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1. Russia export overview
Russia was the world’s ninth largest economy by Gross Domestic Product (GDP) in 2014 according to the International Monetary Fund (IMF).
Russia improved to 62nd in the World Bank’s ‘Ease of Doing Business’ ranking in 2014. It’s making some headway in meeting President Putin’s target of reaching 20th position by 2018 after starting from the position of 122nd.
Some bilateral cooperation and trade support activity is being affected following Russia’s interventions in Ukraine and the illegal annexation of Crimea. The European Union’s (EU) restrictive measures are targeted, and outside of those specific areas, there remain significant opportunities for companies.
Russia has started major investment and modernisation programmes which will provide opportunities for  firms. It’s looking for foreign investment, expertise, technology and resources to help.
Russia’s diverse regions also present opportunities for  business. These regions are increasingly competing to attract international investment. Some regions have made significant improvements to make it easier to do business, such as Kaluga and Kazan.
desire of Russian companies to use international accounting and legal standards
respect for ‘UK made’ brands, including retail and luxury
anticipated increase in the number of Russian mid and small sized businesses
Strengths of the Russian market:
young and well educated workforce
strong transport links and logistics
access to supply chains that could lead to exports to other markets in the Commonwealth of Independent States (CIS)
2. Challenges
Doing business in Russia can be more difficult than operating in many Organisation for Economic Co-operation and Development (OECD) countries. It’s important that British companies come to Russia well prepared.
Russia covers one seventh of the world’s land mass. Its incredible size means that it:
spans 9 time zones
has extremes of climate and weather ranging from sub-tropical in the south, to Permafrost in the north
has varying levels of development, and differing social and economic factors
Russia ranked 136 of 174 countries in Transparency International’s 2014 ‘Corruption Perceptions Index’.
You should ensure you take the necessary steps to comply with the requirements of the  Bribery Act.
Other challenges include:
Russia’s regions can have different regulations in force
potential language barriers
bureaucracy and slow response from local authorities and government agencies
transparency and rule of law
Read the Foreign and Commonwealth’s Office’s (FCO) Overseas Business Risk report for Russia.
3. Growth potential
3.1 Economic growth
Russian economic growth has slowed annually since 2010. Its GDP grew by only 0.6% in 2014 due to:
a fall in the oil price over the second half of the year
the EU’s Ukraine related sanctions regime
existing structural weaknesses in the economy including the large state sector and inefficient use of labour
A contraction of 2 to 3% is predicted in 2015.
Russia with the smallest population of the BRIC (Brazil, Russia, India and China) economies is in per capita terms the wealthiest by a considerable margin. Russia’s domestic supply of consumer goods and services is underdeveloped in many sectors, but it has: