There are several reasons to start a business in an important country like Russia, and one of the many reasons is the fact that Russia has the seventh largest domestic market in the world and the first in Europe, therefore, it is a great country to invest.
After Russia joined The World Trade Organization in 2012, making trades became easier. It is important to mention that that Russia has established 28 “especial economic zones” ,where further investment by foreign companies is encouraged by reducing taxes, administrative barriers and providing access to qualified personnel for employment and even funding.
Of course, there will always be challenges to face like the vast size of the country with various markets, but the benefits outweigh the disadvantages like the growing middle class that is receptive to foreign foods, drinks, luxury goods and the local manufactures that are always in search of partnerships with foreign organizations to improve local quality.
The growing markets in Russia can be separated by each sector, which means, no matter what sector you choose there will always be something to invest. The Agricultural sector is small (only 4% of the GDP) but provides employment to 10% of the population and its main products are wheat, potatoes, sunflower seeds, sugar beets, tomatoes, apples, vegetables, barely, rice, maize and onions. But despite Russia being the largest exporter of GMO crops in the world, it is constantly importing food from other countries for many reasons like the non-availability or shortage of certain food products for example meat and dairy, and the country’s economic progress in 2008, which led to income growth that rises the population demand for food. Moving to the industrial sector (30% of the GDP), it is important to know that the country is also investing in aviation industry, which needs a different input, especially in the part that requires software. There is a shortage in the machine building industry (for agricultural and industrial purposes), and lastly, the chemical and petrochemical industry which contributes to about 1.5% of Russia’s GDP, proves to be a very fast-growing market. Finally, the Service (and othera) sector that, currently contributes almost 66% to Russia’s GDP, has the most important segments represented by communications, travel and tourism, advertising, marketing and sales, real estate and health care.
There are 10 top pre-existing business to invest in Russia, starting by the Oil and Gas industry that Russia represents by being the biggest producer in the world. It is a business that requires a lot of investment, but the returns have proven to be greater than the costs. Moving on to the second-best option which is the seafood business. Because Russia has access to 3 of the world’s oceans, it is the largest producer worldwide, so it is indeed a very profitable industry. Also the grains industry also proves to be a very good opportunity, because even though Russia does import a lot of food of foreign countries, they are changing this situation and trying to become the world’s greatest exporter, making this period of change a good time to invest. The mechanical engineering and metal working are a good investment as well, since Russia has one of the largest deposits of metals in the world this makes the country a cheaper place to run a company. Another filed that is thriving in the country due to the stocking of clothes, especially in the winter, is the field of clothes and accessories. Another amazing opportunity in Russia, that requires small capital to invest, is coffee shops, since Russians has shown a lot of interest in the foreign coffee. Moving on to a more complicated, yet profitable field is the educational consultancy business. Since Russia has a solid education system that attracts students from all around the globe, a private consultation company that helps immigrant students could give great to returns to an investment. The furniture and timber business are a huge opening, because Russia has the largest forest in the world and the highest exporter of timber, also the retail trading is a very promising field because Russia is the 6thcountry with the highest purchasing power parity. Finally, the 10th best business to invest in Russia is cosmetology and pharmaceutics companies , which have a large sector in the country and again due to Russia being the 6th largest in terms of purchasing power parity.
In conclusion, Russia has plenty of markets and specific business to invest, and as the governmental polices keep getting better, putting money in towards business there is getting easier and very profitable.
References:
https://www.globalchamber.org/blog/2016/11/11/global-chamber/10-reasons-to-do-business-in-russia/ https://www.galvininternational.com/resources-news/the-challenges-and-benefits-of-doing-business-in-russia/ https://www.investopedia.com/articles/investing/120615/emerging-markets-analyzing-russias-gdp.asp
Russia Business Digest 
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