2  GDP (purchasing power): $2.225 trillion  GDP (official exchange rate): $1.757 trillion  GDP - real growth rate: 6%  GDP - per capita (PPP): $15,800  Population: 140,702,096

 Russia ended 2008 with its tenth straight year of growth, averaging 7% annually since the financial crisis of  Over the last six years, annual fixed capital investment growth and personal income growth averaged above 10%, but both grew at slower rates in  Russia's GDP grew an estimated 6.0% in 2008, led by non-tradable services and goods for the domestic market. 3

 Banking reserves reduced to $435 billion due to oil price drop by 70% since mid-July and central bank intervention to defend the ruble during the last quarter of the year.  Banking system faces liquidity problems against short-term external repayment obligations.  The ruble is devaluating; the currency has fallen 20% against the dollar.  Contraction in economy forecasted for the first two quarters of 2009, and full year growth expected to decline to 2.4%. 4

 $200 billion rescue plan expected to increase liquidity in the financial sector, to help firms refinance foreign debt and to support the stock market.  The government also unveiled a $20 billion tax cut plan and other fiscal supports for society and industry.  Government outlined economic priorities for Russia include:  improving infrastructure, innovation, investment, and institutions  reducing the state's role in the economy  reforming the tax system and banking sector; developing one of the biggest financial centers in the world, combating corruption, and improving the judiciary 5

 The number of dollar billionaires in Russia last year jumped from 61 to 101, with the country’s 10 richest people sitting on a combined fortune of $221 billion.  In 2007 Russia’s growth exceeded all expectations (7.6% GDP growth), accelerating in several key economic sectors such as retail, real estate, tourism, and communications.  Olympic Games 2014 infrastructure development :  Tourist infrastructure — $2.6 billion  Olympic venues — $500 million  Transport infrastructure — $270 million  Power supply infrastructure — $100 million 6

7  Russian consumers are now the world’s fourth biggest spenders on high-end goods, after the U.S., Japan, and China.  By 2009 Russian consumers are predicted to account for 7% of global luxury goods sales, which would make Russia the fastest-growing emerging market in this segment.  Russian consumers are conforming to a global trend of increased demand for luxury products, due to: Increases in income Easier access to international travel Increases in marketing directed specifically at Russian consumers by foreign luxury good companies

 According to the head of JamilCo, a distributor of European brands, the luxury goods market in Russia will expand at an annual rate of about 20% in the years ahead.  2007 was an especially high growth year, when demand for luxury goods in Russia went up 60%, in that year alone.  Russian consumer culture is developing to the point where consumers are ready to spend money on brand names and labels that convey a unique message about who the purchaser is. 8

 The market is becoming more attractive as authorities are planning on reducing restrictions on foreign ownership.  There are many dynamic sectors in the Russian economy today with enormous growth potential and attractive opportunities for foreign participation.  Increased opportunities for business partnerships. 9

10  Serves as an umbrella organization for promoting trade and commerce between the USA and the Russian Federation and the CIS countries;  Serves as an advocacy group for the American and Russian businesses;  Over 200 corporate members in the USA, Russia, CIS and Baltic States.

 According to the Economist Intelligence Unit, Russia is one of the most attractive nations for foreign investment among transitional economies.  In particular, Russia is expected to become a leader in raising direct foreign investment in 2006–2010 among ex-USSR states and Eastern European countries.  By the end of September 2006, cumulative foreign investments in the Russian economy came to approximately USD130 billion. 11

 The Coca-Cola Company  Delta Air Lines, Inc  American Airlines  Smith, Gambrell & Russell, LLP  Delloite  Gazprombank  Arnall Golden Gregory LLP  InterContinental Hotels Group  Rosneft  The Related Group  The Trump Organization  etc. 12

http:// “Insider’s View: Russia”. Campaign (UK). 11/3/2006. Issue 44, p17 13

14 RussianAmericanChamber.com