Russian Market Overview – challenges and solutions

Why Russia ? Political tensions, sanctions, press coverage, economic uncertainty, loss of value of Rouble, unpredictability … BUT Size Population Wealth Ambition

Today’s Russia

Russia as an export market Key facts - More & more accessible - Not just Moscow and St P - 15 cities with 1,000,000+ population. - Substantial “middle class”, willing to spend and hungry for quality brands Membership of WTO For UK companies - Fast growing export market 2010-13 - Historical ties, value of the British brand - Lots of experience and expertise available (including support from UK and Russian governmental agencies)

Top 5 UK goods exported to Russia (2017) · Vehicles other than railway or tramway stock (23.0%) · Machinery and mechanical appliances (18.4%) · Aircraft, spacecraft, and parts thereof (13.5%) · Pharmaceutical products (7.8%) · Electrical machinery and equipment (6.1%)

Top 5 UK services exported to Russia (2016) · Financial (51.7%). · Other business services (14.1%) · Telecommunications, computer and information services (9.6%) · Travel (7.5%) · Government (5.6%)

Key sectors Sports infrastructure - Sochi Winter Olympics 2014 - F1 Sochi 2014 - World Cup 2018 Natural Resources Transport, warehousing, logistics Retail Innovation, high-tech – Skolkovo, Innopolis EXPO 2025 – Yekaterinburg is a candidate city – announcement in Oct. Dubai (2020) contracts worth $25Bn

Challenges... can be overcome Red tape Language barrier Business culture Moving goods into Russia Market entry costs Due diligence on counterparties Contracts and getting paid

Who can help ? Embassy / Consulates / DIT Trade Associations, local Chambers of Commerce (RF CCI) RBCC Consultants and market experts Other companies Internet Export credit insurance providers

How to contact us alf.torrents@rbcc.com louis.green@rbcc.com alison.smythe@rbcc.com averin@rbcc.com 020 7931 6455 LONDON | MOSCOW |