Analysis of Key Sectors of Russia: Infrastructure, Retail, Automobile Market, Tourism, Financial Services (2017 - 2022)

Russia, a country riddled with a troubled past, a recent catapult to prosperity, is indisputably a land of opportunities. The leading country in Emerging Europe, Russia is no stranger to international politics affecting its economy. Indeed, the recent annexation of Crimea, a part of Ukraine by Russia has resulted in disgruntled sentiments across the globe, most particularly in the West.

The fall in Ruble registered after the Ukraine crisis has increased cost of imports, inflation, interest rates, recession and joblessness, and an overall slump in the economy. The Russian Trading System, calculated in terms of the US dollars suffered a drop of about 4%. Even with the MICEX having risen by about 2% in this time, investors remain wary and trade continues to be sparse. The current Ruble value of about ?50 against US$1 is a stark comparison with the average of ?32 at the start of 2014, registering an average devaluation of about 40% since 2014.

Exacerbating the situation is the drop in price of oil. The Russian economy?s dependence on oil can only be called precarious. Russia has about 87 billion barrels of oil, and about 1163trillion cubic feet of natural gas reserves. Making up about 70% of all export value, and contributing about 30% to the country?s federal budget and a quarter of the GDP, oil?s contribution to Russia?s GDP is projected to further increase to 50% in the coming decades.

It is the increase in global prices of oil that drove the growth of Russian economy between 2000 and 2010, catapulting it to the foremost position in the list of Emerging European countries. The drop of price of oil from US$110 a barrel to about $60 a barrel has resulted in an increase in demand with a simultaneous decrease in investment for new production, leaving the Russian economy vulnerable.

Furthermore, the sanctions enforced by the US moderately impact new exploration and production of shale due to loss of technology Western firms would have introduced, and a more severe restriction on software transfer. While alliances with Asia can solve the latter problem for Russia, over the longer term, its dominance as a world leader reliant on the oil business can be seen diminishing.

However, this also gives the country to strengthen and optimize for output other sectors that have the potential to grow. Markets not closely related to imports have registered only a marginal decline. Despite ranking low on key parameters: 92 out of 112 on Ease of Doing Business, 67 out of 144 on Transparency International, being on the USTR IPR watch list, and being infamous for corruption and unnecessary bureaucracy, Russian markets have much to offer.

A determined drive towards domesticating and localizing production across sectors will account for high growth in the respective domestic industries.


Government focus on infrastructural development in transport as well as other sectors in view of the upcoming World Cup 2018 will drive growth in infrastructure. Saturated retail markets in big cities will give way to interior smaller cities. The government?s determined drive to localize production and to increase trade relations with Asia will bring about interesting economic changes.


A weakening Rouble, falling investor sentiments, increasing level of sanctions and trade barriers will impact the Russian economy. Furthermore, tighter purse strings will be an effect of the resultant recession, affecting all sectors, from retail to automobiles.

What the report offers

This report will contain micro & macro factors that affect Russia?s market on both Global and Regional scale. It will provide insights pertaining to specified topics and key drivers & restraints for the market particular to each mentioned sector and sub-sector. The report will identify factors instrumental in changing the market scenarios, rising prospective opportunities and identification of key companies which can influence the market on a global and regional scale.

It also contains competition analysis on global & regional scale providing region specific assessments. Competitive landscape will contain profiles of multiple companies along with their strategic initiatives and market shares. Finally, it offers a comprehensive list of key market players along with the analysis of their current strategic interests and key financial information.

