GENERAL MARKET INFORMATION 

Russia's economy is proving to be remarkably robust despite the international financial crisis and the downturn in the global economy. Increasing oil prices have resulted in an augmentation of consumption and investments. A Russian GDP growth of 8.1 % was recorded for the year 2007. In spite of the banking crisis, forecasts assume a similar growth rate of 6.8 % for 2008.
 
Experts suppose that Russia will, due to immense monetary reserves, be able to absorb the worst impacts of the global financial crisis.
 
Additionally, the strong ruble weakens the competitiveness of the domestic industries, but brings forward import trade, which is an enormous opportunity for foreign companies competing on the Russian market. Visible imports to the Russian Federation in 2007 amount approx. 199.7 billion USD. 

  
The investment climate in Russia remains good because of the enormous catch-up demand, particularly in the construction sector. This is proved by the fact that investment has risen considerably compared to other European markets, although the growth rate has decreased.
 

• During the first nine months in 2008 construction work amounting to 3,093 billion ruble was accomplished. 
  

• Decreasing growth is intercepted by the development of industrial and urban infrastructure: Between 2010 and 2015 more than 160 billion Euro are to be invested in road construction (e.g. highway between Moscow and St. Petersburg and highway M4 between Moscow and Noworossisk); in total, construction of 8,000 km of new streets and expansion of 6,200 km of already existing roadways are planned. 
  

• The Russian Government has been planning to invest about 7 billion Euro for the renovation of housing space.

• International retail chains proceed with their expansion in Russia, planning new stores in several cities. 

• There is an increasing number of Russian companies operating in the field of machine construction. Nevertheless, only some of them are able to compete with the quality of Western manufacturers. And as the demand for modernisation is expected to remain enormous, construction machinery can be indicated as top import good.

 
 
  
Source: German Office for Foreign Trade (bfai) "Wirtschaftstrends Russland Jahreswechsel 2008/09"