Strategy and general management
Russia, leadership, general management
After a decade of a spectacular retreat, Russia is re-emerging as an active player on the world scene, and for the first time in its modern history is becoming a serious factor in the global economy. With its $1000 billion economy set to grow at 5-7% over the next two decades, 27% of world gas and 6% of world oil reserves, the largest territory in the world and the largest population in Europe, the country is once again attracting the attention of the West and the rest of the world. While politicians and intellectuals warn of Russia's increasing assertiveness and criticize its government for suppressing democracy, business people vote with their dollars and Euros-in 2007, Russia received a record $87 billion in foreign investments, more than double the amount of the previous year. It is a market no serious global company can ignore. Domestic consumption has been growing at double-digit numbers for the last 3 years, real estate prices in Moscow have reached London levels, and in 2007 Russians bought more cars than any other European nation except Germany. Disposable income for a large segment of the population has been increasing steadily, allowing the purchase of luxury goods and foreign travel-28 million Russians traveled abroad in 2007. The foundation has been set for a property-owning middle class. Thanks to its oil-fueled economy, Moscow can now count itself as the city with the largest number of billionaires in the world. In its turn, Russian business has started to expand internationally, with deals such as Evraz Group S.A.'s purchase of Oregon Steel Mills for $2.3 billion and Gazprom's acquisition of the Serbian gas monopoly. In short, in 2007, Russia invested $54 billion outside its borders...
With permission of Elsevier