The decision to localize a production plant in Russia is always a decision about investment. Most companies decide to invest in Russia because they have customers in the local market and the conditions for implementing the project are favorable.
Today we can say that localization processes in Russia in the last five years have changed for the better for both sides: business and government. The Russian government uses subsidies as a support instrument for investors in order to boost the budget of projects and help itself by developing a future manufacturer that will pay tax, create employment, develop new technologies and, of course, produce goods. In recent years, the Russian government has continued to actively expand the list of tools available to support investors, balancing its own interests and the interests of business. Improving the investment climate in the country is an important task.
In 2020 foreign companies invested in 107 industrial projects in Russia, which now holds 11th place in the investment climate rating among European countries. It is a good time to invest in the Russian manufacturing sector. The Russian manufacturing industry is in high need of technological innovation.
Would you like to learn about SPIC 1.0, SPIC 2.0 ? To know what is IPPA? Favorable conditions and forecast for 2022?
Read more in article “Localization as a form of investment: latest news from the Russian market” prepared by Angelina Anokhina, Team Lead CFO Services, and Evgenia Uvarova, Localization Project Manager, SCHNEIDER GROUP.