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The Opportunity for a Russian Relationship Reset is Here

Posted by Tate Ulsaker on

With the anti-Russian pro-war agenda running out of steam, Russia can expect renewed direct foreign investment from western developers. Nearly every economic sector in Russia has gaps to fill where long term cooperative efforts can benefit all players. From technology to services to resources to trade, there are no saturated markets and no shortage of strong, lasting growth projections for investors.

The opportunities for western companies are as big as Russia itself. There are opportunities on the demand side and supply, of low competition and intelligent capable work force. In fact, this has always been the case. How the west got so unified in military confrontation is one for the history books to decide. As for contemporary reality, Russia represents a business opportunity for the west and there is no aggression coming from Russia militarily, only very strong, resilient defense, as has always been the case historically.

Investors often wonder about the risks of investing in Russia. Yes, there are potential dangers of legendary proportions, but what is surprising to some, the worst case scenarios are usually easy to avoid. The big challenge for businesses in Russia, especially foreign business, is to unravel problems once they have been realised. It is universally true that a potential problem costs less to avoid than an existing problem costs to solve. As anyone in Russia will admit, solving business problems in Russia can be very expensive in more ways than just money. The key to navigating the business terrain in Russia is no different from anywhere else. By simply following generally accepted business practices that includes of course a reasonably robust market analysis before too many commitments are made, most business problems are lessened or completely avoided. Cutting corners can lead to expensive mistakes and it just isn't worth it in the final analysis because there are many benefits of open source diligence that come naturally from the process of studying the market and the costs are so tiny compared to some of the expensive mistakes that are increasingly likely in the absence quality diligence in Russia.

The good news is: Russian investors can be optimistic. I believe that Russia is going to have another market boom. I have seen a few of them over the last 25-years. Each new boom brings both new and returning foreign investors. Predictably, the best investments will tend to have more diligence behind them, and also more attention to ongoing strategic engagements along the way as things change. Russia requires commitment to see investments through. We at Direct INFO have the experience and we are here to help.

"According to forecasts by the World Bank, International Monetary Fund and the UN, Russia’s economy has beaten the effects of US and European Union sanctions over the Ukraine crisis...
"...The near-stabilization of oil prices above the $50 mark has also helped boost revenues as most economic policy was designed with oil prices at $40."

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