Yesterday the meeting of the French-Russian Committee for Localization of the Chamber of Commerce and Industry took place. Mr. Nikita Koskevich, Head of Residents Engagement Division of the Development Corporation of Middle Ural took place in the event. As he mentioned, “Localization of manufacturing in Russia is becoming profitable, presenting big opportunities for the International business. It is happening not only because of the devaluation of the national currency making foreign investments cheaper and domestic manufacturing more profitable than import - also there are measures of the State support which are currently expanding - it include privileged conditions for international companies to help them to enter the Russian market and to start joint ventures with Russian partners”.
Among the participants of the meeting were the representatives of the French business community, Corporations of regions’ development and the Industrial Parks; they pointed out an important trend - foreign business has been shifting focus on export from the Russian Federation, it is becoming a key motivational point to localize manufacturing in Russia. Contrary to past trend when international businessmen had been focusing on access to local markets and selling products over here, now the World brands see benefits of setting up manufacturing in Russia to start exporting products. This trend will be dynamically growing in 2017.
To reiterate, in the framework of the regular Investor’s Talks business meeting hosted by the Development Corporation of Middle Ural, the CEO of the Association of European Businesses (AEB) Dr. Frank Schauff mentioned, “International business is ready to expand investments into projects in Russia and, particularly, in Sverdlovsk Region, including setting up manufacturing to export produced products to other countries. Today European business could be interested in it and there are good examples when 10%-20% of the locally manufactured products are being sold for export”.