Setting up operations in Russia
Russian assets are very undervalued.
According to the Economist's Big Mac index, the Russian Rouble (ruble in American English) is now the world's most undervalued currency. It is time to buy.
While setting up operations in Russia can be done by buying an existing business, direct investment is an alternative. This means chosing the form of legal entity, renting an office (a prerequisite), setting up the entity, engaging advisors, applying for long term visas, hiring managers, finding premises whether office, warehouse or factory.
At Volga Trader, we can help you do these things. However, we can also provide these services through an interim management project as an alternative to adding extra demands onto your permanent staff. Test the market with us.
We investigate regulations, location (with respect to customers), potential support from local government bodies and staff qualifications. To reduce costs, we try and locate local sources of equipment and capital construction. And to get things started, we offer business planning and temporary project management. In some cases, we can also source investors or joint-venture partners.
For certain industries, especially in services but also in oil, gas, mining, forestry, farming, food processing, construction and logistics amongst others, a physical and legal presence in Russia is vital. The Russia public sector procurement system allows a 15% weighting in favour of local producers.
In other businesses, such as the automobile or pharmaceutical industry, the Russian tariffs on imported products and rules on state procurement are such that there is a strong advantage to manufacturing locally. Users of the Russian state tendering system, which accounts for about 40% of GDP, can specifiy up to 15% of the tender evaluation for local content.
For many consumer products, the cost of transportation can be an important factor in the overall cost, making local manufacturing the solution.
Real Estate and property development
Consultants at Volga Trader have implemented property development projects.
Our team's experience in residential, retail, office, hotel and warehouse property development, includes the creation of large shopping centres in Saratov and Sochi; logistics parks in Moscow, St. Petersburg, Novosibirsk and Saratov; offices and housing developments in Moscow and Saratov.
We can support every stage of a greenfield project, from the analysis of the best use of land and the highest return on investment, to development and subsequent sale or letting.
At Volga trader, we tailor our consultancy services according to your needs and objectives.
With existing properties, we can implement redevelopment.
Some of the services we offer include: