Iqaluit businesses forge ties in Siberia

DENISE RIDEOUT

The Iqaluit Chamber of Commerce is hoping to cash in on business contacts made during a trade mission to northern Russia last month.

Steve Cook, president of the Iqaluit chamber, which represents about 40 companies in Iqaluit, travelled on the the week-long mission with representatives from Labrador and the Yukon. Their goal was to find new business opportunities and to help Siberia, Russia develop its struggling economy.

The delegation met with their Russian counterparts to participate in a workshop entitled “Strengthening Capacity of Northern Chambers of Commerce.”

The trade mission was a partnership between the Canadian government’s department of northern affairs and Siberia’s federal district initiative.

Cook, who spent five days in the Siberian city of Novosibirsk, said there is interest in developing ties between the Arctic communities in Canada and Russia.

He said one Siberian businessman took a liking to Nunavut delicacies such as Arctic char and seal oil. “One of the things he indicated to me was that there’s a good market for char.”

The key is cashing in on those markets, Cook said. “In Nunavut we can’t keep looking at what we can produce, but at what the market demands are and if we can meet them.”

Cook also explored the idea of marketing Nunavut as a tourist destination to Russians.

While the Iqaluit chamber sought new business opportunities in Siberia, another part of Cook’s mission was to help the region improve its own economic situation.

Siberia, a region with 1.3 million people — many of whom are aboriginal — has an abundance of minerals, oil and gas reserves.

“It’s very rich in natural resources, but very poor in the ability to market its products,” Cook said.

While in Novosibirsk, the Canadian delegation toured a number of small businesses that manufacture windows, doors and other construction supplies.

There may be some potential for Nunavut companies to get into the housing-supplies market or even partner up with Russian companies to build houses, Cook said.

During his visit, Cook learned that factories and mines in Siberia are closing and people are leaving the northern region to work in bigger, more prosperous cities, such as Moscow.

He said it was obvious that Siberia still has a lot of work ahead to get its economy rolling.

The goal of the Canada-Russia workshop was to look at ways to make that happen. “What they’re hoping to accomplish in the long term is building capacity in the North, especially in the Siberian federal district.”

He shared Nunavut’s economic strategy with members of the Siberian delegation, focusing on the government’s NNI policy and decentralization plan.

It may be a while before Nunavut companies start doing business in Russia, Cook admitted. “It’s not like going to the U.S. or England to do business where you can trust the banking and business system. In Russia, it’s not like that.”

In addition, it takes time to cultivate good business relationships, he said.

“A very big obstacle to Nunavut doing business in this vast country that has these millions of people is finding someone to partner with.”

But Cook figures the business contacts he made during last month’s trip will help that situation.

Next June, Siberia will host a trade fair, where Cook hopes to see Nunavut businesses showcasing their products and services.