Maritime business 2016 ENGL

Crimea and Sevastopol businesses have been icorporated in to Russian business system since 2014.

"Processes in Crimea to open new opportunities for honest businessmen" — Vladimir Putin, President of the Russian Federation.

Russian Market Opportunities

With a vast landmass, extensive natural resources, more than 142 million consumers, and acute infrastructure needs, Russia remains a promising market for international exporters.

Russia is the world's 8th largest economy by nominal gross domestic product (GDP) and the 6th largest by purchasing power parity (PPP), as cited by the International Monetary Fund. According to the World Bank, 2014 GPP per capita GDP was $13,210, the highest of the BRICS countries (Brazil, Russia, India, China, and South Africa). Russia is a high-income country, with a highly educated and trained workforce and sophisticated, discerning consumers.

Although Russia recovered quickly from the global financial crisis in 2009, economic growth slowed substantially subsequently, and GDP is expected to contract in 2015.

Russia's leading individual trading partners are China, the Netherlands, Germany, Italy, Turkey, Japan, United States, Ukraine, South Korea, and Poland.

Russia joined the World Trade Organization (WTO) in August 2012. 

Russia's membership in the WTO has the potential to create opportunities for international exports and investments.

For international businesses, Russia's accession to the WTO also provides the following benefits, although Russia has been slow to fulfill many of its WTO obligations:

  • More liberal treatment for service exports and service providers.
  • Stronger commitments for protection and enforcement of IPR.
  • Rules-based treatment of agricultural exports.
  • Market access under country-specific tariff-rate quotas.
  • Improved transparency in trade-related rule-making.
  • More effective WTO dispute resolution mechanisms.
  • etc.

Market Challenges
Russia is the largest country in the world, spanning 11 time zones and encompassing over 17 million square miles.

As of 1 January 2015, representative offices of foreign companies may apply through a fast-track simplified procedure for obtaining work visas and work permits for their foreign employees who are classified as Highly Qualified Foreign Specialists (the "HQFS"). The requirements for applying through the HQFS procedure are the same as those for employers who are a Russian commercial legal entity or a branch. Requirements vary depending on the job, salary level and skillset of the foreign employee. Rules on secondment of employees should be scrutinized for an individual company's situation. The Russian immigration and visa system requires time and patience for business travelers to obtain necessary permissions to do business in Russia. Travel must occur within the dates specified on the visa.

English is not widely spoken, although knowledge of the language is expanding, especially in the major cities.

Market Opportunities In alphabetical order:

  • Agricultural Equipment
  • Aviation Equipment
  • Broadcast Equipment
  • Building and Construction Equipment
  • Cosmetics and Perfumery
  • Electrical Power Generation and Transmission Equipment
  • Forestry and Woodworking Equipment
  • Franchising
  • Hydropower Generation Equipment
  • Machine Tools and Metal Working Equipment
  • Maritime equipment
  • Medical Equipment
  • Mining Equipment
  • Refinery Equipment
  • Safety and Security Equipment
  • Shipbuiling and ship repair equipment
  • ect

Market Entry Strategy

-Expect to commit significant time, personnel, and capital, as developing business in Russia is resource-intensive, for those companies that believe opportunities in Russia outweigh risks.
Conduct market research, such as with the U.S. Commercial Service's Gold Key or International Partner Search services, to identify opportunities and potential Russian business partners.
-Conduct significant due diligence, such as with the U.S. Commercial Service's International Company Profile service, to ascertain the reliability of business partners.
-Consult with international companies already in the market, as well as with the SIMBF consultants and other business organizations such as the Chamber of Commerce in Russia.
-Communicate regularly with Russian business partners to ensure common understanding of expectations.
-Travel frequently to Russia in order to establish and maintain relationships with partners and to understand changing market conditions.
-Maintain a long-term timeframe to implement plans and achieve positive results.

The information is taken from the open source 

More about SIMBF 2016...


SIMBF 2020 media partners: