Those of you who ordered any of my packages that include The Export Connection video tapes no doubt viewed the interviews with Stephen Moody, a broker who specializes in trading with Russia. I conducted these interviews with Mr. Moody in the mid 90s and while he celebrated the opportunities in Russia, he lamented the problems with the country’s infrastructure and payment options.

In the last few years, however, things have changed for the better.

Moody’s Investor Service (no relation) recently raised Russia’s credit rating to investment grade status in recognition of Russia’s fiscal progress in recent years. And U.S. Commerce Department programs are working to open the Russian market for U.S. companies, particularly in the area of energy, health care and railroads.

Today, the biggest exported products from the U.S. to Russia include machinery and heavy equipment, meat and poultry, medical devices, chemicals and pharmaceuticals.

Frankly, a lot of Russia’s economic growth can be tied directly to high international oil prices since domestic consumption is still unable to sustain high levels of growth. But that may be changing too.

Russia’s expanding consumer market seems poised for a real growth spurt thanks to rising personal incomes and decades of pent-up demand. Cheap credit is also finally available which means hard-pressed consumers no longer have to pay cash for purchases. Consumer goods are now considered one of the hottest prospects for exporters.

A burgeoning field related to consumer products is in the beauty and health care sector. In 2001, Russia ranked 6^th among the world’s fastest growing cosmetic markets.

Another hot field for exporters is in the exploding telecommunications field. There is now a strong demand for a state-of-the-art communications infrastructure with consumers demanding computers and related technology.

Housing and construction in general are expected to benefit from the new availability of mortgages thanks to a government-sponsored housing mortgage lending agency.

There are also real opportunities in mining, automotive equipment, agricultural and food processing equipment with more opportunities expected within the next few years in the electrical power and large agricultural equipment industries.

The U.S. Government offers assistance to countries seeking to break into the Russian market. Go to http://www.buyusa.gov/russia/en/ for information and counseling opportunities made available by the U.S. Commercial Service. The U.S. Commerce Department’s BISNIS site at http://www.bisnis.doc.gov/bisnis/bisnis.cfm provides free country and industry reports, market information and counseling as well as sales and partner leads for U.S. companies.

Dennis Hessler

Spyglass Point Productions

Click on this button to subscribe to the Global Trade newsfeed