Post-election Russia: Implications for Business
This exclusive gathering at the Economist conference at The Ritz-Carlton in Moscow brought together for the tenth year over 160 international senior executives for business benchmarking with Russian business leaders.
In his session, Oleg Deripaska, Chairman of the Board of Directors of Basic Element stressed two vital areas for increased government focus: the environment and infrastructure. Introducing laws at the federal level is not the best approach. Rather the key thrust of policy on the environment should be training and education to build a consensus from below and investment in a scientific and innovative approach towards the energy sector.
For businesses, it means rethinking products and processes, focusing on waste management rather than just cost management and learning from best practice around the world.
Further sessions included lively debate with Sergei Shatalov, Deputy Minister of Finance and Trade, and representatives from Telenor, Baker & McKenzie, The Coca-Cola Company, Ernst & Young and Philips.
"Too many companies just don't understand the Russian market. It is the best performing market for western companies in the whole of EMEA. Strong sustainable business growth exists for western companies over the next 10 years.
Russia is a market which now simply cannot be missed. It is the only BRIC market with net independent energy resources, its GDP per capita is now equal to a middle-rich country such as Croatia and will soon surpass that of Poland. It is the largest volume sales market in the CEE region for western companies.
FDI is booming. Russia accounted for 50% of EU trade growth last year. The numbers simply keep pouring out. But of course operational issues remain: HR, rising costs, corporate structures, compliance and developing distribution", Roundtable Chairman, Daniel Thorniley, commented.