Russia’s long period of sturdy growth came to an end around 2009. However, today the question is if Russia is worthwhile or if this is just too complicated. Over-regulation, political circumstances, deteriorating infrastructure, bureaucracy, high level of illegal trade, widespread corruption, and bad relations to other countries (particularly Western) are inhibiting the Russian market. December 2011 Russia joined the WTO and the investment environment is becoming more liberal. This was one of the factors that has attracted foreign investors who saw the opportunities of the market as outweighing the risks – but is this still the case even with Russias abundance of mineral and forestry resources such as iron ore, coal, copper, aluminum, manganese, salt, and precious metals are all being produced, however, facilities are in need of modernization.
SPECIFIC ISSUES AND KNOWLEGDE NEEDED TO MAKE DECISIONS
Considering all these constraints – which of them pose the most challenges and threats to entering or operating in the Russian market
- How do you prevent, manage, or recover from the threats and constraints?
- Which advantages and opportunities are there in the market?
- How can these opportunities and advantages be used to minimize the challenges and constraints?
- Are there recommended way to enter?
- Are there recommended ways to exit?