Why should you invest in Russia in 2022?

Many different events took place in 2022: the conflict between Russia and Ukraine led to the withdrawal of a number of companies from the Russian market, due to which competition decreased, and the conditions for Chinese business became much more attractive. At the moment, the exchange rate of the Russian ruble has stabilized, and measures of the state industrial policy provide more and more incentives and benefits for investors in Russia.

So why investing in Russia is a good idea now:

1. High provision of cheap raw materials. Russia is rich in basic natural resources: oil, gas, coal, industrial metals, agricultural products. The price on the domestic Russian market for Russian companies for these resources is lower than for foreign buyers, therefore, enterprises engaged in production in Russia receive additional advantages and lower cost;
2. High volume of provision of cheap electricity. In Russia, the cost of electricity is very cheap, while in a number of regions there are spare capacities that can be used for industrial production. For large consumers of electricity, regional authorities are ready to offer special tariffs for electricity.
3. Low competition. After the withdrawal of a number of Western companies, competition in the Russian market has decreased, and a large number of free niches have emerged for the implementation of new investment projects. At the same time, Russian manufacturers gain advantages by participating in public procurement and procurement of state-owned companies, which can guarantee the sale of products.
4. Large sales market. More than 145 million people live in Russia. Russia is also the leader of the Eurasian Economic Union, in which almost 200 million people already live, and this is a single market without internal customs payments and with the same rules. Therefore, an enterprise that produces products in Russia can also sell them to Belarus, Kazakhstan, Kyrgyzstan and Armenia.
5. Government incentives. An investor in Russian industrial projects receives significant government support: tax benefits, zero customs duties on the import of equipment, subsidies on loans and leasing, as well as the possibility of obtaining state orders and guarantees for the sale of finished products.
6. More lenient environmental legislation. If China has strict rules that limit the impact on the environment, then in Russia such rules are more lenient, and they allow you to create and transfer chemical production. Also in Russia, they are not so strict about CO2 emissions, so the creation of chemical production in Russia can be a good idea for a business.
7. The presence of many brownfield sites. In Russia, it is not necessary to build an industrial enterprise from scratch, there are a number of industrial sites that have already been built and have the appropriate infrastructure: water supply, sanitation, filtration systems, electricity, gas, railway, but which need a little repair. It is much cheaper than creating a production from scratch.

All in all, there are plenty of reasons to invest in Russia in 2022. The RAUIE has been helping Chinese investors develop projects in Russia since 2010: choose an investment site, register a company in Russia, obtain government support, and establish sales and marketing.

You can submit a request for advice on investment projects in Russia through the feedback form on the website or by mail office@raspp.ru and our specialists of the Investment Projects Department will help you.