The document discusses opportunities for investment and business cooperation between Russia and Asia. It provides an overview of the Russian economy, highlighting its growth potential and sectors of interest such as raw materials, agriculture, and infrastructure. Specific investment opportunities presented include projects in steel production, grain terminals, soy processing, woodworking, and biotechnology. Case studies demonstrate favorable returns for projects in various Russian regions. The organization Russian Asian Business Union is introduced as a partner to facilitate business connections.

1. Russian Asian Business Union
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2. Russia is the sixth largest economy in terms of GDP.
GDP at purchasing power parity, $ trillion
8,7 4,9 3,9 3,1
2012 $4 Tn.
According to forecasts, by 2019
the Russian economy will grow
to $ 4 trillion.
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9,5
23.2
19,4
5,4
4,1
3,9
China
United States
India
Japan
Germany
Russia

3. 18,6 8,7 4,9 3,9 3,1
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Gold and exchange currency reserves of the Russian
Federation have increased more than 30 times. $ Bn.
The capitalization of the Russian stock market has
grown almost 15 times. $ Bn.
2017 2018 2020
1,8% 1,9% 2%
GDP growth rate, Russia
total population – 143,44 ml
GDP growth rate, Kazakhstan
total population – 17,67 ml
2017 2018 2020
3,3% 2,83% 3,2%
GDP growth rate, Belarus
total population – 9,5 ml
2017 2018 2020
0,74% 0,66% 1,55%
GDP growth rate, Ukraine
total population – 42,5 ml
2017 2018 2020
2% 3% 4%

