This document discusses opportunities for foreign investment and business expansion in the Udmurt Republic region of Russia. It notes that while most foreign investment projects in Russia are located in Moscow and St. Petersburg, the regional markets may offer more growth potential. The Udmurt Republic is highlighted as a promising region for foreign direct investment, with unique natural resources, developed infrastructure, skilled workforce, and growing consumer market. The document also profiles the industrial sectors and state support available to foreign investors in the Udmurt Republic.

2. Doing business in Russian regions
(on the example of the Udmurt Republic)

3. Russia as it really is
According to Ernst & Young's European Investment Monitor, 2011,
Russia was Europe’s fourth-largest FDI destination in 2010, attracting
over 200 projects, up 18% on 2009.
Yet, its share of total European projects was little changed at 5% in a
recovering European FDI market. The number of projects has grown
in each of the past five years, and is up 130% since 2006.
Investors already present in Russia are keen to invest more. Among
companies established in Russia, executives of 66% are considering
increasing their operations.

4. Russia as it really is
The opportunity for investors is to make consumer
goods and sell them to Russia’s emerging middle class.
Affordable labor and improving logistics are a strong
benefit for investors.
Investors see possibilities for productivity gains in
Russian operations.
Investors see a mixture of Asian and European
investment appeal.

5. The Role of Regions
Investors who come to Russia do not venture very far inland: 49% of
investment projects are in Moscow or St. Petersburg.
According to most experts, these markets are reaching their saturation
point. For this reason regional diversification in business is assumed to play
a crucial role in making decisions relating to business management.
The Udmurt Republic located in European Russia - about 1300km east of
Moscow and west of the Ural mountains - is proposed to be one of the most
promising 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 the
Udmurt Republic has been ranked №28 among 83 federal subjects of the
Russian Federation in the “Rating of innovation activity of the Russian
Regions 2010”.

6. 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

7. Geographic Location
The Udmurt Republic is located in close proximity to
major industrial centers of the Ural region –
Yekaterinburg, Chelyabinsk, Perm, Ufa, etc.
Overall length of railway lines is 768 km, total
network length of all public roads - 5989 km,
navigable inland waterways 181 km (with direct access
to the Caspian, Black and Baltic Seas).

8. Industrial Potential
A successful mix of over 300 medium-sized businesses
and large enterprises operating in the Udmurt Republic
show effectiveness and stable corporate culture
with high performance. The enterprises possess a highly
skilled and professional workforce that uses state-of-the-art
technologies and advanced machinery and equipment.
The foundations for achievement of high standards in quality
production were laid in the process of production for military
orders known for strict requirements for high quality
manufacturing standards worldwide.
The Udmurt Republic has a leading position in the market of
Russian branded consumer goods, holds a 80% market share
of Russian hunting & sporting firearms, considerable market
share in the special purpose vehicle industry, well-known for
its crude oil production.

9. Agro-complex
The natural environment and climatic conditions
allow a broad range of diverse agricultural
production and food industry development in
addition to providing raw materials to the agro-
processing industry.
The Udmurt Republic is in top-10 of largest
Russian livestock producers, enjoys full self-
sufficiency in staple food for own consumption
and increases the volume of its supplies to other
regions annually.
The major traditional technical crop is fiber flax.
The Udmurt Republic is one of the leading flax
fiber manufacturers & flax fiber suppliers ranked
4th in Russia in terms of gross croppage.

10. 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.

11. Getting your business started
in the Udmurt Republic and Russian regions
The best and most effective and less costly way to
start and develop a foreign business in the
Udmurt Republic and/or in any other Russian
region is to engage a reliable partner with a
highly experienced team who will support you at
every stage.
Let us introduce a “no worries” partner to you –
Company “European Staff RUS”.
“European Staff RUS” is an international
business consulting company with over 9 years
experience of providing for the international
clients the Russian market entry unique and
competitive solutions ensuring fast and easy
successful development of your business in the
Russian regions.
Our corporate client base varies from large to
small businesses from Europe and the CIS.

12. 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 industries
4. 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
authorities
3. Seeking and selection of highly-qualified
specialists in different industries, fields
and specialties for the needs of your
business

13. Opportunities for expanding business
to the Russian regions
In cooperation with “ES RUS”
our clients receive success in
your business development and
guaranteed expansion into new
markets in Russian Regions.
These opportunities are available
through our extensive branch
and outlet network and
good working relationships with
reputable Russian organizations
and state authorities.

14. Contacts
EUROPEAN STAFF-RUS
30 Let Pobedy street, building 2, Izhevsk,
426033 the Udmurt Republic, Russia
E-mail: info@es-bv.ru
Тel./fax: +7 (3412) 933-560

15. THANK YOU!