Key Markets: 7 Reasons Why Russia Matters to UK Business
The CBI is the UK's top business lobbying organisation
Factors leading to stronger trade and investment ties with Russia
1. The economy
Russia is the world’s sixth largest economy and is expected to grow by around 4% this year. Inflation in Russia is close to 20-year lows, and the government debt as a percentage of GDP is low.
Russia is the world’s ninth most populous nation with a growing middle class that has developed a taste for Western European and American goods and services.
3. Trade and investment
Russia is the UK’s 18th largest and swiftest growing export market. Laws introduced in 2011 on investment and business partnerships are aimed at modernising and improving the investment climate in Russia.
4. World Trade Organisation membership
Russia became a member of the World Trade Organization in 2012, signing up to trade rules and commitments that clarify investment opportunities, and trade barriers will begin to fall.
5. Sector strengths
Russia has a robust domestic manufacturing base, along with a highly skilled and well-educated workforce with a strong emphasis on science and technology. Russia is a leader in aviation and medical research.
6. Natural resources
Russia has many natural resources, ranging from diamonds to industrially valuable metals and phosphates. It has around 6% of the world’s oil reserves and more than 30% of the world’s natural gas reserves.
7. Sporting events
Russia will host the Winter Olympic Games in Sochi in 2014 and the football World Cup in 2018. After successfully hosting the 2012 Olympics, the UK is uniquely positioned to offer expertise and assistance.