Doing business in Russian regions (on the example of the Udmurt Republic)
Russia as it really isAccording to Ernst & Youngs European Investment Monitor, 2011,Russia was Europe’s fourth-largest FDI destination in 2010, attractingover 200 projects, up 18% on 2009.Yet, its share of total European projects was little changed at 5% in arecovering European FDI market. The number of projects has grownin each of the past five years, and is up 130% since 2006.Investors already present in Russia are keen to invest more. Amongcompanies established in Russia, executives of 66% are consideringincreasing their operations.
Russia as it really isThe opportunity for investors is to make consumergoods and sell them to Russia’s emerging middle class.Affordable labor and improving logistics are a strongbenefit for investors.Investors see possibilities for productivity gains inRussian operations.Investors see a mixture of Asian and Europeaninvestment appeal.
The Role of RegionsInvestors who come to Russia do not venture very far inland: 49% ofinvestment projects are in Moscow or St. Petersburg.According to most experts, these markets are reaching their saturationpoint. For this reason regional diversification in business is assumed to playa crucial role in making decisions relating to business management.The Udmurt Republic located in European Russia - about 1300km east ofMoscow and west of the Ural mountains - is proposed to be one of the mostpromising opportunities and prospective FDI destinations.The National Association of Innovations and IT Development (NAIR-IT)revealed the average level of investment activity in the region and theUdmurt Republic has been ranked №28 among 83 federal subjects of theRussian Federation in the “Rating of innovation activity of the RussianRegions 2010”.
Investment attractiveness profile of the Udmurt Republic Neighborhood with major industrial centers of the Urals; Unique natural-resources base, rich oil deposits, forestry resources, a well developed agricultural sector with advanced technologies; Full-fledged transportation infrastructure, easy access to major air, railway, road and river thoroughfares; Powerful industrial complex of processing industry, metallurgy and machine-building; Sound financial infrastructure, a wide variety of credit or leasing facilities; Economic Incentive tools for investors, active government support for investments; Highly qualified industrial and science-and-technology workforce, presence in the Udmurt Republic of research and education institutions, leading technical universities and scientific-and-research centers; Steady economic growth in recent years; Decent standards of living, high effective demand for various goods and services
Geographic LocationThe Udmurt Republic is located in close proximity tomajor industrial centers of the Ural region –Yekaterinburg, Chelyabinsk, Perm, Ufa, etc.Overall length of railway lines is 768 km, totalnetwork length of all public roads - 5989 km,navigable inland waterways 181 km (with direct accessto the Caspian, Black and Baltic Seas).
Industrial PotentialA successful mix of over 300 medium-sized businessesand large enterprises operating in the Udmurt Republicshow effectiveness and stable corporate culturewith high performance. The enterprises possess a highlyskilled and professional workforce that uses state-of-the-arttechnologies and advanced machinery and equipment.The foundations for achievement of high standards in qualityproduction were laid in the process of production for militaryorders known for strict requirements for high qualitymanufacturing standards worldwide.The Udmurt Republic has a leading position in the market ofRussian branded consumer goods, holds a 80% market shareof Russian hunting & sporting firearms, considerable marketshare in the special purpose vehicle industry, well-known forits crude oil production.
Agro-complexThe natural environment and climatic conditionsallow a broad range of diverse agriculturalproduction and food industry development inaddition to providing raw materials to the agro-processing industry.The Udmurt Republic is in top-10 of largestRussian livestock producers, enjoys full self-sufficiency in staple food for own consumptionand increases the volume of its supplies to otherregions annually.The major traditional technical crop is fiber flax.The Udmurt Republic is one of the leading flaxfiber manufacturers & flax fiber suppliers ranked4th in Russia in terms of gross croppage.
State Support The Socio-economic Development Strategy of the Udmurt Republic for 2010 - 2014• Establishing favorable legal and organizational conditions for attraction and encouraging the inflow to the republican economy of financial resources, investments, advanced technologies, best practices and know-how resulting, among other things, in the renewal of fixed assets;• Successful project fundraising to innovative technologies ensured by efficient interaction between science and industry;• Formation of infrastructure to support innovative activities (engineering centers, venture funds, business incubators, innovation and technology centers, technology transfer centers);• Training of advanced manpower suited to innovation-based industries including technical specialists for successful introduction of innovations in production ;• Transition of the economy to an innovation-based development model by creation of integrated structures, developing “new” industries according to the List of Critical Technologies of the Udmurt Republic, etc.
Getting your business started in the Udmurt Republic and Russian regionsThe best and most effective and less costly way tostart and develop a foreign business in theUdmurt Republic and/or in any other Russianregion is to engage a reliable partner with ahighly experienced team who will support you atevery stage.Let us introduce a “no worries” partner to you –Company “European Staff RUS”.“European Staff RUS” is an internationalbusiness consulting company with over 9 yearsexperience of providing for the internationalclients the Russian market entry unique andcompetitive solutions ensuring fast and easysuccessful development of your business in theRussian regions.Our corporate client base varies from large tosmall businesses from Europe and the CIS.
The scheme of breaking into the challenging Russian market We provide you with a full range of services for your business development in the Russian territory:3. Market research in different industries4. A wide spectrum of corporate services incl. organizational and legal solutions to overcome non-economic and administrative barriers, representation of interests in state agencies and authorities3. Seeking and selection of highly-qualified specialists in different industries, fields and specialties for the needs of your business
Opportunities for expanding business to the Russian regionsIn cooperation with “ES RUS”our clients receive success inyour business development andguaranteed expansion into newmarkets in Russian Regions.These opportunities are availablethrough our extensive branchand outlet network andgood working relationships withreputable Russian organizationsand state authorities.
Contacts EUROPEAN STAFF-RUS30 Let Pobedy street, building 2, Izhevsk, 426033 the Udmurt Republic, Russia E-mail: firstname.lastname@example.org Тel./fax: +7 (3412) 933-560