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Information about southern Russia for investors

The Association of European Businesses in Russia has published its latest overview of investment processes in Russia, «How to Invest in Russia». For the first time, the regional focus section is devoted to southern Russia and it features an article written by the President and Chairman of Center-Invest Bank, Dr. Vasily Vysokov, entitled «The Post-Crisis Development of Southern Russia» (

The article provides a succinct analysis of the investment potential of southern Russia, backed up by data for the Southern and the North Caucasus Federal Districts. Dr. Vysokov points out that not only does southern Russia enjoy favourable natural and climatic conditions and an advantageous geographical location, at the intersection of transport and trade routes, but it also benefits from a diversified economy. This diversity is apparent both in the range of economic sectors and in the leading role played by SMEs. Coupled with the temperament and the tradition of enterprise of southern Russia’s multiethnic population, this economic structure allowed businesses in the region to overcome the crisis successfully and to adapt more quickly to the new post-crisis environment. Specifically, they were able to reduce inefficiencies and maintain their market positions by applying more flexible pricing policies.

Additional advantages in terms of the post-crisis growth of southern Russia stem from the following: the 2014 Winter Olympics are being held in Sochi, four cities in southern Russia will be among those to host the FIFA 2018 World Cup, and programmes are in place to develop resorts and recreational facilities in the North Caucasus.

The region’s potential for innovation and the success with which its SMEs are modernizing their production are creating new opportunities for the region to participate in international trade. Throughout southern Russia, business communities are engaged in constructive dialogues with the authorities about how best to attract investment. The regional committees of the Association of European Businesses are actively promoting investment in southern Russia and the development of its trade links.

The publication of Dr. Vysokov’s article in the «How to Invest in Russia» guide, a respected source of information for European business people, will give a real boost to the projects of government agencies and businesses in southern Russia. Additionally, the information provided in the article is available for Russian and international companies to use when producing analyses of regional markets for business plans and development strategies.