Future of Russia’s Construction Industry,Russia Infrastructure market

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Rail Network is Prime Focus of Construction
Sector in Russia Ken Research
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• Ken Research announced latest publication on,
  Russia 2016 Construction Outlook Growing Market
  with USD 300 Billion of Infrastructure
  Mega-Projects Pipeline, offer insights on the
  changing trends and key issues within the
  Infrastructure and Construction industry in
  Russia. The analysis of the aforementioned trends
  has been done across main sectors Real Estate
  Transportation Energy, Industrial Utilities
  and Social Infrastructure, within the industry
  with comprehensive overview of key sectors Power
  sector, Railways sector and Real estate-Mixed Use
  sector.
• Key Topics Covered in the Report
• Detailed profile of Infrastructure and
  Construction industry in Russia
• Overall, Regional and Sector wise analysis of
  Megaprojects spending in Russia
• Changing Dynamics, Opportunities and Challenges
  in the Russian Infrastructure industry
• Detailed coverage of Project Financing and
  Project Risks (Cost Time overruns) Returns
• Comprehensive overview of Key sectors Power
  sector, Railways sector Mixed-use sector
• Competitive landscape of the Infrastructure and
  Construction industry in Russia
• Regulatory framework (including PPP growth)
  applicable toInfrastructure and Construction
  industry in Russia

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• Economic Environment of Russia
• Russia is one of the most affluent mixed economy
  in the world. Vast natural resources are the key
  determinant of the Russian economy. It has
  abundant oil, natural gas and precious metals
  making up a major share of Russian exports and
  comprising about half of the Govt.s revenue.
  This huge revenue helped Russia overcome the
  economic collapse of 1998and is also presently
  one of the key drivers of countrys growth. The
  Russian economy is characterised by significant
  state-control on key sectors of the economy.
  Large state-owned institutions hold strong
  influence over political and financial
  institutions and distort the economy. From early
  2014,, as a result of falling oil prices and
  economic sanctions from EU US, the economy is
  in recession and expected to show recovery by
  2017 (World bank). Looking at the macroeconomic
  landscape, Russia is home to 143.7 million
  people. With GDP 1.178 trillion USD and GDP (PPP)
  3.6 trillion USD, it is the fifteenth largest
  economy in the world as per nominal GDP and sixth
  largest as PPP. The sector wise contribution to
  GDP includes 59.7, 36.3 and 4 by services,
  industry and agriculture respectively.

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• Despite strong growth of the Russian
  infrastructure industry since independence, the
  industry is still ranked low on the global
  platform. With some improvement in its global
  ranking to 74th position in 2015 from 101st in
  2012 the country still lags behind in providing
  best infrastructure facilities.It has a decent
  power and railway network but inefficient
  infrastructure in transport and telecommunication
  sector. Primarily focussing on the power and
  railway sector, huge investments are committed by
  the govt. under various development strategy
  programmes. Under Energy Strategy 2030 the
  govt. aims to double the electricity generation
  capacity by 2030. Russia has a megaprojects
  pipeline worth USD 300 billion. Similarly, to
  strengthen the railways, the backbone of Russian
  trade, govt. has announced few high speed rail
  projects costing more than USD 20 billion.
  Looking at strategic trends in Russian
  Megaprojects, investment in brownfield
  megaprojects have increased along with increasing
  average size of the megaprojects. Since most of
  these projects are public centric, hence are
  largely funded by state, with 60-70 of the fund
  coming from state budget. However, global crisis
  has forced the govt. to look for other financing
  options especially PPP. There has been a
  significant growth in PPP projects in Russia. As
  a result of low interest rates offered on loans,
  many foreign construction companies domestic
  private companies have entered the industry.
  Apart from the govt. creating vast opportunities
  for the growth of the industry, it still faces
  challenges such as few stalled big projects with
  little progress due to delays in finding
  investors, also impacting the final cost and
  timely delivery of these projects.

