Russia: Extensive investment opportunities

A huge market, abundant natural resources and a highly educated workforce are just three of the reasons businesses should look to operate in the Russian economy. “Russia has recovered quickly from the pandemic-related downturn, and it has recently been ranked in 11th place among Europe’s top investment destinations,” says Reta Alshundba, International Business Centre Director at Grant Thornton Russia.

“Our GDP returned to its pre-Covid level in the first half of 2021. We have a stable political background and well-developed infrastructure in our major cities. Additionally, there are a host of opportunities to participate in large-scale infrastructure projects across the country.” With a total population approaching 150m, Russia presents a significant market opportunity, Reta adds.

Russia’s key industries

The most important and fastest growing sectors of the Russian economy are energy and fuels, IT, pharmaceuticals and agriculture, Reta says. The sheer size of the country means it has a wealth of resources ranging from hydrocarbons and minerals to forests. However, the importance of oil and gas to the Russian economy mean that it can be vulnerable to short-term price fluctuations.

Foreign and international companies that are present in Russia operate in a wide range of sectors, such as manufacturing of consumer goods and industrial products, energy and natural resources, healthcare and pharmaceuticals, trade, transportation, financial services, the automotive industry, and agriculture.

There are also likely to be significant opportunities for businesses which can help Russia make the transition to a low-carbon economy in the years ahead.