Russia offers great chance
Jan 22 2008 by Sue Scott, Evening Gazette
RUSSIA is Europe’s most important neighbour and a central player, both politically and economically, in Europe’s wider region.
Last year, our bilateral trade was worth in excess of £5bn and more than 400 British companies operate in Russia, including BP, which has a total investment there that now stands at more than $8 billion.
Its growth rate in recent years has been impressive - around 6.4% last year - while inflation has fallen dramatically from 85.7% in 1999 to 12.5% in 2006.
A regional perspective would show that in 2006 the North-east took 24% of UK automotive exports, 16% of engineering exports and 10% of all chemical sector activity with total exports from the North-east at £221m. It has moved from being the region’s 10th most important market to 7th in the space of 12 months with exports from the region for the first nine months of 2007 at £308m.
And its growing prosperity makes Russia not just a better place for its people, but a more attractive market for trade and investment from abroad and it presents enormous opportunities for North-east firms.
Trade between Russia and the UK has increased significantly over the past few years, and this is expected to continue. Russia is enjoying sustained economic growth, an improving financial sector and improving business ethics - all good reasons for North-east firms to consider this market.
And there are plenty of opportunities for firms in the North-east and UK to benefit, with the most promising areas being transport, construction, financial services, oil and gas, engineering, ICT, power, creative industries and the automotive sector. Many of these are sectors in which the North-east has a wealth of expertise but there are challenges to entering this market and UK Trade & Investment will be working hard to ensure firms have the knowledge and support they need to succeed.
Join us on January 31 at The Baltic, Gateshead, to find out more about business opportunities in Russia. Tickets cost £30. Call the North-east International Trade hotline on 0845 05 05 054 or email enquiries@ukti.rito.co.uk