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• Major Market Players in the Construction Industry
  in Russia
• To reduce the burden of Govt. of financing
  megaprojects, private players are increasingly
  being attracted through various ways. From PPP
  projects to offering low interest rates on loans,
  govt. is trying hard to incentivise the private
  companies to enter the industry. Some major
  market players in selected sectors of
  construction industry such as Power sector,
  Railway sector and Real estate sector include
  RusHydro, ROSATOM, RUSAL, Interbering, Russian
  Railways, Gazprom, Rosneft, Mitsubishi, Mitsui
  Co, Shell, Eastern Energy Company, State Grid
  Corporation of China, Russia Ministry of
  Transport, Moscow Ring Railway, Saint Petersburg
  City Administration, Kaltchuga Capital Management
  SA, Rublyovo-Arkhangelskoye, CDS Group, Sibur,
  LukOil Company, Vnesheconombank, African
  Development Bank, KFW Development Bank, Clean
  Technology Fund, European Investment Bank, World
  Bank, SK Most, AO Institute Stroyproekt, Jsc
  Bamstroymekhanizatsia, VTB, Rosmorport, Uralkali,
  Suek, United Grain Corporation, Global Ports
  Investments Plc, Metalloinvest MC LLC, Sberbank,
  Power Construction Corporation of China, SUE
  Moscow Metro, Mosinzhproekt, CRCC, China
  International Fund Management, COMEX Holding,
  Classic Group Ltd, RDI Group, DON Story Invest
  etc.

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• Realizing the inconsistent and changing dynamics
  of the infrastructure industry, it is becoming
  important to have access to an accurate and
  comprehensive infrastructure market data that
  helps in strategic business decisions. The market
  assessment report from BrikStats, "Russia 2016
  Construction Outlook Growing Market with USD 300
  Billion of Infrastructure Mega-Projects Pipeline"
  provides a detailed lens on the infrastructure
  and construction industry with a thorough
  sub-sector level assessment. It includes market
  sizing of upcoming project pipeline at a more
  granular level and provides forward-looking
  analysis on top clients, contractors,
  consultants/ PMcs, other civil contractors /
  suppliers with their respective working or
  partnership model. Furthermore, it shows the new
  and recent trends in the industry and how it may
  impact the business decisions of the involved
  companies.

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• The weak performance of the industry over the
  last few years is expected to continue in 2016 as
  well with a slight further contraction of the
  construction industry on account of worsening
  business environment and capital outflows due to
  Russia-Ukraine conflict. However, the growth
  momentum will be steadily regained through
  expanding infrastructural construction over the
  coming years. Also, increased investment in
  brownfield projects are expected as the country
  focuses on improving its existing assets.
  Industry competitiveness is also anticipated to
  increase on account of influx of foreign and
  domestic players in the industry as a result of
  PPP and low interest rates on loans.
• Some key factors that will be driving the growth
  of Russian Construction Industry in coming years
  include
• Recognition of Infrastructure construction as a
  major contributing factor to countrys long term
  growth
• Huge investment by the govt. under various
  socio-economic development plans such as Energy
  Strategy 2030 and Strategy for Developing Rail
  Transport in the Russian Federation to 2030
• Rising disposable income boosting the residential
  construction in the country
• Fifa World Cup, 2018, expected to generate
  increased demand for infrastructure construction
  in related areas such as hospitality and
  transportation, along with attracting investment
• Growing number of PPP projects in Russia low
  interest rates charged on loans
• However, international sanctions and low oil
  prices will continue to challenge the growth of
  the Russian Construction Industry over next few
  years.

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• To know more on coverage, click on the link
  below
• https//www.kenresearch.com/manufacturing-and-cons
  truction/infrastructure/russia-construction-outloo
  k/38143-97.html
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• Contact
• Ken Research
• Ankur Gupta, Head Marketing Communications
• query_at_kenresearch.com
• 91-124-4230204

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