Doing business in Russia
10 Reasons to do business in Russia...
- Russia is the largest country in the world with over 6,563,736 sq mi.
- Large population of 143 million, and home of the city (Moscow) with the most billionaires.
- Russia has 7th largest domestic market in the World and 1st in Europe.
- Russia’s economy is the 6th largest in the World in GDP, PPP based, and set to remain in top 10 by 2020 according to the World Bank.
- Russia joined the World Trade Organization in 2012. They are reducing trade barriers & simplifying trade.
- Russia has established 28 ‘special economic zones’ to encourage investment from foreign companies, they provide tax preferences, reduced administrative barriers, infrastructure for business development, simplified migration regime and access to the qualified personnel resources.
- Russia provides the most attractive tax regime among the BRIC countries (income taxes – both corporate and personal – are the lowest).
- Russia, despite being a second largest producer of natural gas, 3rd largest supplier of crude oil, 5th of coal, has 14% of global gold reserves.
- 85% of FDI in Russia has gone into manufacturing, with over 200 FDI projects – showing the highest growth rate among the top 10 European countries. (Ernst & Young’s 2015 attractiveness survey). The US is at the 4th place for FDI in Russian projects.
- Russia has massive infrastructural needs in numerous sectors, making it a very attractive export market.
US export opportunities
In 2015, Russia imported $177.3 billion worth of goods.
- A major opportunity for exporters is the 2018 World Cup. Over $9bn will be invested in improving airports, hotels and roads, medical, communications, security services and other infrastructure in the thirteen host cities.
- Russia has competitive and skilled labor, and the availability of technically capable people is a positive factor for doing business in Russia.
- Russian manufacturers in many industries seek partnerships with foreign firms to improve local quality.
- Russia is investing in the aviation industry, which requires foreign input in the form of expertise, products and software.
- The US share in import of aircraft, spacecraft, and parts thereof in Russia is 86%, in import of pulp of wood, paper – 37%.
- 20% Russia’s imports are engineering machines and equipment, 10% - electronic equipment.
- Share of the US import in Russia is 6% with stable annual growth.
- Growth of share of the US in Russia’s import fertilizers was 137% in 2015.
And please watch this video about challenges of doing business in Russia: HERE
Contact Global Chamber to connect to new opportunities in Russia!