The Russian economy is developing successfully. Russia became the 156th member of the World Trade Organization. This is an important step towards integration into the global economy. Joining the WTO is a commitment to reduce import duties, simplification of technical regulation and protection of intellectual property.
One of the main objectives of the Government of the Russian Federation today is to conduct a consistent and prudent economic policies aimed primarily at improving the country’s investment attractiveness. Measures have been taken to improve the legal framework, streamline the relationship between investors and the Government, reduce the tax burden on businesses. Macroeconomic indicators, including industrial production growth, demonstrate positive dynamics. We can see the apparent predictability of the national currency and inflation, the volume of investment in fixed capital and foreign investment, the growth of GDP.
The Federal law “On Foreign Investments in the Russian Federation” was adopted in 1999. The law defines the basic guarantees of the rights of foreign investors to invest and obtain their revenues and profits, as well as the business environment for foreign investors in Russia.
International investors are optimistic about the investment attractiveness of Russia in the long term.
What attracts investors in Russia?
- Investors are attracted by the opportunity to produce consumer goods and sell them to the growing Russian middle class. Opportunities for growth, particularly in services, is estimated to be attractive.
- Competitive cost workforce and developing logistics network are significant advantages to investors. Labour costs in Russia are among the attractive factors.
- Investors see opportunities to improve the performance of companies operating in Russia.
- Investors note the opportunities for transfer to Russia of modern production technologies and their use in order to gain market share.
- Scientific traditions and resources of Russia can make it a leader in the field of technology.
The most attractive feature of Russia is its large and growing consumer market. The interest of international investors in Russia is supported by a large population, increasing disposable incomes and rapid growth of the middle class.
Russia offers investors a fast growth rate, natural resources, well-developed telecommunications infrastructure, a new market and skills which are reasonably priced.
Our domestic market well secured by effective demand, is an established and already a classic Russian investment advantage. We are 143 million — it is the characteristic of the excellent and effective market with rising incomes of the population. For any investor, this is an attractive option. Another advantage is our geopolitical and geographical position, which allows you to place profitable production, focusing not only on the domestic but also on the Asian and European markets. The positive are our macroeconomic indicators: low public debt, a growing economy, a good investment “appetite” and the ability to “digest” the large-scale investment projects. The classic pluses also apply to the quality of human capital. Many investors have noted the presence of highly educated and creative professionals, developed high-tech sectors. An important area is the reform in the power sector, which is already in a fairly serious stage. The Government and investors believe that the sector is attractive, its assets could be privatized, including by foreign companies. We have good examples of profitable investments in the energy sector. One of the key factors of investment is the possibility of public-private partnerships in the sector, provided by the relevant bill.