Sauber has announced partnerships with a number of Russian entities, including the Investment Cooperation International Fund, the Fund for Strategic Development of the North-West and the National Institute of Aviation Technologies. The aim of the relationship is to promote Russian involvement in Formula 1, with technological transfer, driver development and to showcase Russian know-how. The Investment Cooperation International Fund was established by the President in league with the the Chamber of Commerce and Industry of Russian Federation and the Ministry of Regional Development and its aim is to develop technology and to upgrade Russian industry. The fund has offices in Zurich, Barcelona and Hong Kong and aims to attract direct investment in Russia.
The National Institute of Aviation Technologies is one of the leading scientific research institutions in Russia, and the aim is for Sauber to benefit from the advanced know-how of Russian scientists and engineers. The objective of the partnership is to open up new perspectives and revenue streams by commercialising jointly developed technologies.
The partnership includes further activities for the promotion of the inaugural Formula 1 Grand Prix in Sochi in 2014 and attracting the talented young Russian generation towards motorsport. In particular, a development programme will be set up for the Russian driver Sergey Sirotkin to prepare him as a racing driver for the team in 2014.
The inclusion of the Fund for Strategic Development of the North-West is interesting in that this not-for-profit organisation finances projects that will support the economic, scientific and cultural heritage of the North-West region of the Russian Federation. This is centred on St Petersburg. This is the clearest indication yet that the Russian GP may end up somewhere other than Sochi, as there is no really logical reason for a regional development agency to invest in a sport that will be showcased at the other end of the country.
There had been talk before the announcement that the Russian deal would involve Arkady and Boris Rotenberg, two Russian businessmen with strong links to Putin, who run a string of large businesses and this year have become major players in racing with their support of SMP Racing, in league with the Russian Automobile Federation. They are sponsoring no fewer than 14 young drivers, who are involved in various karting and junior championships. Their aim is to create a route for young Russian racers to make it to F1. The programme seems to be modelled on the Red Bull Junior Team. SMP Racing is also funding cars in various GT Championships and is talking about doing a deal to build their own LMP2 car in 2014. The Rotenbergs have solid links with Ferrari. They are running no fewer than four Ferrari 458 Italias and there is talk of a Ferrari engine for the rumoured prototype.
Some detect the hand of Vladimir Putin behind the SMP Racing project as he seeks to gain as much as possible for Russia from Grand Prix racing, following his decision to support a Russian GP.
joeblogsf1 
You forgot the Chelsea connection ?
Abramovich may appear to be his own man, but his peaceful life points to him being onside with old Vlad…
As much as anything, really good news for Sauber, especially among all those talks about their financial struggles. I wonder if the team will resist much putting Sirotkin into the race seat next year. I mean, Gutieress should be a good indication how well he could cope.
What would be your take on it Joe?
The Russian guy is 17. He needs more time.
I think that on the one hand Guttierez needs another season (without testing it seems drivers nowadays need at least 2 seasons to get to potential), and on the other hand Sirotkin would need another year or 2 of seriously competative racing in WSR or GP2.
But if money talks, who knows? What occurred to me, is that it seems Slim is not the one offering to pay the cheques for Sauber (to this extent). Does that mean that we can see it as an indication of him aligning himself with McLaren (sponsorship deal?) – what is your view on that Joe?
Sounds somewhat similar to 1930’s and support for the Silver Arrows, and they seem to be doing OK these days.
Putin’s the go to man if you need help keeping things forced down.
Good News for Sauber. With the teams future now seemingly secure I hope they can look to build on the momentum from Germany and bring the car consistently into the points.
I’m curious to see how this new investment is reflected in the team livery. Unless I’m missing something there isn’t a clear “brand” to promote here. I can imagine Lukoil turning up fairly soon.
I imagine this agreement with spell the end for Mr Slim’s involvement with the team, and probably Estaban’s seat.
Assuming Nico Hulkenberg makes a move to Enstone, Hopefully Sauber will revert to a faith in rookies strategy and run Frijins alongside Sirotkin in 2014
Any chance to see a Lada-badged Renault engine in the back of the Sauber in a near future. The 2 companies are working together already, or am I mistaking?
They are, but I’m not sure it is very likely. F1 is more of a luxury brand image. Not Lada.
In 2011 Lada sponsored the Renault Lotus. I think that is probably the record for the most manufacturer names on 1 F1 car!
I am glad for Sauber.
How come Putin is not pushing for Petrov to drive now?
Joe is it true that Sergey Sirotkin’s father is the head of the aforementioned National Institute of Aviation Technologies?
if so, it’s not really a driver development programme and more a jobs for the boys programme…
I’ve been trying to confirm that. They have the same name but you cannot trust the Internet!
Haha! If this is true it shows that sometimes you just can’t win – try to use F1 to promote a modern image for you country, and all you end up promoting is the impression of neptotism and misuse of public office. Hopefully for the sake of the people involved it is an inaccurate impression, but it’s an impression nonetheless.
It is true, confirmed in a multitude of interviews with Oleg Sirotkin, Sergey’s father and head of NIAT. I’m sure the English versions of those will start to pop up fairly fast, this is a well-known fact over here and also why people over here smell nepotism. This is how things get done here, after all, no big surprise.
