Because You Want To Start a Business in Russia, Here’s Where You Can
Russia has grown and the business landscape is changing. The country is rich in opportunities that has attracted countless investors. If you are looking to engage in business as part of your market plan objectives, Russia can be a good place to start. Here are several sectoral opportunities you may find in one of the world’s largest growing economies.
Provision of oilfield service, equipment, machinery, and parts
The U.S. and the EU have constructed sanctions on Russia’s energy sector to protect designated parties against specific activities.
Transacting or dealing in new debt
Equity instruments are needed for the following Russian energy companies:
- Gazprom Neft/span>
Supplying goods, services, and technology
For conducting well testing and deep-water, Arctic offshore, and shale projects for the following major companies:
In March 2015, Russia has been ranked as the world’s third biggest oil producer. Russia aims to maintain oil production for the near future assuring a positive outlook on Russia’s oilfield services sector.
There are currently two immediate drivers of growth for the sector:
- Rising depletion rates of onshore oil wells. This means an accelerated well stimulation in the next 3 years. Onshore oilfields have exhausted wells with higher cost and increasing.
- Requirements for exploration and production of tight resources in deep-water, Arctic and shale reserves. EU and US sanctions have barred Russian oil companies from directly purchasing Western equipment and services for drilling, well testing, logging, and completion services. These aspects will create an immediate demand for alternative suppliers.
Potential food trade
Russia has imposed an import ban on food trade from several countries. These bans are to stay in place until 2016. These banned items are the ones that are slated for domestic production. However, it may take some time before production can catch up with demand. This leaves companies from countries without Russian sanctions an opportunity to export items into the country.
Development of new urban and industrial zones to spur domestic production
Technology parks have become a good strategy to establish special economic zones (SEZs). Due to sanctions, SEZ development has risen.
Here are two strategic areas whose framework for building SEZs are at a more advanced level of development:
- Decentralization of Moscow city
Moscow suffers from an infrastructure of traffic jams. The daily commute has increased due to the place being the center for work. This is also due to people searching for a higher pay and more job opportunities.
In 2014, a decentralization plan was announced – to create more spaces for work, leisure, and business. Transportation hubs will be constructed. Addition of new infrastructure and territory will increase the city’s geographical area.
- Development of the Russian far east territories
Russia’s Far East region occupies one-third of the country’s territory and so, advanced development territories (ADTs) have been eyed on to be built upon this specific area.
In spite of a few challenges one country might face in undertaking their marketing plan in conquering Russia for business, it is quite easy and quite ripe to engage in some sectors of Russia that will assure a booming business. Now you know where to start!