Russian Irish Business Club

Department of Trade Representation

........Do you have a plan to establish a Trade Agency in Russia (office, exhibition centre, retail centre?).

........Have your departments of Marketing and Sales studied the potential market in Russia for your products/services.

........The trade agencies created in Russia are, as you know, mainly from countries in the EU and North America. Markets are constantly changing, however, and there are over two hundred leading Irish companies exporting to Russia and twenty-four have a permanent presence there. Leading Irish companies such as Glen Dimplex, Trinity Biotech, Waterford Crystal and Kentech International are all active in the Russian market, selling either directly or through one or more distributors.

Principal Exports 2002

Principal Exports 2001

........The following areas seem to offer the best potential for Irish companies in Russia:

• Telecommunications and Internet Technology
• Healthcare and Pharmaceuticals
• Consumer Goods
• Education
• International Consulting Services
• Financial Services Sector.

Indigenous Exports
........Exports by indigenous Irish companies to Russia rose from EUR25 million in 2000 to EUR55 million in 2001. Exports by indigenous Irish companies to the CIS in the first half of 2002 are estimated at EUR147 million, with Russia accounting for EUR103 million. This rise can be attributed to more Irish companies in the consumer, industrial and international services sectors entering the Russian market. There is also very significant Russian interest in Irish e-learning and education companies.

Services Exports
........One of the biggest areas of growth in the Russian market is in the provision of consultancy services. Many Irish firms and organisations have won consultancy contracts under TACIS (Technical Assistance to the Commonwealth of Independent States, CIS), EBRD (European Band for Reconstruction and Development) and World Bank programmes in sectors such as power generation, training, agricultural development, transport, aviation, software systems and financial and banking services. Irish companies involved in such projects include ESBI, CIE Consult, CERTand TMS International.

........Do you plan to establish a Trade Agency in Russia? Do you need our assistance?

........Breaking into the Russian market can be complicated, and the initial costs are significant:
- Development of a competent business plan
- Selection of suitable management with experience
- Lease (and/or purchase) of trade/warehouse units
- Various other costs of the initial setting up a foreign subsidiary.

This can cost more than 100 000 Euro. Think. There are options, contact us.