momw wd by Dr. %= Animicv.
Dr. Brsbov has catensive cxpc;de= worktng v4th ft
Govcnm=t of ft Russian
Feduszkm and its agsocici, in particulaz tbc
Ministry of Flnx~ State C;omuittw
fe: MaWcm= of State Fror-ay. Minisw of F=~p
Economic Rclatiom Now he
is adviser to Mr. Boris Fodomy, Dqmty Pdw Wuustcr
of ft Russism FWeration
am ft mwstar of FIAA~
J)r, JW A=cv bas solid acadmmic background,. hr,
wodkcd in the Aca&my of
Sci for m=ty yews and produccd over fcdy studics
&W repotu on
inwasuorW Wa& fluws. toalmology trajLdcr Mcdces
and invenrom =VjwL Since
1992 Mr. Arcmiev is 11 Djjr~ of Dejoirtt and
Toucht Moscow Ofrw-
Tbey wal be UsbWd by other U=b= of our Moscow SUM
7 bnks mdfees
We and==d that the, q= would be tquucd by catly
Sqgr-~-. W6
pzcpargd to Sggn wvrk by to and of this WoCt We
would dcAiGM a tum of three
profess:onals. an avegraga, for Lkft wocki to f=
weeks to -e-Vln-,r this Wort
7 U as=m=j tar tu wak vnil be betw= Dclaiac &
Touchim CIS sprl. a BtW=
a0 waam Our r= ac based on actual ho= -OtkrA *n"
out w=&1 billft
ma plus out of p%kct expwsm. Based on the tur5ng
oudifted abovc, Wo cida2aw
OW our fees wW map ftm $55.000 to 575= plus
=r=scs. It Is out 40=1
pra,.bec cc rm" gf the an*== to jefto the obj~ of
arA &a a spccirw
budjpg for ft work beftm pmooding. If we, --*Iish
tho W-d up- tasks for
las than the budga, we will chap -1Y f0t ft U-
W4911Y wurkv& If =60 tim
CZ)
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BAT Industries document for Province of British
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PM-EEM'2 4JG '93 16:52 BAT COPPORA AFF;, RS
rL.QUI, .
Dd-IM&
--Mj6j"7
Iq
TO
is nquind. wc wM infom you i=3e&&tdy wW wW am c=cW
tbo budgft withwt
--bad Won.
If ycm bm any qu"dons ragamUng tba pmp*&AL plam
dorit hcautc to caU Mr.
WMam Porwin or Mr. Tgw Anbnicy. If you at= to ibis
pr*Nwd, *m sip one
opy and remm it to u
Voy vuly yows,
A=Vzod
Data
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13 AT Industries document for Province of British
Columbia 23 April 1999