1. Introduction

1.1 Report Description

1.2 Research methodology

1.3 Definition of the Market

1.4 Areas covered

2. Executive Summary

3. Key Findings of the Study

4. Market Overview

5. Introduction

6. Economic Indicators

6.1 GDP

6.2 GDP Growth

6.3 Inflation rate

6.4 Interest Rate

6.5 Unemployment Rate

6.6 Fiscal Deficit

6.7 Current Account Deficit

7. Market Segmentation

8. Investment Opportunities

9. Market Dynamics

10. Infrastructure Market

10.1 Drivers

10.1.1 FIFA World Cup 2018

10.1.2 Energy Strategy 2030

10.1.3 Rail Transport Development Strategy 2030

10.1.4 Tier-II Cities Grow

10.2 Restraints

10.2.1 Corruption

10.2.2 Select Vendors Benefit

10.2.3 Lack of Qualified Engineers

10.2.4 Resistance to New Technologies

10.2.5 Prohibitive Administrative and Regulatory Barriers

10.2.6 International Sanctions

10.3 Opportunities

10.3.1 E-Commerce for Bidding

10.3.2 Retail Construction

10.3.3 All-Round Investment for Upcoming Games

11. Retail Market

11.1 Drivers

11.1.1 Increasing Per Capita GDP

11.1.2 Positive Consumer Perception towards FMCG Market

11.1.3 High growth in Small Cities

11.2 Restraints

11.2.1 Crisis Pushes Conservative Spending's

11.2.2 Lower Profitability

11.2.3 Recession, Inflation

11.3 Opportunities

11.3.1 Online Retail

11.3.2 Storage and Distribution

12. Automobile Market

12.1 Drivers

12.1.1 Currency Exchange Value

12.1.2 Car and Truck Scrap page Scheme

12.1.3 Government Initiative's in developing Local Market for Production

12.2 Restraints

12.2.1 Lower Relative Income

12.2.2 High Production Costs

12.2.3 Increasing Borrowing Costs

12.3 Opportunities

12.3.1 Low Cost Purchase of Production Units

12.3.2 Used Cars Markets

12.3.3 Impetus to Local Sourcing

12.3.4 Stakeholder of Automobile Companies

13. Financial Services

13.1 Drivers

13.1.1 Skilled Labours

13.1.2 Increasing Banking Needs

13.1.3 Robust Economic Growth

13.1.4 People Tend to Save Money

13.1.5 Investments

13.1.6 Growing Secondary Market

13.2 Restraints

13.2.1 Low Interest Rates

13.2.2 High Non Performing Assets

13.2.3 Closed Stock Market for Foreigners

13.3 Opportunities

13.3.1 Broker in Stock Exchange

13.3.2 Demat Services

13.3.3 Merchant Banking/Investment Banker

14. Tourism

14.1 Drivers

14.1.1 Increase in Online Bookings

14.1.2 International Travel Pushed by Depreciating Ruble

14.1.3 On Arrival Visa facility to most of the countries

14.2 Restraints

14.2.1 Bankruptcy of Local Tour Operators

14.2.2 High Fares

14.2.3 High Overall Construction Cost

14.3 Opportunities

14.3.1 Broker/Advisor

14.3.2 Travel Agents

14.3.3 Resorts/Hotels

15. Industry Value Chain Analysis

16. Industry Attractiveness ? Porter?s 5 Force Analysis

17. Industry Policies

18. Infrastructure Market

18.1 Summary

18.2 Key Findings

18.3 Sales

18.4 Consumption pattern

18.5 Exports

18.6 Imports

18.7 Prices

18.8 Major Companies

18.9 Commercial Construction

18.9.1 Statistics

18.9.2 Key Findings

18.9.3 Major Companies

18.9.4 Projects

18.9.5 Upcoming Projects

18.10 Industrial Construction

18.10.1 Statistics

18.10.2 Key Findings

18.10.3 Major Companies

18.10.4 Projects

18.10.5 Upcoming Projects

18.11 Infrastructure Construction

18.11.1 Statistics

18.11.2 Key Findings

18.11.3 Major Companies

18.11.4 Projects

18.11.5 Upcoming Projects

18.12 Institutional Construction

18.12.1 Statistics

18.12.2 Key Findings

18.12.3 Major Companies

18.12.4 Projects

18.12.5 Upcoming Projects

18.13 Residential Construction

18.13.1 Statistics

18.13.2 Key Findings

18.13.3 Major Companies

18.13.4 Projects

18.13.5 Upcoming Projects

18.14 Market demand to 2020

19. Retail Market

19.1 Summary

19.2 Food Products

19.2.1 Key Findings

19.2.2 Sales

19.2.3 Consumption pattern

19.2.4 Exports

19.2.5 Imports

19.2.6 Prices

19.3 Non-food Products

19.3.1 Key Findings

19.3.2 Sales

19.3.3 Consumption pattern

19.3.4 Exports

19.3.5 Imports

19.3.6 Prices

19.4 Major Companies

19.5 Prices

19.6 Market demand to 2020.

20. Automobile Market

20.1 Summary

20.2 Key Findings

20.3 Production

20.4 Consumption pattern

20.5 Major Companies

20.6 Imports

20.6.1 Key Findings

20.6.2 Major Exporting Countries

20.6.3 Prices

20.6.4 Major Companies

20.7 Export

20.7.1 Key Findings

20.7.2 Major Importing Countries

20.7.3 Prices

20.7.4 Major Companies

20.8 Market demand to 2020.

21. Financial Services

21.1 Summary

21.2 Key Findings

21.3 Financial System

21.4 Stock Market

21.4.1 Key Findings

21.4.2 Major Players

21.4.3 Major Companies

21.4.4 Government Regulations

21.4.5 Index and Its Performance

21.4.6 Market Volatility

21.4.7 Foreign Investment

21.5 Commodity Market

21.5.1 Key Findings

21.5.2 Major Commodities

21.5.3 Major Companies

21.5.4 Government Regulations

21.5.5 Market Volatility

21.5.6 Foreign Investment

21.6 Mutual Funds

21.6.1 Key Findings

21.6.2 Major Commodities

21.6.3 Major Trends

21.7 Insurance

21.7.1 Key Findings

21.7.2 Major Commodities

21.7.3 Major Trends

21.8 Market demand to 2020.

22. Tourism Market

22.1 Summary

22.2 Key Findings

22.3 Tourists (Country Wise)

22.4 Major Locations

22.5 Major Companies

22.6 Market demand to 2020.

23. Competitive Landscape

23.1 Existing Companies

23.2 Upcoming Companies and Projects.

24. List of Figures

25. List of Tables

26. Abbreviations

27. Works Cited


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