New market study, "Russia Infrastructure Report Q3 2016", has been published

Fast Market Research recommends “Russia Infrastructure Report Q3 2016” from Business Monitor International, now available

New market study, "Russia Infrastructure Report Q3 2016", has been published 2016-08-04 15:34:44

International sanctions that are weakening the economy, coupled with low oil prices, underline our bearish outlook over the Russian construction sector. We currently forecast Russia’s construction industry to contract by 1.8 % in real terms in 2016 – a mild improvement compared to the deep 6. 7 % contraction of 2015 – as a result of low base effects and the adjustment of the economy to the new oil price environment.

Latest Updates And Structural Trends

Russia’s actions in Ukraine have resulted in international sanctions, some of which target loans from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). These sanctions will continue to have a significant impact on the Russian government’s capacity to fund infrastructure projects.

Middle Eastern and Chinese construction companies will increase their market share in Russia’s competitive landscape as a result of Western sanctions imposed after the country’s actions surrounding the Ukraine crisis. Shifting the balance away from European firms will diversify Russia’s options for funding and project delivery.

Full Report Details at ..

Our Country Risk team maintains a bearish outlook over the Russian economy and forecasts a continued recession of -1.2% GDP real growth in 2016 before returning to weak growth from 2017 onwards. Russia’s annexation of Crimea and perceived belligerence towards Ukraine, in addition to falling oil prices, have triggered significant rouble volatility and massive private net capital outflows. The flight of capital, which could have otherwise been deployed to productive investment domestically, has worsened the investment outlook.

We maintain our view that political risk will continue to curtail construction industry growth as corruption is endemic and public policy remains opaque, convoluted and subject to frequent change.

Risk/Reward Index

The crisis with Ukraine, sanctions against Russia and falling oil prices have considerably affected the country’s macroeconomic picture and our outlook for construction industry growth in particular. Since then, Russia has dropped from 6th to 15th place out of 18 countries in our RRI for the Central and Eastern European (CEE) region.

Russia’s Industry Rewards score is now 40.0, below the regional average of 47.1. This is explained by the downward revision of our forecasts for construction industry value.

In terms of risks, we continue to highlight multiple threats to investors in Russia, from political and forex, to legal and regulatory factors, which make it more difficult for projects to attract the private capital required for their implementation.

The Russia Infrastructure Report features BMI Research’s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI’s Russia Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Russian infrastructure and construction industry.

Key Benefits

Benchmark BMI’s independent infrastructure industry forecasts for Russia to test other views – a key input for successful budgetary and planning in the Russian infrastructure market.

Target business opportunities and risks in the Russian infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Russia.

Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).


BMI Industry View

Summary of BMI�s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).

Industry SWOT Analysis

Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.

BMI Industry Forecasts

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI’s country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at

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