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Invest to Russia.


Foreign investors find Russia attractive due to its rather weak currency, low-price assets, huge and cheap human resources market, impressive consumer market (which is great in number), and profitable conditions of working in this country.
USA is the worlds leader in the activity of making of investments in Russia. The Great Britain wins the second place in Russian investments.
Companies opening a business in Russia and investing in Russian economy decrease the expenses by hiring this countrys cheaper human resources, get rid of transportation fees (if they are targeting the Russian market), solve the problems with the raw materials supply, and get a range of other benefits.
Currently, the sectoral division of foreign investment in Russia approximately reflects the GDP division. The most successful investment projects in Russia were put into practice in the oil and gas industry, automobile industry, metallurgy, and agriculture, but the area of investments in Russia is not limited by this. Thus, for example, two large American companies, Boeing and PepsiCo, have recently claimed that they are launching production facilities in Russia. Investment in Russia. The most powerful areas to invest.

The most powerful areas of industry in Russia are:

  • fuel and energy minerals extraction,
  • pulp and paper industry,
  • publishing and printing activities,
  • metallurgy,
  • production and distribution of electricity,
  • gas and water.

Investors show great activity on the market of minerals extraction of Russia. As Russias Prime Minister Vladimir Putin has noted, private investors (both Russian and foreign) invest 8-9 times more than the State into this area. Putin says that the minerals extraction is the goose that lays the golden eggs for Russia, and mentions that uniting the efforts of both the State and the private companies will help develop the area make the business here smoother, and bring down the expenses.
A particular fact about the pulp and paper industry is that the investments in this area of Russia are repaid in a fairly long time compared to the other areas – up to 15 years, and therefore the share of foreign investments here is lower than, for example, in the minerals extraction area. Still, the countrys pulp and paper production area is attracting the businessmen due to a combination of factors: Russia has strong manufacturing facilities and experience in this industry; it is a key importer of a wide range of pulp and paper products to the world market. A number of the products imported by Russia cannot be produced by domestic plants with the quality high enough to be presented on the world market. Besides, it is worth to remind that Russia is the owner of 20% of the forest resources in the world.
The other powerful industries of Russia are attractive to investorsas well. One of the interesting attraction points for businessmen is the Russian segment of Internet – the boom of investments into this area started 8-9 years ago.
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    About Russia.

    Russia is a country that has inherited the power and international influence of the former USSR. This country is a record breaker and a pioneer in many areas, a big international market player and political force. Its culture is authentic and very peculiar, and due to the vast diversity of nations living in Russia and types of lands it incorporates, this country is a gold mine for businessmen – every field of industry, service and production will find its maker and its market here.

    Russia’s territory occupies 11,46% of the dry land of the Earth, which equals to 12,65% of the dry land occupied by humans. It is worth saying that Canada, which is the second place winner among the largest countries of the world, has a territory almost twice smaller than Russian.

    Russia borders with 18 countries – more than any other country in the world. It is a member of many International organizations, including UN, CIS, EurAsEC, etc., and without any doubt it is one of the key parties on the stage of International Communication. Its great influence and importance on the International arena cannot be ignored.

    The population of the country Russia is enormous just like its territory – 142 million people. Some lands are densely populated, and some (generally remote areas) are not as populous.

    Moscow, the capital of Russia, is the largest city in Europe and the 7th largest city in the world. There are 4 airports, 9 railway stations, 3 river ports in Moscow – as one can see, it is a key point in the transport system of Eurasia. Many of the Muscovites arrogantly call all the other population aggregates in Russia ‘a province’, and to tell the truth, they are, in a way, right. One cannot say that Russia’s cities are not good enough, but all of them are significantly less developed and smaller than Moscow, so the Muscovites are not telling lies, even though some of the non-Muscovites might not like this.

    The economy of Russia is currently on the post-industrial stage of development: the profit from its service sector occupies more than a half of the GTP. Various kinds of business in Russia are developing rapidly, and investments in Russia are something that interests the world greatly.

    The experts of APEC think that Russia’s economy is strengthening and gradually becoming the market-based one. Its current level is rather high. This was claimed during the Presentation of Russia’s Individual Actions Plan (IAP) in APEC, held in Singapore on July 15, 2009. The experts say that ‘New Russia’ will be less bureaucratic, its economy and policy directions will be based on the market principles more than now, and overall, Russia will become more competitive on the World Market. In the summary report generated after the presentation, it is emphasized that although the current liquidity crisis has taken its toll on Russia, the government of the country has managed to take the right steps and save the country from rolling into recession. The core interest points for APEC were Russia’s ambitious plans of developing the Siberia and the Far East regions by means of actively using the natural and geographical advantages of those large areas. Development of their infrastructure and closer integration with the European part of the country will be the first step on this road, and enhancing the transport system will help develop the international trade. Siberia and Far East development strategies clearly represent the country’s intentions in this direction: the government intends to develop business in Russia’s remote regions and profit from their rich natural resources, increasing the interest of foreign partners in these industrial areas.

    Economist Michael Khasin claims that Russia’s province is what can help the country overcome the world liquidity crisis and breathe the new life into the country. Business in Russia’s remote areas, if set and managed successfully, can be a gold mine for developers. Michael Khasin says that people living in the distant regions of the country are more willing to work and explore something new, while people in Moscow are already satiated with this. Apparently, foreign investors are already aware of this, because lately, the remote regions of Russia are being actively invested into, and it is not only the industrious people of these regions that attract the investors, it is also the natural richness in resources that those lands possess. Thanks to it, Russia owns the largest deposits of mineral and energetic resources and has the greatest supply of wood and sweet water in the world. The lakes situated in Russia compose ¼ of the world’s supply of sweet water (not including the frozen water resources).

    At present, the level of foreign investments in Russia only comprises 18% of GDP, which is not a lot. In China, for example, this index is 40%, and as the World Bank’s specialists claim, it is absolutely necessary that this index is at least 25% for the countries which are actively developing. Russia is one of the BRIC countries and, as one can see, currently needs to raise this index. That’s why Russian government has made attracting the investors its main goal.

    This policy is brought into life by means of working out the smooth and attractive legislative base in this area, overcoming the bureaucracy, getting better business plans and creating the generally attractive climate for the investments in Russia. As one of the measures taken, annual conferences devoted to the investment opportunities are held in Russia. One of them, The Real Estate Investment World Russia (REIW Russia), is a well-known forum for those who want to invest into the country’s developing economy. This year, the list attendees include such companies as Fleming Family & Partners, ING Real Estate, Aberdeen Property Investors, Morgan Stanley Real Estate, Immo Industry Group, and others.

    The experts report that business in Russia needs better advertising, clear and imposing websites in English, and better English skills for the people, since a foreign individual or company who plans to invest into business in Russia can co-operate with Russian citizens and authorities. The core philosophy of Russia’s investments policy is that it is growth-oriented and focused on the long-term capital appreciation (though depending on the market demands, there are, of course, investment projects with the shorter term opportunities). It is worth noticing that within the last few years, the accent in foreign investments policy has shifted from constructing the brand new facilities to reviving and reconstructing the existing ones.