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Russia is a world superpower with a population of 142 million concentrated in the European part of the country. It is the biggest and most attractive emerging market and has the world’s largest reserves of mineral and energy resources. Leading the world market in producing and exporting natural gas, Russia is the fourth largest nuclear energy producer. With the Russian government holding significant blocks of shares in many privatized enterprises, roughly three-quarters of the Russian economy has been privatized. It has never been a better time to be a part of Russia’s economy.

The economic climate in Russia
With eight years of consistent and robust growth, the Russian economy is booming. It has a GDP of $1.2 trillion, which makes it the tenth largest economy in the world. Russia has operated large fiscal and trade surpluses, collecting foreign reserves of over $400 billion. As its main industries are energy, it is known to be a major energy superpower with oil, natural gas, metals and timber account for more than 80% of its exports.

Business opportunities in Russia
The Russian consumer market has experienced tremendous growth in areas such as automotive, consumer products, construction and real estate, telecommunications, financial and banking spheres. The main areas for business opportunities in Russia are Engineering, Financial services, Telecommunications, Power and Energy, Airports, Construction, Ports, Creative industries, Pharmaceuticals, Food, Biotechnology and Sports and Leisure.

Entering the Russian market
When doing business overseas, especially in Russia, many foreign companies can find unclear which sectors are open to investment without Russian majority partners. The Russian government has emphasized the critical role of foreign investments in Russia’s economic development. In spite of the opening of Russia to investments more than twenty years ago, Russian aids to foreign investments remain low. It is therefore advisable that western suppliers work with a knowledgeable adviser to set up a small team to identify the opportunities and risks and to understand current investment and business trends. As there is a tremendous potential for products for the growing middle class, many businesses are proving successful due to the highly diverse range of products and services they sell or provide

The most lucrative cities in Russia
In terms of investment, population and economy, Moscow is the biggest and most developed city when compared to any other Russian region. The other fast developing regions are St. Petersburg, Samara, Kazan, Nizhny, Novgorod, Krasnodar (Sochi),Sakhalin and Rostov.

Overcoming the Challenges in Russia
The general lack of knowledge on how to operate in Russia can be a considerable obstacle for foreign companies wishing to do business in Russia. There is also a complex regulatory and legal system ,widespread corruption, lack of respect for the rule of law and immature banking and financial markets, which provide very little or none at all financial assistance. There could also be competition from Germany and Italy, due to their proximity to the Russian market and their longstanding relations with Russian organizations and companies. You will therefore need professional help to navigate the Russian administration. With the help of a business expert, you can get the required assistance in all aspects of your business, be it legal, HR, Payroll, regulatory filings, compliance or international accounting. Doing business overseas with the company of experts can help minimize your risks and enhance your chances of success!