But that’s definitely not the only reason for the deal, it seems to be a large-scale project – or so they say, at least.
I think this has been a long time coming. Last year Sauber set up the partnership with Chelsea whose owner just happens to be a Russian billionaire; so no wonder now they are getting heavily backed and financed by Russian corporations now.
I guess everyone thought substanial Russian backing would go to Marussia but as a team unable to get off the bottom of the grid I guess Sauber is more a sound investment.
Personally I have my doubts Abramovich’s involvement was in any way related to the current deal. Different branch of oligarchs, plus that deal seemed more brand exposure based than money-based. This, here, is essentially the government backing the team. Marussia is a different and mostly unrelated outfit, not a government project.
It is pretty good and very timely news for Sauber, where it seemed as if the piggy bank was pretty empty. However, it may be a negative POV but the phrase “if you sup with the devil, use a long spoon” springs to mind.
Wilson
So this seems not to different from the money deal Williams made with the Venezuelans, right? So we talking $40-50m per year to promote all good things Russian? That is a nice piece of business if true.
Hearing that there may be a chance that there may be a Russian G.P. in someplace other than Sochi give me the thought that perhaps the Russians are actually thinking not of replacing Sochi with say, St.Petersburg, but rather adding a second race in the future. After all, how could the Russian psyche deal with the United States having two, possibly three Grand Prix, to Russia’s one?
I believe I have written that several times.
Wonder how reliable the flow of Rubles will be? How could Petrov not have gotten support from his comrades in his time of need? He as well as Kobyashi were too good to exit the sport and were both let down by lack of corporate support from their countries. The fans are the losers with the drivers not getting a fair shot to develop within the sport due to the ‘revolving door’ rookies
Looks like the Hand of Bernard is all over this one.
Can’t help wondering if it’ll have long term repercussions for Marussia, who might otherwise have been able to develop their “Russian team” credentials.
Everyone is talking about the Russian kid getting a race seat next year, which seems… “ambitious” shall we say. Might see him get a few races, particularly the Russian GP should it happen. To be continued…
I hope their driver development programmme is closer to Elf´s in the 80´s than Shannon´s (Forti Corse) or Sauber will be in trouble again soon.
Joe, it would make interesting reading to have a summary of the deals in place with existing teams and the estimated going rates involved. The last info I can remember was from the William tv documentary almost ten years ago.
Do Marlboro still resell their space at Ferrari? Who is paying the bills at Marussia?
Yes, Philip Morris International is still sponsoring Ferrari and sells some of the space to other sponsors. Exactly how much is difficult to say as Ferrari has expanded its own marketing operations. Marussia is being funded by the owner of the team. He is a very successful businessman called Andrey Cheglakov. He owns a lot of very successful companies in Russia.
Thats a very interesting set up with Philip Morris Joe, could you do an article on it?
Deep pockets Comrade Cheglakov must have!
OH, he does.
Thanks for the confirmation, I thought that deal might have expired when Santander came on board.
It strikes me that with the forthcoming departure of Vodafone, there now sem to be very few global brands involved in team sponsorship.
I can only think of the aforementioned Ferrari deals, and other non title deals at Lotus with H and S and CocaCola, Petronas at Mercedes and GSK at McLaren.
The other teams are apparently being sponsored either by B2B deals (Lotus and Caterham), state owned/protected monopolies (Williams, Sauber), bankers that have lent them cash or taken a share in the team (STR and previously Marussia, HRT and Lotus), the owners´ own companies (Force India, Red Bull) or a combination of these elements.
Have the teams priced themselves out of the market as it seems there are plenty of companies willing to pay for trackside advertising and technical partnerships?
No.
thank you again Joe. my understanding of the Scuderia Ferrari sponsorship deal was that the entire vehicle is the responsibility of two ( 2 ) marketing experts who are awarded the entire contract.
Good news that the team’s future is saved and they can stay in F1 but I wonder what the long term strategy is for Sauber (and probably others?) to escape the vicious cycle of pay drivers with ever deeper pockets. I thought this could be the earthquake that you mentioned but it looks they managed to kick the can down the road some more for now….
Joe, with Sirotkins management claiming we will see him in fp1 sessions this year, and him openly being lined up for a race seat in 2014.. Do you think Frijns should be looking elsewhere? (If he gets any other chance since he brings no money) He was told by Sauber he would not be driving this year except at YDT because that is not the way they work. It seems he might loose out in this situation. Surely Sauber would not put him in the #1 car and go for 2 rookies?
I think Frijns is under a very longterm deal
Thanks Joe, very interesting. I suppose that’s just about all you can say about it. I feel the nature of this new sponsorship deal may have an effect on whatever deal Sauber made prior to this though. Thankfully you don’t seem too worried.
A perfect place to put sleeper agents wouldn’t you say?
They’ll have acces straight into China, USA, Great Britain, Europe…
😉
Hey Joe! Sorry I missed your posts on possible multi-Russian GPs and their quest to “Keep up with the Jones”…. Good to know we think alike however!
so… do we think these russian agencies and companies are actually credible? looks super sketch, a la Qadbak.
I think when it comes to those with serious government links, one can take them seriously.
Sad to hear Frijns is out.