Association of European Businesses: “Investment Climate in Russia is Good”

Posted by

aeb-logoFrank Schauff, the General Director of the Association of European Businesses has stated: “The Investment climate in Russia is now favorable but sanctions pose the main risk for development of this climate’s potential”.

The AEC is the main European representation of foreign investors in Russia. It is an independent non-commercial organisation that represents and promotes the interests of European companies conducting business in and with the Russian Federation, and carries out activities to improve the Russian business and trade environment and to promote economic integration and partnership between the Russian Federation and the European Union.

Schauff referred to the recent AEC report on Russia: “Yesterday we just published our annual study. And we have a scale from zero to 200 to measure the moods of European businesses. Last year, we had 141 points out of 200, which was pretty good and close already to the pre-crisis result. This year it was 138 points, which is not so much different. But anyway, the tendency is a different one, because it started growing again”, he said speaking about the attitude of Western businessmen towards current investment climate in Russia.

“The situation became better last year. The trade between Russia and European Union has grown significantly”, he added.

In terms of areas of interest to European businesses interested in investing in Russia, Schauff said, “Trends have changed over the years. Nowadays, two more sectors have become more important. It’s still the car sector in terms of having more manufacturing on the Russian territory. I also think the food processing industry is interesting”, he noted.

At the same time, Russian goods are not so well-established in the European markets, Schauff said. The Russian economy needs to become more competitive, the head of the Association said. “And if you become more competitive, the European market is open to anybody”, he added.

“Russian GDP is close to recovering its position from when the sanctions originally hit”, says Chris Devonshire-Ellis of Dezan Shira & Associates. “The economy is growing and there are opportunities”.

As can be seen in the graph below, Russia’s GDP is recovering from when sanctions hit it in April 2014 (marked by the orange dot).

Graph courtesy of Stratfor Graph courtesy of Stratfor


About Us

Russia Briefing is produced by Dezan Shira & Associates. The practice provides foreign investors in Asia with research, legal and tax advisory services and maintains offices throughout Asia as well as in Russia. For assistance please contact the firm at or visit us at


related-readings_rb-icons_2017 Related Reading:

related-readings_rb-rb-icons_2017Transhipping China Trains and Ships to Europe – Understanding Russia’s Economic and Trade Performance in 2018 and Beyond

related-readings_rb-rb-icons_2017Russian GDP Growth Accelerating Faster than EU and US

Assisting Foreign Investors into Russia

Dezan Shira & Associates´ Russian investment brochure offers an overview of the services provided by the firm – both foreign investment into Russia and Russian investment into Asia. It is Dezan Shira´s mission to guide investors through Russia´s complex regulatory environment and assist with all aspects of establishing, maintaining and growing business operations in the region.

Establishing a Foreign Business in Russia

In this issue of Russia Briefing, we explain the basics of business set up for foreign investors, from trademark registration, representation, trading mechanisms, and manufacturing. With low corporate tax rates, Russia is set to become the most dynamic of the trade corridors opening up to Asia.


Leave a Reply

Your email address will not be published. Required fields are marked *