Russia and Ukraine – Investing during the crisis?

The global economic crisis has hit Russia and Ukraine particularly hard. This downturn is not merely down to the global financial crisis, but also because of their structural and efficiency problems, and because their economies had overheated in recent years. In Ukraine, political stability is also affecting the economy. The fallout from this is also affecting Austrian companies, which have invested EUR 51 billion in the two countries. In the medium to long term, however, the economic prospects for both markets are good. Roland Berger Strategy Consultants is advising international investors to adjust to the changing conditions and get ready for the coming upturn now.

Both economics face the same problem: focus on raw materials. Most higher added value products are imported. Furthermore, the infrastructures in both countries have been severely neglected. One third of all roads are not entirely usable, and the rail network is outdated. And the crisis also means they will fall further behind Western companies in terms of efficiency and innovation. Nevertheless the medium to long-term prospects for both countries are good and entering the markets is very attractive now.

Speakers:

Dr. Uwe Kumm, Managing Partner Russia, CIS and Baltic States, Roland Berger Strategy Consultants, Moscow

Dr. Roland Falb, Managing Director and Managing Partner Austria and South East Europe, Roland Berger Strategy Consultants, Vienna