Russia has always had a huge charm, along with its traditional intimidation, on investors. Striking fear for its regal magnitude, frightening climate, enormous raw material wealth, unbelievable personal assets.
But Italy, in a context of permanent and global mistrust toward Russia, has always had a “special place” and always been “cuddled” by the “Great Mother”, on a business and economic P.o.v.;
Despite the unpleasant events Russia has lately faced, such as commercial wars, boycotts, price increases, Ruble loss of value.
But, still Russians maintain interest in Italian investments, and increasingly it is easy to see how commercial facilitations, both on a federal and regional level, are getting to life.
Fashion, jewelry, food, have always been the very flagship of the “Made In Italy”; but nowadays, more and more often the “Bel Paese” is asked to be present in the fields of:
- Agro-industry;
- Mechanics, high technology;
- Raw and precious Metals sector and its processing support technologies;
- Energy;
- Infrastructure creation;
Therefore - if dealing with these above-mentioned kinds of sectors - what an Italian SME could possibly do to develop its own business with Russia?
Is there a real chance to create and profitably keep business in Russia?
Of course, with the due prudence.
“Export” stands as the usual (and most preferred) way of investment; but lately, on the contrary, a lot of companies are considering to delocalize and settle their own subsidiary branches in Russia.
But, there is a “but”. This is explained considering how wise is to understand where to move - it is easy to associate Russia with big cities such as Moscow or Saint Petersburg.
While, perhaps, the real chances of profit are situated somewhere else: each Region (Oblast’) shows extremely diversified levels of development; and the most dynamic and emergent ones are strongly competitive with one another, so to attract foreign investments, through fiscal and commercial incentives.
In order to evaluate the economic situation in different areas, many benchmarks are often used (“aggregate regional ranking”, “climate investment index” etc).
Furthermore, in Russia “E.S.Z.” (“Economic Special Zones”) were created, and most of the Italian (and foreign) companies and entrepreneurs still don’t know.
What ESZs are? Just keep in mind that those ex poor areas were born to encourage foreign investors, thanks to a strong policy of exemptions and/or fiscal, real estate and administrative advantages.
Creating chanced of employment for citizens, while collaborating with foreign economic realities. And, speaking of new industrial hubs and areas, it is worth to say that for Italian companies might be suitable to pick the Caucasus Region, the ones located in the south-western Oblasts, and, of course, the Moscow Region area.
Like Tula, for example.
Probably you have never heard of it, but Tula (200km south of Moscow) is a fast-growing city and mostly, every year an Italian-Russian economic Forum takes place there. And it is a very important event for the entrepreneurs of both countries, a true chance of “hand shaking, and business making”.
And yet: back in 2010 Tula Region included action regarding financial and fiscal incentives, allowing the investors to get benefits from a reduced taxation of profits (15,5%), a 0% taxation on properties, for at most four fiscal years.
So nowadays, Tula can be certainly considered such as one of the best existing gateways toward the Russian market, not only for its proximity to the capital city, but even for all those benefits and encouragement measures especially made for European investors and business companies.
Many chances yet to be discovered in this “Russian scenario”, which for sure is still to be considered as one of the most dynamic on Earth.
And Plàmia, as successfully already done several times, is able to walk the companies along the right path, leading into the Russian business world, so to immediately take advantage of all these benefits.
And We strongly believe that this support is even more important all those less structured companies who may need a proper guidance and assistance, while seeking their wealth purposes.