Market Report, "Russia Infrastructure Report Q4 2015", published

From: Fast Market Research, Inc.
Published: Wed Sep 09 2015

We maintain our construction industry forecast for Russia in 2015 at -7. 0 % on the back of the increasing impact of international sanctions and weak oil prices. Western sanctions will create an opportunity for Chinese and Middle Eastern companies to increase their market share of Russia's construction market.

Key Trend And Developments

Russia's actions in Ukraine have resulted in sanctions from the EU which target loans from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). We expect these sanctions will have a significant impact on the Russian government's capacity to fund infrastructure projects.

Full Report Details at

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

Our Country Risk team maintains a bearish outlook on the Russian economy, forecasting GDP growth of -4% for 2015. 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.

In the energy infrastructure sector, the build-out of gas infrastructure to support supply to Turkish Stream was suspended in July 2015, indicating Gazprom is facing the realities of lower commodity prices and challenges in raising capital.

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.

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

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Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
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