Doing Business in Russia
Welcome to the Moscow office of the Export to Group in Russia. Our business exists to help businesses like yours develop and prosper in this diverse market. We offer market entry and ongoing support to international companies who have selected Russia as a target market for their products, services or technologies or as an entry point for sales throughout neighbouring markets. We also offer our Russia based clients assistance regarding investment and trade opportunities in other markets where we have a local presence and will match their sourcing needs with the appropriate products and services from the best possible suppliers around the globe. Economic activity over the coming year will be impacted by geopolitical tensions in the region. The ruble, which has weakened by almost 10 per cent so far this year, will continue to face downward pressure if capital flight persists.
Russia will host the 21st FIFA World Cup in 2018. The government has developed an infrastructure programme to deliver the project and create a lasting legacy.The designated budget of $20 billion will create a broad range of opportunities in sectors including design, construction technologies, project management, transport planning. security and access control equipment, sport venue fit-out, pitch management, stadium operations management, venue commercialisation, overlay and hospitality
Export to Russia- a few facts and figures
The Russian Federation is the largest country in the world. It covers more than an eighth of the Earth's land area and stretches from the Baltic and Black Seas in the west to the Pacific Ocean in the east. Russia is a vast country with a wealth of natural resources. It is one of the world’s leading producers of oil and natural gas. It is the world's eighth-largest economy. The Russian economy’s reliance on commodity exports makes it vulnerable to swings in global prices. According to the World Bank, Russia’s GDP growth in 2013 was 1.3 per cent, down from 3.4 per cent in 2012. International sanctions in response to Russia’s purported annexation of Crimea and intervention in Ukraine are expected to hamper any upturn in the Russian economy. The EU is Russia's largest export destination (accounting for more than half of Russia's exports by value). China is Russia’s largest trading partner overall. Its incredible size means that it:spans 9 time zones
has extremes of climate and weather ranging from sub-tropical in the south, to Permafrost in the north
has varying levels of development, and differing social and economic factors. Russia improved to 92nd in the World Bank’s ‘Ease of Doing Business’ ranking in 2013. It’s aiming to improve its business environment and reach 20th position by 2020.
While growth has been moderate, particularly in comparison to fellow BRCIM colleagues, the
Russian economy is operating near capacity with unemployment at an historical low of below six per cent, wages growing rapidly, capacity utilization at pre-crisis highs and oil production peaking at post-Soviet highsThere currently exists notable opportunities in the following sectors:-
Energy efficient manufacturing technologies and equipment, such as cleaning and recovery solutions and industrial automation solutions for resource management. Machine tools and tooling, spare parts and components, advanced materials for manufacturing and assembly.
Biotechnology and pharmaceuticals
Innovative R&D, generic medicines, Active Pharmaceutical Ingredient (API) manufacture
The Russian chemical industry has developed unevenly. Nearly 80% of Russian chemical production is for low value added products. Higher value added products are mainly imported.There are opportunities for suppliers of high value added chemical products including: Some types of plastics, speciality rubbers, adhesives, sealants, certain cosmetic ingredients, carbon materials
In the longer term there is potential for suppliers of technologies and equipment for production of
petrochemicals, polymers, other high technology chemical products.
Russia is the fastest growing market in Europe for food and drink. It offers opportunities in premium spirits, beer, and non-alcoholic drinks including premium quality tea, high quality confectionery, snacks, jam / preserves, cheese, organic, natural, gluten free and locally sourced food. Russia is expected to overtake Germany as Europe’s largest automotive market in 2015. There is a very strong demand for luxury vehicles.
Furniture sales are growing steadily with increased demand for bespoke furniture, traditional solid wood furniture, luxury furnishings. Imports account for 75% of the high end furniture market offering opportunities for progressive international companies to secure substantial supply contracts.
The Russian pet food and pet care market accounts for over 50% of total sales in eastern Europe. This sector offers a wide range of commercial opportunities for businesses willing to investigate the market.
Russia’s vast territory has massive potential for all kinds of renewables. However, Russian interest is growing from a very small base. Russian interest in partnering with overseas companies in the wind, hydro and solar energy sectors is increasing significantly. There are opportunities to supply equipment and expertise.
To discuss these and many more opportunities for profitable trade with Russia contact us today.
Export to Russia