4. 2014 2015 2016 2017
Exchange rate
(RUB/USD)
33,6 60,9 70,3 57,6
The process of recovering
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5. Every threat is opportunity
Weak ruble
• good for
export
Sanctions
• good for Asia –
Russia
relations
Volatility in
stock market
• good for risky
investors
Emerging
market
• Future
development
prospects
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6. Pros
key interest rate of 10% and inflation of 5%,
Russian bonds yield good income, higher
than income in developed economies
free port in Vladivostok
localization of production
cheep labor force
a good potential in terms of raw materials
sales channels
potential growth of consumer activity -
investments in trade can bring good
dividends in the future
tax reduction
banking system
Cons
language
boom in speculative flows into Russian
assets. Non-residents actively implement
the carry trade strategy, borrowing funds
in USD/EUR converting them into rubles to
buy Russian bonds and other assets.
geopolitical uncertainty
low return on investment in most sectors
of the economy
regulatory framework
the lack of development of the credit
system
the low level of profitability in certain areas
the lack of economic stability
difficulties related to currency legislation,
and problems of repatriation of profits
difficulties with the return of VAT on the
export of goods
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7. Risk Reduction
High-yield government debt
securities (the share of foreign
investors exceeds 30%)
Business has learned to live
in new conditions
The state and major business are
increasing the issue of debt securities
on the wave of economic growth
expectations. State bonds will bring
7-8% per annum, and corporate
bonds - about 10%.
Real Estate - Buy
cheap and Sell
expensive
Stock Market
We allocate blue chips:
LUKoil, Surgutneftegaz,
Bashneft, Gazpromneft and
NOVATEK, Rusagro
holding and IT companies
Luxoft and EPAM Systems.
Shares of the Moscow stock
exchange - you can expect 6-
8% of dividend income. At
the same time, its shares are
not subject to external risks
and a general decline in
demand.
Russian Asian
Business Union:
• familiar with the
Russian approach
• huge network
• only up-to-date
information
• customers from all over
the world
• effective working
assistance
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8. 2016 - $ 32.539 bl. $ 16.3 billion from residents of Singapore
In 2016, the most attractive for investors were the business areas such mining, refining, food
industry and pharmaceuticals. In 2017 - infrastructure, technology, agriculture, construction
of toll roads, ports and airports.
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9. Success Stories
• RFP Group - Russian timber holding – Russia China Investment Fund
• VOLTYRE-PROM - The largest Russian manufacturer of agricultural and industrial tyres – One Equity Partners & Titan
International Inc.
• "PhosAgro" is a Russian vertically integrated company, one of the world's largest producers of mineral fertilizers – Russia
China Investment Fund - Mubadala Development Company and other leading Middle Eastern and Asian co-investors
alongside Baring Vostok Private Equity Fund V agreed to acquire a 25% equity stake in Thalita
• RDIF project on the construction of small hydro power plants in the Republic of Karelia in cooperation with Sinomec (China)
with the support of the BRICS New Development Bank.
• RCIF investments in Eurasia Drilling Company, Transneft, PhosAgro, Detsky Mir, RFP and Dakaitaowa.
• Moscow Exchange Group manages the sole multifunctional exchange platform in Russia, which trades stocks, bonds,
derivatives, currency, money market instruments and goods. Invested by China Investment Corporation (CIC), BlackRock, the
European Bank of Reconstruction and Development (EBRD), Cartesian Capital and others.
• КАRО- New generation cinema chain.Invested by Baring Vostok Private Equity and UFG Private Equity.
• MAYKOR is the leader of Russian IT and business processes outsourcing market. Invested by European Bank for
Reconstruction and Development (EBRD), CapMan, one of the leading Nordic alternative asset managers. 2013
• HYPERLOOP ONE - An innovative company engaged in the development and implementation of a breakthrough concept of a
high-speed transportation system that allows passengers and freight to move at a speed of up to 750 mph in special
capsules through low-pressure tubes. two investment rounds in 2016 in cooperation with leading international financial and
strategic investors — DP World, Sherpa Ventures, Formation8, ZhenFund, Caspian Venture Partners, 137 Ventures, Khosla
Ventures, Fast Digital, Western Technology Investment, GE Ventures, and SNCF (a French railway company).
• Retail companies investments – Lenta and Magnit
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10. Creation of the Khabarovsk steel works
Construction and maintenance of the modern steel-smelting production with release of 242
thousand tons of steel products per year (with a possibility of increase in release up to 350
thousand tons).
· NPV - 2 935, 2 million rubles
· DPBP - 6,3 years
· IRR - 35,1%
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11. The establishment of a grain terminal
Primorskiy krai
The modern grain terminal power on transfer of 3, 5 million tons.
The largest importers are China will import to 100 million tone of soy per year and 10-15 million tons of
corn per year, Japan imports 25 million tons per year of grain , South Korea - 10 million tons per year.
· Revenue per year, (2027) - 4 466, 8
million rubles.
· Net profit per year, (2027) - 3 299, 4
million rubles.
· Tax payments, (2017-2027) - 896, 8
million rubles.
· NPV - 1 372, 2 million rubles.
· IRR - 37, 3%
The total cost of project implementation
is 6 641 million rubles
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12. Construction of the plant of deep processing of soy
Tyumen region
· Creation of a vertically integrated enterprise to produce of deep processing products of soybeans for
food and non-food purposes using modern production technologies;
· Obtaining a competitive product with the lowest cost and the best consumer qualities.
Implementation of the soybean processing project is planned in the city of Yalutorovsk.
· Discount rate of 15%
· The payback period is 29 months
· The discounted payback period of
35 months
· Average rate of return 62%
· NPV - 384 million
· Internal rate of return of 40.2%;
The cost of the project is 525.4
million rubles.
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13. Expansion of woodworking production
Khabarovsk Krai
· NPV - 31 366, 00 thousand rubles
· IRR - 11,44%
· PP - 6,45 years
· DPP - 9,97 years
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14. Creation of a biotechnological complex
Kursk region
Creation of modern ecologically safe product
"Fructose" (food processing company) - plant for deep processing of wheat into finished products: dry
wheat gluten (gluten), modified starches, glucose-fructose syrup (GFS), molasses and bran.
The plant capacity is 250 thousand tons of wheat per year.
The total cost of the project is 146 000 000
Euros.
· Payback period of 5.82 years;
· NPV - 4 620 666 thousand rubles.;
· PP - 6.91 years;
· IRR - 18,8%;
· PI - 1.47
· MIRR - 13%
· Total net profit of 10 916 313 thousand
rubles
· Total cash flow 6 642 252 thousand rubles
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15. Annual revenue – €83 million;
· EBITDA – €19,2 million;
· PP – 8, 5 – 10 years.
Finance - 38 117, 25 million rubles (€539, 5
million).
Including:
· Estimated cost at an investment stage of the
Project – 14 011,54 million rubles
(€198,3 million)
· Reinvestments at an operational stage of
the Project for maintenance of design
capacity of seaport – 24 105, 70 million rubles
(€341,2 million).
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Deep-water versatile seaport
Republic of Karelia

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