Business Opportunities Russia

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Business opportunities in Russia

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Business and Economy

Russia is reach in many of the world's most valued natural resources, especially those required to support a modern industrialized economy (oil, gas, carbon, etc.). It also possesses a well-educated labor force with substantial technical expertise. At the same time, underdeveloped infrastructure and inefficient supply systems hinder efficient utilization of those resources. With domestic product growth of 7.2% in 2004, 6.4% in 2005, 6.8% in 2006, Russia became the fastest growing economy in the G8.

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Regional Development

The economic development completely depends on the geography: the Moscow region contributes an exceptionally high amount of the country's GDP, while much of the country (for the most part rural communities in Asian Russia) lags behind. Nevertheless, the middle class has grown from just 8 million in 2000 to 55 million in 2006.

Investment Opportunities

Russia has been experiencing a boom in capital investment since the beginning of 2007. Capital investment reached its peak in June, rising 27.2 percent over June of last year in real terms (adjusted for price changes), to 579.8 billion rubles, with construction industry leading the way. That is a rise of 58 percent in nominal terms, a better result than in China. It’s the first time modern Russia sees such a growth rate. While the rate of investment in Russia rose 22.3 percent in the first half of this year compared to the same period last year, the increase last year of that period in 2005 was only 11 percent.