Russia's economy is outgrowing those of all
the other G8 countries
Unlikely as it sounds, Huddersfield will soon be the place to be for investors and entrepreneurs looking to exploit opportunities in the flourishing Russian economy.
For one day, anyway: a conference aimed at forging links between businesses, entrepreneurs and investors from the two countries is being held in the town on June 20.
While it’s well documented that super-wealthy Russians have migrated to London in droves, pitching up in Belgravia mansions, drinking at Sloane Square bars and buying up our art and football clubs, less coverage is given to the investment going the other way.
Doing business in Russia – which, incidentally, is also the name of the conference –would have been unthinkable 20 years ago when the country was the heart of a communist empire.
Biggest trade partner
But with the Cold War a distant memory, things are very different.
Buoyed by soaring gas prices the Russian economy grew by 8% last year, easily outstripping the rest of the G8.
The UK is Russia’s biggest trade partner, investing around £13bn in 2007 and exporting a record £2.8bn worth of goods in the same year – an increase of 36% on 2006.
Doing Business in Russia takes place at the Galpharm Stadium, brings together specialists from both countries who will share their expertise in tax planning, legal issues, freight and customs, recruitment, certification and other essential aspects of operating in the Russian market. Attendees will also find out about recent economic and political developments, as well as the latest investment opportunities
Dr Evgeny Polyakov, head of the Russian British Business Centre (RBBC) based at the University of Huddersfield, which is organising the event, believes that the ongoing expansion and modernisation of many industries, including aerospace, automotive, engineering, mining, energy and construction, represent a rich vein of opportunity for businesses across Yorkshire.
“Last year, 51.3% of Russian imports were accounted for by machinery and transport equipment. The figures speak for themselves,” he says. “Russia has a high potential for substantial long-term growth and enormous opportunities exist for companies in the Yorkshire region in this emerging market, whether you are a small company interested in exploring opportunities in Russia or a large company with existing expertise in global production and trade.”
Government reforms are making Russia a more agreeable climate for foreign businesses, according to Polyakov.
“There are high expectations for the introduction of a range of institutional and economic reforms necessary to complete the transition towards economic and political stability,” he says.
Nevertheless, it’s an alien social and business culture in some ways, so entering the market is challenging. It’s not something you can enter into ill-prepared.
“When devising a market entry strategy we recommend that companies always look for a Russian partner,” advises Polyakov. “Foreign businesses need local market knowledge to succeed. Joint ventures can address many of the difficulties of understanding the general business environment such as the legal system and corporate requirements.”
The organisers of Doing Business in Russia hope it will be an effective forum for getting the professional advice, forging the contacts and building the market intelligence necessary to equip UK business people for the Russian market.
“Who to contact and how to do it is obviously crucial, as is solid market research,” says Polyakov. “We offer all these services on a commercial basis, but they are not expensive and include the chance to gain first-hand experience through Russian visits and introductions to Russian business contacts.”
The RBBC was formed in 2006 to foster Anglo-Russian trade links and to encourage technology and skills transfer through a variety of services such as consultancy, conferences and training. It is particularly keen to promote the less the well-known regions around Sverdlovsk, Rostov, Saratov and Omsk, which are closer to raw material supplies and competitively priced with abundant labour.
