Capitalist Russia

Moscow, Russia

In the span of 17 years, Russia has gone from a state-controlled command economy to a stable, growing and rapidly maturing market-oriented economy. Today, it is one of the world’s largest economies with a GDP of $1.4 trillion.

However, in 2009, because of the financial crisis Russia’s GDP decreased by 7.9%. During the 6 previous years, due to buoyant household demand and business investment driving output in the construction, manufacturing and services sectors, the country enjoyed strong economic growth (ranging from 5.6 to 8.1 percent annually).
During this growth period per capita incomes were rising and its middle class has become a more significant force in the national economy. Russia's future accession to the WTO, which Russia has declared it is now seeking as a single customs bloc with Belarus and Kazakhstan, should provide better access for Canadian products and services as well as improved rule-based and transparent business climate.
European and East Asian countries are increasingly viewing Russia as a key economic partner. Russia's economy is expected to rebound with the global economic recovery, in line with outlooks in commodity prices. Russia's newly strong private sector will be a contributing factor, with the government playing an assertive role through regulation and public corporations. Moving forward, the country will need foreign capital, partnerships and technology to reach its full potential.
As Russia proceeds with the modernization of its industrial and agricultural infrastructure, opportunities will abound in transportation, infrastructure development and industrial equipment. There are also excellent export and investment opportunities in agriculture and agri-food, mining, forestry, housing, and information and communication technologies. Canadian companies wishing to capitalize on the opportunities Russia presents face a number of challenges, however, including competition from other foreign companies and differences in cultural and business practices