Rail Network is Prime Focus of Construction Sector in Russia Ken Research

Ken Research announced latest publication on, “Russia 2016 Construction Outlook: Growing Market with USD 300 Billion of Infrastructure Mega-Projects Pipeline”, offer insights around the altering trends and key issues inside the Infrastructure and Construction industry in Russia. The research into the aforementioned trends continues to be done across primary sectors: Property Transportation Energy, Industrial & Utilities and Social Infrastructure, inside the industry with comprehensive summary of key sectors: Power sector, Railways sector and Property-Mixed Use sector. Key Topics Covered within the Report -Detailed profile of Infrastructure and Construction industry in Russia -Overall, Regional and Sector wise analysis of Megaprojects spending in Russia -Altering Dynamics, Possibilities and Challenges within the Russian Infrastructure industry -Detailed coverage of Project Financing and Project Risks (Cost & Time overruns) & Returns -Comprehensive summary of Key sectors: Power sector, Railways sector & Mixed-use sector -Competitive landscape from the Infrastructure and Construction industry in Russia -Regulatory framework (including PPP growth) relevant toInfrastructure and Construction industry in Russia Economic Atmosphere of Russia Russia is among the most affluent mixed economy on the planet. Vast natural sources would be the key determinant from the Russian economy. It’s abundant oil, gas and gold and silver creating a significant share of Russian exports and comprising about 50 % from the Govt.s revenue. This massive revenue helped Russia overcome the economical collapse of 1998and can also be presently among the key motorists of countrys growth. The Russian economy is characterised by significant condition-control on key sectors from the economy. Large condition-owned institutions hold strong influence over political and banking institutions and distort the economy. From early 2014,, because of falling oil prices and economic sanctions from EU & US, the economy is within recession and likely to show recovery by 2017 (World bank). Searching in the macroeconomic landscape, Russia hosts 143.seven million people. With GDP 1.178 trillion USD and GDP (PPP) 3.6 trillion USD, it’s the fifteenth largest economy on the planet according to nominal GDP and sixth largest as PPP. The sphere wise contribution to GDP includes 59.7%, 36.3% and 4% by services, industry and agriculture correspondingly. Despite strong development of the Russian infrastructure industry since independence, the continues to be rated have less the worldwide platform. With a few improvement in the global ranking to 74th position in 2015 from 101st this year the nation still lags behind in supplying best infrastructure facilities.It features a decent power and railway network but inefficient infrastructure in transport and telecommunication sector. Mainly focussing around the power and railway sector, huge investments are committed through the govt. under various development & strategy programmes. Under Energy Strategy 2030 the govt. aims to double the amount electricity generation capacity by 2030. Russia includes a megaprojects pipeline worth USD 300 billion. Similarly, to bolster the railways, the backbone of Russian trade, govt. has announced couple of high-speed rail projects costing greater than USD 20 billion. Searching at proper trends in Russian Megaprojects, purchase of brownfield megaprojects have elevated together with growing average size the megaprojects. Since many of these projects are public centric, hence are largely funded by condition, with 60-70% from the fund originating from condition budget. However, global crisis has forced the govt. to consider other financing options especially PPP. There’s been a substantial development in PPP projects in Russia. Because of low interest offered on loans, many foreign construction companies & domestic private companies have joined the. In addition to the govt. creating vast possibilities for that growth of the profession, still it faces challenges for example couple of stalled big projects with little progress because of delays to find investors, also impacting the ultimate cost and timely delivery of those projects. Major Market Players within the Construction Industry in Russia To lessen the responsibility of Govt. of financing megaprojects, private players are more and more being attracted through other ways. From PPP projects to offering low interest on loans, govt. is attempting difficult to incentivise the non-public companies to go in the. Some major market players in selected sectors of construction industry for example Power sector, Railway sector and Property sector include: RusHydro, ROSATOM, RUSAL, Interbering, Russian Railways, Gazprom, Rosneft, Mitsubishi, Mitsui & Co, Covering, Eastern Energy Company, Condition Grid Corporation of China, Russia Secretary of state for 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, U . s . Grain Corporation, Global Ports Investments Plc, Metalloinvest MC LLC, Sberbank, Power Construction Corporation of China, SUE Moscow Metro, Mosinzhproekt, CRCC, China Worldwide Fund Management, COMEX Holding, Classic Group Limited, RDI Group, DON Story Invest etc. The weak performance of the profession during the last couple of years is anticipated to carry on in 2016 too having a slight further contraction from the construction industry due to worsening business atmosphere and capital outflows because of Russia-Ukraine conflict. However, the development momentum is going to be continuously obtained through expanding infrastructural construction over in the future. Also, elevated purchase of brownfield projects are anticipated because the country concentrates on improving its existing assets. Industry competitiveness can also be expected to increase due to increase of foreign and domestic players in the market because of PPP and low interest on loans. Some important aspects that’ll be driving the development of Russian Construction Industry in future years include: -Recognition of Infrastructure construction like a major adding step to countrys lengthy term growth -Huge investment through the govt. under various socio-economic development plans for example Energy Strategy 2030 and Technique for Developing Rail Transport within the Spain to 2030 -Rising disposable earnings boosting the residential construction in the united states -Fifa World Cup, 2018, likely to generate elevated interest in infrastructure construction in related areas for example hospitality and transportation, together with attracting investment -Growing quantity of PPP projects in Russia& low interest billed on loans However, worldwide sanctions and occasional oil prices continuously challenge the development from the Russian Construction Industry over next couple of years.

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Contact: Ken Research Ankur Gupta, Mind Marketing & Communications query@kenresearch.com +91-124-4230204

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