Russia's huge market contributes to business opportunities for international companies. The possibility exists, however, there is a lack of international companies established on the market today. Myths and the lack of knowledge about the Russian market are some of the reasons.
In order to get an overview of the opportunities that actually exist, we will present a number of favorable factors (major reasons) for increasing international business and the number of foreign establishments.
Russia's market offers vast natural resources. The country is among the richest in the world in terms of metals, minerals, oil and gas and has a great potential to develop and improve the agriculture.
The size and market demand.
There is strong domestic demand for all types of products and services. This demand is covered largely by imports from abroad. The Russian middle class is growing larger, which is positive for future growth.
Enormous investment opportunities in the following areas are prioritized: Oil, gas, the technology sector, defense and industry, machinery, transport, manufacture of consumer goods, new technologies and health care.
In addition, Russia is the world leader in many areas of research and development. This includes everything from micro-surgery to space technology. These resources are available to foreign investors.
Competitive export-oriented industry.
Foreign investors have the opportunity to use modern Russian factories as a base and supplier at competitively priced goods worldwide.
The level of education is high. The workforce is well qualified and eager to work with foreign skilled workers.
Relatively low labor costs .The demand is high and the average salary is still low compared to other countries.
The geographical location.
Russia is located close to Scandinavia and Europe. This creates a good basis for a successful business environment which benefits foreign investments.
Cecilia Helland