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Arkady Kirman: "We offer cooperation."

Arkady Kirman: "We offer co-operation"

"Factor Capital" intends to support small business goods and money lending. The economic crisis has suspended the development of the oil market. After all, the financial problems are forcing many companies to stop their activities and to announce the sale of assets. Commercial Director of "Factor" Arkady Kerman believes that alternative business sale can be cooperative.

"Terminal": Are there any differences between the work of large and small network of filling stations in times of crisis?

A. Kirman: You could say that the crisis called major network players in the retail market of petroleum products and single filling. The main problem for all was the lack of working capital. Banks still have not renewed currency lending in previous volumes - today mainly issued short loans secured goods, and long-term loans are available only mortgages. Besides, everyone knows about the problems of the companies that worked on foreign currency loans to the crisis due to exchange rate differences they have significantly increased the cost of credit, and they are suffering significant losses. All this contributed to a sharp decrease in the imports of petroleum products. If in 2008, the members of the "Factor" of the company were the second-largest import light oil, giving primacy to group companies "Continuum" and was introduced to the country of about 1 million tons of fuel, but this year we supply approximately 10-15 tons of oil per month. On the other hand, the large network companies can not stop to wait out the bad times, and have to ensure uninterrupted product their stations, as they have a commitment to the end user. Someone imports alone, someone the owner of the plant - that is, they have a closed loop circulation of oil and money. Small companies and single station can not compete with the big players in this market due to the lack of working capital. They are inferior to them in fuel quality, service culture, appearance stations. They can not make even minor repairs, not to mention the timely renovation or conversion of refueling. Their only opportunity to compete - to lower the price. But this stick two ends: lowering the price on the stele to attract a buyer cheap goods, they reduce the margin, which again will inevitably affect the quality of the station ownership.

"Terminal": It is estimated that the volume of off-spec fuel on the market this year have increased.

 A. Kirman: Indeed, the volume of imports and fuel production decreased compared to last year and the year before, while sales through retail chains have not changed. What this can be concluded? Simple - the market enters the fuel of unknown origin, or poprostonarodnomu "badyaga." It is mostly sold through small bezbrendovye network and refueling. Large retailers are worried about their image and constantly monitor the quality of oil products to gas stations and small are forced to sell this badyagu. For them in the first place is the purchase price, as the Straits stations are minimal, not quality. If such is the owners return, then it is supported only by the margin.

"Terminal": What would you like to offer to the market?

A. Kirman: Group of companies "Factor" to offer both individual owners and small gas station chains cooperation. What it will be expressed? Can give money or goods lending. We worked as a trader on the fuel market for many years, we have developed relationships with the Russian, Belarusian and Lithuanian manufacturers, which enables us to deliver high-quality petroleum products at the lowest prices. Our partner is "Fortune Bank" who is willing to provide money to small business lending. Offering their support, we would like to serve as a guarantee to get the right to control sales of oil products, or - a share in the management through the creation of the joint venture.

"Terminal": What will be expressed by the control?

A. Kirman: As I said earlier, we are able to deliver high-quality fuel. Providing its retailers as trade credit, we are interested in a quick sale. I as a motorist can safely say that this can be achieved only keep the original quality of oil products. This will create a positive image of the filling stations in the region is sure to expand the circle of customers. If we engage in "improvement" on the fuel tank farms and gas stations, the current assets will be frozen indefinitely - badyaga not in great demand. In this regard, we intend to monitor the quality of oil products from our partners. Will be under the control of the sales volumes - this will tell if there is interference in the original fuel, and track receipt of proceeds to repay the loan to the bank. Perhaps the bank's employees daily or weekly will go to a gas station, whether in Kiev, Zhitomir and Simferopol. We're not going to limit the geography of cooperation to pursue reconciliation statements of the goods from the actual amount in the tank.

"Terminal": The company already has experience of this kind. Tell us about a situation with MCoil.

A. Kirman: History, we can say that is typical for the day. When a company MCoil financial difficulties, she turned to us as old friends for support. After negotiations, it was decided to create a new company "Oil Factor," which took into his service all of their customer base. For our part, we have provided a new company good credit portfolio of up to 4 million USD in cash and up to 2 million USD in goods. Also, find a job partially retired employees MCoil. The new project has been running for five months, providing an uninterrupted supply of high-quality fuel to consumers it. Sales volumes are increasing, which consequently increases profits.

"Terminal": What, in your opinion, the future prospects of these projects?

A. Kirman: I think that sooner or later the owners of small networks or single stations will have to cooperate and create a wider network. For example, now is not interested in selling gas station - because of the general economic downturn in the property market rates close to the minimum. If attract partners who are able to supply fuel, the capitalization of business will not be reduced. Thus, the accumulation of assets scattered and small gas station networks will enable them, first, stay on the market, and secondly, to create a large network competition players. In the future, the association probably will or generic brand, or will be rebranded in the colors of the major oil companies, which in the future may become co-investors Kremenchug refinery. They will have to create its own retail network.

"Terminal": What is your company's interest in such projects?

A. Kirman: For us it is not only expanding its presence in the retail sector - to projects such private network includes four stations. As traders, we get the channels ensure implementation of fuel. We are interested in increasing sales, these joint projects, and here we have exactly the same interests with the owners. In general, our ultimate goal - to return to sales in 2008

Interviewed by Marina Polyakova

TERMINAL, 26 (508) 28 June 2010