Investment Activity in Russia: Practical Steps for Foreign Investors

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Investment Activity in Russia: Practical Steps for Foreign Investors

On 12 April, 2012 the Russian expert in investment and finance, Pavel Gagarin, held a seminar for British investors in London.

Chairman of the Board of Directors of Gradient Alpha Investments Group, Pavel Gagarin, held a seminar in London titled "Investment Activity in Russia: practical steps for foreign investors to achieve positive results". The event was organised by The Russia House Ltd, which has more than 40 years experience in promoting trade between Russia and the UK. It was also supported by the Trade Delegation of Russia in the UK.

The seminar was attended by businessmen from around the UK, representing trading, manufacturing and IT companies, all of whom are looking to work in Russia. The seminar was also attended by representatives of UK TRADE & INVESTMENT, a government organisation that works with UK-based businesses to ensure their success in international markets, and to encourage the best overseas companies to look to the UK as their global partner of choice.

Mr. Gagarin talked with the audience about the most effective ways of starting a business in Russia for foreign investors and how to manage and minimise the legal, administrative, fiscal, financial and market risks. Parvel Gagarin briefed foreign businessmen on the specifics of reporting systems by Russian companies with foreign participation. The Chairman of Gradient Alpha also reviewed the work of foreign investors in Special Economic Zones in Russia and gave many practical recommendations on the basis of his personal experience.

After the presentation, Pavel Gagarin answered questions from the audience and held a number of talks with the businessmen from the audience.

At the conclusion of the event, Pavel Gagarin gave a series of interviews with British journalists. Pavel described to the British press the current situation in the banking sector and also analysed the attractiveness of various sectors of the Russian economy for foreign investors. The journalists were particularly interested in the effects of recent changes in Russian legislation, including amendments to the Criminal Code.

The event demonstrated that British companies are willing to invest in the Russian economy and to consider specific proposals.

"There are several reasons why Russia is attractive for British investors”, commented Pavel Gagarin. There is little benefit in investing in the U.S. market, since there the local capital is cheaper and more competitive. Most European countries are experiencing a recession, so the British are reluctant to invest in the EU either. Furthermore, they are cautious about investing in China and in Southeast Asia, since the trends in the Asian economies are not favourable and prospects are unpredictable. South and Central America look too exotic for more conservative Europeans. This leaves only India, Eastern Europe and Russia. Russia is the country of choice because of the decrease in the price of assets due to the uncertain political situation as well as there being a relatively low inflation rate. With an excellent risk premium, after the new government has been formed and its political course defined, foreign investors, including British ones, will look at Russia with a lot more confidence".