Russia, an Attractive Destination for Foreign Investors

Updated on Monday 18th April 2016

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Why-is-Russia-an-attractive-destination-for-foreign-investors.jpgRussia is one of the most powerful economies of the world (6th world economy), with very good investment prospects in certain industries. Recent forecasts have shown that Russia will become the main consumer product market in Europe by 2024.
 
Foreign investors interested in registering a company in Russia should know that, by the level of 2020, the Russian economy is expected to grow to $4 trillion; our company formation agents can provide you with further details on the business environment in Russia
 

Russian economy 

 
Foreign investors setting up a company in Russia should know that several industries have recently developed. At the level of 2014, the Gross Domestic Product (GDP) was established at $ 1860.6 billion; an important aspect is that the Russian GDP represents 3% of the world economy. The unemployment level in Russia was of 5.8% in December 2015, showing that the economy became more and more stable.
 
In the third quarter of 2015, the foreign direct investment market reached the value of $ 52 million and the main investment place preferred by foreign investors was Moscow
 
Entrepreneurs interested in the business environment available in Russia should know that governmental policies, which were enforced in June 2015, are offering important incentives created to attract foreign investments. As such, the Russian authorities will offer a two year tax exemption to small companies recently incorporated in Russia
 
Sole traders will also be offered a 5 years tax break, applicable between 2015 and 2020. 
 

Main industries in Russia 

 
Russia is a world player in terms of many industries. However, the most important industries in Russia are energy - related, such as oil and gas, as the Russian state is the world’s leading natural gas producer. Other important industries in Russia are:
 
pharmaceutics  - Russia is the world’s 8th largest pharmaceutical market;
real estate - at the level of 2015, the real estate market reported a significant increase, with a particular interest in the commercial real estate sector; foreign investors are attracted to this field, as 40% of the foreign direct investments in 2015 were registered in the real estate sector. In terms of commercial real estate investments, the most attractive sectors for foreign investors were represented by office space purchases and retail.
aluminum – Russia is the world’s leading economy in this field.
 
Russia is an important producer and exporter of natural resources such as minerals and gold. 
 
The main places in which foreign investors have chosen to set up a business were Saint Petersburg, and Moscow region and Novosibirsk. At the level of 2015, the World Bank released the "Doing Business" report, which situated Russia on the 51th position; compared to 2014, the business environment in Russia improved, as at the previous report, the state was situated on the 62nd position. 
 
If you need further information regarding the business environment in Russia, please contact our Russian company formation agents who can offer you details about Customised Training Courses.
 

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