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The Russian pharmaceutical sector offers opportunities for  investment in:
innovative R&D
generic medicines
Active Pharmaceutical Ingredient (API) manufacture
5.4 Consumer goods
The consumer goods market in Russia was worth USD 597 billion in 2013. It’s an important market for fashion houses and global luxury brands with estimated sales of USD 57.3 billion in 2013.
Russia is also the fastest growing market in Europe for food and drink.
Russia offers opportunities in:
premium spirits, beer, and non-alcoholic drinks including premium quality tea
high quality confectionary
organic, natural, gluten free and locally sourced food
fashion, high-end/luxury products including vehicles
kids products and toys
5.5 Education
Russia is in the middle of the biggest reform of higher education in decades. The reforms aim to enhance the international reputation of Russian universities and ensure universities enter the international top 100 ranking.
The reforms offer opportunities for UK providers to:
assist in the process of reviewing Russian Higher Education (HE) provision
assist in the design of the new institutions
form partnerships with Russian HE institutions to further boost their international reputation
The demand for English language training services and associated products is likely to grow rapidly in the next few years. This is a huge commercial opportunity for the UK.
The English component of the Russian national school leaving exam is currently optional. However, in 2020 a foreign language will become mandatory and the vast majority of students will choose English. English is expected to become a university entrance requirement.
5.6 Energy
Oil and gas
Russia’s oil and gas market is one the largest markets in the world. It’s valued at USD 50 billion per annum and is predicted to grow in the next 10 to 15 years.
The UK can offer world class expertise across the full spectrum of Russian requirements including:
upstream, onshore, mid-stream and downstream processing
subsea projects
The Russian petroleum industry has been affected by the EU and US sanctions imposed after March 2014, However, the sanctions only apply to equipment and services suitable for use in:
oil exploration or production in waters deeper than 150m in the offshore area north of the Arctic Circle
shale fracking
Annex II of Council Regulation № 833/2014 provides a detailed list of such equipment.
There are a wide range of opportunities for UK companies in Russia’s oil and gas sector where sanctions don’t apply including:
conventional oil and gas fields
construction of LNG plants
downstream oil-refining facilities
There is a trend for import substitution. Russian oil and gas companies are aiming to increase utilisation of local equipment in their operations.
UK manufacturers should start to explore different routes into the Russian market. They may need to move away from operating through a local distributor towards establishing joint ventures with Russian enterprises. Local legislation and Russian standards may soon require localisation of goods and services.
Nuclear power
The Russian nuclear industry is a world leader. The state atomic energy corporation, Rosatom has orders for 80+ units. This includes construction of nuclear plants in India, Bulgaria, Turkey, Armenia, Ukraine, Vietnam, China, Belarus, Czech Republic and Bangladesh.