Why Russia?

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10 Reasons to do business in Russia

  • Largest country in the world with over 17 million sq km.
  • Massive population of just under 143 million
  • Moscow is just 3 and a half hours flight from London
  • Russia joined the World Trade Organization in 2012, which is slowly reducing trade barriers and simplifying trade.
  • Russia has established several “special economic zones” to encourage investment from foreign companies.
  • The Russians love to do business with the UK
  • Russia, as the largest producer of natural gas, 2nd largest supplier of crude oil and coal, has disposable income.
  • Russia’s economy is set to be the world’s 4th largest by 2020 according to the World Bank
  • 51% of FDI in Russia has gone into manufacturing, with over 400 FDI projects - the fourth largest in Europe — while 9% was directed to the business services sector. (Ernst & Young’s 2012 attractiveness survey).
  • Russia has massive infrastructural needs in numerous sectors, making it a very attractive export market.

UK export opportunities

In 2014, Russia imported 
$308 billion worth of goods. That total is up by 86% since 2009.

  • A major opportunity for exporters is the 2018 World Cup. Over £7bn 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 labour, and the availability of technically capable people is a positive factor for doing business in Russia.
  • Russia is investing £4.5bn in nanotechnology.
  • 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.
  • Our manufacturers and exporters continue to do well in overseas markets. The UK is second only to the USA in the export of services.
  • In 2013 Russia imported US$ 317.8 billion worth of goods. That total is up by 86% since 2009.
  • The value of exports from the UK to Russia grew 15% in 2012 to £5.5 bn. This made Russia the UK’s 12th largest export market for goods in 2012, and the largest outside the US, China and the EU.
  • Over half Russia’s imports are engineering machines and equipment.
  • Whisky (up 65% last year) is quickly catching up to Vodka as the spirit of choice in Russia; this represents a clear opportunity for UK companies.


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Common Questions

Aren't the entry costs very high?

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Russia is turning the economic corner

As I waited for my meeting counterpart in Moscow recently I had half an hour to spare, so I strolled across the bridge towards Red Square. To my left, the glittering domes of The Kremlin, to my right one of the biggest building projects I have ever seen. The erstwhile site of the infamous Rossiya Hotel, once the biggest hotel in Europe and possibly also the worst. And as I gazed down I saw paving being laid, water pipes emerging where trees would be planted and it all looked huge. But unlike past examples of Russian investment, the growing expanse of paving was being laid with high quality granite. 

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