1	Business opportunities in Russia for Singapore’s companies Embassy of the Russian Federation in the Republic of Singapore
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4	Economy: one of the world’s dominant producers of industrial raw materials and intermediate products; emerging market for goods and services with 146 mln. customers; low cost production base for manufacturing goods, both for local and neighboring countries’ markets. Main drivers of growth: strong external demand for fuel, energy, industrial raw materials and intermediate goods; growing local demand for consumer goods and services; growing need to modernize ageing infrastructure.
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7	"Transport and logistics" Transport and logistics (strong local demand, regional potential, low competition): - cooperation by joint efforts of transport, logistics, trade, consulting, financial and other concerned organizations and companies of our countries in developing International Transport Corridor “North-South”, which crosses the Russian Federation territory and serves as the shortest way between South and South-East Asia and Eastern, Central, Northern Europe, Russia and CIS; - joint air-cargo transportation from South-East Asia to North America and back through the shortest cross-polar routes via the territory of Russian Federation. Oil and gas equipment and services (strong demand, global potential, high competition): - participation of Singapore’s and Singapore-based companies in projects of the offshore development of oil and gas deposits in Sakhalin and Northern part of the Caspian Sea - cooperation between Russian oil-gas companies, dealing in exploration and extraction of oil and gas on South and South-East Asia countries’ shelves, and Singapore companies and organizations specializing on producing equipment and rendering services related to the offshore development. Electronics and precision engineering (strong local demand, regional potential, low competition, high margins): - joint-venturing in electronics and precision engineering on the territory of Russia and other CIS countries, where qualified labor and idle industrial facilities with low production-costs are available to produce the goods for domestic consumption in CIS countries and for export; - cooperation between Russian and Singaporean companies in developing new infocomm technologies, as well as in promoting efficient systems of utilization of such technologies in Russia, CIS countries and South-East Asia. International Trade (strong demand, regional potential): promotion and facilitation of the projects aimed at using Singapore as an export service hub for Russian companies and as a gateway for Russian products (civil aircrafts and equipment, metals, petroleum products, chemicals, pharmaceuticals, products of wood and woodworking, agricultural and food industries, etc) to South-East Asia by joint efforts of concerned Russian exporters and Singaporean trade companies which have appropriate distribution-links and marketing abilities. Tourism (strong local demand, regional potential, low competition): facilitating the expansion of tourists and passengers flows between our countries; promoting stopovers in Singapore for Russian tourists’ heading to the countries of South-East Asia Australia and Pacific, as well as stopover in Moscow and Saint-Petersburg for tourists from the latter countries heading to Europe through Singapore. Finance (strong local demand, no Singapore presence): investment banking, project financing, asset management.
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9	Useful contacts
10	"Russia offers diverse long-term opportunities..." Russia offers diverse long-term opportunities for Singaporean exporters and investors; Russian Authorities are pushing through far reaching reforms to create conditions for long-term and sustained economic growth; The main drivers for Russia’s economy stable growth rates (>6% per year for the last 6 years) are: High demand for energy, industrial raw materials and intermediate products; Growing local demand for consumer goods and services; Growing needs to upkeep, renovate and modernize ageing infrastructure; The most promising long-term opportunities for Singaporean businesses in Russia are in the following sectors: Transport and logistics - International Trade Oil and gas equipment and services - Tourism and Hospitality sectors Electronics and precision engineering - Finance Apart from Moscow and Saint-Petersburg, the opportunities for Singaporean businesses are also in Sakhalin, Volga region (N. Novgorod, Samara, Rostov), Ural (Yekaterinburg, Izhevsk), Siberia (Krasnoyarsk, Irkutsk). To penetrate Russian market successfully, Singaporean exporters and investors should pay more attention to understanding local conditions in Russia, to establish personal relations, strong local presence, to decide what kind of commercial presence fits their needs, to recruit good people.