2010-03-18
The trade with Russia has growth potential and Russia is a major trading partner for Sweden, but not as important as for Finland.
The Swedish Russian export volume was close to 29 billion in 2008, while the Finnish Russian export value was more than twice as large.
During the year of 2009, Sweden's exports to Russia decreased by about 50 percent and a similar collapse also occurred in the Finnish trade with Russia. The Swedish companies export to Russia is still only about half of the Finnish export value to Russia.
The corresponding difference is also evident in the number of companies established in Russia; the number of companies with a Swedish background is approximately half the number of Finnish companies.
Among the Finnish companies, medium-sized and small companies are active in Russia. However, among Swedish companies mainly just big companies have tried out the Russian market.
A great country - many opportunities
Russia is geographically a great country where there are numerous opportunities for profitable business. The Ural Mountains and Moscow is as close to Sweden as Finland. This fact brings up an important question: Why are the Swedes not very active on the Russian market?
Does Russia feel like a scary and “unkown” culture, or are the risks exaggerated? The question seems strange when we consider how energetically Swedish companies export and establish business in very difficult countries, such as China or countries in the Far East.
My own experience working with Swedes
I have worked in Sweden and in Swedish companies for about five years. Now, my employer is the Finnish consulting firm Konsu Group, which specializes in business activity in Ukraine and Russia. The clientele consists of international companies that have established business in Russia and Ukraine.
Konsu has taken care of approximately 500 business establishment processes and I have closely been following the challenges and opportunities the different companies that establish business in Russia have to face.
Due to my experience, I am able to also evaluate the Swedish business opportunities, challenges and problems they face in Russia. I want to encourage Swedish companies to enter the Russian market because the coherent assumptions and prejudices that the Swedes have about Russia are not relevant.
Russia has changed - for the better
As a summary of the situation in Russia, I can state the following: The Business activities have changed since the 1990s and it is now possible to have control over it. Two positive examples are the changes in taxation and business law. Russia is not a more difficult market than, let us say, China.
The market in Russia is growing within many areas, particularly in the consumer sector.
The growing areas include civil construction, interior decoration business and personal wellbeing. A good example of Swedish success in the consumer sector is the Oriflame Group. Russia also offers opportunities for many small and medium-sized businesses.
The optimistic future
From a Swedish perspective, companies should learn from the bigger companies such as ABB, Volvo, Tetrapak and Electrolux. These companies have been very successful on the Russian market and smaller companies should be inspired from these successful establishments.
I would suggest Swedish companies to be much more active in order to get more information about the opportunities in Russia. “Learning-by-doing” is a great saying that applies to this context. All the problems, challenges and opportunities cannot be clarified by discussing them at home, you need to operate on the market to get the answers to your questions.
The investment does not necessarily need to be great, and you can move forward step by step.
Konsu Group, which I represent, is able to tell you about at least ten Finnish successful establishments due to its 20-year experience of business in Russia. Our company can also inform you about the negative aspects of doing business. We have about 30 Swedish customers, whose presence and success in Russia is a good proof that Russia is a good option for Swedish companies.
Konsu Group has 160 specialists that will help you transform the possibilities into a successful future for your company.