Australian companies can expect greater access to the fast-growing Russian market following the recent signing of a bilateral access agreement between the two countries.
Australian companies can expect greater access to the fast-growing Russian market following the recent signing of a bilateral access agreement between the two countries.
Russia is one of the world’s fastest growing emerging economies and is moving towards membership of the World Trade Organisation.
Its economy has averaged growth of around 7 per cent during the past six years, with merchandise trade between Australia and Russia reaching $436 million in 2005. Of this amount, $97 million was in the services sector.
To further this growth in trade, during the past week Moscow hosted the second annual Australia week.
The Western Australian government and a number of WA businesses were among the 47 companies and organisations to participate in the event.
The inaugural event in 2005 led to almost $80 million worth of new export business for Australian companies.
The state government’s involvement was designed to assist WA companies already doing business in Russia and investigate the potential for the export of other local goods and services to the Russian market.
There are opportunities for WA companies in Russia in the mining, resources, food and beverage, agriculture, and science and innovation sectors.
According to the WA government’s European office, oil and gas major Woodside, along with BHP Billiton and Rio Tinto, are all either investing, exploring or looking to develop a profile in the Russian market.
Bentley Technology Park-based fuel additive company Firepower was a major sponsor of the Moscow event and has been active in Russia for the past 10 years, as well as having a presence in other eastern European markets.
Greenwich House is a WA business consultancy with expertise in building strategic alliances, and international business development primarily in the defence, maritime and aerospace sectors.
It has been operating in the region for a number of years and employs personnel from several countries, including Russia.
Solahart, a world leader in solar hot water systems, is new to the Russian market and used the Moscow event to network its wares to potential importers and distributors.
Other WA companies are also active in Russia.
Nedlands-based Micromine has an office in Russia, and fellow WA mining software group, Fractal Technologies, has a distributor in the country.
Osborne Park company, Q-Mac, also distributes its niche-market communications products in Russia.
There is also scope for Russian companies across a range of fields in WA, in particular in the mining and resources sector, as well as service industries such as skilled migration, education and tourism.
Some analysts suggest the volatile nature of Russia’s still developing economy, and its dependence on international commodity markets, are of concern.
But fundamentals such as the increasing level of foreign investment, rising incomes, an abundance of skilled human resources, and competitive prices for its natural resources point to Russia being a favourable place to do business for many.
