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Speaking at the U.S. Chamber of Commerce in New York in April 2013, EBRD President Sir Suma Chakrabarti told an American audience of investors of the vast opportunities of the Russian economy.

Despite the challenges, “there are still good reasons to engage with and invest in Russia,” he said.

According to the bank’s official website, Russia is the ‘largest recipient of EBRD investments’, with more than 23 billion euro provided for over 700 successful projects in the country.

In his speech, President Chakrabarti highlighted a recent EBRD report, ‘Diversifying Russia’, which focuses heavily on the urgent and overdue need for diversification.

Dependency on oil and gas is a major issue. “In fact, the share is higher, today, than it was fifteen years ago,” he said.

He warned of corruption but he also pointed to the growing middle class which is “demanding higher quality products that could often only be manufactured in Russia by western companies.”

Key challenges

• Labour productivity one of the lowest amongst industrialised nations
• Energy intensity about 2.5 times higher than the world average
• Dependence on commodities
• Corruption

Key projects in 2012

• PCMA RUS, a €168 million loan to automotive producer for the construction of a modern car plant,
• KDL, Russia’s third largest chain of labs for medical testing,
• Katren, the third largest pharmacy wholesale distribution network,
• software developer Prognoz,
• telecoms infrastructure operator Russian Towers,
• KupiVIP, Russia’s leading online fashion store,
• Fenice Rus, an energy service company (ESCO) providing turn-key energy efficiency solutions to industrial companies,
• Far Eastern Republic of Sakha, Yakutia, a €75 million loan to modernize municipal district heating
• RAO ES Vostoka (ESV) and RusHydro, a €100 million project to switch from coal to gas fuel at the Vladivostok power plant, alongside reform of the isolated Russian Far East power system.
• MICEX Stock Exchange, equity investment to improve corporate governance ahead of its IPO in February 2013.